[00:00:01]
MEETING TO ORDER AT 6 32.MAYOR, PRETEND FITZPATRICK HERE THIS TIME.
AND WE NEED TO, UM, ACCEPT OUR VOTE TO, UM, APPROVE THE ABSENCE FOR WILLIAM SHELBY AND THE MAYOR.
WHY ARE ABSENT? TOM WAS TRAVELING.
AND I THINK WILLIAM'S TRAVELING AS WELL.
HE'S AT A WORK, UH, CONFERENCE.
MOTION TO ACCEPT THEIR HORRIBLE EXCUSES FOR NOT BEING HERE.
INVOCATION, DID YOU CONFIRM IF MARK'S DOING IT? MARK, ARE YOU GONNA DO THE INVOCATION FOR US OR WOULD YOU LIKE MR. SAINTS TO DO IT? IF I COULD DEFER TO OUR CHAPLAIN, I'D APPRECIATE THAT.
I DON'T, I'LL FOLLOW UP AFTER OFFLINE.
LET'S GO AHEAD AND SAM, GRACIOUS FATHER, THANK YOU SO MUCH FOR GIVING US THE OPPORTUNITY TO SEEK YOU FATHER, TO WORSHIP YOU.
AND THANK YOU FATHER, FOR THIS BEAUTIFUL CITY.
LORD, THANK YOU FOR BRINGING THOSE BACK WHO WEREN'T HERE LAST WEEK, AND THOSE THAT AREN'T HERE TODAY, THAT YOU WOULD, UH, GIVE 'EM SAFE TRAVEL WHEREVER THEY MAY BE GOING.
LORD, LORD, CONTINUE TO BLESS OUR FIRE DEPARTMENT, OUR POLICE DEPARTMENT, OUR HOLY, OUR WHOLE CITY MANAGEMENT TEAM THAT WORKS SO HARD TO KEEP OUR THRIVING CITY DOING SO WELL.
BLESS EACH ONE OF OUR, UH, COUNCILMEN.
AND LORD, JUST BLESS THEM AND THEIR FAMILIES, UH, 'CAUSE IT.
AND LORD, EVERYONE IN THIS COMMUNITY, THAT EVERY TIME, JUST AS WE ALWAYS ASK, THAT THEY WALK THROUGH THESE DOORS, THAT THEY WALK OUT CLOSER TO YOU.
FATHER LORD, CONTINUE TO BLESS OUR BEAUTIFUL CITY.
THANK YOU FOR THE PEOPLE THAT ARE HERE.
THANK YOU FOR LEADING US IN THE RIGHT DIRECTION.
CONTINUE TO BRING UNITY TO OUR COMMUNITY.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL HONOR THE TEXAS BANK.
I PLEDGE ALLEGIANCE TO THE TEXAS UNDER GOD.
WE DIDN'T HAVE ANYBODY SIGN UP FOR CITIZENS TO BE HEARD.
[5. STAFF REPORTS AND OTHER DISCUSSION ITEMS]
KIM, ARE THERE ANY STAFF REPORTS? UM, JUST COUPLE OF ITEMS THAT I NEED TO MAKE COUNCIL AWARE OF THAT.UH, TOMORROW, UH, YOU SHOULD BE LOOKING AT YOUR CITY COUNCIL EMAILS.
WE WILL BE SENDING OUT THE DRAFT BUDGET FOR YOU TO START LOOKING AT, UM, SO THAT WE CAN HAVE YOU GLANCE OVER IT.
AND THEN WE'LL GIVE YOU THE DATES AND TIMES WHERE WE'D LIKE YOU TO SCHEDULE YOUR MEETINGS WITH CHRISTINE AND I TO GO OVER THOSE BUDGETS.
SO YOU CAN DO THAT AND THEN REMIND YOU THAT ON JULY 8TH IS WHEN WE HAVE OUR BUDGET WORKSHOP.
NO STAFF REPORTS THIS EVENING.
ARE THERE ANY CITY ANNOUNCEMENTS?
[6. ANNOUNCEMENTS]
UM, MANAGER ANNOUNCEMENTS? YEAH.THE ONLY ITEM I WANTED TO REMIND PEOPLE ABOUT, WE HAVE A FULL SLATE OF EVENTS DOWN AT THE LIBRARY, AND THEY ARE FOR FOLKS OF ALL AGES.
I I DID REMIND SOMEBODY THE OTHER DAY THAT THEY TAKE NEWBORNS ALL THE WAY UP, YOU KNOW, TO A HUNDRED YEARS OLD.
SO THEY HAVE ALL KINDS OF EVENTS.
I WOULD HIGHLY RECOMMEND PEOPLE LOOK AT IT AND SEE WHAT THEY HAVE AND GO AND ENJOY SOME OF THE FUN THAT WE HAVE THERE FOR JUNE AND JULY.
FOR MAYOR'S ANNOUNCEMENTS, THERE IS A PROCLAMATION COUNCIL MEMBER, PAT, WOULD YOU READ IT FOR US? UH, YES, I'D BE HAPPY TO.
THIS IS A PROCLAMATION, UNITED STATES SEMI QUINCENTENNIAL 1250TH ANNIVERSARY, WHEREAS LOCAL GOVERNMENTS ARE THE BEDROCK OF AMERICAN DEMOCRACY, PROVIDING 336 MILLION RESIDENTS WITH THE MOST ACCOUNTABLE, RESPONSIVE, INCLUSIVE, ETHICAL, AND TRANSPARENT GOVERNMENT IN THE WORLD.
AND WHEREAS FROM THE NATION'S SMALLEST VILLAGES TO ITS LARGEST CITIES, AMERICA'S
[00:05:01]
LOCAL GOVERNMENTS HAVE BEEN ESSENTIAL IN TRANSFORMING THE UNITED STATES OF AMERICA INTO THE GREATEST MOST INFLUENTIAL NATION IN WORLD HISTORY.AND WHEREAS THE CITY OF UNIVERSAL CITY, TEXAS WAS FIRST INCORPORATED IN 1960 AND IS PROUDLY SERVED TODAY BY ITS SIX COUNCIL MEMBERS, MAYOR AND MUNICIPAL WORKFORCE OF APPROXIMATELY 200 DEDICATED PUBLIC SERVANTS.
AND WHEREAS THE CITY OF UNIVERSAL CITY, TEXAS IS THE GATEWAY TO RANDOLPH AIR FORCE BASE AND IS PROUD TO PROVIDE A WELCOMING MUNICIPALITY FOR ACTIVE SERVICE MEMBERS AND VETERANS WHO HAVE DEFENDED THIS 200 AND 50-YEAR-OLD FREEDOM.
AND I DON'T BELIEVE ANYBODY'S HERE TO ACCEPT THAT.
I WAS GONNA SAY, WE HAVE A PRESENTATION FROM, UM, HERSCHEL WALKER.
HERSCHEL WALKER AND WALT WILLIAMS. OH, BOY.
WELL, AS Y'ALL KNOW, WE, UH, THE NORTHEAST PARTNERSHIP DOES A, UH, VIP TENT FOR THE THUNDERBIRDS.
AND WE WERE ALSO RESPONSIBLE FOR GETTING THEM TO START DOING THUNDERBIRD AIR SHOWS HERE AGAIN, SEVERAL YEARS AGO, BECAUSE THEY HADN'T DONE ONE AT RANDOLPH FOR EIGHT YEARS.
AND SO WE ASKED THEM IF THEY COULD, UH, START DOING THAT AGAIN.
AND ONE OF THE THINGS WE WANTED TO DO WAS A VIP TENT FOR THE THUNDERBIRDS, BECAUSE THAT'S THE BEST WAY TO GET THEM TO WANT TO COME HERE, IS TO REALLY TAKE CARE OF THEM AND THEIR FAMILIES AND THE THUNDERBIRD ALUMNI.
AND WHEN WE DO THAT, WE ASK, WE ASK FOR PEOPLE TO, UH, TO VOLUNTEER SERVICES, TO VOLUNTEER, UH, YOU KNOW, TO SPONSOR THINGS AND DO EVERYTHING ELSE.
AND ONE OF THE, THE, UH, PEOPLE, AS YOU KNOW, OR ONE OF THE GROUPS, AS YOU KNOW, IS UNIVERSAL CITY.
AND WE ALL KNOW WHY UNIVERSAL CITY IS PRETTY MUCH THE CITY FOR RANDOLPH AIR FORCE BASE.
I DON'T CARE WHAT SHIRT IT SAYS, EVERYBODY KNOWS, EVERYBODY KNOWS IT'S REALLY UNIVERSAL CITY, ESPECIALLY ANYBODY WHO'S BEEN STATIONED HERE.
AND I WAS STATIONED HERE, UH, TWICE.
AND, UH, ONE OF THE OTHER THINGS THAT, UH, THAT THUNDERBIRDS DO, BECAUSE IN MY PAST, PROBABLY ALMOST 35 YEARS AGO, I WAS ONE OF THE THUNDERBIRDS.
AND I DID AN EVERY SHOW OUT HERE AT RANDOLPH.
AND, UH, ONE OF THE THINGS WE DO TO REALLY RECOGNIZE, UH, PEOPLE OR ORGANIZATIONS THAT DO THINGS FOR THE THUNDERBIRDS IS WE GIVE 'EM A LITHOGRAPH FROM THE THUNDERBIRDS.
AND THE SAME THING HOLDS TRUE.
THEY GIVE OUT FOUR LITHOGRAPHS.
AND WHEN THEY ASK WHO HE WANTED TO GO TO, ONE OF THEM WAS UNIVERSAL CITY BECAUSE OF ALL THE SUPPORT THAT YOU GUYS DO.
SO WITH THAT SAID, I'D LIKE TO, UH, PRESENT Y'ALL GO GET IT.
AND IT ACTUALLY LOOKS BETTER THAN THAT WHEN YOU TAKE OFF THE PLASTIC
AND BECAUSE OF YOUR, BECAUSE OF Y'ALL'S SUPPORT AND EVERYTHING ELSE, THE THUNDERBIRDS, THEY, THEY WON'T ANNOUNCE IT UNTIL AFTER, UNTIL TRAINING SEASON, BUT THEY'LL BE BACK HERE IN TWO YEARS BECAUSE THEY'RE, THEY'RE COMING EVERY TUESDAY.
AND SO ONCE AGAIN, WE WANTED TO THANK YOU.
THANKS FOR ALL YOUR SUPPORT AND THANKS FOR EVERYTHING YOU DO.
THANK YOU FOR COMING OUT TONIGHT.
AND THEN I, UM, IT'S MAYOR'S ANNOUNCEMENTS FOR ME.
I WAS JUST GONNA SAY, WE FINISHED UP HERO'S CAMP.
IT WAS A GREAT EXPERIENCE THIS YEAR.
UM, THE KIDS REALLY ENJOYED THEMSELVES, ALWAYS COMES TOGETHER SO NICELY.
I APPRECIATED ALL THE VOLUNTEERS IN PROBABLY TWO WEEK, WELL, MAYBE AT THE NEXT MONTH, THE MEETING WE HAVE IN JULY, WE'RE GONNA BRING THE YOUTH VOLUNTEERS TO HAVE US BE ABLE TO RECOGNIZE THEM HERE BECAUSE THEY WORKED EVERY DAY AND WORKED REALLY HARD.
SO I'D LIKE TO HAVE THEM GET SOMETHING FROM COUNCIL.
UM, AND I ALSO HAD THE OPPORTUNITY THIS WEEKEND TO GO TO AN EAGLE SCOUT, UM, AWARD PINNING PINNING.
AND IT, I HAD NEVER BEEN TO ONE.
AND IT WAS A GREAT EXPERIENCE.
UM, IT WAS REALLY AN HONOR TO BE THERE AND TO LISTEN TO ALL THE THINGS THAT THIS YOUTH HAD DONE.
HE HAD DONE SOME WORK HERE IN UC, WHICH IS PART OF WHY WE WERE INVITED.
SO IT WAS JUST A GREAT EXPERIENCE AND IT'S A REALLY GREAT GROUP, AND I THINK IT'S AWESOME THAT WE ARE MAKING THOSE A PRIORITY TO ATTEND.
SO THAT'S ALL I HAVE NOW WE'LL GO TO COUNCIL COMMENTS.
MARK, DO COUNCIL MEMBER DUNLOP, DO YOU WANNA GO FIRST? YES.
UM, HAD A QUICK CHAT WITH MS. TURNER THIS MORNING WITH THE HEAVY RAINS THAT WE HAD THIS WEEK.
[00:10:01]
FIRST, NO MAJOR ISSUES IN THE CITY, BUT PERHAPS JUST AS IMPORTANTLY, NO ISSUES AT THE GOLF COURSE.THE TEAM HAS DONE A WONDERFUL JOB OF, OF UPDATING THE LANDSCAPE OUT THERE TO HELP INSULATE THE COURSE FROM THESE WEATHER EVENTS.
AND IT'S DOING A FANTASTIC JOB.
AND MS. TURNER, PASS OUR, UH, CONGRATULATIONS.
YOU KNOW, I ALWAYS HAVE TO SAY SOMETHING.
THE YOUNG MAN WHO GOT THE EAGLE SCOUT, WAS HE THE ONE WHO PUT THE BENCHES IN OUR NO, NO.
HE, HE HAD A DIFFERENT PROGRAM.
UH, I LOVED, WHAT I LOVED MOST ABOUT IT OTHER THAN HAVING THE BIRD'S EYE VIEW, IS MEETING THE FAMILIES OF THE PILOTS.
THEY WERE SO EXCITED TO HAVE THEIR SIBLINGS AND THEIR CHIL, YOU KNOW, THEIR DAUGHTERS AND THEIR SONS UP THERE.
AND IT WAS SO WELL PUT TOGETHER.
AND I THANK YOU FOR THAT BECAUSE I'VE GONE FOREVER THE EIGHT YEARS.
IT WAS HARD WHEN THEY WEREN'T HERE.
SO THANK YOU FOR PUTTING THAT TOGETHER.
I KNOW HOW MUCH HARD WORK THAT IS.
[7. CONSENT AGENDA]
IS THE CONSENT AGENDA.DO I HAVE A MOTION? THIS ONE? NO CONSENT AGENDA.
I WASN'T SURE WHAT SHE WAS DOING.
ANY DISCUSSION?
[8. ACTION ITEMS]
UM, ITEM A, ORDINANCE NUMBER 5 3 6 DASH A DASH 2 0 2 6.AMENDMENT TO CHAPTER THREE THROUGH EIGHT.
TELECOMMUNICATIONS RELATED TO RIGHTS OF WAY MANAGEMENT, UTILITY STANDARDS, AND RELOCATION REQUIREMENTS.
UH, I'D LIKE TO MAKE A MOTION TO POSTPONE PENDING REVIEW BY THE AT AND T AND SPECTRUM AND THE CITY ATTORNEY TO REVIEW OF THEIR COMMENTS AND SUGGESTED CHANGES, PLEASE.
ITEM B, WATER, SEWER AND STORMWATER.
AS YOU KNOW, WE NORMALLY DO THIS DURING OUR REGULAR BUDGET WORKSHOP.
HOWEVER, SINCE WE HAVE SOME DEBT THAT IS PENDING, I REALLY WANTED TO MAKE SURE THAT, UH, FOR YOUR COUNSEL YOU COULD SEE THE TRANSPARENCY OF THE BUDGET, THE RATE STUDY, AND THE DEBT ISSUANCE, AND HOW THAT ALL MELDS TOGETHER AND WHAT IT MEANS FOR OUR GENERAL, UM, TAXPAYERS.
SO I WILL, UH, GIVE MUCH OF THIS CREDIT FOR THE BUDGET TO RANDY AND ATHENA AND CHRISTINE, UH, FOR ALL THE HARD WORK THAT THEY PUT ON IT.
YOU KNOW, YOU CAN CALL RANDY AT MIDNIGHT AND HE'S STILL WORKING 'CAUSE HE'S WORKING ON HIS BUDGETS.
I ACTUALLY, UH, POCKET DIALED HIM BY MISTAKE.
I DON'T KNOW, IT WAS LIKE ONE O'CLOCK IN THE MORNING.
'CAUSE I THOUGHT I WAS CALLING BACK ON AN ALARM IN ONE OF THE BUILDINGS AND I ACCIDENTALLY CALLED RANDY.
HE WAS VERY CHIPPER AT ONE O'CLOCK IN THE MORNING,
SO, UH, I'LL JUST LET YOU KNOW THAT.
SO WE'RE GONNA GENERALLY GO THROUGH THE BUDGET.
UM, I GUESS MAYBE AS A PRECURSOR, I WANNA JUST LET YOU KNOW THAT OVERALL FROM THE STAFF PERSPECTIVE AND FROM THE CONSULTING PERSPECTIVE, WE WERE TRYING TO BE VERY SENSITIVE TO THE RATE THAT WE PROVIDED FOR EVERY HOUSEHOLD IN THE CITY OF UNIVERSAL CITY.
HISTORICALLY, UH, WE DO ABOUT A 3% INCREASE.
UH, WE WERE HOPING TO GO AT A NO PERCENT INCREASE, UNFORTUNATELY, WITH THE DEBT ISSUANCE THAT DIDN'T HAPPEN, BUT I BELIEVE IN THE END AT THE COUNCIL AND THE RESIDENTS WILL BE VERY PLEASED WITH THE RATE THAT WE CAME UP WITH.
AND THEN THE PROJECTS THAT WILL BE COMING OUT OF THE BOND PACKAGE.
SO WITH THAT, WHO'S GONNA DO THE BUDGET FIRST? MS. GREEN, YOU CAN DO THE SUMMARY.
SO FOR THE UTILITY FUND, THE TOTAL ANTICIPATED REVENUE IS $12,393,010.
TOTAL EXPENDITURES BY DEPARTMENT ARE LISTED HERE BELOW, AND IT WOULD BE 12,382,100.
[00:15:04]
DEBT SERVICE YOU CAN SEE IS 2.5 MILLION.THAT DOES INCLUDE THE DEBTS THAT'S GOING TO BE ISSUED IN ORDER TO PURCHASE, UM, WATER.
AND, UH, FOR THE U FOR THE PUBLIC WORKS BUILDING, THAT'S GONNA BE PUBLIC BUILDING AND INFRASTRUCTURE THAT'S GONNA BE CREATED.
CAN YOU GO TO THE NEXT SLIDE, MARIBEL? OKAY.
STORM WATER, TOTAL REVENUE IS 1,142,780.
TOTAL EXPENDITURES WILL BE $1,008,061.
DID WE WANNA GO THROUGH ALL THE INDIVIDUAL OR JUST DO THE SUMMARY? SUMMARY IS FINE.
SO WE'RE PREPARED TO GO LINE ITEM BY LINE ITEM IF YOU WOULD LIKE, OR WE CAN OPEN UP.
AND IF YOU HAVE SOME GENERAL QUESTIONS THAT YOU WOULD LIKE TO ASK ABOUT EITHER THE WATER, SEWER, UH, BUDGET OR THE STORM WATER, WE CAN DO THAT.
WHAT'S YOUR PREFERENCE? I'D LIKE TO DO IT PERSONALLY.
IT'S, IT'S EASIER FOR ME TO UNDERSTAND IT.
NOT SITTING UP HERE, IF YOU DON'T MIND.
QUESTIONS ON THE UTILITIES BUDGET? NO QUESTIONS.
QUESTIONS ON THE STORM WATER BUDGET? NO QUESTIONS.
RANDY, ANY WORDS OF WISDOM YOU WANNA ADD IN SINCE YOU WERE UP TILL ONE O'CLOCK IN THE MORNING WORKING ON THIS? UH, AS YOU KNOW, UH, WE WORKED HARD, UH, TRYING TO KEEP OUR RATES DOWN ON THIS, BUT YOU KNOW, A LOT OF IT, IT WILL BE TOWARDS, UH, YOU KNOW, THE IMPROVEMENTS THAT WE'LL BE MAKING AT PUBLIC WORKS WITH THE ANNEX BUILDING, BUT ALSO PROCUREMENT OF, OF SOME WATER AS WELL.
UH, SO THAT, THAT'LL BE OUR FOCUS IN THIS YEAR'S BUDGET.
UH, MORE OR LESS, UH, NOT A WHOLE LOT OF CIP WORK OTHER THAN THE ANNUAL, UH, SEWER LINES AND, AND WATERLINE REHABILITATION.
A LOT OF THAT IS FOCUSED ON ANYWHERE THAT WE'RE PROBABLY DOING OUR STREET BONDS REPLACING, UH, THE SEWER LINES IN THOSE AREAS, UH, AS WELL AS SOME WATER LINES.
UH, BUT FOR THE MOST PART, WE GOT A PRETTY AGGRESSIVE SEWER REPLACEMENT PROGRAM GOING ON RIGHT NOW THAT'S IN PROGRESS.
AND THEN WE'LL HAVE SOME MORE IN THIS NEXT FISCAL YEAR AS WELL.
WE'RE JUST TO PROVIDE SOME DIRECTION AT THIS POINT, CORRECT? YES.
SO IT SOUNDS LIKE WE'RE ALL COMFORTABLE WITH WHAT WAS PRESENTED.
NEXT WOULD BE THE UTILITY RATE STUDY FOR FISCAL YEAR 2027 THROUGH 2031.
WELL, GRADE IS SETTING UP FOR THAT.
SO THIS IS WHERE YOU'RE REALLY GONNA KIND OF HEAR THEM BEAT OF THE UTILITY AND STORMWATER BUDGET, AS WELL AS THE EFFECT OF ISSUANCE OF NEW DEBT ON THE OVERALL, UH, RATE THAT WE CHARGE TO OUR RATE PAYERS OR THE RESIDENTS.
ALRIGHT, WELL GOOD, GOOD EVENING, MAYOR PRO TEMP AND, UH, AND COUNCIL.
AND THANK Y'ALL FOR HAVING US BACK AND, AND DOING THIS AGAIN.
WE'VE ALWAYS REALLY ENJOYED WORKING WITH THE, WITH THE CITY LAST YEAR, COUNCILMAN GOLBY MADE A COMMENT THAT HE COULD REMEMBER WHEN, UH, WHEN WE WERE BOTH DOING THIS AND WE DIDN'T HAVE GRAY HAIR
UM, SO WE'VE, WE'VE BEEN DOING THIS A WHILE AND, AND, UH, I'M TO THE POINT NOW WHERE I HAVE TO HAVE MY LAPTOP IN FRONT OF ME, NOT BECAUSE I, I CAN'T ALWAYS SEE IT ON THE SCREEN AS I'M TRYING TO GET USED TO MY PROGRESSIVE LENSES, OTHERWISE KNOWN AS BIFOCALS.
SO, UM, SO ANYWAY, JUST, JUST THANK YOU FOR, FOR HAVING US BACK.
YOUR STAFF IS ALWAYS, UH, GREAT TO WORK WITH.
UM, I WOULD LIKE TO JUST QUICKLY INTRODUCE, UH, CASH KINZIE.
UM, HE'S A NEW, UH, EMPLOYEE AT HDR, UM, AND HE'S, HE'S BEEN, UH, DOING GREAT WORK, UM, FOR US AND ALREADY DOING GREAT WORK FOR THE CITY OF UNIVERSAL CITY AND, AND HELPING ME OUT ON THIS AND, AND GETTING THINGS SET UP IN YOUR, IN YOUR RATE MODEL.
UM, SO WE'RE GONNA GO THROUGH THIS RELATIVELY QUICKLY, BUT IF YOU HAVE QUESTIONS, JUST, UH, JUST STOP AND, AND ASK ME AS AS WE GO.
UM, SO I JUST KIND OF WANT TO GIVE YOU A A FEW MAJOR ASSUMPTIONS THAT WE'VE ASSUMED AND, AND THE RATE MODEL.
UM, WE HAVE ASSUMED THAT THE CITY IS GOING TO, TO EXPEND FUNDS THIS CURRENT FISCAL YEAR, UH, TO PURCHASE MORE EDWARDS AQUIFER GROUNDWATER RIGHTS.
THAT'S SOMETHING THAT THE CITY HAS BEEN DOING, UM, FOR SEVERAL YEARS NOW.
AND THIS, THIS, I BELIEVE WOULD BE THE LARGEST, UH, LARGEST ONE YEAR PURCHASE OF THOSE RIGHTS.
UM, AND HOW WE'VE REFLECTED THAT ON OUR RATE MODEL IS WE WORKED WITH YOUR, YOUR FINANCE DIRECTOR TO BASICALLY DETERMINE WHAT THE EXPECTED SPENDABLE, UM, AMOUNT IS, UH, AS FAR AS FUND BALANCE GOES IN THE UTILITY FUND.
AND THEN THIS $5 MILLION, WE'VE ASSUMED THAT A PORTION OF THAT IS GONNA BE PAID FOR THROUGH IMPACT FEES, AND A PORTION OF THAT IS GONNA BE PAID FOR THROUGH FUND BALANCE.
SO WE HAVE REDUCED THE FUND BALANCE APPROPRIATELY WHENEVER WE START, UH, THIS UPCOMING FISCAL YEAR.
IN OUR RATE MODEL, UH, IT'S ALWAYS MIXTURE.
THE CITY HAS ENOUGH CASH ON HAND, UM, ALONG WITH THAT AND, AND PURCHASING THESE EDWARD EDWARDS
[00:20:01]
AQUIFER GROUNDWATER RIGHTS, THERE ARE SOME INCREASED MANAGEMENT FEES, UH, THAT COME ALONG WITH THOSE AND, AND THAT IS REFLECTED IN YOUR BUDGET.AND WE ARE GONNA SPEND A LITTLE BIT OF TIME ON THAT WHENEVER WE TALK ABOUT RATES BECAUSE IT, IT DOES GET REFLECTED, UM, NOT SO MUCH IN THE, IN THE RATES THAT THIS CITY IS CHARGING PER SE, BUT THAT'S A PASS THROUGH COST, UM, THAT THE CITY COLLECTS THAT MONEY AND THEN, UH, SENDS IT TO THE EAA.
UM, OUR OTHER MAJOR ASSUMPTION IS THAT WE, WE DO HAVE $500,000, UH, PER YEAR THAT WE ARE ASSUMING WILL BE SPENT ON WATER REHAB PROJECTS THAT IS SIMILAR TO WHAT WE'VE ASSUMED IN THE PAST.
UM, HOWEVER, THE DIFFERENCE IS THAT IN THE PAST WE'VE BEEN SPENDING THAT OUT OF, OUT OF CASH OR OUT OF UTILITY FUND BALANCE, IF YOU WILL.
UM, THIS YEAR AND, AND DISCUSSING THINGS WITH, WITH RANDY AND CHRISTINE, UM, THERE APPEARS TO BE SOME, UH, KIND OF LEFTOVER BOND MONEY FROM, FROM PRIOR YEARS, UM, THAT NEEDS TO BE, UH, SPENT.
AND SO WE HAVE ASSUMED THAT THESE WATER REHAB PROJECTS, AND IN FACT ALL OF THE REHAB PROJECTS THAT WE HAVE, UH, FOR THE NEXT FIVE YEARS IN OUR MODEL, UH, WE'RE ASSUMING THAT THOSE ARE GONNA BE SPENT OUT OF THOSE EXISTING BOND PROCEEDS AND NOT OUT OF OUT OF CASH.
UM, THE END RESULT OF THAT IS THAT THAT MEANS THAT YOU CAN HAVE A LITTLE BIT LESS OF A RATE INCREASE EVEN THOUGH YOU'RE ISSUING ADDITIONAL DEBT.
UM, SO WE DO HAVE TWO DEBT FUNDING CAPITAL PROJECTS IN THIS UPCOMING YEAR.
UM, SIX AND A HALF MILLION DOLLARS FOR THE PUBLIC ORGANIC ANNEX BUILDING, AND THEN 13 POINT A MILLION DOLLARS FOR WATER INFRASTRUCTURE AND INVESTMENT.
UM, THAT, THAT $20 MILLION PLANNED ISSUE.
AND OUR RATE MODEL, WE'VE CURRENTLY ASSUMED THE PAYBACK PERIOD IS 25 YEARS.
UM, AND I KNOW THAT'S ONE OF THE THINGS THAT Y'ALL ARE GONNA DISCUSS TONIGHT.
UM, AND SO IF YOU WERE TO GO, UH, LONGER, SAY IF YOU DID A 30 YEAR PAYBACK PERIOD, QUITE HONESTLY, I DON'T THINK THAT WOULD CHANGE YOUR, YOUR RATE INCREASES THAT MUCH IF, IF AT ALL.
UM, IF YOU WERE TO DO A SHORTER PAYBACK PERIOD, SAY 20 YEARS, AND THAT WOULD HAVE A LITTLE BIT OF AN IMPACT ON YOUR, ON THE RATE INCREASES THAT WE'RE SHOWING.
BUT FOR RIGHT NOW, WE'VE ASSUMED, UH, 25 YEARS AND, UM, THE, THE PAYMENTS THAT WE'VE BEEN GIVEN, UM, THOSE ARE GONNA BE ABOUT $1.45 MILLION PER YEAR, UH, BEGINNING IN THIS UPCOMING FISCAL YEAR.
OUTSIDE OF THAT DEBT ISSUE, WE HAVE NO OTHER DEBT BEING ISSUED OVER THE, OVER THE PLANNING PERIOD, THE FIVE YEAR PLANNING PERIOD.
AND AGAIN, WE'VE ASSUMED THAT ALL OTHER CAPITAL SPENDING IS GOING TO BE FROM PRIOR BOND PROCEEDS AND NOT OUT OF CASH OR, OR UTILITY FUND BALANCE.
SWITCHING GEARS, JUST REAL QUICK TO THE WASTEWATER SIDE, UM, WE ALWAYS GO THROUGH AND, AND TALK ABOUT WHAT SARAH AND CMA ARE DOING WITH THEIR RATES BECAUSE THOSE ARE YOUR TWO BIGGEST LINE ITEMS. UH, ON THE WASTEWATER SIDE IS THEIR, THEIR TREATMENT CHARGES.
UM, SARAH'S INDICATED THAT THEY'RE BOTH RESIDENTIAL AND COMMERCIAL RATES, UH, WILL GO UP BY, BY 5% IN THE UPCOMING YEAR.
UM, THAT'S A LITTLE BIT HIGHER INCREASE THAN WHAT THEY'VE TYPICALLY BEEN DOING IN THE, IN THE PAST.
UM, AND IT APPEARS AS THOUGH THAT'S GONNA KIND OF CONTINUE IN THE FUTURE.
SO THAT'S WHAT WE'VE ASSUMED IS 5% PER YEAR THROUGHOUT THE PLANNING PERIOD.
UM, SO WHAT THAT EQUATES TO IS SARAH TREATMENT EXPENSES, UH, JUST MONEY BEING PAID TO THEM IS GONNA INCREASE BY ABOUT $430,000, UH, BETWEEN FISCAL YEAR 2027 AND 31.
NOW, NOT ALL OF THAT IS DUE TO THEIR RATE INCREASES.
SOME OF THAT IS DUE TO GROWTH 'CAUSE WE HAVE GROWTH IN NEW CUSTOMERS IN OUR RATE MODEL AS WELL.
BUT AGAIN, THIS IS ONE OF YOUR LARGEST LINE ITEMS. UM, AND OBVIOUSLY ONE OF THE ONES THAT WE WOULD EXPECT TO INCREASE THE MOST, UH, OVER THE FIVE YEAR PLANNING PERIOD.
UM, THE CITY'S OTHER WHOLESALE WASTEWATER TREATMENT PROVIDERS, CCMA, UM, THEIR TOTAL TREATMENT EXPENSES ARE EXPECTED INCREASE BY ABOUT 19% OVER THAT SAME PLANNING PERIOD.
UM, THEIR RATE INCREASES THAT THEY HAVE, UH, INDICATED WILL BE ABOUT 4% A YEAR.
AND AGAIN, THAT'S HIGHER THAN WHAT THEY'VE SHOWN IN YEARS PAST.
IN YEARS PAST, IT'S BEEN RUNNING AROUND 2%.
AND THAT'S WHAT WE'VE ASSUMED IS GONNA CONTINUE, UH, THE 4% THROUGH THROUGHOUT THE PLANNING PERIOD.
UM, I'VE ALREADY TOUCHED ON THIS A LITTLE BIT, BUT JUST LIKE THE WATER, UH, UTILITY, WE ARE ASSUMING, UH, A HALF A MILLION DOLLARS OF YEAR WASTEWATER REHAB PROJECTS.
UM, THAT'S WHAT, THOSE ARE THE PROJECTS THAT, THAT RANDY SPOKE ABOUT EARLIER.
UM, BUT WE ARE ASSUMING THAT THOSE ARE BEING PAID FOR THROUGH PRIOR BOND ISSUES.
MONEY THAT'S THAT THE CITY ALREADY HAS ON HAND, UM, AND IS NOT, UM, WE'RE NOT, UH, WE DO NOT HAVE ANY NEW FUNDS COMING IN OR BEING SPENT ON THOSE PROJECTS.
SO THE WATER AND WASTEWATER, CIP, THERE'S, UM, WE'VE KIND OF TALKED ABOUT THESE.
WE HAVE THE PUBLIC WORKS XANEX BUILDING AND THEN WITH
[00:25:01]
THE WATER INFRASTRUCTURE AND INVESTMENT PROJECTS.SO THOSE ARE THE TWO, TWO BIG ONES HERE.
WE DO SHOW THE PUBLIC WORKS ANNEX BUILDING BEING SPLIT, UH, JUST BETWEEN WATER AND WASTEWATER.
UM, AND, AND THAT BEING KIND OF NEW DEBT.
AND THEN ALL OF THE, ALL OF THE REMAINING PROJECTS, UH, THE WATER AND WASTEWATER REHAB PROJECTS, AS WELL AS THE GROUND STORAGE TANK, UH, PLANT NUMBER EIGHT, REPAINTING IN THIS UPCOMING YEAR BEING PAID FOR OUTTA PRIOR DEBT.
SO, UH, RATE CHANGES, UM, IS THAT WE WOULD RECOMMEND, BASED ON ALL THE INFORMATION THAT THAT WE HAVE AND, AND, AND MODELING THIS A 2% RATE INCREASE ACROSS THE BOARD FOR BOTH WATER AND WASTEWATER.
UM, WE DID HAVE SOME DISCUSSIONS IF WE WANTED TO DO A DIFFERENTIAL RATE INCREASE FOR WATER VERSUS WEIGHT WA VERSUS WASTEWATER.
AND WE'VE DONE THAT IN YEARS PAST.
UM, BUT IT WAS THOUGHT THAT THIS YEAR THAT THAT COUNCIL WOULD PROBABLY JUST WANT TO GO BACK TO DOING IT THE WAY THAT WE WERE DOING IT FOR MANY YEARS, WHICH IS JUST AN ACROSS THE BOARD RATE INCREASE FOR BOTH UTILITIES.
UH, SO BASICALLY EVERYTHING, UH, THE WATER DEMAND CHARGE, WATER VOLUME CHARGES, WASTEWATER, DEMAND CHARGE, AND, AND, UH, WASTEWATER VOLUME RATES WOULD GO UP 2%.
UM, THIS IS WHERE I WANNA CIRCLE BACK AND TALK A LITTLE BIT ABOUT THE EEA MANAGEMENT FEE.
UM, THAT IS GOING TO INCREASE DUE TO THE INCREASED COSTS ASSOCIATED WITH GROUNDWATER RIGHTS.
AGAIN, AS THE CITY PURCHASE THESE, THESE PURCHASES, THESE ADDITIONAL GROUNDWATER RIGHTS, THERE IS AN EXPENSE THAT HAS TO BE PAID, UH, TO THE EAA, UH, FOR THOSE, FOR THOSE RIGHTS EVERY YEAR.
UM, AND SO THE WAY THAT THAT GETS CALCULATED, AGAIN, IT'S, IT'S TYPICALLY A, A, A PASS THROUGH, IF YOU WILL.
UM, WE HAVE THE BUDGET NUMBER THAT THAT IS GOING TO HAVE TO BE REMITTED TO EAA FOR THESE FEES.
AND THEN WE BASICALLY TAKE THAT NUMBER AND DIVIDE IT BY THE NUMBER OF WATER CUSTOMERS.
WE DO SCALE IT BASED ON METER SIZE, BUT IN ITS MOST SIMPLISTIC FORM, UH, WE TAKE THAT FEE AND DIVIDE IT BY THE, THE NUMBER OF CUSTOMERS.
AND THEN THAT'S THE, THAT'S THE PER CUSTOMER CHARGE, UH, ASSOCIATED WITH EAA.
UM, THERE WAS A, A RATHER LARGE INCREASE ASSUMED IN THAT FEE FOR NEXT YEAR, BUT 'CAUSE OF THE, THE INCREASE IN, IN, UH, IN WATER RIGHTS THAT THE CITY WILL HOLD.
UM, BUT AGAIN, I DO WANT TO POINT OUT THAT WHILE THIS IS AN INCREASED COST, IT IS AN INCREASED BENEFIT, UM, TO THE CITY AS WELL AND, AND HAVING THAT WATER AVAILABLE.
UM, AND SO THAT YOU'RE NOT FACING AS MANY, UH, RESTRICTIONS DURING DROUGHT USAGE AND JUST HAVING A, A RELIABLE LONG-TERM WATER SUPPLY.
SO WE WOULD, AS WE WOULD, UH, THINK THAT THAT FEE IS GOING TO GO UP ABOUT 89%.
UM, SO IF WE LOOK AT A TYPICAL CUSTOMER THAT USES 6,000 GALLONS OF WATER AND 5,000 GALLONS OF WASTEWATER, UM, THE TOTAL BILL INCREASE WOULD ACTUALLY BE $5 AND 41 CENTS, WHICH IS GREATER THAN THAN 2%.
UM, BUT AGAIN, MOST OF THAT IS THE, IS THE EA FEE.
THE EA PORTION OF THAT INCREASE WOULD BE $3 AND 65 CENTS.
AND THEN MUCH SMALLER PORTIONS OF THAT ARE THE, ARE THE WATER RATE INCREASE AND THE WASTEWATER RATE INCREASE.
UH, THIS JUST KIND OF, MR. DUNLOP HAS A QUESTION, I BELIEVE.
UH, SO WHAT IS THE, THE TOTAL NET INCREASE THAT WE'RE LOOKING AT HERE? UM, WE'VE GOT 2% FOR THE CITY AND THEN THE EAA FEES, YES, IT'S, IT'S 2% FOR THE CITY.
SO IT'S, IT'S 90 CENTS FOR THE WATER RATES, 86 CENTS FOR WASTEWATER, THEN $3 AND 65 CENTS FOR THE EA FEE.
SO THAT'S $5 AND 41 CENTS A MONTH FOR A TYPICAL RESIDENTIAL CUSTOMER.
I THINK HE'S ASKING, I THINK HE'S ASKING COLLECTIVELY WITH THE CITY'S 2% AND THE EAA MANAGEMENT FEE, WHAT IS THE OVERALL PERCENTAGE INCREASE PER RESIDENT OH, PERCENTAGE INCREASE THAT? CORRECT.
UM, LET ME, LET ME LOOK AT THAT.
AND SO I'LL, I'LL GET YOU THAT AS I OKAY.
AND I, OKAY, AS I FINISH THIS.
UM, SO THIS JUST KIND OF GRAPHICALLY SHOWS THE, THE EXPENDITURES AND REVENUE COMING IN THE DASH LINE AT THE TOP IS THE REVENUE.
AND SO, UM, AGAIN, WE'VE ASSUMED A 2% RATE INCREASE THIS YEAR LOOKING FORWARD.
UM, THESE ARE SUBJECT TO CHANGE, BUT IN 2028 AND 2029, WE THINK THAT'S STILL, THAT RATE INCREASE WOULD NEED TO BE SOMEWHERE AROUND 2% AND THEN MAYBE A LITTLE BIT HIGHER IN 2030 AND 2031.
UM, WHAT WE WANT TO BE COGNIZANT OF IS THE FACT THAT WE ARE USING PRIOR YEAR, UM, PRIOR YEAR BONDS TO FUND THESE WATER AND WASTEWATER REHAB PROJECTS.
AND THAT'S GOING TO GO AWAY IN
[00:30:01]
2031.SO IN 20, IN 2031, ALL THOSE PRIOR YEAR BONDS ARE GOING TO BE SPENT.
UM, AND SO IN 2032, THAT'S NOT SHOWN ON THE GRAPH.
UM, WE WOULD EXPECT THAT THE CITY IS GOING TO HAVE TO GO BACK TO CASH FUNDING OR FUNDING THOSE PROJECTS OUT OF THE, OUT OF UTILITY FUND REVENUE.
AND SO WE DON'T WANT TO LET OUR REVENUES, WE NEED TO KEEP DOING SOME RATE INCREASES BECAUSE WE KNOW THAT IN 2032, WE'RE GONNA HAVE AN ADDITIONAL COST COME BACK ONTO THE UTILITIES.
SO WE JUST WANT TO KIND OF MAKE SURE THAT WE'RE PREPARING FOR THAT AND NOT, UM, UH, WE DON'T WANT TO DO RATE INCREASES THAT ARE TOO LARGE, BUT AT THE SAME TIME, WE, WE WANT TO DO LOOK A, WE WANNA LOOK A LITTLE BIT IN THE FUTURE SO THAT WE CAN AVOID, LIKE, UH, DOING A LARGE RATE INCREASE IN ANY SINGLE YEAR, IF THAT, IF THAT MAKES SENSE.
UM, AND SO AGAIN, THIS WILL BE A, AN INCREASE OF ABOUT $5 AND 41 CENTS.
AND THEN, SO TO ANSWER, UH, YOUR QUESTION, COUNCILMAN, THAT WOULD BE ABOUT, I HAVE THE EXACT NUMBER SOMEWHERE, BUT I THINK IT WOULD BE ABOUT A 6% INCREASE OVERALL ON THE, ON THE BILL.
DOES THAT, DOES THAT ANSWER YOUR QUESTION? UH, YEAH.
AND, AND THAT, THAT PERCENT INCREASE WOULD BE IT, IT'LL VARY DEPENDING UPON USE, UM, BUT YOUR TYPICAL CUSTOMER WILL BE PROBABLY SOMEWHERE IN THAT 5%, 6% INCREASE.
UM, AND WE ARE, AS, AS WE GO THROUGH, WE ARE TRYING TO MAKE SURE THAT YOU'RE MEETING PRO UH, FINANCIAL PERFORMANCE TARGETS.
SO WE ALWAYS, UH, WE'LL HAVE YOU ABOVE SIX MONTHS WORTH OF RESERVES.
AND THEN, UM, WE SHOW YOUR, YOUR DEBT SERVICE COVERAGE A LITTLE BIT BELOW 1.25 IN 2027.
I DON'T NECESSARILY THINK, UM, THAT THAT IS, THAT IS REAL, BUT THEN YOU WOULD BE, UH, ABOVE THAT AND, AND ALL OF YOUR, ALL OF THE OTHER PLANNING YEARS BEFORE US SWITCH TO STORMWATER.
IS THERE ANY QUESTIONS RELATED, OTHER QUESTIONS RELATED TO WATER OR WASTEWATER? UM, OVERALL, UM, WHEN WE WERE TALKING WITH STAFF, I THINK THAT IT'S, IT'S, UH, IT'S PRETTY POSITIVE THAT YOU'RE ISSUING AS MUCH DEBT, UM, AS YOU, AS YOU ARE.
AND WE'RE STILL DOING MINIMAL RATE INCREASES.
UM, BUT AGAIN, WE'RE ABLE TO DO THAT BECAUSE OF THESE PRIOR YEAR BOND FUNDS THAT WE'RE ABLE TO USE, UH, TO BASICALLY TAKE SOME EXPENSES OUT OF THE BUDGET THAT HAVE BEEN THERE HISTORICALLY AND AND OFFSET SOME OF THAT, UH, NEW DEBT SERVICE.
UM, ON THE STORMWATER UTILITY.
UM, WE'VE GONE SEVERAL YEARS WITHOUT, WITHOUT DOING A RATE INCREASE ON THE STORMWATER UTILITY.
THE LAST RATE INCREASE WAS FOR FISCAL YEAR 2023.
UM, ABOUT THAT TIME, THE STORMWATER BUDGET BASICALLY WENT, WENT DOWN.
THERE WAS SOME EXPENSES, UH, DUE TO LEASING OF, OF VEHICLES AND EQUIPMENT AND THAT THAT WENT AWAY.
UM, AND SO, UH, THAT, THAT MONEY HAS NOW BEEN USED TO PAY FOR, FOR CAPITAL PROJECTS.
UM, AND BECAUSE OF THOSE DECREASED EXPENSES, WE'VE BEEN ABLE TO, AGAIN, GO SEVERAL YEARS WITHOUT INCREASING THE, THE STORMWATER RATES.
UM, A LITTLE BIT OF, OF CIP ON THE STORMWATER SIDE, WE DO HAVE ALL OF THIS COMING OUT OF, OUT OF THE STORMWATER UTILITY, NOT PRIOR YEAR BOND FUNDS LIKE WE'RE DOING ON, ON WATER AND WASTEWATER, BUT PROJECTS ASSOCIATED WITH BRUSH CLEARING, UH, THE MINUS PAT BOOKER ROAD DRAINAGE PROJECT, AND THE OAK MEADOWS DRAINAGE SYSTEM AS WELL.
UM, THE OAK MEADOWS DRAINAGE SYSTEM, UH, WE'RE SHOWING THIS A LITTLE BIT, UM, DIFFERENTLY.
THERE'S, THERE'S DIFFERENT WAYS THAT WE COULD SHOW IT, UH, BUT IN ESSENCE, THE, THE FUNDS THAT WE HAVE IN EACH ONE OF THOSE YEARS, UM, THAT'S NOT, THOSE FUNDS ARE NOT TRULY GONNA BE SPENT IN THE YEAR THAT WE HAVE THEM UP THERE.
UM, IN, IN ESSENCE, THEY'RE GONNA BE SET ASIDE, IF YOU WILL, AND BUILD FUND BALANCE.
AND THEN ONCE RANDY HAS THE, THE TOTAL COST OF THAT PROJECT FUND SET ASIDE, UM, THAT PROJECT WOULD BE, WOULD BE UNDERTAKEN IF, IF THAT MAKES SENSE.
BUT WE DO, WE ARE SHOWING AS AN EXPENSE HERE, SO WE CAN, WE CAN ACCOUNT FOR IT.
UM, SO RATE CHANGES ON THE, UH, STORMWATER SIDE, WE'RE NOT, UH, RECOMMENDING ANY, ANY STORMWATER RATE INCREASES.
SO THAT, THAT HELPS OUT, UH, A LITTLE BIT.
UM, THAT'S IN LINE WITH LAST YEAR'S RATE STUDY.
UM, I ALWAYS WILL PUT AN ASTERISK, WHICH IS KIND OF THAT SECOND BULLET POINT AND SAY THAT INFLATIONARY RATE INCREASES MAY BE NEEDED.
I I NEVER WANNA STAND HERE AND TELL YOU, WELL, WE THINK YOU'RE GONNA BE ABLE TO GO THE NEXT FIVE YEARS WITHOUT ANY RATE INCREASES.
UM, WE DON'T HAVE ANY MODELED.
[00:35:01]
UPON WHAT YOUR LEVEL OF, OF CAPITAL IMPROVEMENT SPENDING IS, UM, YOU ALSO, I MEAN, THERE'S A CHANCE THAT YOU MAY NEED SOME RATE INCREASES DEPENDING ON WHAT THAT DOES.UM, AND THE UTILITY IS MAINING IS MAINTAINING THE RESERVE REQUIREMENT, UH, FOR STORMWATER.
UH, ON THE WATER AND WASTEWATER SIDE, WE'RE, WE USE A SIX MONTH, UH, RESERVE REQUIREMENT ON STORMWATER, WE ONLY USE THREE MONTHS.
AND SO YOU'RE, YOU'RE WELL ABOVE THAT.
UH, THIS JUST KIND OF SHOWS THE, THE REVENUE VERSUS EXPENSES FOR THE STORMWATER UTILITY.
AND AGAIN, YOU CAN SEE THAT REVENUES ARE, ARE TYPICALLY ABOVE EXPENSES.
UM, THAT 2027 BAR, THAT DOES SHOW YOU RUNNING A DEFICIT.
BUT AGAIN, THAT'S, THAT'S REALLY NOT A DEFICIT BECAUSE WE HAVE MONEY IN THERE THAT'S NOT TRULY BEING SPENT, JUST BEING SET ASIDE FOR A, FOR A FUTURE PROJECT.
SO WITH THAT, IS THERE ANY QUESTIONS ON THE UTILITY RATE ANALYSIS? ANY QUESTIONS, ANY COMMENTS? DO YOU THINK THAT IT'S A SIGN OF GOOD, UM, PRIOR COUNSEL'S CHOICES THAT WE'RE ABLE TO CONSIDER ISSUING THE $20 MILLION IN DEBT AND STILL BEING, BEING, MAINTAINING THE 2% INCREASE? I THINK THAT'S, I THINK IT'S A GOOD THING TO DO THE YEAR WE'RE ISSUING DEBT, SO THANK YOU.
UM, AND THEN OUR LAST TOPIC IS GOING TO BE FINANCING PLAN FOR THE ISSUANCE OF WATERWORKS AND SEWER SYSTEM REVENUE BONDS.
SO, UM, WE, WE APPRECIATE YOUR PATIENCE ON EVERYTHING, WATER AND WASTEWATER AND STORM WATER.
SO, UH, WE WILL BE NEEDING TO PROVIDE SOME, UH, DIRECTION TO VICTOR THIS EVENING ON THE, UH, BOND PACKAGE ON THE, UH, NUMBER OF YEARS THAT YOU WOULD LIKE FOR HIM TO DO THAT.
AGAIN, AS GRADY HAD MENTIONED, WHEN WE RAN OUR MODEL, WE RAN IT AT 25 YEARS, WHICH WE FELT WAS KIND OF THE MIDWAY POINT.
OBVIOUSLY YOU HAVE THE ABILITY TO GO 20 YEARS, WHICH MEANS WE WILL HAVE TO GO BACK AND REMODEL AND PROBABLY DO A RATE INCREASE HIGHER, UM, FOR THE, UM, UTILITY FUND, UH, IF YOU WENT TO THE 30 YEAR AS, UH, GRADY HAD INDICATED, IT'S PROBABLY NOT MUCH OF A CHANGE, BUT UNFORTUNATELY IT ALSO MEANS THAT YOU'RE PAYING FIVE YEARS WORTH OF INTEREST, WHICH, YOU KNOW, WE TRY TO AVOID AT ALL COSTS.
SO, UM, VICTOR WILL GO THROUGH SOME OF THOSE FINER POINTS WITH YOU, AND WITH THAT WE'LL GO AHEAD AND TURN IT OVER TO HIM, BUT HE WILL NEED SOME DIRECTION FROM COUNSEL ON WHAT YOU'D LIKE TO SEE.
'CAUSE HE'LL BE COMING BACK WITH PAPERWORK FOR YOU TO SIGN AT SOME POINT.
UH, HONORABLE MAYOR PRO TEM COUNCIL MEMBERS, UH, MS. TURNER, THANK YOU FOR HAVING ME HERE.
UM, ALSO, CONGRATULATIONS TO THE NEW COUNCIL MEMBERS.
UH, WE LOOK FORWARD TO WORKING WITH YOU.
BUT, UM, MY NAME IS VICTOR KEROGA.
I'M WITH SPECIALIZED PUBLIC FINANCE, AND WE HAVE THE HONOR OF REPRESENTING THE CITY AS YOUR BOND FINANCIAL ADVISOR.
SO WHENEVER YOU NEED TO ISSUE DEBT OR REFINANCE DEBT, THE STAFF CALLS ME TO GUIDE THEM THROUGH THAT PROCESS.
AND, UH, MY MAIN JOB IS REALLY TO JUST GET YOU THE LOWEST INTEREST RATE POSSIBLE.
SO, UM, SOME OF THE SLIDES THAT ARE IN THIS PRESENTATION, IT MIGHT BE A REPEAT FOR THE VETERAN COUNCIL MEMBERS, UH, BUT I'LL BRIEFLY GO THROUGH IT.
UM, AND THEN WE'LL TALK ABOUT THE $20 MILLION DEBT ISSUANCE THAT WE'RE CONTEMPLATING HERE FOR THE, UH, WASTEWATER AND SEWER SYSTEM.
AND SO, THE FIRST PAGE AFTER THE COVER SHEET, UH, THE PURPOSE OF THE PRESENTATION, WE TALKED ABOUT THAT.
THE ANTICIPATION IS THAT, UM, UPON YOUR APPROVAL OF THIS FINANCING PLAN, WE WOULD, UH, PREPARE THE NECESSARY DOCUMENTS TO ENTER THE BOND MARKET, UH, LOCK IN AN INTEREST RATE FOR YOU ON AUGUST 18TH, COME BACK TO YOU AT THAT COUNCIL MEETING AND PRESENT TO YOU THE INTEREST RATE RESULTS, UH, FOR YOUR APPROVAL.
AND THEN THAT'LL GET YOU ALL THE $20 MILLION FUNDED INTO YOUR PROJECT ACCOUNT ABOUT A MONTH LATER IN SEPTEMBER.
WE'LL TALK ABOUT THAT HERE IN A SECOND.
IF YOU GO TO THE NEXT SLIDE, THIS IS AN OVERVIEW OF THE UTILITY SYSTEM'S EXISTING DEBT.
UH, WE HAVE FOUR BOND ISSUANCES OUTSTANDING FOR A TOTAL DEBT AMOUNT OR PRINCIPAL AMOUNT OUTSTANDING OF $8,675,000.
UH, THERE'S FOUR DEBT ISSUANCES THERE WERE, THEY WERE ISSUED AND USED FOR CAPITAL PROJECTS OR FOR REFINANCING EXISTING DEBT AT THE TIME.
FOR INTEREST COST SAVINGS, UH, ALL THIS DEBT WILL BE PAID OFF STARTING IN 2031 TO 2042.
UH, HISTORICALLY WE HAVE UTILIZED A 20 YEAR REPAYMENT TERM, UM, BUT HISTORICALLY WE'VE NOT ISSUED THIS MAGNITUDE OF DEBT IN THE PAST.
AND SO THIS IS WHY WE WANT TO TALK TO YOU ABOUT, UH, UH, UH, ENTERTAINING OTHER REPAYMENT TERMS TO MINIMIZE THAT IMPACT ON YOUR RATE PAYERS.
IF YOU GO TO THE NEXT SLIDE, PLEASE.
UH, SO JUST VERY BRIEFLY, UH, OVERVIEW OF THE UTILITY SYSTEM REVENUE BONDS AND HOW THIS WORKS.
SO, UH, FIRST AND FOREMOST, THESE ARE SOLELY PAID AND SECURED BY REVENUES DERIVED FROM THE UTILITY SYSTEM.
UH, THESE ARE NOT PAID FOR BY PROPERTY TAXES,
[00:40:01]
AND THEY'RE NOT SECURED BY PROPERTY TAXES.SO THE BOND INVESTORS GO INTO THIS TRANSACTION KNOWING THAT, THAT THEY'RE NOT GONNA BE REPAID BY PROPERTY TAXES.
SO, BUT WITH THAT SAID, BECAUSE IT'S, UH, REVENUE BOND SUPPORTED, UM, THERE ARE CERTAIN, UH, MAJOR COVENANTS THAT WE HAVE TO BE MINDFUL OF BECAUSE THESE ARE PROMISES THAT WE MADE TO THE EXISTING BOND HOLDERS, AND THESE ARE PROMISES THAT WE'RE GONNA MAKE TO THE NEW BOND HOLDERS AS WELL.
SO, UH, FIRST AND FOREMOST, UH, A DISCUSSION WAS HAD ABOUT THE MINIMUM DEBT SERVICE COVERAGE.
BASICALLY, THAT JUST MEANS THAT, UH, THE CITY HAS TO MAINTAIN ITS SYSTEM AND SET THE APPROPRIATE RATES AND CHARGES IN ORDER FOR YOU TO HAVE SUFFICIENT ENOUGH REVENUES.
THAT'S GONNA BE ABOVE AND BEYOND YOUR MINIMUM DEBT SERVICE PAYMENTS.
SO THAT'S YOUR EXISTING DEBT PLUS YOUR NEW DEBT THAT WE'RE CONTEMPLATING HERE.
SO BASICALLY THAT'S ABOUT 25% MORE.
NET REVENUES HAVE TO COME IN, UH, UH, ABOVE YOUR ANNUAL DEBT SERVICE PAYMENTS.
BUT FIRST, THE BOND INVESTORS WANT YOU TO USE THE FIRST MONIES THAT COME IN TO MAINTAIN, UH, THE OPERATION OF YOUR SYSTEM.
THEY WANT YOU TO MAKE, MAKE SURE THAT IT'S FUNCTIONING PROPERLY BECAUSE YOU CAN'T MAKE MONEY UNLESS IT'S FUNCTIONING PROPERLY AND YOU'RE ABLE TO SELL THAT WATER.
UH, SO THESE, UH, NET REVENUES ARE AFTER YOUR MAINTENANCE AND OPERATION EXPENSES THAT YOU HAVE TO, UH, UH, UH, DO EVERY YEAR.
ALSO, THEY DO REQUIRE A RESERVE FUND.
UH, THERE'S SOME OPTIONS THAT WE'LL VISIT WITH STAFF ON THIS A REQUIREMENT.
UM, RIGHT NOW, THE CURRENT REVENUE COVERAGE FOR THE EXISTING DEBT THAT WE SHARED WITH YOU IN THE PREVIOUS SLIDE, UM, WE HAVE A COVERAGE RATIO OF 4.64 TIMES.
SO THAT'S WELL ABOVE THE 1.25 MINIMUM THAT WE HAVE TO MAINTAIN BASED ON THE PROMISES WE MADE TO THE PREVIOUS BOND INVESTORS.
IF YOU GO TO THE NEXT PAGE, WE DID MODEL OUT A $20 MILLION BOND ISSUANCE FOR THOSE TWO, UH, PROJECTS THAT YOU'RE CONSIDERING.
UH, WE DID MODEL THIS WITH A 20 YEAR, 25 AND A 30 YEAR REPAYMENT TERM.
UH, HISTORICALLY WE'VE SOLD THESE TAX EXEMPT BONDS AND RECEIVED A FIXED INTEREST RATE.
SO THAT'S THE PLAN FOR THIS ISSUANCE AS WELL.
UH, WE'RE BEING MINDFUL THAT WE HAVE TO HAVE A MINIMUM DEBT SERVICE COVERAGE OF 1.25 TIMES.
SO IF I COULD JUST WALK YOU THROUGH THIS, IF WE WERE BORROW, UH, $20 MILLION IN AUGUST AND WE USED A 20 YEAR REPAYMENT TERM, THE INTEREST RATE WOULD TYPICALLY BE, UH, A LITTLE BIT LOWER FOR THAT, BUT THE ANNUAL PAYMENTS WOULD BE HIGHER BECAUSE WE'RE PAYING THE PRINCIPAL OFF A LITTLE, UH, QUICKER THAN OTHER REPAYMENT TERMS. SO WITH THAT ONE, WE'RE ESTIMATING AVERAGE ANNUAL DEBT SERVICE FOR A $20 MILLION BOND TRANSACTION OF $1.56 MILLION.
UH, WHAT THAT DOES TO THE DEBT SERVICE COVERAGE RATIO STARTING NEXT YEAR, UH, BASED OFF OF OUR PRO FORMA, IS IT DROPS THAT COVERAGE RATIO TO 1.7 TIMES.
UM, OBVIOUSLY NOT AS RICH OR NOT AS, UH, COMFORTABLE AS THE 4.6 TIMES THAT WE'RE AT RIGHT NOW, BUT YOU'RE STILL ABOVE THE 1.25.
SO WHAT THIS MEANS IS THAT YOU DO HAVE THE BORROWING CAPACITY TO ISSUE $20 MILLION AND STILL BE ABOVE THE 1.25 TIMES COVERAGE THAT WE PROMISED THE BOND INVESTORS.
UH, WE'RE ALSO CONSIDERING BECAUSE OF THE MAGNITUDE OF THE DEBT AMOUNT, UH, UH, OTHER REPAYMENT TERMS, THE 25 YEAR REPAYMENT TERM.
AND AGAIN, THESE ARE VERY CONSERVATIVE INTEREST RATES.
WE'RE HOPING THAT WE COME BACK TO YOU IN AUGUST.
THERE'LL BE, UH, LESS THAN THIS.
BUT WE JUST WANNA GIVE YOU THE WORST CASE SCENARIO FOR PLANNING PURPOSES.
THE, UH, AVERAGE ANNUAL DEBT SERVICE FOR THE 25 YEAR REPAYMENT OPTION IS $1.41 MILLION.
AND YOUR DEBT SERVICE COVERAGE, IT GIVES YOU A LITTLE BIT MORE BREATHING ROOM 'CAUSE YOU'RE NOT, UH, THOSE DEBT PAYMENTS AREN'T AS HIGH.
SO THAT COVERAGE IS A LITTLE HIGHER AT THE 1.83 TIMES.
SO AGAIN, ABOVE THE 1.25, WE DID THE SAME EXERCISE FOR A 30 YEAR BOND.
UM, THAT ONE IS A 1.9 TIMES, IT DOES GIVE YOU SOME BREATHING ROOM, BUT IT, UH, AS BRADY AND, UH, MS. TURNER INDICATED, UH, IT DOESN'T REALLY DO TOO MUCH FOR YOU IN TERMS OF BEING ABLE TO LOWER YOUR RATES EVEN ANY FURTHER THAN YOU'RE DOING NOW, WHICH, UM, YOU KNOW, WHEN THINK SITTING THERE AND LISTENING TO PRESENTATION, IT'S PRETTY INTERESTING THAT WE'RE ABLE TO ISSUE, WE HAVE $8 MILLION OUTSTANDING, WE'RE GONNA ISSUE 20 MILLIONS ON TOP OF THAT, AND YOU'RE JUST DOING A 2% RATE INCREASE.
SO THAT'S, UM, THAT'S AN EN ENVIABLE POSITION THAT THE CITY IS IN.
ARE THERE ANY QUESTIONS WITH THE REPAYMENT TERMS HERE BEFORE I MOVE ON? NO.
SO, UM, THIS IS PROBABLY LIKE THE MOST SIMPLE SLIDE I'VE EVER CREATED IN MY 25 YEAR CAREER.
IF YOU GO TO THE NEXT SLIDE, PLEASE,
IT'S LIKE, OH, DID, DID I REALLY DO THIS? UH, BUT I JUST TRY TO KEEP IT SIMPLE.
UM, AND SO TODAY WHAT YOU'RE CONSIDERING IS, UH, JUST ALLOWING US AND STAFF TO START MOVING FORWARD ON THE OFFERING DOCUMENTS REQUIRED TO GO INTO THE BAR MARKET FOR $20 MILLION.
UH, WE'RE NOT LOCKING AN INTEREST RATE YET, WE'RE JUST GETTING DIRECTION FROM YOU AS TO HOW MUCH YOU WANNA BORROW.
IN THIS CASE, THE STAFF HAS RECOMMENDED $20 MILLION, AND MOST IMPORTANTLY, WHAT REPAYMENT TERM YOU WANT US TO USE, 20, 25 OR 30 YEAR.
UM, BUT IN BETWEEN THAT TIME, THIS, UH, DOESN'T DO, UH, MY TEAM AND THE STAFF, UH, ANY JUSTICE BECAUSE THERE'S A LOT OF WORK GOING ON BETWEEN HERE.
WE'RE GONNA VISIT WITH, UM, UH, UH, RATING AGENCIES.
[00:45:01]
UH, WE'LL BE MARKETING THESE BONDS AND PREPARING ALL THE NECESSARY DOCUMENTS.AND SO, UM, THERE'S A LOT OF WORK GOING ON HERE, AND THAT'S GONNA HAPPEN BETWEEN NOW, UH, TO THE TIME WE COME BACK TO YOU.
AND ON AUGUST 18TH, THAT'S THE REGULARLY SCHEDULED COUNCIL MEETING.
WHAT'LL HAPPEN IS THAT MORNING WE'LL GO INTO THE BOND MARKET, WE'LL ACCEPT BIDS FOR YOUR BONDS, AND WE'LL PRESENT THOSE BIDS TO YOU THAT BID TABULATION AND LIKELY RECOMMEND THE LOWEST INTEREST RATE BIDDER LIKE WE'VE DONE IN THE PAST.
AND THAT'LL OCCUR THAT EVENING ON AUGUST 18TH.
THAT'S THE BIG DATE WHERE YOU ARE GONNA BE LOCKING IN THE INTEREST RATE AND AWARDING THE BONDS TO THE WINNING BIDDER AT THAT TIME.
AFTER THAT, THE BOND ATTORNEYS WILL TAKE ALL THE LEGAL DOCUMENTS AND FINANCING DOCUMENTS, PRESENT THEM TO THE TEXAS ATTORNEY GENERAL'S OFFICE FOR THEIR FINAL APPROVAL AS REQUIRED UNDER STATE LAW.
AND, UM, THAT WOULD, UH, SET US UP FOR A CLOSING DATE OF SEPTEMBER 17TH.
UH, AND NO ACTION IS REQUIRED BY THE COUNCIL OF SEPTEMBER 17TH, UH, JUST TODAY AND AUGUST 18TH.
UH, THAT CLOSING WILL BE DONE VIA ELECTRONIC WIRE.
UH, THE, THE APPENDIX IS JUST A DETAILED PERFORMER THAT WE PREPARED FOR EACH, UH, REPAYMENT TERM.
UH, I'LL BE HAPPY TO GO THROUGH THAT IF YOU'D LIKE OR ANSWER ANY QUESTIONS OR ANSWER ANY OTHER QUESTIONS YOU MAY HAVE.
BUT AGAIN, RIGHT NOW WE'RE JUST ASKING FOR DIRECTION ON HOW MUCH YOU WANNA BORROW AND THE REPAYMENT TERM.
THEN ANY COMMENTS ON THE DIRECTION? WELL, WHEN I LOOK AT THREE BIDS, I USUALLY LOOK IN THE MIDDLE AND TRY TO FIGURE IT OUT THIS WAY.
YOU MAKE THIS VERY UNDERSTANDABLE FOR OH, THANK YOU.
YEAH, US WHO DO NOT LIVE IN THIS WORLD.
UM, AND I APPRECIATE THE FACT THAT OUR CITY IS IN SUCH GOOD FINANCIAL HEALTH THAT HELPS US LOOK FORWARD TO ME.
REALLY, IF I'M LOOKING AT THE 20 YEAR AND THE 25 YEAR, THAT'S NOT A LOT OF DIFFERENCE.
IF WE CAN GET RID OF THE DEBT EARLIER, THEN THAT'S, IF, IF I'M LOOKING AT MY HOME AND SAYING, I CAN AFFORD A HUNDRED DOLLARS MORE TO GET RID OF IT FIVE YEARS EARLIER, I'M GONNA DO THAT.
BUT THAT MIDDLE ROAD'S ALSO VERY HEALTHY.
YEAH, WHAT SHE SAID, UM, I AM CURIOUS BECAUSE WHEN YOU DO THE MATH, YOU KNOW, THAT'S LIKE A $4 MILLION DIFFERENCE BETWEEN THE, THE 20 TO 25.
SO I DO LIKE THE IDEA OF PAYING IT OFF EARLY, BUT I ALSO DON'T WANNA PUT US IN A BIND.
SO THIS IS WHERE I, WHERE I TURN IT BACK TO Y'ALL, CAN WE ABSORB $150,000 A YEAR WITHOUT IT BEING, UM, SO YOU, YOU OBVIOUSLY YOU CAN, BUT THE 2% RATE INCREASE THAT WE'RE PROJECTING GOES HIGHER.
SO THE QUESTION IS, IS DO YOU WANT TO INCREASE YOUR RATE BY, I DON'T KNOW, GRADY, 1%? IT'S 1%, 1% MORE TO THE RATE PAYERS IN ORDER TO COVER THAT? YEAH, IT'S, IT'S TOUGH BECAUSE WE'RE HITTING WITH THAT.
THE EAA, WHATEVER THAT IS NOT NEW, BUT ALWAYS THERE, IT'S JUST THEY'VE INCREASED THEIR FEES, WHICH IS A PASS THROUGH.
SO YES, THAT'S THE BIGGEST ONE.
BUT BETWEEN THAT PLUS WHAT WE'RE PROJECTING, SO HE SAID FIVE TO SIX, SO NOW WE'RE LOOKING AT SIX TO 7% RATE INCREASE PER RESIDENTIAL HOUSEHOLD, DEPENDING ON USAGE.
SO THAT'S KIND OF WHAT YOU HAVE TO WEIGH.
AND I, THAT'S THE ONE ALSO, IF I MIGHT ADD TOO, UM, YOU KNOW, IF YOU LOOK AT THE PROJECTS THAT YOU'RE, UH, GOING ABOUT YOUR PURCHASING WATER, UH, BUILDING A NEW FACILITY, UH, TYPICALLY THE FACILITY'S GONNA HAVE A LONGER LIFE THAN 20 YEARS.
UM, I'M NOT HERE TO PUSH YOU TO LONGER REPAYMENT TERM AND MORE INTEREST.
I, I DON'T LIKE DEBT EVEN THOUGH THAT'S WHAT I DO FOR A LIVING.
BUT THE WAY TO ALSO LOOK AT THIS TOO IS, UM, EVEN THE 25 YEAR OPTION IS STILL SHORTER THAN THE ECONOMIC LIFE OF THE TWO PROJECTS THAT YOU'RE, UM, GONNA PAY FOR WITH THESE BONDS.
ALSO TOO, THE, THE INTEREST RATE WILL BE FIXED FOR THAT 25 YEAR PERIOD, BUT JUST BE MINDFUL THAT AFTER THE 10TH ANNIVERSARY, SO 10 YEARS FROM NOW, AT THAT POINT FOR THIS DEBT TRANSACTION, WE'LL HAVE THE OPTION OF EITHER PAYING BONDS OFF EARLY OR TO REFINANCE THEM AT A LOWER COST.
AND, AND YOU ALWAYS HAVE THE OPTION OF RESTRUCTURING THE DEBT AND MAKING IT SHORTER LATER ON.
IT'S ALWAYS TOUGHER WHEN YOU DO A 20 YEAR AND YOU, YOU SAY, OH, YOU KNOW, THE, WE DON'T WANNA DO A RATE INCREASE.
WE MIGHT HAVE TO EXTEND IT AT THAT POINT.
THAT'S WHEN THE RATING AGENCIES DON'T LIKE TO SEE WHERE YOU'RE EXTENDING THE ORIGINAL REPAYMENT TERM.
BUT AGAIN, I'M NOT TRYING TO PUSH YOU ANY WAY, BUT JUST SOME THINGS TO, TO CONSIDER, UM, FOR YOU.
I MEAN, BECAUSE WE'VE, IN THE, I REMEMBER BACK WHEN THIS WASN'T ALL GRAY.
WE, WE TALKED ABOUT, UH, BONDS AND WE WERE ABLE TO ROLL A LOT OF THE OLDER BONDS INTO A OTHER BOND AT ONE POINT AND REDUCE THAT RATE.
SO IF IT MADE SENSE TO DO THAT, NOW,
[00:50:01]
WE WOULD'VE RECOMMENDED IT, BUT AT THIS POINT IT DOESN'T MAKE SENSE.AT SOME POINT WE CAN GO BACK AND LOOK AT ALL OF THAT AGAIN.
AND AS PART OF THE REASON WHY WE'RE GOING UP ON THE EE, THE EAP, WHATEVER THAT ACRONYM IS, IS BECAUSE WE'RE BUYING MORE WATER.
THEY WENT UP ON THEIR RATES GENERALLY.
AND THEN IT'S KIND OF LIKE WHEN YOU BUY A HOUSE, RIGHT? YOU GET TACKED ON WITH, UH, INSURANCE AND TAXES AND, UH, MAINTENANCE AND OPERATIONS.
SO WHEN YOU BUY MORE WATER, YOU HAVE TO PAY MORE FEES TO HOLD THAT WATER.
AND SO THAT'S THE OTHER REASON WHY IT'S GOING UP.
SO AS WE'RE BUYING MORE WATER, WE CAN ANTICIPATE THOSE RATES TO CONTINUE TO YES.
INCREASE, CORRECT, BESIDES THEIR RATE INCREASES THAT THEY'RE ADDING ON TOP OF THAT.
SO I THINK THE COMMUNICATIONS AROUND THE EAA INCREASES ARE SOMETHING THAT WE NEED TO WORK OUT AND, AND HELP THE PUBLIC UNDERSTAND.
UH, YOU KNOW, AS MY QUESTION KIND OF INDICATED, WE TALK ABOUT A 2% INCREASE, BUT YOUR BILL IS GONNA GO UP 6%.
SO WE'VE GOT BE PRETTY CLEAR ABOUT, ABOUT DESCRIBING THOSE DIFFERENCES.
ALL THAT SAID, MY TAKE IS THE, THE 25 YEAR TERM SEEMS TO MAKE THE BEST BALANCE FOR US.
KEEPS OUR RATES LOW, UH, AND YOU KNOW, IF THINGS WORK OUT, WE REFINANCE IT AND PAY 'EM OFF EARLY.
RANDY, DID YOU WANNA SAY SOMETHING REGARDING THE EEA? YEAH.
ON THE EA FEE, UH, BASICALLY ON EVERYBODY'S WATER BILL, THEY'LL SEE THAT THEY HAVE A LINE ITEM THAT'S CALLED THE EAA FEE.
SO THEY'LL SEE THE JUMP WHEN IT GOES, UH, FROM THE RATE THAT IT IS NOW, YOU KNOW, WE'RE GONNA BE ACQUIRING WHAT WE BUILT INTO THIS AND IT WON'T HAPPEN RIGHT AWAY.
UH, WELL IT WILL, BUT THE, WE'RE GONNA BE ACQUIRING 1300 ACRE FEET OF WATER AND THAT'S WHAT IS FORECASTED IN THIS, IN THIS MODEL HERE.
UM, SO WHEN WE DO THE NEWSLETTER ON THE RATE INCREASE, WE'LL HAVE A MENTION, UH, ABOUT THE EDUCATION, WHY THEY'RE GONNA SEE THAT RATE INCREASE.
SO THAT'LL BE, UH, WHEN WE SEND OUT THE NEWSLETTER, UH, ADVISING EVERYBODY ABOUT THIS RATE INCREASE, THERE WILL BE A SECTION THAT WE'LL PUT IN THERE FOR THIS EA EA FEE INCREASE.
ANY OTHER QUESTIONS OR COMMENTS? I WILL SAY WE HAVE TWO PEOPLE THAT HAVE MENTIONED 20% AND THEN 20 YEARS.
DO YOU WANNA YOU I'M GOOD WITH THE 25.
I THINK OUR DIRECTION IS THE 25 YEARS.
I'M JUST, YOU KNOW, IF I WANTED TO HEAR WHAT STAFF'S THOUGHTS WERE, YOU KNOW, I ALWAYS LIKE TO GET OPINIONS FROM PEOPLE SMARTER THAN ME.
SO
ANY OTHER QUESTIONS FOR US? UH, NO.
I'M HOPEFUL THAT WE'LL GET LOWER INTEREST RATES FOR YOU THAN THE 5% THAT WE'RE MODELING HERE, BUT, UH, Y'ALL ARE A GREAT CREDIT.
MAKES OUR JOB A LOT EASIER TOO.
BUT WE'RE OUT MARKETING THESE BONDS FOR YOU WITH THE BOND INVESTORS.
WE DEFINITELY HOPE YOU CAN COME IN LOWER AS WELL.
UH, BUT ASIDE FROM THAT, WITH THIS DIRECTION, WE'LL GET TO WORK.
AND THAT BRINGS US TO OUR LAST AGENDA ITEM.
SO AT 7 27, WE ADJOURN THIS MEETING.