City Council - Special Meeting

The practice or art of calling wild game is the simple activity of going out and reproducing a sound that occurs naturally in the outdoors anyway. You're out in the middle of the night. It's incredible.

Many nocturnal animals don't see the color red very well at night. So Gerald uses this to his advantage. Then, if they stay around, he gradually removes the color.

During the nesting season, the male screech owl retrieves and brings a bug back to the mother and the fledglings on average of every 30 seconds. Can you imagine the amount of work he's got to do in a night? They live on moths and lizards and June bugs and all kinds of little things. Well, he's sticking around a long time.

There's no magic. just the good use of a few sounds and a lot of time recording them.

I looked up in this tree, and there was a bear in the tree. So I go in and tell my wife. She didn't believe me, of course. She had to come out and look.

Good shot.

He'll go down in a minute. He's in a perfect tree because he'll just hit those branches and it'll break his fall all the way down.

We're going to attempt to drop him down.

That's a big bear.

Council special meeting. I'll call this meeting to order at 3 p.m. At this particular time, I'd like to have roll call certification of quorum. I believe, looking at Madam Secretary, we have all members of Council present. Moving on to next item, citizens' comments. At this particular time, I do not believe we have any comments. So now moving on to the new business item presentation regarding the fiscal year 2027 proposed budget of non-property tax supported funds, including special revenue funds, internal revenue service funds. Staff, can you lead the discussion on this item, please?

Thank you, Mayor. Good afternoon, Council, and welcome to our first budget workshop for fiscal year 2027. Hard to believe we're kicking this off again, but we are. We got a series of them coming. We're gonna start off tonight with the special funds, special revenue funds, and the Pearland Economic Development Corporation budget. We've got several strategic priorities that are woven throughout the workshop that cover those different funds. Some of those are under resilient finances, the review of our fund balance policy. You're going to see some of the work we've done there to review the fund balance policies and how we can effectively use some of the dollars and where we had multiple fund balances that were provided some redundancy, so took the risk-based analysis that we presented back during the early budget input session and have some of those results and recommendations we'll go through tonight. Also under resilient finances, part of our mid-range financial planning includes a strategic level overview for funding the internal service funds. You'll see that as we work through there tonight. Under sustainable infrastructure, A financial program supporting motor pool facilities, IT and drainage are in tonight's presentation. And connected community, continue implementation of the Cultural Arts Master Plan as the hot funds are one of our special revenue funds. And then under strong economy, driving future growth through redevelopment and reinvestment in older areas of the community. That's covered mostly in the EDC's budget. And then continue to nurture sports tourism initiatives. So with that, I'm going to hand it over to our head of Office of Management and Budget, Rachel Winslow, to walk us through the first part of the presentation. Thank you.

Thank you. Good afternoon, Mayor and Council. This discussion begins the presentation of the fiscal year 27 budget, which will serve as a policy document, a financial plan, an operations guide to our user departments, and a communications device to our residents. Throughout the budget development process, fund balance minimums and policy requirements have been reviewed. After a risk-based analysis of the general fund policy minimum, it was determined that 90 days is an appropriate balance. And so although the primary focus of today's discussion is non-property tax-backed funds, all of these tie into the general fund in one way or another. Risk analysis of the general fund indicates that there should be a comprehensive general fund balance policy to cover exposure and risk across the organization. For these funds, general fund balance policy minimum is comprehensive and there are areas of savings to be recognized. As a result, reserves and internal service funds were reduced to eliminate redundancy. These reserve reductions offer a short-term strategy to maintain resources in the general fund. Policy changes that are recommended and reflected in the proposed budget include the risk management fund. Previously, this fund maintained a recommended policy minimum of 25% of annual expenditures for property and liability costs, and a total of $1 million has been utilized as fund balance minimum for several years. This fund is covered by contributions primarily from general fund and enterprise fund. As a result, a minimum fund balance of 100,000 will be maintained in the fund going forward. There are additional reserves for the health claim fund, which does not have a policy minimum in the financial policies, but was previously recommended at 25% of our annual expenditures by our insurance administrators. Going forward, we will draw down the fund balance and not have a set reserve amount. Both risk management and health claims are considered redundant fund balance policies as they are part of the risk exposure captured through general fund and enterprise fund policy reserves and would be covered by those reserves if necessary. Additional, sorry, additional reserve And changes include beginning to use the capital holding fund reserves built up through the motor pool lease fees since fiscal year 2019, which will be discussed more shortly of the recommended changes reflected in this proposed budget. Only the change to risk management reserves will require a change to the financial policies. And this will be brought forward in September prior to budget adoption. For the motor pool strategy, the motor pool fund is an internal service fund established in fiscal year 19 to pay for the operations of the fleet, including new and replacement vehicle purchases. Vehicles purchased through the motor pool have been paying lease fees where departments incrementally reimburse the motor pool fund for the cost of their vehicles. Beginning in fiscal year 27, we recommend that lease fee payments be capped at $2.5 million from the general fund and $500,000 from the enterprise fund. The lease fees previously collected and collected through FY27 are all in the capital holding fund for future eligible purchases. Instead of just replacing the vehicles captured through lease fees, We would like to, after evaluation, begin to increase our current vehicle purchases for those vehicles not in the motor pool and begin to recapitalize our fleet at this time. And then continue to cover with lease fees over time. So we've done several different evaluation models to review the sustainability of beginning to use our capital holding lease fees to begin doing additional vehicle purchases. And there are several different ways that we continue to evaluate to make that work in the long term. So for our internal service funds, we do have six internal service funds and they fall into two strategic priorities, both trusted government and sustainable infrastructure. And those funds are listed here so you can understand how they align. Next slide. With the internal service funds and the different strategic priorities. For the health claims fund, we anticipate a net zero budget next year where there's 14.2 million in revenue and expenditures. And this fund is a self insurance fund which pays for the city's medical claims. And you can see here the draw down in fund balance, this will equate to 7.2% of operating expenses. For the information technology fund included in the budget for FY27 is $400,000 for the continued IT strategic plan hardware replacement implementation. The increase in salaries and wages is reflected by two existing positions that were reclassified and moved into the IT fund. Additional changes include contractual professional services where citywide cellular charges were moved from departmental budgets into the IT fund and will be charged back to the departments along with the rest of the budget. The risk management fund includes workers' compensation, property insurance, windstorm insurance, as well as self-insurance for vehicles. There are no additional programs in this fund for fiscal year 27. Half of an FTE that was previously budgeted in this fund, which is covered by transfers from general fund and enterprise fund, is now budgeted entirely in the general fund. For the motor pool fund, we have the capped lease fees of $2.5 million. We anticipate a capital outlay of $4.5 million, which will replace approximately 43 municipal fleet vehicles, as well as an ambulance in fiscal year 27. This is drawing down from the capital holding fund. Additionally, we're recommending $500,000 from the motor pool fund balance in order to continue to address the police take-home vehicles. with a potential additional $500,000 that could be drawn down from either the capital holding fund or a combination of the capital holding fund and motor pool fund balance. The original high FY26 beginning fund balance reflects all the vehicles on order that had not yet been received through fiscal year 25, and if you look at the fiscal year 26 projected budget, you can see that in capital outlay. For EPW facilities, the facilities fund handles the maintenance and operation of city owned and operated facilities. There are no additional programs at this time. And then our capital holding fund holds the capital lease fees for the motor pool facilities and IT fund until eligible capital replacements are scheduled. So here you see the increased transfer out, which will go back to motor pool for the purchase of the vehicles noted in prior slides. So that wraps up the internal service fund discussion. I'll turn it back over to Mr. Epperson.

So back to you, Mayor and Council, if there's any questions. Mayor Pro Temchavarria.

Thank you, Mayor. So I do have a question on page 11. We're going to reduce the proposed $27,000 to $100,000. So what is our exposure, our risk exposure? So if we don't have the funds for any unexpected claims, we're going to go ahead and pull that through the general fund?

Slide 11 or?

I think it's risk management fund.

Yes. So we would cover that liability through general fund and enterprise fund. Okay.

All right.

Thank you. Council Member Cate? Thank you. On slide 11, you said 43 fleet vehicles are being replaced.

Yes, existing fleet vehicles, including one ambulance, which is about 860,000, roughly.

Are these public works vehicles, police vehicles?

They're across primarily general funds, so there would be a number of police vehicles, public works vehicles, parks, all sorts.

Okay.

Thank you.

Council Member Barham. Thank you, Mr. Mayor. One question on slide 12, just the next slide, which is our motor pool fund. I understand we're utilizing, sorry, I guess that was the wrong one, capital holding. Motor pool is slide 12 on my deck. It's EPW on y'all's.

There was a misnumbering of the slides in the deck, so one off on some of these.

No worries. Cool. Perfect. Thank you. I get that we're buying down. We're using the dollars that have been built up over the last seven years essentially to purchase the vehicles we need and buy down the account and whatnot, which I'm fine with. The main thing I want to make sure is that the purpose, as I understand it, when council instituted this back in 19, was to ensure we had the dollars to recapitalize our vehicles. As we do this buying down, we don't end up putting ourselves upside down and negating the intent of the fund altogether. Right.

So we go back to that other slide on motor pool or the capital.

I thought it was on.

So we're looking at it like we've got this large balance in there. We're taking a look at how much are we putting in there annually, and then also what do we really need to replace vehicles kind of in perpetuity every year, and striking a balance there so that we don't, if we continue to build up this huge balance and we weren't employing those dollars, they're just sitting on the sidelines. And so starting to use some of that to draw it down, and then... making sure that we've got a longer five, ten-year plan that is putting enough money back into the motor pool as we need what we need each year to sustain that. So we're trying to look at it much like we've looked at the IT internal service fund or the facilities internal service fund. What is that balance we need in there so any given year we can purchase what we need, draw that down, and then the next year if our needs are less, we build that back up.

That leads to my second question on IT, but sticking with motor pool for a second. We're looking at spending 19 million this year. Are we spending it because we have it, or are we spending it because we need it?

That is all, everything that is encumbered or budgeted already. So we've got multiple fire trucks, three or four, multiple, and at least one ambulance. And then, of course, several vehicles that have been on order, and then we've got several vehicles that are out for bids.

We can't reallocate any of those dollars to help us. Tax rate later in the year, it's already encumbered money.

Yes, sir.

Okay, thank you. On the IT service fund that you mentioned, we've talked about it for the last couple of years. I know we have transfers in that help with the regular operations of IT, but we also have That report linging out there, remember COSO, you might be able to help me remember the numbers on it. But we got a report a couple years back that said we were going to need like $20 million or something to recapitalize IT. Yeah, it was $5 million a year. $5 million a year. That was in addition to what we're already doing in IT, correct? We needed roughly $5 million a year.

Yeah, I think it was 25 over five years, and that was looking at servers, that was looking at all the different hardware, as well as some of our major systems needing to potentially be replaced. So we, and those, we do have some funds in the capital holding fund that are allocated to IT. So those capital dollars aren't in the, this is the operational fund. piece of the IT internal service fund. We've got over in the capital holding fund, there's dollars in there that are allocated for IT and we continue to build those up so that we can start to utilize those when we have those major replacements. One of those being a lot of our public safety systems we're evaluating how over the long term we replace some of those and start to update some of the other ones at the same time. not in this budget, but something we're looking at a full evaluation of over this next fiscal year to look at future budgets.

So I would like to see, as we get through the budget this year, where we're at on that need. I understand we're driving to no new revenue, and that's the direction that we're going, and that's great. Where are we looking at? Just like we talk about our roads, we also need to be talking about that IT backbone. Right. If we can see that as we get further through the process, where we're at on that 20 to 25 million over five years, I'd appreciate it.

Thank you. Councilman Colson. Thank you, Mayor. So on slide four for me, I don't know if that's... Fund balance policy, yeah, there we go. Down there on the lower left-hand side, it says in a no new revenue rate environment, these reserve reductions offer low-risk short-term strategy to maintain general fund. If I'm reading that, is that saying basically we're drawing down the funds to get to no new revenue rate?

Not to get to no new revenue rate, but it certainly is helpful to maintain the reserves that we were previously maintaining, and risk management and health claims required a greater contribution from general fund and enterprise fund. So we've managed, by maintaining a lower policy there and recognizing the risk through the general fund policy minimum, we've managed to reduce our contributions to those funds, but that's both short-term and kind of a one-time benefit scenario.

Okay, so what you're saying is we're utilizing that one time because we've got a little extra money in there to take it down to where we need to.

Yeah, we'll only be able to reevaluate these policy minimums and recognize the savings roughly once.

Okay. And then on slide five, in the same position on the lower left side, it says for FY27, we're looking at capped at 2.5 from the general fund and 500 from enterprise. Is that we're going to be looking at putting $3 million a year into the motor pool fund?

Correct. It will go into the motor pool fund and then on into the capital holding fund and then it will become part of our replacement cycle.

Okay. So is that because four years ago I asked this question. We were sitting on about, I think, $21 million in there and I said, you know, we could keep building this until, I don't know what the total dollar amount that we have in vehicles in the city right now, but we didn't need that full amount. We didn't need to be fully funded. What was the the dollar amount each year that we need to be able to put into it to be able to cover our expenditures for vehicles. Is that what we're looking at moving forward is putting $3 million a year? Is that a safe assumption?

$3 billion may or may not be, well, probably will not be sustainable for all fleet needs in the long term. So we probably are looking at building that up similar to what we're doing with the streets infrastructure. A large part of this depends on how many vehicles we replace per year, because then some vehicle replacements are six years, some are eight to 12. So the more you replace in one year, the more lumps of money you need six-ish years later. So we have run several five to 10 year models. Three million is, sustainable for the enterprise fund and general fund non heavy equipment but would not be sustainable for everything, including fire heavy apparatus and additional equipment like trailers and things like that. So we'll be continuing to evaluate that over time to see what the end recommended dollar amount is we're not quite there yet.

Okay, okay, that's fine. We're getting to kind of where I wanted to be to kind of understand. As far as I understand the fire trucks, I mean, those are more 10, 12 years kind of timeline that we get, but they are bigger tickets. How many vehicles in our fleet are currently under the motor pool fund? Percentage-wise, 50, 60, 70, 20?

I don't believe it's that high. I believe it's highest for Enterprise Fund. I would have to get back to you, speak with Fleet, and get back to you on what percentage is covered.

Okay. If you could, because I'd kind of like to know where we're at, because I know we're not 100% everything in there, but I'm kind of curious to know what that is. And then on slide 10, trusted government information technology, on the right side there, second bullet point where it says salary and wages to existing positions, is that coming out of the IT fund?

It's coming out of the general fund, so we moved one position from, I believe, public works and one position from community development from general fund to IT. Their primary role was software support anyways, and so now they're better aligned with the work that they do, and they're still providing that direct support to those departments.

Okay, so the salary and wages are coming out of the general fund, not the IT technology fund?

Correct. The salaries and wages in IT are increasing.

Okay, I just wanted to make sure we're not paying for salary and wages out of the fund for what we're needing to, I just wanted clarity on that. That's all I've got, thank you.

Any additional, Council Member Fernandez? Thank you, Mayor. Going back to slide number, page 12, the motor pool, when I first saw 43 fleet vehicles, obviously what jumped out was the 4.5 million, that's a lot of vehicles, Trent, can you shine a light, or maybe this is a Chad question or someone else, but the current status of our overall fleet, the age, how backed up we are, what's the current status of our overall fleet?

So it's not where we want it to be, so I think that's why we're taking a pretty good swipe at it this year. And that's why Rachel did mention while we're doing this additional 500K to continue to address the police take-home vehicles. We're looking at the viability either from the Capital Holding Fund or from this fund balance, an additional 500, because I just reviewed last week kind of where we are, not just the take-home, but just where we are generally with police's fleet, and we're behind on that. So something else we want to address there. And it's not just age of vehicles. It's the actual number of vehicles because there was a practice for many years. We ended it a few years ago where when we hired two officers, we'd get one vehicle and for them to share, but then as soon as everybody hits the requirements for the take-home, then that reduces that. So we, over the years, got down to the bare minimum and just need to replace more vehicles there than we have in the past. So we're in pretty good shape over on Pearland Water, the enterprise fund. But then we also got a pretty good, we're replacing several vehicles in the fire marshal's office, which are all well beyond their capacity. age and mileage we when we look at them we look at age mileage we look at the maintenance records and and all those different things to determine what what is recommended for replacement so this doesn't cover our full list of replacements but it makes a pretty good dent into it this year and and that's you know why we took a look at those fund balance policies and how to better implement these dollars and really kind of get caught up there can you

provide like a spreadsheet of, I'd like to see like the age, the mileage, what vehicles are we talking about replacing in the 43?

We can provide all the details on the recommended replacements and then some more information on kind of general overall fleet age and those sort of things.

Okay, thank you.

Councilman Patel.

Thank you, Mayor. One of those things right here on the slide you're at, why do you guys have 2.8 million of amortization expense?

For software subscriptions, the audit in general GASB standards now requires that we amortize multi-year software subscriptions. So if you look under repair, no.

But I guess my question is for fund balance. we're talking about fund balance, it's a non-cash.

It is recorded as a full expenditure in the system, so.

So then, would your ending balance not increase if it's a non-cash expense?

We can follow up with the auditors, but it's been recorded as an expense for the last two years.

You're not recording it in physically you're 27 then? You're not estimating?

We don't estimate it. It's included in the software subscriptions, which prime. Sorry, this is motor pool. We'll have to follow up with the auditors what they're amortizing here. I'm sorry, I thought it was IT. I'm very sorry.

That's okay. But you understand my question, right? I do. Because that fund balance wouldn't be that low then. It would actually, because it's a non-cash, so it would actually increase by 2.8 million. So I'm just kind of curious, because when I did the calculations, I thought maybe I made a mistake. Because it's impacting our fund balance. So I guess I'm trying to understand, your fund balance would be higher by 2.8 million.

Yeah, we'll follow up and figure out

Because, okay, so in a couple of space, or in a couple of these decks, you may want to go through that. Can you go to under the risk management fund, which is 700? or account fund balance, account 700, I guess. Yeah, so you guys proposed 4.265 million, yeah, in fiscal year 27. So I could kind of tie some of the numbers, but I think one of the things we talked about was miscellaneous expenses. And in here, you guys put 6.15 million miscellaneous, or 615,000 miscellaneous. Can you explain what that is? I mean, I couldn't find it in the remaining decks that you have in here, the 141 pages. It just says miscellaneous. It's a huge number compared to the 4.2 million you have. I know you do. I know you do. So I think if you could, Rachel, if you could kinda I guess go back and where these miscellaneous are because they're such a large number. I think it's important that we get details on these. And I don't know, because I looked through the supporting documents that you have and I couldn't find it. You gotta go scroll all the way down in the supporting documents.

Yeah, we can provide all that.

And I guess we're going to go back and readjust our policies in September, is that correct, for fund balance? So, is that going to impact our bond rating at all?

The only policy we'll be recommending a change to is the fund balance policy for the risk management fund. It should not impact our financial or bond ratings at all.

Okay. And so, all these adjustments to fund balance we're making here to IT and all of those, motor pool fund, those are not going to, they're not any way impacting any of the bond ratings at all?

Correct. Okay.

And then, I guess, eventually, you said that $3.5 million for a motor pool fund may increase to $5 million, maybe in two years or three years. It could.

Yeah, we may, we will probably seek to build that up over time.

Okay. All right. Thank you, Rachel.

Any other questions, House members? I just, a couple notes in the presentation. Thank you for clarifying those points. On one of the slides, I believe it's five of mine, talks about motor pool strategy. If, just in summary, if it's possible as we get through, because I know there was some questions about will this particular item or change, impact and no new revenue rate. So the ask is, at some point, just a bulleted item, just indicate what these changes might contribute to as far as an overall strategy and what we're trying to achieve by pulling certain levers, right? So we're making it more efficient based on some type of motor pool replacement cycle or making it efficient. Just a summary that helps us to understand what these changes will contribute towards and so that it would help minimize certain inferences and perhaps minimize additional requests for information so we understand the strategy that's being employed to help us get to maybe some sort of goal or point. Although in here it is clear in certain items, you know, you said we're gonna move this for a policy item or we're gonna move this for, maybe a change, but overall, we're pulling these and making these changes because the intent is to achieve X goal in these particular items. And then, potentially, if I missed it, we talk about, I think it's going to come up later when we talk about capitalization of assets or our motor pool, where we would have the models that you're using as far as a five-year replacement, three-year replacement. So whenever we're determining... maybe some decisions on the budget, it would impact our decision making whether we approve or not approve certain things if we knew we're about to get hit with a certain time period of vehicle replacements. I think that's going to be helpful for us as well for us to understand those cycles.

Certainly, thank you. Okay.

Any other questions? I'm good. Want to move on to the next item?

So for our special revenue funds, we'd like to, we also break these out by the council's strategic priority, and over the next few slides, we'll highlight just a few of them. So including some of our supplementals that we're funding through special revenue funds, including the PEG fund, we're gonna utilize money there. under trusted government. Our drainage maintenance fund is ongoing and highlight the hotel motel occupancy fund. So some of our supplementals include $200,000 in the municipal channel fund for council chamber technology. Our CDBG fund is funding two grant funded positions in community development, including a code enforcement officer and a housing rehab coordinator. The park development fund will be contributing additional money to the Hickory Slough Sportsplex Phase 2 project in order to build a playground there. So here we have the CDBG grant fund, which shows the increased salaries and wages for the two grant-funded positions. It also shows $2 million, which we received through a federal grant for a fire truck purchase. Here's the municipal channel fund or peg, which we are utilizing for eligible capital expenses, both through fiscal year 26 and 27. Then we have a connected community, the park development fund. So in transfers out, they are reflecting that 1.5 million for the Hickory slew playground, which will then be incorporated into part of that CIP project, which is why the expense is not reflected here. For sustainable infrastructure, we continue to maintain the drainage maintenance fund. And then strong economy, our hotel motel fund here, we do have a $600,000 placeholder amount for potential future eligible projects. And on future slides, we've identified eligible fund balance that can be spent on different types of activity. They are tracking softball tournament hotel revenue since FY23 in reflection of Centennial Park and the investments made at that park. And so in FY26, softball tournaments have already generated more hotel revenue than in any prior year. and we are projecting through the end of the fiscal year, but that is only a projection. So this slide does show the potential eligible fund balance usage for the Visit Pearland Fund. It could be utilized for arts historical preservation and also shows a minimal amount held for operating revenue. The following slides show additional special revenue funds that may fund smaller items such as citywide donation but don't have any particular operating costs or highlights to speak of. So with that, I'll conclude the special revenue portion of our presentation.

Back to you, Mayor and Council, for any questions on the special revenue funds.

Mayor Pro Tem Chevrier.

Thank you so much. Thank you for the presentation. So I do have a quick question. Do we have a fixed approved federal rate for our indirect cost for the CDBG funding? Because I know that we can have a federal approved rate.

Female Speaker 1 I can follow up with Joel, but not that I'm aware of.

Female Speaker 1 And then if you go to, I'm going to see the slides, to the very back of the, I think it's the deck 26 on mine, we have the trusted government. It's 352 account and 353 where we have the negatives. Are we ever going to recover those costs? Are those, I know that there were some outstanding receivables for those items a few years back when we were going through audit. There might be 25, I don't know.

So I think last year we cleaned up most of those, but these are the ones that we still had outstanding from Barrel. Yes.

So Fund 353, we do anticipate receiving FEMA reimbursements both this year and then next fiscal year. We think that will largely resolve itself. 351, this is just a matter of some accounting cleanup that needs to take place. I will have to follow up with them on 352 also to figure, I'm sure they have a solution, but I'm just not aware of it offhand. Okay, thank you.

Any other comments? Not terribly important, but do we need to carry 355 anymore? Just not overly excited about seeing coronavirus on the

I think 355 will technically fall off next year when there haven't been three years of expenses.

Thank you.

On slide 25, the hot fund, there we go.

So right here it's got kind of the pie on the hot funds where we can spend them and whatnot. There's a rather large amount there, 3.3 million for historical preservation. Do we work at all with the Historical Society here in Pearland to assist or help them with anything?

We reached out to the Historical Society when we started working on the Hops and History events back in 20, maybe three years ago. It's a limited interaction with the group. They helped inform research and help guide some of the characters that were highlighted. We have not been able to make many strides with that group. However, I did meet a new individual Friday night who is now inserted or part of that process, and we're hoping to regain some conversations there.

Okay, because I know, I think it was last year, Montessori School there on 518, kind of around Grand Street, was wanting to knock down a building, and they were interested in buying it and moving it to set up a location for them to house everything. So I don't know who you'd need to talk to, but I think that could be something, since we've got $3.3 million that we could help with along that line. On the 2.1 million for the arts, as far as our Periscope stuff and our, I guess, control boxes for our lights that we're doing, what do we have coming out for each one of those programs out of that blue section of the pie there?

So for the Periscope program and the mini masterpieces, We're incorporating those dollars within the actual operating budget. So the proposed fiscal year 2027 budget for programs includes those programs. So it wouldn't affect the fund balance.

Okay. All right. So we're just taking it out of the day-to-day business. All right. Thank you.

Altamir Patel. Altamir Patel Thank you, Mayor. Tracy, on your budget, Couple of things. You have allocated, I believe, if I'm not mistaken, under contracts and professional services, almost $900,000. Can you tell me what that is about? I couldn't really figure out what the in-depth, what $900,000, because it's double from 2025. So just two years, and I guess this year, I'm assuming you're spending $900,000, and you're spending $900,000 again next year?

So for that particular line item, it includes all of the divisions of our operations. So 100 is our administration. I believe the coding for arts is 720. and then also historic. So for the historic, I'm sorry, for the arts line item in that division, all of the expenses for the majority of the programming in arts fall into that one line item, and that has been the case for many years. It's not broken out into several GLs like our 100 administration division is.

So I guess the art, that 15% is in there. Is that what you're saying? The bulk of it. Okay. So are we giving 15%? Because it says up to 15% can be given. So are you always giving the full 15% or is it something less?

We're budgeting at 15%.

Okay. So how is this year looking?

Fiscal year 26? Yes, ma'am. We're going to perform under 15%. that 15% because our programming was delayed in the year. So we're not gonna spend at that level, which those dollars would theoretically be in the fund balance.

So I guess what art program in Pearland, I guess I know a couple, but I guess what's the maximum amount are you guys giving them? Are you guys giving them six figure numbers? Because there are not that many art programs here.

We have several programs that fall within the arts division. So one of them that has been legacy is the cultural arts grant program that's capped at $40,000. And that program is going to depend on how many nonprofits apply and the amounts that they get approved for for each of their applications. So that's one potential program. We're bringing in the Periscape program, but it should be, in theory, self-sustaining, so the sponsor level amount covers the actual costs. We've allowed for separate GLs for that program moving forward. Our expenses for Periscape right now relate to maintenance, which that is our obligation for the 23 that are on the ground currently. And then we're bringing in a mini masterpieces program, which is the traffic signal cabinet boxes that we're going to wrap in zone one. which we will have hit this fiscal year. And I believe that will not exceed 50,000 total costs there.

Okay. So I know we'll get to it. EDC has proposed some money for 285 beautification. I mean, I guess we could technically use some of this money for that also, right? I mean, for art purpose, if it was on 518.

We could use arts-related dollars for programming if it truly falls into that category. We could also look at using dollars from the historical preservation bucket for programs in the Old Town Revitalization Plan that have the ability to drive visitation.

Okay. And I guess one of my things is I know we're putting a placement holder of $600,000 on But for me, I'm having a hard time. Is there an idea that you guys are floating, or are we just coming up with a number and grabbing it and putting it in there?

So the $600,000 line item would be allocated at council discretion for any sports tourism enhancements. So we invested $3 million in the shadow. We budgeted $3 million for the Shadow Creek turf fields. And in that, we were able to reduce or replace the windscreens and the padding for only four fields. We would have the opportunity to replace the windscreens and padding for the original four fields. And smaller projects like that is what we were identifying as a potential use for that $600,000.

And I guess we're going to tie it back to where we can show that, hey, because of these investments, we're getting tournaments. Okay. But I guess... My fear is we're getting into maintenance of something that Parks and Rec is doing because that's not really driving tournaments, right? I mean, that's just, I mean, it could be debatable whether that's really driving it. So I don't know about the rest of the council, but plugging in, you could plug in a million dollars or you could plug in $100,000. It's kind of subjective. But Sometimes I find just because we plugged it in there, then you guys go spend it and find a reason. So I would, if you want feedback, Trent, just to say pull back that money. If you don't have a hard project in the next 12 months, then why are we going to go spend it or plugging it in? Don't plug it in just to plug it in.

So I did hear that we do have a project. I don't know if it's the full 600,000, but we can look at what that particular project actually cost and make sure that allocation is tied to that.

Okay. And I'm going to give you some feedback, Tracy, while I have you. I know you and I and Victor are supposed to be meeting multiple times, and mostly it's my fault that I couldn't make those meetings. But we do have everybody's attention today. One of my frustrations with your department is the contracts you guys have signed with some of these tournaments. And we can get into it offline, but I think it's important that when these tournaments are being held in our community, they're for-profit tournaments, right? The Triple Crown is actually for-profit. And they're making a lot of money from these parents who participate in these tournaments. And I think we need to reevaluate how much we're willing to give up in order to gain and benefit our hoteliers and our community. So I'll leave it at that. And I think we will, you and I and Victor can definitely go offline and have a conversation on that. Thank you.

Any other comments? Moving on to the next item.

All right, we're going to hand it over to Mr. Matt Buchanan, President of the Pearland Economic Development Corporation, to walk through his budget.

Good afternoon, Mayor and Council. Just as a reminder, PDC was created by the voters of Pearland in 1995 to collect the half-cent sales tax for economic development purposes allowed by Section 501 and 505 of the local government code. PDC is a nonprofit corporation that is a separate entity from the city, and all expenditures must be in compliance with the project as defined in the code. In accordance with both state law, the board and council must approve PTC's annual budget. The board held multiple meetings this spring, beginning in March, which concluded with a public hearing and approval at their May meeting of the FY27 budget we are presenting to you today. One of the key roles of the corporation is to grow our community's property and sales tax basis so the city has the resources to provide services to our residents. This is reflected in the corporation's mission to attract and retain primary employers. Primary employers sell their products on a regional, national, and international basis that grow our local economy through the multiplier effect. EDC works to ensure our business climate and built environment strongly support these efforts. Our collaborative work is guided by our Pearland Prosperity Community Strategic Plan that serves as the foundation to develop our annual program of work and budget we present to you today. The plan, which was approved by City Council in February 2024, identifies the desired outcomes of a holistic economic development effort. with the overall community goal that Pearland will be the community of choice for people and business in our region. The plan is overseen by an implementation committee of key community stakeholders. Our annual program of work and budget are built around the plan's key initiatives and strategic recommendations from the Pearland Prosperity Plan. This includes business development, which encompasses our attraction, retention, and marketing efforts, Pearland Innovation Hub for small business and entrepreneurs, Workforce development is where we assist our employers in their talent and training needs. Site development focuses on State Highway 35 and Lower Kirby to ensure we have sites that are shovel-ready for investment that results in growth in our property tax base. Places to Gather is our efforts to encourage both public and private places for our residents to gather. Old Town Revitalization is the implementation of the plan adopted by Council in September of last year. And key to our talent recruitment is parks and recreation that we support through the funding of capital projects. Board approved the budget that includes revenue of $40 million, of which $17.3 million is sales tax, $1.4 million is reimbursements from Lower Kirby, and $19.9 million in proceeds from the issuance of bonds for infrastructure projects. Proposed expenses of $57 million, of which $47.7 million, or 83%, are for public infrastructure projects. All of these highlights are expenditures related to projects the Board and Council have already approved or projects the corporation has been asked to fund. A few highlights include Lower Kirby detention and infrastructure development related to a public-private partnership Council approved earlier this year to facilitate new industrial development in Lower Kirby. Old Town Grand Link is one of the big ideas in the Old Town revitalization plan. The council authorized staff to complete a concept plan for in February. We're expecting the plan to be completed by the end of the year and to start engineering in 2027. Map Road reconstruction is another public-private partnership the council approved earlier this year that is a part of a continued investment in our State Highway 35 redevelopment strategy. FM 518 widening is underway. If you drive the corridor, you can see it every day on the first phase west of Colon, and we have $9.8 million budgeted for that. City Council requested the corporation to fund the allocation of the water and wastewater necessary for the project, which is the majority of that money. Utility relocation in all phases is estimated to be $25 million. Kingsley Bridge reconstruction is the tourist project. Hickory Slough Sports Complex is a partial payment in FY27 with the remainder in FY28. And Clear Creek Trail Segment 5 is for design and engineering and right-of-way of that project that a council approved last month. The next slide just summarizes the revenue and expenditures of the corporation. The far right column shows the revenues of $40 million in the sales tax, bond proceeds, and investment earnings. And then the bottom part shows the expenses of $57 million, where you can see the majority of that is the $50 million in capital outlay, and that's the majority of projects I just went through. This will result in a drawdown of the corporation's fund balance of $17.2 million, leaving it with an estimated fund balance of $22 million. Also wanted to provide a quick update on the status of the allocation of the 20% of the corporation sales tax to qualified infrastructure recapitalization projects in targeted areas of the city, specifically to encourage redevelopment in State Highway 35, Broadway, and the Old Town areas. This was formalized in a resolution that the Board and Council adopted in 2023. Corporation in recent years has completed full reconstruction of Rice-Dryer and Halleck and improvements to the southeast quadrant of Old Town. And Industrial Drive is currently under total reconstruction and both Schenck and Knapp are under design along with major improvements have begun in the Broadway corridor which I just mentioned. This allocation is calculated on a rolling average over a five-year period beginning in FY23, and obviously we haven't gotten to five years yet. Third bullet there, when just looking at project cost, each capital project we are projecting from FY23 to FY31, which will be shown on the next slide, that time period, 58% of the sales tax or $57.3 million in total recapitalization projects. Past and current fiscal year projects, so just for the last three years from FY23 to 26, 26% or 16.3 million total or 3% million over target. And that's currently where we stand today. Fifth bullet there is when you're looking at the cash and debt as proposed. So past and current projects from FY23 to 31 using the debt payments versus the actual cost of the project, you can see we're at 30% or 46.7 million over target. Now the next slide just shows you kind of a breakdown of all those projects. And as shown in the heading, these are for the projects bond payment cost when bond issuance is proposed. So the area in green shows you the past three fiscal years. In blue shows our current FY26 year. And then the orange first column is FY27, which we're talking about this evening, all the way to FY31. And then the two far right columns show the overall total in the second column, second to the last column. And then the last column shows FY, the five-year total, the orange columns. This shows the debt payments if we are proposing to use debt and only the actual cost if we're not using debt. So, for example, we just discussed $6.5 million for NAP. in the proposed FY27 budget. The total amount is not in here, but the estimated debt service payment of $617,000 per year that will pay are included. And you'll see that across the line items for NAP. Over time, we felt like this would be a more accurate reflection of the investment and recapitalization projects. I think either way you look at it, whether you look at it just from a cash basis, or if you look at it from the debt, which to me is a little more conservative, you can see we're still meeting the 20%. And then the top two lines show how much sales tax by year. What is the 20 cents? So the top line is the sales tax in actual or what we're projected. And then there's 20% sales tax. The middle shows the specific projects. And below that are the percentages each year. And then the bottom line shows the cumulative over and under. The yellow highlighted box shows the estimated overall total, and so right now we are projecting from FY23 to FY31 to spend $46 million, which equates to 30% of sales tax. So, Mayor and Council, that is an update on our infrastructure recapitalization efforts and an overview of the FY27 budget that the Board approved at their May meeting that focused on the key initiatives of our Pearland Prosperity Strategic Plan.

And back to you, Mayor.

Council, any questions? Mayor Pro Tem Chavarria.

Thank you. Thank you, Matt, for your presentation. On Deck 34, the $6 million for Industrial Drive West, will that project be completed this fiscal year? Will we actually have that expenditure?

It should be completed this fiscal year, is what Valerie just said. Into next year. I take it back. She said into next year.

Next year. So does that mean we need to...

Yeah, I mean, we will always need to be shifting these on timing, obviously. These are a projection. But, yeah, we are probably going to go into next year on industrial drive.

And I just want to thank you and your board for that 30%. Thank you so much.

Thank you.

Council Member Barrow.

Sticking with this slide, if I'm reading this correctly, looking at, you know, from council's decision in 23 to allocate 20% through your projected FY31 budget, If all this holds true, this is showing that over that eight-year period, EDC will have contributed in excess of $15 million beyond that 20% to our infrastructure recapitalization. Am I reading that correctly?

So it would be a total of $87 million in projects that we would spend $46 million on and then debt service payments for the coming years after that.

Right. But the cumulative over and under is indicating that it would be $15 million more than what that 20% minimum is calling for, correct? Yes. Awesome. Well, thank you all for the diligence in how you reinvest sales tax dollars in our community. and for the general public to understand what that ultimately means, and correct me if I say this wrong, anybody correct me if I say this wrong, is that's dollars we don't have to take out of the general fund in order to care for our streets and infrastructure in our community, which helps us on our tax rate. So this is a bunch of numbers, but this is huge when it comes to how we manage our city. So I appreciate the work that the EDC does for us.

Council Member Koza, and then.

Thank you, Mayor. Just to tag on to Member Chavarria and Member Byrum, back in 23, then Councilmember Berry and myself put this into motion. Back then, Member Chavarria was on EDC and helped facilitate some of this stuff. But, Matt, I'd like to say thank you for seeing this through, the different roads that we have done and accomplished. It's making a positive impact where they're completed and with the future ones, I expect the same. So it does help in offsetting the tax rate where we don't have to deal with these issues because they are in industrial parts of the town for the most part. Every now and then we get a residential home. somewhere along the way, but it does make the city better and does help with the tax rate, so I appreciate that.

Councilmember Fernandez.

Thank you, Mayor. Matt, I just want to thank you for your presentation. I want to really thank whoever put this chart together, the breakdown. I could understand it. I can see where the things are going. I appreciate you, the staff, and the board members and for just moving the needle, pushing the needle forward, and the 30% that y'all are doing clearly shows all that y'all are doing together, and I appreciate it. Thank you.

Councilman Patel.

Thank you, Mayor. Matt, I think everybody's kind of pat you on the back, so I won't do that too much, but Your investment earning is $1.2 million. What are you guys, is that just investment, your fund balance sitting in, is it the Texas Pool Fund?

I'd defer to Tanisha if she wants to talk about where they're all, I mean, it's the city's investments, our cash funds, not us.

Okay. I'm just curious what the investment earning is.

Okay. All right. Well, so we do have a lot of the PEDC funds sitting in our Wells Fargo operating account. We do have some of their funds invested in the Texas, well, our Logic investment account as well. But we are scheduling some conversations so we can see if we can optimize some of their interest earnings in the future as well.

Because there's $414,000 that showed miscellaneous in that investment line item. So I was just curious, out of that $1.1 million or $1.2, I guess you broke it up and $400,000 was miscellaneous. So I don't know what that was about. Would you?

We can provide you some additional detail on it.

Mr. Patel, that 414, we finally got our true-up funds from the State Highway 288 project. So the county finally settled up with their contractor on all the overs and unders that they were disputing. And so that's why we just got that in.

Okay.

It's probably been three or four months ago we got it in.

Thank you for that. When I look at the miscellaneous, again, I guess the adopted budget for 2026 was 10,000, and then it goes up to 3.1 million. Pretty big jump in 20 projected, and then you go down to 1.4 million. So can you kind of provide a little bit more details on what that miscellaneous, again, it's just miscellaneous. That's a huge number.

Those reimbursements?

So in revenue, we have 17.3 as in sales tax, 1.2 million in interest. We have about $57,000 in miscellaneous. We have $1.4 million from lower Kirby reimbursements, and those bonds will actually come to you probably this month yet. where the district's going to issue bonds and refund us back. And that's, I think, mostly for engineering that we did on the Fruge Road reconstruction and for the lower Kirby lift station. And then we have $19.9 million in revenue for bonds.

And I appreciate that, Matt. I don't know, I'm sure you don't do this, Jack, but if we could kind of break it out of reimbursements, I think it would help. And so just miscellaneous. It's a pretty big jump, right? And then are you hiring a new employee at EDC?

No, but the employee that you authorized us to hire last month just started. So that's why it looks like we didn't, that person just started.

Okay, so that's where the jump is, because payroll jumped up significantly. Okay, so that's from last fiscal year coming in this year. This year. Okay, so it's heading, okay. And then under contracting professional services, again, pretty big jump there. You kind of went down in your projections by almost $200,000, and then you're going back up. What is that about?

So in the contracted services, that's the 343? That's the total you're looking at?

I'm looking at the 4.8 million for fiscal year 27.

So I don't know where you're getting the 4.8 million at.

Oh, well, yeah, that's got a lot into it.

So, I mean, professionals, it covers a whole host of things. That would be all of our marketing money. That would be Pearland Innovation Hub. I mean, that's outside of our capital projects and our salary. That's our entire budget of everything else. So PIH would be in there, our BizConnect program. Workforce would be in there. Everything in the organization would be in that.

So I'm assuming investment or incentives would be in there also.

I believe it must be, yeah, because transfers outs our funds to the city. The capital outlays would be the capital. Yeah, so everything else is in that $4.8 million.

Okay. And so I do appreciate that because, yeah, I saw the entry corridor maintenance.

$800,000 would be in there for maintenance of entry.

And I guess printing, advertising, and image marketing was $600,000, which was kind of shocker. Yeah. I think what's giving me a heartburn, Matt, is in your projections when I was looking at it, incentives was only 1.5 million. And I guess we're spending more on overhead and payroll than we are actually incentivizing bringing jobs, right? And I know we have a lot of other projects you guys do manage, but I want you... How many people do you have now?

Nine staff people.

Nine staff. So we're spending $1.8 million for nine staff. If my math is right, that's $200,000 a job. Yet... companies that are bringing in hundreds of jobs, we're only offering 1.6 million. Hold on. So it just gives me a little bit of a heartburn that we are not incentivizing job creation even among smaller businesses, right? And I've said this over and over, that I think it's important that we have a program that actually, I know you guys have a, with the Chamber, my mind just went blank, Innovation Hub. And I know they do some incentives and some competition. But to me, I think it's really important that we drive small business and help them innovate and grow and provide some kind of incentives, more than just a competition. You can start.

No, I just always would remind you that it's not just the direct assistance that we give to companies, but it's the things we do, like the $6.5 million for NAP that's going to, you know, we're going to leverage that with another 500,000 square feet that will create all sorts of jobs. We're not going to directly incentivize the companies, probably. We may or may not. The Edge Business Park, you know, where we've got all those buildings now that are up there at the southwest corner of McCard and Broadway, you know, we have $2.8 million into that. infrastructure there. So when you end up getting, you know, 300 jobs in that park, I would say we've given $2.8 million for those jobs to be created. So, you know, many, many things. I don't think, I can't think of a project where we've lost because we weren't offering incentives. I mean, we offer incentives to companies that come forward that fit the profile, the primary employment. that we want, but I look at it as our efforts are mostly in lower Kirby. We have $10 million in here that's going to put in infrastructure in lower Kirby and detention in lower Kirby. It's going to create hundreds and hundreds and hundreds of jobs, and we may not directly incentivize them there, but we're going to incentivize them through the public infrastructure that facilitates those buildings. If not but for our financial assistance on those roadways, those jobs would never be created because they would not have the infrastructure to do it, and it wouldn't be economically feasible for the developers. So it just depends, you know, both small and large. People could go in a 30,000-square-foot building or people going in an 800,000-square-foot building.

And I appreciate that lesson, Matt. And what I would say, you're right about that. But there is, I guess in my sense, I think I'm more focused on the programs we originally had Focus, when I was on EDC a long time ago, and I know that's almost 15 years ago, when you started, there were programs helping out smaller grant programs for Old Town and small businesses along 35. the original corridor of our Paraland City. And I think that's where my focus and heartburn has always been that we don't do anything that we always focus on larger projects. And again, rightfully so. But I think I would again, ask if you could consider coming up with some kind of greater ways to help them. Thank you.

Just two things to that. I think what you're referring to is we used to have in Old Town a sign and facade program that we did for probably three or four years, but I think the board eventually canceled the program just because we weren't getting the applicants or the quality of applicants of things that we really thought that money went forward to. But I think as we go through our Old Town strategy, we're working on that. I think we'll be working on something like that for the Old Town area. And then I'd also remind you that many of the companies that we do provide incentives to are small businesses. They're not all large businesses of the companies that we do provide assistance to. So I think we're trying to do, if they're a primary employer and they fit the qualifications, their eligible size is not an indicator of whether they can get incentives from the EDC. Thank you.

Any more questions, Councilmember? Okay. Councilmember Echols?

Councilmember Echols Thank you so much, Mayor. Matt, I just need a little help here. On your proposed FY27 expenses, you show NAPROD as 6.5. If you'll go to slide 33 on NAPROD, I see that the five-year forecast is $4,087,000 as the overall total. The delta between the 6.5 and the 4.07, is that money's coming from Hanover and Fairland Storage? The two projects, north and south and now, are EDC going to put the 6.5 into the road? And there's just miscalculation somewhere, is there?

No, sir, the 617,000 is our debt service payment on an annual basis for the $6.5 million of debt we expect to issue against that.

Okay. Yeah. Okay, thank you.

Council Member Koza.

Matt, following up on Member Patel's comments, could you put together kind of a dollar amount in the different areas of town that you spend money as far as whether you want to call it incentivization or, you know, helping with infrastructure just so we kind of get a breakdown for different areas that are, you know, having expensed monies to assist?

Do you want to net out if we get paid back or not?

Yeah. Okay.

Because, I mean, if we get paid back, then... Because, I mean, like Laura Kirby, we spent a lot of money on, but, you know, outside of the original Kirby Drive and some of the landscaping there, we've gotten all of our money back we've ever spent. So really it would be just the State Highway 35 corridor and 518 that we wouldn't.

And that's more due to the TURs?

To the management districts.

Oh, the management, okay. Yes, sir. All right, either one. But yeah, no, I get that. It's just to kind of give us a look at, I mean, I guess you could do it either way. You could say here's what we're spending in these areas and then here's what we're getting back and,

How far would you want us to go back? Because that'll be the challenge.

No, no, no. Just based on this? Yeah. Okay, yeah, that'd be great. That'd be easy. No, no.

Okay. Thank you. Is the focus there on the 20% recapitalization projects?

Well, it's just to kind of see where we're spending, what we're getting back, you know, in the different areas. You know, the 20% investment, I see that. I mean, you know, Wright Stryer,

The overall, those plus all the other infrastructure projects.

Yeah, just to kind of get a feel for where we're investing, what's coming back, what we're getting. I mean, as far as, like I said, on the 35 corridor at Rice Dryer, that was an immediate, you know, that area right there, we started getting... viable businesses instead of the old, you know, rice dryer, junky, metallic buildings that sit there forever. You know, with Hanover coming in, that has the capability of making that nicer in the Knapp area and then, of course, on the south side of Knapp also. But just to kind of get a feel for, you know, what it's doing, where it's at.

Council Member Patel? I'm sorry.

Thank you so much. Matt, I also think it's important to maybe give us a summary on the PIH, because it's not just giving grants. They are actually helping startups, entrepreneurs. They're giving technical assistance. So, there is a lot of good work that's being done with that program. So, I would like to see if you can include a report to us on where we are with PIH. Thank you.

Male Speaker 1 Councilmember Patel.

Thank you, Mayor. I would agree, Mayor Chavarria, or Councilmember Chavarria, sorry. I think I saw Jim Johnson walk up here. I thought I saw him. He's ducking as you mentioned his name. Sorry about that. And I think it's important, Jim, if you could at least annually come and give us a report of where you're doing with the taxpayers' money to this council. I would like to see it. I know you've done some good work there. I know you've got some new, I guess, people leading that charge. So that's one thing. And two, on this Broadway streetscaping, I would also ask, look, we're looking at spending $7 million in the next five years. If there is a way we could tap into the CVB funds, you know, I think it would be worth wise to take that money because I think it probably makes more sense to kind of consider pulling some of that money that's sitting out there for, art that we may be able to use, so just a thought.

I did have one question. I know sometimes when EDC utilizes the funds, there's a, I guess, perpetuity maintenance. Does that apply here? So, for example, I know there's a project for Hickory Slough. Based on that project expansion that EDC is partnering or funding, and the maintenance would roll back under the same area. So based on these projects, would the same rules apply?

So Hickory Slough, we have an agreement with the city that we'll pay for a percentage of the park maintenance that we are responsible for funding.

Okay.

We pay the city an annual fee for drainage similar to projects that the EDC has funded.

Yes, my question is based on the projects that are being funded. I guess I would just like to see how that future impact will be on taking on additional projects or being able to leverage EDC or either investments into businesses or other attractive measures we could use the EDC for. And then an added thing is a memo if you could generate a memo to us that would help us to understand where the EDC could impact small businesses. I know it's come up several times as to where we can leverage the EDC funds into small businesses, but we know that small business range is rather large, and what the criteria is based on the EDC funds that we can use. I think it was general provider or... Employer, what did you mention earlier? There was a term? Primary employer. Primary employer.

For direct assistance.

Correct. So I think that'd be important that we have that knowledge up here so when we generate these questions, we can know where to direct, I guess, some of the resources and help from EDC.

Councilmember Cosa? So kind of to tag along what you were talking about, which I don't think quite came across, Matt, what I think he was talking about when he was talking about the maintenance and the Hickory Slough is because of the parks. is where the maintenance comes back once they spend it not necessarily anything else but it's in the park aspect of it so i think that didn't quite come through uh so that you understand that yes it is a park expenditure that comes back absolutely but just clarification as well on the on the funds of the edc spent on 35 edc funds are in perpetual maintenance for those funds correct

We maintain all the landscaping and improvements on State Highway 35.

On the landscaping. Correct, yes. I just want to make sure that there's, we understand that.

So, yeah. Yeah, no, no. There's a little bit of difference in there.

Okay. That's all the questions that I had. Want to move on to the next one? That's it?

So we'll just cover the next steps. Before I do that, I just wanted to acknowledge we got a lot of staff members in the room here. And so while Rachel and her team lead the budgeting efforts, everybody in here has got a big hand in doing all the hard work to put these budgets together annually. So I want to say thanks to all those folks that are here. They're obviously very interested because of the pride they take in the things they do day to day to serve the citizens here in Pearland. So thank you guys for all being here. Next steps and the calendar we got another budget discussion number two on July 27th the focus there will be the enterprise fund And then August 3rd, we'll have the proposed budget filed August 10th. We'll have budget discussion number three, which will be the general fund and adoption of the maximum tax rate, and then a follow-up budget discussion, if necessary, on the 24th, rolling into September, when we have to go through the process of first reading property tax rate and fee changes, as well as the budget public hearing, and then the second readings on the 28th to get to an adopted budget. So appreciate the time this afternoon. And I think we've got a list of questions here that we said we would respond to that we'll get a memo out here in the next week or two to follow up on the first budget discussion. And then we'll roll into the second budget discussion. Thank you, Mayor. Thank you, Council. I don't believe there's any other items.

Oh, Council Member Patel.

Hey, Trent. For next budget, if you could please get the miscellaneous details. So just in your, I guess, Budget 2 workshop for enterprise funds, please ask them to ensure that any miscellaneous details provided in footnotes or in the back, please.

We'll make sure we've got those covered. Thank you. Any other questions for council?

Seeing no other questions and having no other items, I would like to adjourn this meeting at 4.20.