City Council - Regular Meeting

Reinvestment zone number two meeting Wednesday, August 26th. It can start at 4.09 p.m. We're called to order. B1 is consider approval of the minutes of the August 2024 and August 2025. Chair is number two meetings. Any questions on the minutes? Not from two and three years ago. I'm good. You're good?

We're a year and two years ago.

All right. So motion to approve. I'll make a motion to approve. Okay. Councilman Wiley second. approved unanimously. B2, receive the Keller Tax Increment Reinvestment Zone number 2, September 30, 2025, annual report, fiscal year 26-27, budget update, and tax year 2026, estimated in-person. Who's leading that, Brian? Yes, sir. All right. All right.

Which one are we doing first? Green returns. Green returns. Yeah.

Yeah, I see the light.

on that if the answer is no then we can consider the report accepted yeah we do have some we do have some money so this is our fifth year of the TERS just a quick reminder of the board, that all of the participant agreements are at 50%. And if you would want me to skip all the way forward to where fund balance is. Not at all. I will go through this pretty quickly. It's a pretty quick presentation anyway. If you have any questions, you just shout, raise your hand.

My first comment would be, is there anything else you can call it?

No.

That's okay. So I'm good after that.

Yeah. That state law requires that modification. They require that you number it. So we had a TURS number one. That was the town center area. So this is TURS number two.

This is the project or financial plan, so this is the wish list. If everything goes better than amazing, we have plans to spend up to $129 million on these items, mostly streets. Just as a reminder, if we want to deviate from this plan, we'd have to bring that to the church board. well above and beyond the projected revenues over the life of the tourist.

And if we wanted to remove the railroad? I ask that every time.

Nothing on here is required to be spent. This is just what can be spent. So we don't have to spend anything on the .

It was a proposed railroad stop here in Keller on a railroad that's not rated for human beings. So if we put one there, humans could use it anyway.

They cast a real wide net of what the world might look like in 30 years to make this list. Again, I think that the key part of this project, the hype zone number two, is focused on infrastructure. The streets, drainage, water, wastewater, in particular the streets and the drainage area.

With that listed, though, as a...

it and you had 20 million extra you just reduce it by 20 million you'd move it to other things yeah basically what they did is they um to the mayor pro temp's point you know uh there was some discussion about that and this is just a laundry list of things that theoretically could be spent it's like it's at the council at the

part of the $20 million if, for example, like we had happen this year, the railroad says, oh, it's going to be an extra $150,000 we didn't tell you about up front. Could TERS money go towards those expenditures?

I want to turn to Alonzo and say

the improvement to the TURs, not just additional...

It depends on... As long as it falls within the TURs boundaries.

As long as it's within the TURs and it's part of the infrastructure to support that TURs growth.

Okay. You know, I'd also want to caution... I believe we have a list of, as I'm staring, I'm staring at the initial draft of projects that we would consider for the TURs, so we want to make sure it's listed as part of that list.

It is not that concentrated, is it?

There's not really, so... Sorry. Let me, before we worry about reallocation, Brian alluded to this, but I'll cut more to the, as they looked at the financing plan in total, what we might be able to achieve out of this zone, it's about $60 million. So more than likely, you're going to cover some of these projects, but not all of these projects. Like he said, if everything goes great, then at that point, we can have a conversation. And yes, the reallocation will be coming back to the board to say, can we amend this to we're not doing rail

I think it comes, I believe it comes back to this. Should just come back here. So, yeah, I mean, if you wanted to change it up a little bit or whatever, then we just come back here next meeting and change it up. Okay. Any questions?

All right. Real quick and easy slide. We've issued no debt. Don't have any plans at this time to issue any debt. So, budget summary. So we've never spent anything out of the church fund. So each year the revenues are going into fund balance. Taxable certified values are here with the incremental value. So the next slide will show what we are projecting to bill and receive in revenue. So total ad valorem tax revenue of $495,000 in FY27. Those tax rates there in the middle, those are proposed tax rates. Could potentially change a little bit, but I feel pretty good about these numbers. And then finally the overall Summary, at the end of FY27, we expect a total levy of just under $1.7 million, which is about $453,000 above where the original plan would have us at the end of FY27. FY27 itself, just as a single year, our levy is a little bit lower than what was projected. But overall, the doing better than expected from the original plan. Great. And I think this is the slide you wanted to see from the beginning. Total fund balance at the end of FY27 is projected to be $1,750,000. So that's up from $1.2 million in FY26. So to counsel on Will's point,

I don't think it was, was it? The Union Pacific issue that we... It technically is... Go back to the back. Did we pay for both sides of that road? So you joined at the right time. Yes, we just started. You want to briefly introduce yourself for folks in the room that

Pam Anglin, I'm with Carrick County College. I'm the chief financial officer.

Thank you so much for being here.

That intersection is covered by the purple.

So, again, we could amend it to include those things, but that's not a, they did not put Keller Hicks on a. Oh, interesting.

Yeah. And Mr. Mayor, I know you talked about this a month and a half ago when we had that, just for our newer members, will be very beneficial to the overall terms. And that's why that one part

from Appleworm? Is that the number? That's the number that sticks in my head. I can't remember which project we're in.

Staff of Evergreen?

It was 60 houses and 45... That was roughly $200,000.

Is it the top one? Yeah, that right there.

But the...

I don't even know.

It's just north of where you live.

I think it's in there. Yes, sir. I think it's in the church.

Yes, sir. Samantha's place is in the church.

So it's just interesting. I mean, big picture, it's... That's what we've renamed the TIRS, by the way. Economic Development Homes. It's still the TIRS number two. Good? Yeah. About 1.3 in there?

Currently 1.2 at the end of FY27. Rejectable. 1.7.

Any questions now?

No, I mean, I guess not that I'm advocating for debt. I didn't even know you could get debt within the TERS and then pay it back if we had a big project we wanted. I'm not advocating for that, but that's what the debt slide was.

Yes, we could issue debt through the TERS.

one that was we did issue debt that's how we build town the town center area on the 90s around here so they issued debt early on this one was where the structure a little different where we're looking to use this to have cash fund capital projects yeah it's kind of building up that's what you're seeing is building up and then if needed could issue but likely trying to focus more on that cash funding okay

What's on the vision list for this funding bucket? We have the allowable expenditures, right? We have the big picture. Has staff thought about any sort of... Splash patch. Is it like, well, yeah, could be. Or it could be the OTK East side streets.

Correct. You could look at some OTKs. The other one is the drainage north on 377. That's another area that we've highlighted as a really good use of the TERS funding where it's flooding. So those are both acceptable and even some of the activity in the sports park roadways because that was included in the TERS as well. So yeah, but Old Town and I'd say north 377 are probably your two key targets early on.

On that water issue down there, I'm assuming that

We have engaged a third-party contractor to put together a concept so that we can at least approach a state and say, we're doing our part. Help us out.

We're at least getting an idea together. At the end of the day, the only solution is to provide more capacity underneath the road. I don't know how often you drive that part of 377, but when you get to Ridge Point, and then it goes downhill into the swale until it gets to Marshall Creek to the north. It's that swale that gets over top. So you either raise the road or expand the number of channels underneath it, or some combination of the two.

There's a for sale sign on that property there between Ridge Point and that northern entrance into Marshall Ridge. That low spot has not affected the value of that property. It's still around 13 million. And four acres of it is not usable.

Interesting. Well, it's getting healthy enough where it's starting to be interesting. So, probably time to start thinking about how much is it accruing? What are the projections for the next three to five? That's probably my last question. So, are there In terms of this, so 27, 28, 28, 29, so we're adding, what, half a million a year?

I'd say it's going to kind of hold on that for a little bit until we approve a big development.

Okay. All right. That's what I was asking. If there is some useful project, and I'm not saying use death, but I had never thought of it that way, and that's how I was asking, because that's how Town Center was built.

There's no action to be taken. We just have to receive the report, right? So we're going to adjourn the tax increment reinvestment zone number two. You know, I said 30. Some of us didn't believe it was around five. Maybe we could spend like 15, 20 minutes on this and leave enough time for council questions.

Does that work for you guys? So most of these slides you have seen already. So I can fly through this real quick and just stop me if you have any questions. Started the budget process in March, about five months in, got about another month to go. Our essential points, nine straight years below the no new revenue rate, total personnel increase about 4.25%, including the largest public safety increase in at least the last 10 years. a proposed operating budget of a little under $112 million, most of that being general fund and water sewer, or water wastewater. All right, total revenues are citywide projected to increase about 1.47%. We have a lot of slides about property taxes, but property taxes at the proposed rate will decrease by about $631,000. Expenditures are projected to increase by about 0.52%. The largest increase being personnel services at 4.3%. That's by far the largest expenditure within the city. Other large ones including wholesale water purchase from Fort Worth and wastewater services from TRA. And of course debt. Expenditures by fund, general fund, Increased about 1.14%. Most of the wastewater, 4.98%. Most of that is water purchases. Increase for water purchase. The self-insurance fund going about 21%. That's health insurance costs. Our proposed tax rate. We adopted that proposed rate. At the last meeting, we will vote on that on September 15th. So that's that column in the far right with the red rectangle around. Our property values, going back to FY21, just pointing out in the far right column.

And I think it was always about 160,000.

OK. In the future, with the change in TAB policy of 5% every two years versus 1 over 10, I mean, we're already housing prices going down, maybe next year we might need to start looking at how it's going to affect us over the next three or four years, because it's going to start being, unfortunately it's going to affect us since we run lean. Other cities that have been charging too much, it won't hurt as much, but it might be good in future years for us to make long-term decisions to the effect of that.

based on just percentages, but I've kind of alluded to, we're just gonna adopt this budget and then immediately go into FY28 mode and start thinking about what packages would look like to kind of start recognizing, while we're a lean, efficient organization, What are our opportunities to kind of move things around, take advantage of the funds that we have? And we've got to focus on sustainability. We're at build out. We've got a little bit left, like we talked about with the TURs. But sustainability is going to be our key here in the near future.

Well, I think it's safe to say that the economy of today is not the same economy we had eight years ago when we started down this path.

I think we're all missing the economy from a couple of years ago.

here, we just did not see the usual tick up from the June estimate getting up closer to the May to July certified values actually came in longer than June. That's what this slide is showing. New construction, again, was about $160,000, most of that being residential. Our average market versus taxable history, our average $19,000 from FY26. So that's why the no new revenue rate was calculated by the state increased because home values decreased. And again, they're proposing below the no new revenue rate. As this slide shows, we've been below the no new revenue rate for the past nine years, going back to FY19. Post-tax rate column right there in the middle, annual change for the average homeowner is $7.34. That's for the whole year. Average per month of $115.08. Since FY14, the city has gone to a 20% homestead exemption. That's the maximum allowed by the state. Saving homeowners a little over $1,200 per year from what they were paying in FY14. It's about 5.67 months of services.

What's the proposed $1,381 figure mean?

That would be the tax bill for the average homeowner, the average home value. This is a new slide for this presentation. It's a slide that's shown every year these five cities, just kind of showing some of our neighboring cities, what they're doing with their...

We have that information. Grapevine could literally remove $150 million from their budget and be on par with the City of Keller. And that's interesting to me because they're roughly the same size population, which literally means the town city, it's the will of the residents, right? But they could send $3,000 on that, I'm like, that's wild. And honestly, a good testament to what we're doing. So yeah, you got the lovies up there. I think that's the right slide.

Yeah. Yeah, we just wanted to show both, show how they related to each other. And then we, these are just some proposed comparison cities. So this is something new for this year. I wouldn't even, again, I would tell you the same thing.

Like, it doesn't. You know, and just a little history of why we always, because we, in prior, we would, well, Southlake or so-and-so has this rate, and we want to make our guess. They have that rate, but here's their levy. So that we can segue just exactly like you're saying. This is the number that really matters, is the levy on that average household.

slightly lower than us this year, but their average levy is almost double.

That's correct. And remember, their sales tax is also almost double. Not quite as high as you're alluding to.

Well, the highest tax is...

So again, just want to point out, all of these rates are proposed. We like Southlake, so let's pick on Capel.

Well, I mean, looking at Colleyville, Watauga is interesting, and Halton.

As a reminder, Halton's got a new commercial development coming along, 820, and a good amount of multifamily debt. Yeah, I've seen it. Yeah. So a little different. Even with ULIS, while they're a little lower, they get the benefit of the airport rental. And so, again, as I've said with Greg, if we can have a portion of the airport, we can change things a little bit here.

I know a spot for Keller International Airport. All you need is a flight from Mexico and a guy has a strip on his property. I'm just saying. in College Station, that's how they, when Tony Blair visited, became International Airport, Easterwood. So I'm just saying.

Legally, I like it. So it's not the number of flights, it's just destination. Two countries. Just saying. Keep that in mind. Anna, this is getting a lot of assignments for you.

but their 2026 proposed levies would be just on the average, on the average house, and how that changed from last year.

So, sorry, this is interesting, actually, because I was curious for this year. So the bulk is KISD. As always. As always. I was curious, like the community college, based on the changes. It's interesting. So the hospital district actually is going down.

little bit okay in the county yeah okay quick general fund overview we do have an operationally balanced budget so that's a great I don't think that's a normal slide by the way the one that you I'm not seeing that Expenditures exceed revenues, but it's an operationally balanced budget. It's just the one-time expenditures that we have in there. But the average taxpayer, kind of how their monthly tax bill is broken up between the departments. As mentioned earlier in the general fund, personnel services take up the bulk of expenditures. That budget variance, 4.85, includes the large increase for public safety. Transfers to other funds are decreasing in an odd number of years. We're not doing the extra transfer over to street CIP. We'll pick that up again in FY20. Here's some of our one-time expenditures in the general fund. We showed this a couple weeks ago, along with the compensation increase. As Aaron mentioned earlier, this is the general fund five-year forecast. So just draw your attention to those. to circle areas in FY29 and 32. That's where we are operationally out of balance. Revenues are a little below operating expenditures. FY30, we are operationally balanced. Even though there's a larger delta there, it is because of one-time expenditures. The black lines across the green fund balance bars, that's just showing where the fund balance policy is.

So, Jarrett, just in case, by state law, we're required to be able to run the, is it three months? We have to be able to sustain the city for three months based on what would be in there?

Our policy is 40% of ongoing general fund expenditures.

But what's the state? Is the state 42? I don't remember. But anyway, that's what the line is.

Because we raised ours.

From the rating, it's as high as you can make it.

They're never satisfied. What's the state? I don't believe the state has that limit. I think they have 30. You guys told me one time that it was...

that you have to have.

20 to 25%. Where does that come from, that number?

Is that just like financial?

Just kind of a fairly standard.

Okay, and then we're at 40? So the black line up there is R? Yes. Okay. Yeah, we're above our own self.

Yeah, above our own standard. And as a reminder that you also, as you look at that, You're not going to get a straight answer from a CPA firm, auditors, or the state or anybody, what that threshold is, because they're going to say it needs to be tailored to each city based on their financial situation. One of the things we talk about each time with fund amounts is we've pushed more and more to be sales tax dependent, which is more volatile. That's why we've held ourselves to that higher standard and built that policy up higher from that 25 up to 40. Yes, sir. And we invest that money, too.

Yes. So with that security that y'all have done over the years, is that going to make it easier for the magic 50,000 threshold?

Well, money always makes it easier. Yeah. You have to handle it.

It certainly helps.

at the second meeting September on kind of he's done some research on I don't want to spoil it because I was spoiling it's honest anyway so we'll have an update on it so we understand a better understanding on the 50,000 issue it will and you'll see here in a little bit we have time we've already started addressing some of those concerns with some of the FTE changes we've made Is that accurate? I've been saying it a lot, so I want to make sure it's accurate.

Conceptually accurate. How's that? I mean, we'd have to work around with banks and everything, but we would persevere. How's that?

All right. So this is just the assumptions that went into that previous slide.

the these assumptions we're making we've kind of talked about that we're assuming value growth of 2% and sales tax growth of two and a half at least kind of maintaining personnel a little bit the first year and going is holding that 4% holding under replacement funding and then the idea is we would move some cost to the crime control and KDC operationally and then that slide you just saw would take away potentially issuing debt in 2029 So it's a holding on to the meat and potatoes budgets that we currently have, not really getting too excited about other things. If we were to hold on to the debt that we were slated for in 29, there we go. Now you kind of see that impact. So that's that, you know, then Council Member Doherty's point. Thinking about what that means, how do we do that? I know street maintenance has been a big push, and so we want to recognize that. We've got to think about how we're going to craft that into these budgets, especially if we continue to see values coming out of TAD like this. That's why I said we're going to get this one put to bed and then immediately segue into what does 28 going forward really need to start looking like so that we can continue sustaining.

So you're $150, this year is the same as $150, and that $115 monthly next year, no matter what the rates and the accounting stuff is.

I guess where I'm at is... Well, if the value of the homes goes down, that's what I was referring to, too.

Yeah, but I think that's, honestly, it's a good point, but to me, the most relevant thing is the levy, and so the bigger issue is the assumptions. So you're anticipating, what, two to about a quarter million dollars in additional property tax revenue every year. Maybe it's $300,000. It's going to be a little closer to that. Closer to $300,000 in property tax revenue that we're building our assumptions on and an additional about $200,000 in sales tax. Is that right? For the general fund, yes, sir. Yeah. And so as a council, when we're making decisions, I mean, I'm using really wrong numbers, but we're trying to come up with an extra half a million a year.

And then that's going to continue to... Can you go back to the previous slide that showed the away. Like just the yellow to his point, but the yellow one. Try to stay above that 20 million to his point. You said half a million rolls?

Yeah, really wrong numbers. Like that's kind of where I'm like, okay, you know, we have a couple projects that are in the queue. I can't remember them all right now. I've written them down somewhere. There's like What are they? You probably remember them, Aaron.

Samantha Springs is one of them. We have Armstrong Hills.

Armstrong.

one and then two. In the flex space. In the flex space, that's a big one. That'll be the big one. Yeah. Keep in mind that one also has an incentive on it, so especially with the sales tax side, while we'll bring sales tax in and increase that, we'll also give a portion of that

Because at his point, being very dependent on property taxes is dangerous.

But then again, it'd be nice to be grapevine.

It does bother me that the rent bar is larger than the food bar. Yeah, the expenditures exceed revenue. That's why the fund balance goes away.

when values go up, then all the new property coming on, we get the full value of that. So, yes, values go up, the new revenue rate goes down, So this was just the exact same.

But showed the impact of that debt insurance.

Yeah, the only difference on here is we did issue the debt in FY 29. So all the other parameters are the same. All right, now hand over to Marcia for compensation.

So all this information should not be new to anyone. The proposal for general government, so your public works, parks, library, town hall employees, is 2% market, so all employees will receive that, and a 2% merit, which is employees that are eligible have been hired prior to March 1st of this year. The minimum merit is $1,500, and the max is $3,000. Public safety, we've talked about this a few times. Definitely wanna highlight that this is the largest public safety pay adjustment in the last 10 years. So definitely something to celebrate. 5.83% market and 2% merit. And the employees that are maxed out will receive a 1% lump sum instead of the 2%. This is the entire public safety pay plan. On the net comm, dispatch, and detention side, we are adjusting the pay plan by 2%. similar to general government. We will continue with the removal of the steps because they still have 12 and 13 steps on their plan. We want to try to bring them down to 10, like police and fire. That results in a 2% adjustment as well. And then, of course, their step that they will move. So it's a total of 6% for our dispatchers and detention officers. And then anyone who is maxed out will receive a 1% lump sum.

I would just say, on I think that's great.

That's definitely the plan. We think we have at least another couple years to get there. One is longer than the other. I think detention is one step longer than a dispatch, but absolutely, sir. So health insurance this year, we discussed this a few times. It's been a challenging year, not only because of high claims, but also medical inflation in general. So we have put some mitigation efforts in place to try to preserve our self-insurance fund. So starting with the top, we did increase deductible return for an out-of-profit cost, which would yield about an $81,000 savings to the plan. In addition to that, we also added an additional salary band. I'll show you what that looks like in a second. So that employees that make over $125,000 are actually for their health insurance premiums. The employee contributions were increased by 3%. One thing to note is that we had not increased our insurance premiums in five years, which is something that we always did celebrate. Unfortunately, this year there is a slight increase of 3% that's yielding about 19,000. And then the city's portion is being increased by 10%. So we're putting an additional $355,000 into the self-insurance fund, in addition to absorbing about $450,000. Our budget forecasted deficit from our broker is about $702,000 for next year. So all these efforts that we're putting in place will help mitigate that and preserve our fund.

Hey, Marsha, what did the deductibles go from to?

So there's actually a slide on that. The individual went up by $200. Let me see if I can get to that. You may have to unhide it. Unhide the deductible slide.

Are you going to show it? If you're covering it, don't skip to it.

No, it's in there. It was just hidden. I'll get it for you in just a second here.

So by... Increasing 3%, we save $19,000. Correct. Yes.

One of the things we've always talked about, we have good benefits here. They're comparable to other communities, but we've always been recognizing not as positive on the compensation side, but we've been positive on the benefit side. That's how we offset that.

we have to pass that on because it's $19,000. But like that $200 a month that Councilman Armstrong is paying, that means a lot more to the individual employee than maybe it does in the context of the city budget.

If I can play the devil's advocate. Before we became self-insured, we were with Bruce Ross Blue Shield. if the city does a city pay.

The percentage varies based on your salary, on the salary band. It's approximately, let's say, 75% to 80%, depending on what coverage you have, too. Right.

So it's 75% to 80%. In my company and most small businesses, and that seems very generous to me, 75%. And so in my world, I think as long as we maintain, and correct me if I'm, I'm doing cowboy math, correct me if I'm right or wrong, but if you take what they would be paying comparatively if we were not self-insured, even with the 3% increase, are they still not in a better situation?

Yes, and we ran some projections on what our plan would look like if we were still fully insured. It would be a lot more expensive. I don't have the numbers available, but we do have some significant savings in the millions based on us going self-insured.

And I agree. No, it was a good argument.

$92,000 isn't a lot in the grand scheme of things when it comes to such a large budget. The goal here was just to start working towards putting funds back into it to keep it sustainable. And we did not want it to affect the employee's pocket that much while we went with such a low amount, but wanted to at least start addressing it and maybe phasing it over time.

Rather than a lump sum.

I mean, obviously, it's only four people. But everybody across the board saw a huge 30% to 35% pantries this year. We just did it in December. And so, I just think that as long as we keep this alive and we're able to sustain it, it will, in the long run, be better by far and away for the employees.

Good discussion, though.

Absolutely. And to answer your question, Mr. Armstrong, the deductibles, that's a change right there on the side on the right, the difference that's going up. If anything, I mean, this one would probably have a larger impact, at least at first, when you're trying to get your deductible for the employees, especially if you have claims early on in the fiscal year.

Do we do FSAs and FHAs? Yes.

The city does pay or contribute, better said, to the employee's health savings account. So if you're an individual, you get $500, and that's over the year.

Oh, the HSAs get $500?

Yes, and the family gets $1,000 from the city.

Because where I work, you have to wait until you put money into it throughout the year to even spend the HSA, but the FSA is funded from the beginning.

Yes. That one is funded from the beginning, but that is solely employee funded.

No, no, I get it. But I mean like the HSA, the 500. The reason I'm trying to say it's a big deal, like where I work, we had to switch. But the HSA, it's great to have, but you have to fill it up throughout the year. For 500 to be in it from the beginning, like your kid has braces or something, that's nice. Oh, okay. Yeah. Like you can use it immediately. That's nice.

Let me correct that. No, we do...

No, no.

Well, you run the risk that somebody gets tired and then they leave and you lose all that money. Well, that too. But no, we do it by pay period.

Because that was one of the differences between FSA and HSA.

The only time that we've done the lump sum was when we This site is extremely busy, but what I wanted to show you here was what our premiums look like based on the different bands. So that first band on top is for employees that make less than $50,000 a year. That second band is for anyone between $50,000 and $70,000. The third band, between $70,000 and $100,000. The fourth band, which that's where it ended before, we added that fifth band. for employees that make between $100,000 and $125,000. And then the fifth band is for anyone making over $125,000. So in the far right column, you'll see that 3% increase. So in certain cases, the amount is not. If you're an employee only, it's not a huge impact. It does get more expensive, of course, when you do have families on the plan. And then the larger increase was that fifth band for the employees making $125,000. And it affects about 19 employees in total. We are proud of our insurance plan. It's definitely, other than TMRS, it's definitely our second strongest benefit. Attrition, I wanted to just show the slide so the council can see where we're at. As of August 20th of this year, our trend has been about 16%. We're at 15% now. Likely we'll be there at 16 by the end of the fiscal year, but just wanted to make sure I showed this to all of you so that you knew where we were at when it came to turnover.

And as a reminder that as we look at that attrition rate, that doesn't translate to vacancy savings. A lot of those positions we have to then backfill with overtime, backfill with overtime looking at. dispatch, police, fire, they're having to continue to provide those services even when they're down positions. So that's why it's important that we monitor that and see how things are going.

Okay, and then the last slide, we saw this during the last presentation. This is just the changes that we have for the full-time equivalent positions. We are going to be filling that receptionist position with two part-timers rather than a full-timer. On the development services side, We will be removing a full-time permit technician position and a part-time intern to create a development services specialist position, which will help with business retention, expansion, and acquisition. On the Keller Point side, we are going to be eliminating various part-time positions in order to fund a full-time recreation coordinator position, which helps them in their facility operations. We've added the KDC position, We will be taking a position from the streets department, a maintenance worker one, to help with the sports parks. So we're swapping up from streets to parks. The construction inspector positions, we'll be contracting those services. We will be moving a part-time environmental services tech to full-time. Primarily, this is to meet the several demands that we have now for water conservation and reporting. The traffic supervisor position, this is a sneak peek to Alonzo's conversation in a few weeks. This is being done in advance to get ready for that 50,000 threshold. We will be required to maintain our signals at that point in time, so by creating this division, we're getting ahead of the game. And we're using one of those constructor inspector positions to fund this traffic supervisor position and create that division within the public works department. And then last but not least, utility billing. We have removed one field technician position due to the use of the AMI meters and automation in that department. We ran lean for about six to eight months and were able to run operationally Well, and I decided to unfund that position to use it to fund the rest of these changes. So our total FTEs are changing by a little less than two, but the movement does allow other departments to use those positions in more effective ways.

So the part-time receptionist, is that for the front desk area?

So rather than having one full-time, we'll have two part-timers up there.

We're still having to budget the digital kiosk side of that as well so that we can upgrade that area as we put it on the strategic plan.

Marsha, what are the titles on the town hall operations personnel?

Oh, that's our facility. We have three facility employees. Facilities manager and two building technicians that deal with HVAC and all the maintenance stuff in town hall. It's about Harvey. Yeah. Well, now he's at the point, but it used to be him.

Yeah, yeah.

So John and Steven and Rob. He's the ones that make sure that the AC is always working in here when we have these meetings.

Because they're better knees. They're doing their job.

So yes. And when I started working here in Kelner, too, I was very confused by that title. So I appreciate your comment that I'm not the only one that didn't understand what that meant.

But yes. They're not sanitation and janitorial.

No. I mean, very light janitorial. We do have a janitorial contract. But if something is needed during the day when they're not here, they can help with that. Yes. OK. Any other questions? No. Very good. So this is an overview of the water and wastewater fund. I'll show you a slide that has a lot more detailed numbers. Essentially what you'll see here is the proposed budget. The column in red is a little high for this next year, and that is because of the Alta Vista project with Southlake. This is another view of that fund and the expenditures. The blue area is the rising cost from Fort Worth for water. On this, again, another slide with the exact percentage of increase there. And then, of course, in yellow, the expenditures, those are transferred to other funds, which is the AltaVista project as well.

Would you cover that, or is it going to be covered somewhere?

Yes, if there's more detail here. Okay. Yeah, it's a little easier to digest.

So you can see... Speaking specifically on AltaVista.

Oh.

We're also going to talk about that on September 1st, as far as what that agreement is. Okay. Yeah.

So the wholesale water rates went up by about 7%. And then some savings with the debt service. We had some debt that fell off. So the budget variance is about 5% for the water and wastewater. In addition to this, very important to mention, too, are the increase in fees that we have for water and wastewater. Those, of course, are helping with the revenue side of the budget. And as a reminder, based on those changes to the fees, this is what a customer can expect as far as an increase on their bill. So it's about $6.02 for an average monthly bill. Moving on to the water and wastewater costs. to the water and wastewater five-year forecast. So with this, we do review our rates every three years with NewGen, our contractor. We make sure that we monitor these funds very, very carefully, but this is where we expect to look like in the next five years. The fund balance is within the the fund policy, but again, a fund that we will monitor very, very closely. And these are the assumptions. Again, the water rate increases, personnel matches, maintaining all the CIPs, debt issuance in 28, 29, 30, and then of course, based on the Fort Worth and the TRA growth.

CIP is what?

Capital improvement projects. So all of Alonzo's projects.

Alonzo's, how much more do we have to go?

I think the best of it can be pretty quick, maybe 10 slides.

We've seen most of this like two or three times.

Correct, yeah. I'm good with flying by it unless you have questions.

Do you guys have any, just for the sake of time, do you guys have any big budget questions that you want to ask? No, I'm still, I'm only like halfway through my book anyway.

I can buy these pretty quick. So on the drainage fund, the most important thing to note here is that dollar fee increase. Just keep that in mind. That's also included in this year's proposed budget. Again, the forecast for that budget, the fund balance looks very, very good. We do plan to use those funds to cover future CIP projects.

In particular, talking about dredging, and then also the other is the Bear Creek erosion projects right there. So some high-needed projects.

Other tax funds, we just talked about TURs, and we've seen the KDC and CCPD presentations. Any questions on those?

We usually have a presentation from the point every year. Is that coming up by any chance? I'm not sure.

They normally do an annual, of course, so we can talk about it.

It's okay. If not, I can ask you questions one-on-one. I'm just asking. If they're not, I can come later.

It's probably good for them to kind of have a departmental meeting.

Yeah, okay.

sure they're sustainable too yeah so KDC forecast just to note here you know there was a meeting last night the proposed budget does not include the the talks that we had about increasing the funds for Johnson Road Park potential we're gonna go to them and say here's what we want at this rate and see what happens yeah it's looking

That was awesome. And it's the Johnson Road one, the big one, like our flagship.

does not include is the parks maintenance funds that we're considering transferring over to general fund. Along the same lines, to cover the SROs, we were looking at transferring about 300,000 from CCPD to general fund. That is not included in here.

What? To CCPD.

What?

To CCPD. From general fund.

Yes. Yeah, the opposite of what I just said.

Yeah.

CIP highlights, we looked at these projects already. They are in order of cost. That's the Alta Vista water line replacement that we'll be discussing soon. Any questions on these? Okay, and then another few projects. So we have about 15 in the proposed budget that we have provided to you.

Can you, there's two that, I apologize, one in particular, because it's not, we're using some savings from facilities. One of the requests of the strategic session was to take care of the Old Town water tank. We do have fun that we found funding within the facilities for that. So we do actually have that in the budget. We'll bring forward ideas and concepts to you. So you can agree with that. So that's in there. The other that. Has been thrown around that we identified some funny in KDC, but I can't stress enough with all of these YouTube bites at the Apple is potentially having lights going along shady lane with Bear Creek. So, again, two bites of the apple so that you guys can see it. And I think we're still kind of vetting out ideas for that. So I apologize for not having those on there. That's on me. But we're still kind of debating what that would even look like. So when would we see those? We would bring them forward once we have some better concepts on those as far as what that would look like.

I think that's why we... There'll be a variety of opinions from residents on that. I'll leave it there. And then on the water tower, probably won't give any opinions. I'm joking.

Yeah, yeah.

I'm hoping they're all positive. Is the idea just to... I mean, when I was talking about the water tower, I was just talking about cleaning it up. I think it's cleaning it up in this... what I'm asking is I don't want them running down a lot of different concepts and designs and putting... I would not want to change it, but also I don't think that would go over very well with our... Just so you guys know, from a design perspective, their feedback, is that kind of where you're at?

Yeah, just keep it historically, update the lights so that they can be controlled from

Don't bring me some dandelions to replace the water tower. No, my intention is to keep it the same, home of the Indians.

Brian already went over this, I won't go over it again. This is just a reminder of all the things included in your proposed budget. The last slide is just a heads up on what we will be bringing for you as far as a budget amendment on the September 15th meeting. So, Color Sports Park, we have various funding sources helping out with this cost, but it is all for all the different extra costs that we had with that. There was some savings and also interest on that we'll be using to fund this. Self-insurance fund, we discussed how that was over budget this year, and that's the approximate amount that we expect to be over by the end of the year. The green ribbon grant, this is a portion that the city has to cover. The sports park gateway sign, about $122,000. That is for that project. And then for the railroad, that topic that Alonzo's been bringing up a few times. That's what that class is for. I'm sure you don't want to talk about that anymore. And then the last item, if you recall, the Bear Creek Running Club 15050 on the shade structure. So the total amount is 18. The city's portion is about 9,300 or so. So these budget amendments will be brought forward to you on the September 15th meeting for your consideration.

And we did factor these into fund balance estimates for the upcoming, as we look at the budget. Great.

And reminder, contagion on September 2nd, and then budget and tax rate adoption on September 15th, and then our fiscal year begins on the 1st.

Awesome.

And that's all.

¶¶ ¶¶ ¶¶ ¦ ¦