Good afternoon and welcome to this meeting of the Denton City Council.

Today is today's date is June, Tuesday, September 9th, 2025.

And we have a quorum, so I'll call it and it's 2 p.m.

I'll call a meeting order.

First thing on the agenda, citizens' comments on consent agenda items.

Having none takes us to request for clarification on agenda items listed on the agenda for public hearing and individual consideration.

Any clarification on agenda items listed in the agenda for public hearing and or individual consideration.

Representative from District 4.

Thank you, Mayor.

Could I have some clarification on item item U?

Union.

Please is that consent or it's gotta be, right?

Because we won't go that far.

Okay.

It is consent, yes.

I don't think there's any.

There's no, yeah, go ahead.

Uh Mayor, Councilmember Holland, there's no staff here because uh if it's on consent, we usually don't leave staff here to answer those questions, but we can get it for you and have it to you before you approve the consent agenda.

That'd be fine.

So what what's your what's your question?

I just uh it just it just seems like a lot of money, and I'd like to know what it what it does.

What do it do?

Come on, come on, you're here.

Uh this is Dustin, he's here already.

He can answer this.

I thought you were talking to me.

You answer your question.

Mayor Council Dustin Sternbeck, Chief Communications Officer.

So this would be combining several existing platforms that we already use into one contract.

So we're we're actually saving money over the long term with our uh website hosting service, uh, community sentiment survey and social media monitoring up to five years.

So it in fact is it in fact is a money saving measure?

Yes.

Okay, okay.

Thank you.

Thank you, Mayor.

Uh any other questions on individual okay.

Mayor Pro Tim.

I asked a question ahead of time of let's see, it was regarding individual consideration item A.

Um, I asked uh approximately how much in total monthly revenue do we anticipate this new facility generating at the landfill?

Um I was wanting like an actual number of how much in total, what they get to keep, what we get to keep, how much we think this would generate maybe on a monthly or annual basis.

Not as tall as Dustin.

Brenda Haney, Solid Waste Director.

Um, we don't have an exact number because we don't know how much gas we're actually going to generate and what they're gonna sell and what that revenue is gonna be.

The payout to us is a percentage base based on the amount of revenue that they will generate.

So we get at the lowest level, we get 15% of their gross revenues, and that's when they are making gross revenues of up to a half a million dollars on a monthly basis.

So that's 75,000 a month at a minimum that we will receive.

As the revenue for them increases, our percentage increases, and therefore our revenue increases.

So it goes then the next jump is from a half a million and a penny to a million, and that's 21 percent.

So that's roughly a couple hundred, two hundred and ten thousand um on a monthly basis, and then the maximum is twenty-seven percent at anything over a million dollars and a penny a month.

So I I can't give you a hard annual number because I think what it's gonna happen is we're gonna build this, they're gonna expand the gas system.

We're gonna start to bring in an increased amount of gas, and their efficiency will continue to improve, and the system will get a little more robust with some time as they continue to to uh develop the production of gas in or get the gas out of our landfill a little more efficiently.

So but it's gonna take them about nine months or so to get up and running.

So we're not really anticipating a lot in this next fiscal year, and uh and by this time next year, it'll really start to be uh moving forward.

And one follow-up question that may not be you, but um, as that revenue to the city starts to come in, will that be a separate revenue line item that we'll be able to see within the budget?

The intent will be to return it to the solid waste fund, and then we'll be able to use it for future capital projects.

Right.

Will it be called out explicitly in the budget like a line item for revenue?

Yes, probably.

Okay, that's all.

Thank you.

Thank you.

Okay, thank you.

Any other questions?

Seeing none that takes us to our first work session item, work session A, ID 251536, receive a report and hold discussion, give staff direction regarding the fiscal year 2025-26 annual internal audit plan.

Work session A, ID 251536, receive a report and hold discussion, give staff direction regarding the fiscal year 2025-26 annual internal audit plan.

Hello, Mayor and Council Madison Roshaw Denton City Auditor.

I'm here to seek direction on our fiscal year 2026 annual internal audit plan.

So just as a quick refresher, the city auditor's office is responsible for providing independent and objective reviews of city functions to strengthen public trust and promote continuous improvement throughout the city.

These reviews generally fall under one of three lines of service related to assurance, consulting and investigations as shown in the figure.

In addition, the office provides support to the city's board of ethics and has administrative activities to support these services, including staff training and development, performance monitoring and reporting and management of the audit project quality control system, which is required by government auditing standards.

At this time, the largest uh focus of the office is providing assurance services, specifically audit projects, which is what you would expect.

Based on the city auditors office uh current strategic plan and available staffing resources, I prepared the uh shown uh proposed time budget summarized in the figure.

Under this time budget, most of the office's time is spent performing assurance services through audit projects and audit project follow-up reviews.

Well, this time also um, well, time is also budgeted.

I'm sorry, time is also budgeted for non-audit consultation and investigation services and to engage community members through performance reporting and feedback, and we also have administrative tasks uh like I previously spoke about.

Um so I'm here to seek direction on allocating these time budget uh buckets to specific projects, and I'll begin with the assurance services.

So for fiscal year 25-26, there are about 22,400 hours available to allocate to different assurance projects, including new audit projects and audit follow-up reviews.

Based on the city auditor's office's current strategic plan, there are kind of two service level goals that I use to develop the draft annual audit plan.

New audit project coverage comprehensiveness, uh, and audit project follow-up review timeliness.

So, due to last year's audit plan changes, a significant number of follow-up reviews scheduled for completion uh were pushed to future years.

Um the goal um for the strategic plan is to follow up on an audit project initially within 27 months.

However, this will not likely be possible due to that, those changes.

Um, however, based on that goal, I prepared three different follow-up review options um for this upcoming fiscal year.

Details about which projects would be included in each option are presented in your backup.

Um, but essentially option one is to only complete the follow-up reviews that should have been completed last year.

Uh option two is to complete the follow-up reviews that should have been completed last year and this year.

Uh, and then option three is kind of a combination of those that you can see in the backup.

Uh so as you can see kind of on the slide, the number the option that you select in the here will impact the number of follow-up reviews, actual new projects that we can do next year, just because of the time that it takes.

Um so speaking of the new projects, based on discussion with city management and the 2024 community survey results uh and a partial risk assessment.

Um, my office developed eight new audit project proposals for fiscal year uh 26.

These options were categorized into priority rankings based on responses to a resident survey issued in August of 2025.

Uh so critical is on your left and minimal is on the right.

Uh, and that's the that's the citizen ranking.

And then within each kind of priority ranking, I've ranked the projects based on the audit risk uh risk assessment.

Um so then uh so as mentioned earlier, the city's our our office also has the strategic goal to um have comprehensive coverage of the city.

So the projects with the diamonds next to them would expand our coverage.

Uh so basically we'd be uh for this kind of cycle.

So we'd be covering a new function.

Maybe we've covered it in some way in the past, but it's in the six-year cycle is where we look how we look at it.

Um so and then I do just want to mention before we get on.

So I'm basically I'm seeking direction on how many projects you want me to perform this year from this list.

Uh, and I do just want to mention that while it's not necessarily the highest priority for uh the public, city management is also particularly interested in the vehicle management audit, which is in the medium category, but is a high-risk audit um category.

So I guess I'll seek direction at this time.

Direction for staff representative from district one.

Hello.

Hello.

I hope you're doing well.

Um I am going to uh ask you all to do the medium.

Uh I am particularly interested in the tourism initiatives.

Okay.

Uh for me personally.

And then uh the number two on the back other page.

Um this page.

Yes, uh complete catch-up.

I think this is the reality of what's really going on with your work.

You need more time.

And I'm willing to uh not have as many things.

I know it sounded like a lot on the other page.

I got that because it's not going to match up with this number two, really.

Uh, but just finding the other two priorities, uh, I'll listen up to see what our other council members say, but we really do need to catch up.

I think that's what's going on with us uh in terms of everything.

We're always in a catch-up bolt.

All right, thank you.

Mayor Pretum.

I will second the uh or support, I suppose the the the idea of catch-up at first I like thought I liked the coverage goal and when when I thought about it, what's the point of doing an audit if we're not following up in a timely manner?

So I want to make sure that we're uh making sure that action was actually taken in response to an audit.

So I would also um support the catch-up.

Um I'm gonna be very excited to see the financial planning.

I mean, that's core to a city.

If if your finances aren't in order, it's really hard to do the rest of what you're supposed to be doing.

Um and I think the catch-up is you or the catch-up has us at like two new ones.

Correct.

Um for that one, I for a second, I would say climate resiliency on that.

Thank you.

Thank you.

Representative from district four, then too.

I would follow suit.

Representative district two.

Uh I agree with Mayor Pro Tim.

All right.

Representative district six.

Um, is this an appropriate time to uh give direction as far as the entire uh plan, not just uh the catch-up versus new items?

Yeah.

Okay, great.

Um, so first uh I just want to say I'm I I don't know how to change this, but I am definitely open to ideas of how to get more citizen and resident input.

Uh I I think we have 0.10% of citizens that responded.

And so while we of course want to take every resident that took the time to complete the survey's opinion into consideration, there is the question of how much weight to give when you consider it's um well less than uh one percent uh that are actually going on and and filling this out.

Um as well as I'm not sure where uh council is part of building uh the priorities, but I I I think in the future it would be helpful maybe to have a uh uh either some kind of specific request or here's kind of the ideas or what we're getting from the residents and staff.

Can you kind of rank and give me an idea before we come here today?

That's just my thoughts.

Um I also think that with all of the audits, especially in the time run right now, we've got to focus on financial efficiencies.

I think that is the number one thing that I'm seeing and that I'm hearing from people as far as what's happening across the board.

So with that, I'm I'm in uh sync with it.

Sounds the rest of the council members and the um different projects that I think could lead to the biggest savings right now.

Uh I think is important, starting with of course the the financial planning.

Um I would say if we move forward with the jail operations, I I would like to add not only that inmates remain safe and secure and that their rights are protected, but that also we look at the jail personnel's uh safety and make sure that we are also making sure that whatever policies and procedures they have in place they are keeping safe as well.

Um and uh as far as the volunteer management, I I personally think that we could find some, and and I've got a two-minute pitch talking about that.

I think there's a way to streamline and make those more efficient as well.

Uh so I would say that if we move forward with volunteer management, which it sounds like maybe we're not going to as far as the audit program, which I get, uh I wanted to include in their efficiencies and comparable with smaller sized with similar sized uh cities and make sure that we're not having duplication of efforts and and resources and and what we shouldn't be doing.

Um I also have a question regarding um the term equity as an attorney, anything that's kind of fluffy or could be interpreted different ways, they kind of stand out to me.

Um and so you know, we have with jail operations that were you're going to look at at equity as well as the climate resiliency and the volunteer management, what kind of equity there is, um, as well as in the tourism initiatives and the library operations.

And so my question is as far as equity, for example, with the climate resiliency, is the intention of using the word equity to say that we're looking at all of the different types of pollution, or you're saying that all different kinds of people can participate in climate resiliency.

Like I'm just trying to understand the word is used, you know, multiple times, and I think it can be open in interpretation.

And so I think as a council we need to have a discussion if we're talking about equity of opportunities or equity of of outcome.

Yeah, can you speak to that please?

Yeah, uh I'll try to start at the beginning of what you said.

I can certainly build into the process, like uh I maybe I'll I'll double check with legal, like a call for do you all have ideas or options that you would like on the audit plan as we're building the the kind of proposals so we can do that certainly that next year.

Thank you.

Um we got we only had 20 responses to survey last year, so uh I you know I I would love more feedback as well.

Um I want to think of a way, right?

Uh but obviously that's why ultimately y'all make the decision.

Um then as far as the equity, so that's one of the the government auditing standards.

There's essentially five E's, right?

That's why you see economy efficiency, um effectiveness, the other one's ethical, and then equity, those are all in the um the kind of the five categories of objectives that the government auditing standards outlines.

Um so that's why we use those words, but it has kind of further definitions of what those means, and then we use um association of local government auditors, they provide guidance on those as well.

So we use all of that to, but I can present that information to y'all uh if you would like.

I think that'd be very helpful to see what that definition of equity is because as it's applied here, I can interpret it different ways considering the different types of um uh subject matters, and then what the ones that we don't have that word included, so I just uh I would love more clarity as to what is being looked at there, you as an and your department as an independent source that we know that we're getting uh as much as possible that independent neutral numbers and facts, what are we looking at?

So I'll and I can provide that in a report afterwards, uh kind of what we have within our internal manner manual and how we get that from kind of these other sources of best practice and industry standards.

So yeah, and and I I didn't start with this and I should have um the the work that you produce and that your group produces is incredibly helpful and uh it's uh has been very important uh as far as us being able to try to do our due diligence where we can't be everywhere to see what's happening, and so um I let me take a moment to say thank you.

Uh and just for clarity, I believe you gave direction for the financial planning audit or and the option two on the follow-ups, is that correct?

I believe so, yes.

Okay, yes, uh was there another one you wanted to give direction?

So uh another just one I wanted to throw out and see if if anyone else felt it was a priority as well.

Um I just have real concerns with cybersecurity.

Um the even small businesses now in our community that are being held captive, blackmailed, you're not seeing it.

Uh it's not published, no one talks about it, but I'm hearing about it uh through different channels, and we're talking financial institutions, law firms.

Uh, and so I that's just something I don't know that we have talked about lately, and I want to make sure that it is something that we are considering because uh they have attacked hospitals, cities, etc.

And so um again, I don't know if it fits in in what we want to do this year.

However, I want to start putting that out there because um that's something that does keep me up at night uh as far as what could happen uh if we had an incident here.

So uh that was the only thing that I didn't see that was included, and so I just wanted to throw it out yesterday.

I do want to just uh we did an audit that kind of that covered um network management, including assets and security controls a couple of years ago.

Okay, we were supposed to follow up on it last year, so given the direction I've gotten, we should follow up on it in 26, and you should get information on that.

That would be fantastic and very much appreciated, and thank you for that information that I didn't have and wasn't in the seat at the time, but thank you very much.

Um I believe that is all of my uh comments at this time.

Thank you so much.

Thank you.

Thank you.

Representative district one.

I just wanted to follow up on uh your comment in regards to uh volunteerism, volunteer management.

Uh and I have long hailed that um one of the things that's happening to us in a city like ours, because we are pretty much a transient type city where people are in and out, go to school, come in temporarily, you know, and leave and move on.

Uh and then we're also a city that's also bringing in new people to our community, and they're having to understand what we're like, and they're gonna stay or they're gonna are you know they're gonna go.

There's a lot of things happening out there.

Uh we have new families here.

Um, and and you know, are all of these great things are happening to us.

And you know, personally for my story, I I didn't get the didn't rec, you know, I didn't get the newspaper until after I purchased a home.

And so it that made me feel like I was now part of what's going on in the community.

And because we have this unique type of community where people are just kind of breezing in and out, um, respectfully saying that, uh it's gonna, it's a that's a difficult task for us to to have them to understand how important they are and how important their word is uh that goes beyond just hanging out on the social media and just you know doing their little thing out there.

Get in, get helpful.

We've uh mentioned many times we have committees they can get on, you know, and we have things like that that they can share their expertise with.

It's kind of difficult for us finding people to um volunteer for some of these boards and commissions and things like that.

So I think we can give ourselves a little grace uh when we're looking at that kind of um, you know, data.

Um but it just takes time and it takes a lot of work for us that have been here for a while that want to push that message out and get on the city council and have the biggest loudest voice for them to know that they are welcomed here and they should begin to start putting their voices, you know, where it really counts.

So um just picking up on on that.

I certainly do appreciate everybody that has done their thing.

And sometimes we have some people that just kind of go, you know, a little bit is but it still matters how um you know we we look at our volunteer management.

All right, thank you.

Okay, anyone else?

Uh where I'm struggling is uh uh councilman Jester touched on it.

I I get the priority of of the 175, is that right?

That was the how who how many people responded correctly?

Right, yeah.

I get that, but listen looking at all these am I correct in my assumption that all but the climate resilient resiliency, we have kind of care and control over hotel ho hotel tax, they they have to pay that in to us, so there's an accounting there, the airport is ours, library is ours, volunteer, we applicants, applications come through us, we control that process, jail obviously, uh, and financial planning.

We're I can you step me through, I've read it, but in a world where we can have dust blow in from Lubbock, and that affects our climate.

We're geographically located in Dallas and all those challenges that we're not gonna change that.

So in previous audits, previous experience, what have you seen around that space that's that's not covered in all our other initiatives that we're you know we're already doing to try to do the best we can with with the footprint we have and the geographic restrictions we have.

What what do you come back with as far as or what have you seen other people come back with with recommendations that that really are um impactful?

Yeah, so a lot of it is is planning based.

Um so like having like emergency management, right?

What do we do if a dust storm rolls in from Lubbock?

Like are we prepared as a city to handle whatever consequences come out with come from that?

Um so that's one of the issues.

It's so it's focused on the things that our city does control uh in response, but that are created from the climate, right?

And then also looking at uh uh the conservance conservation incentive programs that we have, so like the Green Sense program, we do kind of a more traditional uh accounting audit of that, right?

Uh as part of that piece of it.

Um, and then also looking at long-range planning of infrastructure.

So um if we like we sort of looked at some of this as part of uh the drainage audit we just did, right?

If we have huge thunderstorms or winds that come in or something, do we have the infrastructure in place to handle kind of those changes as uh some of the weather uh becomes a little more extreme if that helps at all?

It does.

Yeah, it's a lot, it's really planning focused on a lot of it.

Yeah, I just uh and that's good, but uh having lived through and I you did as well, Winterstorm Ure, right?

It was really about messaging communication, but there was nothing we were gonna do to thaw out ice from Galveston to Lubbock, right?

Like we're not gonna thaw it out.

We're we're just it was really about messaging and that sort of thing and communication.

Um so my my direction would be given that I all good and worthy goals, but here's and I want to have some some context behind it.

So for example, there's three.

I'm I'm I'm I'm I'm fine with option two.

Obviously, that's that's fine, but it's so the two uh new audits, but but I'll I'll say this uh of the two that are prior to me are what we've been talking about is obviously financial planning, certainly.

The other is I find it interesting that we that majority would not go for example vehicle management, because we're in a budget issue and we're talking about cash funding vehicles uh going into next year and making that pivot from debt payments to upfront cash payments, that is immediate guaranteed to hit us next year.

Why would we not focus on that and make that a priority because it's consistent and it's something we're gonna have to deal with right now?

So, what better time to have a good capture of what our vehicle management process is, where they are going into this discussion about how are we gonna start pivoting to to cash funding where we can.

So I think that's a missed opportunity if we don't get there.

Uh I didn't hear anyone else mention it, so I don't think we'll get there, but I just want to have a clear record that we're going to go into a disc a conversation about this next year.

And so it would it's uh it's a miss in my estimation there.

Uh then the the airport, similar thing.

So the key component that I'll have that I just want to have on the record there is we own everything out there, even the that we lease the land to those tenants.

And so one um you have an accounting for that, but then also why it's important is because the state just changed their tax code where you can have personal property tax, you get an exemption up to uh the the uh the with that that exemption rate goes up or two um 200,000 in some instances, and if you have a business that's under whatever the number is, 175,000, you don't even have to report.

So it'd be really imprudent to make sure airplanes, etc are are captured and understood what we have going on out there, not to mention uh in that general area, you have um core weave that's in investing a whole bunch of money infrastructure, et cetera, et cetera.

TWU's uh airport air uh pilot program is taking off, and so what a great opportunity to leverage a key focal area right now in our city that we again we have care control over.

So those are things that I would rather see us look at.

I understand um the preparedness component um and and so I I don't diminish that, but these the other things I think uh it's about making hard decisions and about um prioritizing those things, and those things are imminent versus we don't know what what weather is gonna come our way or what challenges come our way.

So I'd rather deal with the imminent, uh especially from a funding and we're looking at a gap next year potentially.

What better time to look at vehicle management and and opportunity to address that debt?

So to that end, just so I can have it when I'm talking to folks.

If staff could follow up with me, how much we have in vehicle uh debt currently, just email that out to me.

Because I I think it's significant because we I think like the fire trucks, etc.

etc.

I think that's a really really big number, and it's a really big miss.

So uh okay, thank you.

You have direction?

I believe I got direction to do up uh complete catch up for the follow-ups and then direction to do the financial planning audit, and then the next highest that I got direction for was climate, but it wasn't necessarily consensus.

Yeah, then let's go back there.

Uh so that we can be so that you can have clear direction.

So the second audit, if you could again just lay out your one, two, and and we'll see if we can get consensus.

Uh representative from district two.

So this is one we have directions for one.

So this is a fill in the the space for seconds.

So just your talk.

You're asking I'm asking for two options to fill the second slot.

Oh, you you're okay, okay.

Your request.

Okay.

Um two options on the second slot.

Uh well, I'm gonna stick with the the climate that the three of us put on for the first slot, and and then um of uh and to be mindful, I mean of the ones that have been mentioned, um I I think oddly enough, if if if you force me to go to a uh a different one um than that, um I I think we when we're in a time where we're worried about contraction of our our service uh staff, um volunteer management becomes really critical.

Well, I'm gonna stick with the the climate that the three of us put on for the first slot and and then um um of uh and to be mindful I mean of the ones that have been mentioned um I I think oddly enough if if if you force me to go to a uh a different one um than that um I I think we when we're in a time where we're worried about contraction of our our service uh staff um volunteer management becomes really critical so if if if I I'm I'm sticking with crit uh financial planning and climate resilience but if you want to uh the next one down the list for me um would be volunteer management yeah no a hundred percent and and then yeah so representative from district four your your top priority is uh number two and then your backup as a number two um I think you make a good point on vehicle management uh I'm I think tourism is a is is vital and uh I I think those two okay um representative from district six um I would say in a perfect world I would say agree with one the financial planning in a perfect world I would cut the number of hours right now we've got the most number of hours 700 towards climate resiliency I would personally prioritize the weather related preparedness because we've got two volunteer boards and others looking into what is happening as far as our conservation and initiatives there and then I would go to vehicle management uh looking for efficiencies and ways to decrease what's coming going out and increase what's coming in uh and then I would probably be equal with airport and volunteer management okay representative from district one uh financial planning tourism as a quality of my uh initiatives um vehicle management okay so so just to make sure so financial planning we there is consensus for that and then your second would be tourism first vehicle as a second I don't know if Mayor Pro Tim has no she hasn't I'm just making sure I guess okay I'm making sure I'm tracking sorry I was over oh no yeah oh yeah okay okay I'm sorry yeah no no yeah you were oh you were talking about yeah no I was looking at my notes and not looking up sorry uh so but but it's understood so financial planning tourism yeah vehicle in that order yeah perfect thank you uh mayor pro Tim uh I'll echo what what what council member Jester said about climate resiliency especially where things tie into potential financial losses focusing on that type of information especially and then uh third would be vehicle management okay so financial climate vehicle so mayor I think I I think there's consensus for vehicles and there were two who expressed interest in trying to see if there's a way to add like a a reduced climate resiliency just focused on weather related preparedness I can I'm sorry go ahead no does that work for you uh well I just want to make sure if there's I I can I can look at the the amount of time we have and and bring back kind of a plan that has those three projects where there we've split the hours a little bit differently if that is what council would like uh but we only got that was a suggestion right so I there's only two people who said yes to that.

Yeah so is there anyone that's in disagreement with with her with with the something coming back to us that would then um give us another look at it with that restructured look and and her uh looking at hours and all those things is that is that all right yep okay cool got it thank you there's more keep it coming it should be easier I'm excited about it uh uh this is just um we budget about 200 hours a year um for consultation and investigative projects those are kind of typically based on responses to the anonymous hotline uh as well as requests from city management city council can also make requests for these as well um and so we did last year there was a two minute pitch request for us to do a council travel and expenses compliance review we issued that in January of last year that two minute pitch appeared to want us to do that in perpetuity but I wanted to make sure that it was clear that that was happening uh and if or if not get direction on if you would like it to continue essentially so the question is carry this forward or not am I tracking with you yes okay uh so direction from staff on that um representative from district six uh I don't know that it's uh I've never heard that it's a problem uh so I would say let's put those hours towards the other uh priorities mentioned uh and that if uh we're hearing it's some kind of issue or there's any kind of um uh want of that that we can come back to that but that that's my two cents.

Anyone else mayor too I'm also okay with doing it just as needed or if there's a concern that grows up or just at least more infrequently okay and I do believe just so that there's context I think that finance is posting there's some additional reporting that's happening now that's so that's more information is available to the public um on this topic got it okay anyone else representative from district two thank you um yeah if you could get a little clarity on um on the the reporting that's going on the in continuity or in in the future um we can provide that uh and since you're you're contemplating bringing back a uh a modified revised plan then then maybe I'll hold my my judgment on these 25 hours and until that time okay anyone else I I'm I'm fine with the the not carrying forward I mean as I mean because I I think really the key is anyone can file open records requests and pull that and and that you know so I'm assuming it's organized such that it can meet that need and so it should be easy to pull or any council member at any point in time could uh on behalf of someone pull that so I'm I'm I think uh more in free I certainly think it needs to be looked at but not kind of like a every year thing but like you do your other audits is is my read on it just to make sure everything's accounted for and uh documented properly um anyone else any other direction okay well you don't I don't really have clear direction on this oh well I'm sorry um I am I am you for direction correct um I'm in agreement with everyone else's has noted okay thank you got it okay last thing yes uh so finally uh every three to five years we review and select peer city groups using quantitative methods um for our to for use in our audit projects to kind of try to provide consistency across our projects um so the last group was selected in 2022 uh and was reviewed by the internal audit advisory committee which um has been since been disbanded um so I'm presenting it to y'all in case you have discussion want to discuss or review um basically this is for information as far as here are the groups that we plan to use going forward um obviously uh I do want to talk there's the kind of population peer group which we selected from all cities in the United States within 20% of Denton's population based on municipality characteristic similarities so population population growth income percent of people in poverty uh comp racial composition municipality size and kind of business activity or utility complexity as you can see kind of those are out spread out across the slide um and this is the one that we primarily use I do want to call kind of attention that most of these cities are now outside of Texas um for the first time that's because based on the evaluation we did Denton is just becoming increasingly unique especially within Texas due to its high growth rate um so in particular Denton has the highest growth rate of cities between a hundred and two hundred thousand people in the United States um which presents unique challenges as I'm I know you all know uh especially with the kind of complex nature of our business activities and then we also selected a utility peer group based on all the cities in Texas that generate electricity um and that where that utility is directly owned by the municipality um because that ties the financial performance directly to the city uh and then I do just want to call out that Garland is included in both the utility and the geographic peer group and then finally the geographic peers were selected using population characteristics but limiting the selection group to only municipalities in Denton County Collin County Dallas County and Rockwall County and those were selected kind of based on their proximity to I uh interstate 35 and the federal government government's placement of them in the Dallas Irving Plano Metropolitan division of the DFW metroplex area uh and so this kind of geographic peer group is new as far as kind of one of our tools and the our tool uh benchmarking toolbox um and so y'all have questions about these or how we've selected them or what we're gonna use them for I mean I don't know I know there's been some discussion about benchmarking and stuff so I wanted to bring this to y'all's attention especially since we had just redone the analysis.

Yeah that's really great work.

Representative from district two thank you.

Certainly you ran some preliminary analyses to see how these things fall fell out at just a cursory level.

Um, or maybe you didn't.

So that's my question.

I mean, I looked at the these characteristics that are on the slide.

I did not go and look at like tax revenue or anything to compare that, if that's what you're asking asking.

Okay.

Well, I I'm not interested.

I mean, I'm I'm interested in the expansion, so I I wish we had a better feel going into it for uh for how we stack up outside of these characteristics, but but I'm not I'm not interested in you know monkeying with your definitions at this time.

Anyone else?

Where does I was just trying to punch it up real quick?

Uh so Lewisville doesn't fall into any of those categories?

Uh Lewisville um has a significantly different poverty and income level and limited business activities.

So it it can't showed up certainly, um, but it was it didn't quite meet um essentially there was like this was the tier one similarity in geographic peers, and it was in the tier two, if that makes sense.

Yes.

Yeah.

I mean, I could include those, um, but it just expands that category by like four or five more, and it didn't necessarily seem worth it.

No, no, that that's good.

I I was just curious as to where it was, where it was, or is it off trust in the data?

No, really good insight.

Uh very interesting.

I uh I have to keep looking at it.

I can't believe three hundred and twenty square miles for Austin is an absolute monster.

Yes.

Good night, man.

That's that's big.

Yeah.

Uh so I figuring DISD is 200 square miles and it's you know a number of cities, so that's that's very interesting.

Uh okay.

Yeah, no, anyone else?

Any feedback for that?

Thank you.

Yes, no, I appreciate it.

Well done.

Thank you.

Thank you.

Okay, that takes us to item B, which is ID 251366 receiver report whole discussion, give staff direction on an update to the city's inclement weather policy.

Good afternoon, Mayor and Council.

Jesse Kent, director of community services here to talk with you about uh revisions to the city's inclement weather policy.

So a little bit of background.

The city's uh use of city facilities for inclement weather policy was created in 2019.

That policy did a number of things.

Uh it established what the definition of an inclement weather day is for the city.

It's at the low temperature if the if the temperature, the actual temperature was expected to fall below 32 degrees, the actual temperature is expected to exceed 100 degrees, or if the city manager had declared an emergency for weather conditions.

Uh it also identified city facilities that had uh access to public facilities, to uh restrooms, water fountains, a sitting area, and designated them as warming and cooling stations.

And at the time those uh opening conditions were consistent with the then Monsignor King Outreach Center and Salvation Army shelters.

As a reminder, the Denton community shelter opened in 2022 after this policy was created.

Uh since opening, the Denton Community Shelter run by our daily bread has been the city's designated overnight inclement weather shelter in practice, but it has not been so in policy.

Uh in the current contract with ODB and the MSOA, there's it's silent on if the shelter would open or not.

Uh but our daily bread has elected to expand overnight capacity to allow all who are seeking shelter when either the heat index is forecasted to be at a high of 100 degrees or higher after day shelter closes at 7 p.m.

Or if the wind chill is forecasted to be at or below 32 degrees outside of the day shelter hours.

So there's currently no contractual obligation for them to do so, but they've been great partners and we appreciate them helping to take care of our community.

So today I'd like to have a discussion about what changes should the city make to the inclement weather designation.

So under what conditions do we clear it an inclement weather day?

And then I'd like for your approval to make some proposed administrative updates to the policy to align with um things that have changed.

Uh the first administrative change that we want to do is to designate the Denton community shelter as the overnight uh inclement weather shelter and make sure that we update the contract with our daily bread uh to to um require them to open under the city's defined inclement weather days.

And we'll go through all this stuff at the end as well to confirm.

Uh, when we think about how we define an inclement weather day, there's always a number of models or uh criteria that can be used.

Uh one that's often spoken about is heat index.

The heat index is a measure of how hot it feels when there's relative humidity uh factored into the actual air temperature.

And the National Weather Service issues a heat advisory when the heat index is expected to reach 105 or higher, or the air temperature is forecasted to exceed 103 degrees for at least two consecutive days.

Another potential option is the heat risk.

Uh heat risk is also provided by the National Weather Service.

It's done in combination with uh CDC data, so they used health-based data and temperature thresholds to help determine when people are at a higher risk of heat-related illness or HRI.

Uh considers how unusual the temperature is for that time of year.

Uh for example, the heat index might be low in March, but if it's substantially high for March, that might be a risk of a greater risk to uh heat-related illness, even if the weather doesn't reach that hundred degree threshold.

Uh it looks at forecasted uh humidity, it looks at the time of year, the duration of unusual heat, so if it's hot for an extended period of time, and it also looks at uh if those temperatures are at a levels that pose an elevated risk for heat complications.

Um, this is one that we actually shared with Denton County Public Health.

Uh, Councilmember Jessica, you'd ask the question how are we how are we coordinating with the county on this?

Um we're not a public health agency, so we rely on our county partners to help provide some of that health-related information.

Uh, this is something that they were actually very excited about uh to kind of look at more as we go to look at the how the county is responding to inclement weather and heat.

Um so we're excited to uh if council would be interested in this direction to coordinate with the county and and help help uh lead with that.

Um all these different methods, whether we're using the ambient temperature, the current practice, a straight heat index, or a heat risk value of three or higher, uh, will have different impacts on the number of days that the shelter is open overnight.

The the current practice is again that 100 degree heat index after 7 p.m.

Uh I've put the numbers for 2024 here just to help be illustrative of what we're talking about.

In 2024, there were 38 days that met that uh that threshold.

Um, if we were to do a heat index of just 100 degrees at any point in the day, not necessarily after in the evening, there would have been 57.

And if we were to do a heat risk value of three or higher, that would have been 62 days.

So they would it would create a difference in the number of days or nights the the shelters open for inclement weather.

And we would have those conversations with our contractor about what the financial impact to them would be, um, how we would designate paying for those things uh through the the existing allocation and um making sure that that all drives.

When we look at cold weather on the other side, uh wind chill is what's most frequently used uh as a as a basis for determining the risk of cold, cold-related illness.

Uh the wind chill is based on the rate of heat loss from exposed sin caused by wind and cold.

The National Weather Service begins issuing cold weather advisory saying people that it's dangerous once the wind chill reaches 10 degrees and below the windshield for that.

Um again, the current practice for wind chill is 32 degrees or below at the Denton Community Shelter.

Uh one of the things that staff wanted to present to council as an option is the inclusion of precipitation in that.

Water conducts heat at 25 times the rate that air does, makes it somewhat more susceptible to cold weather injuries and to hypothermia.

Uh so we looked at what if we also said what if the temperature was 40 degrees and below when you would combine that with two inches of precipitation over a 24 hour period.

It's actually the same number of days in 2024.

Uh so based on just that that particular year, there wouldn't be much of an impact, but wanted to make sure that we had that option available to council as well.

For the administrative updates, one of the things we want to do is one, make sure that we're updating the language to match our our communications to the public.

The policy has some other language like inclement weather stations.

We're talking about warming and cooling stations, that's more accessible language.

So matching our policy to that.

And then also updating to include newly constructed or maybe previously omitted buildings that meet the criteria, have having access to restrooms, water fountains, and a sitting area, and making sure that the public knows that they're uh designated as warming and cooling stations.

So it's fire stations three, eight, the development services center, and city hall.

Uh and we are seeking council's direction to either maintain or change the inclement weather designations from in the heat that ambient high temperature of 100 degrees, and staff would recommend using the heat risk system as our uh temperature high threshold, and then again from an ambient low temperature to overnight wind chill or overnight wind chill, including precipitation.

I'll stand for questions.

Thank you.

Questions for staff, Mayor Purto.

Thank you.

Um thank you for this presentation, Jesse.

Um, and I'm I'm really glad to see us looking at actually making policy of what we've been doing already.

Um in terms of, let's see, staff recommendation for making all administration changes, um, support that the first bullet.

Um in terms of the temperature, I I'm gonna start with the cold first.

I do support um changing it to overnight wind chill, including precipitation.

Um or just hot temperature.

Um, you know, if if we need to do something immediately, I would say uh go ahead and make policy what we're already doing.

I I'm interested in exploring the heat risk more.

My concern is I see us jump from 38 days to 62, and I know that does cost ODB money.

So I would want to know before I could really make a decision on heat risk, I need to understand the budget impacts on ODB and what that does to the rest of their services.

Just I I would want to know that impact before making that decision, because I don't want to help over here and then create some other problem somewhere else.

I just I would want to understand that impact a little better.

Um that's everything.

I think all right, thank you.

Okay, and what else?

Representative from District 2 and then six.

Thanks.

Thanks, Jesse.

I appreciate the I I I want to start off with with gushing about shifting to um things related to humidity and the effects on on temperature and and um and health.

So I really appreciate uh that um uh the uh wind wind chill particularly is and I'm really glad to see the the recommendation for the 40 degree uh uh and precept that we're already doing.

I I completely support that.

Um on the heat risk, I think and let me understand um uh this is about emergency inclement response, not necessarily day-to-day response, correct?

So it would if we were to do uh a heat risk system, we would look to escalate with the risk.

So at a lower level where there's not a bunch of at-risk population, but maybe sensitive, we're communicating, we're saying, hey, be aware of this at a little bit of a more elevated level where people are at risk during the day.

We'd we'd remind everyone that hey, come into an inclement or come into a cooling station, any of these city facilities.

And then when it reaches a threshold where it's a major risk where they're saying it's dangerous if you're out overnight, then we're looking to open up the the inclement weather station.

No, I I I think I understand that.

I I appreciate that.

I I'm gonna I'm gonna sign on to the uh the the concept of the the heat risk because uh you know I think ultimately we're we're talking about um people's health, and and that has to take a certain priority.

Um and then a couple questions on terms of how we would implement some of these changes.

Um what do we anticipate?

Um how do we how we think this will uh um impact you sort of um uh you know daytime operations because it seems like most of the changes were nighttime sleeping operational changes.

Do we anticipate like if there's inclement conditions that are above heat risk or below wind chill during day daily operations?

How what do you see as the impacts there?

So the the city already already does a lot of this, the daily impacts where people can come in for the uh when the the weather is uncomfortable.

Um most city facilities are open.

A lot of people use the libraries uh or some parks facilities.

Um we haven't seen a large impact operation based on that current usage, and we're not looking to change that usage for city cooling and warming stations.

Uh so we don't anticipate uh much of an impact change if that makes sense.

Uh okay.

Uh the under the conditions that are under the uh let me let me see if I can rephrase this a little bit.

Um we don't because you're not recommending a policy change, therefore we're we're not expecting to see um uh an impact on the day operations of any of the other facilities.

Is that a paraphrase of an effective paraphrase of what you said?

Yeah, I think that's fair.

Um well, okay.

Um I I am I remain concerned about when there is inclement weather during the day because there's not just inclement weather at night when people are sleeping.

So I'm I'm gonna ask that we we come up with metrics and measure those kinds of phenomena during the day because that was part of the reason there was a a push from the community to have a broad number of of warming stations and day daytime activities and and and some interest in and not merely doing uh ODB as the only nighttime shelter.

Um so I'm gonna ask that we measure those kinds of things uh to the best of our ability.

I I know you will anyway.

Um then let's see, I think I got oh there's one uh because this was coming up in the agenda, uh I got a number of comments.

Um can you help me understand for the daytime warming stations?

Is it the policy or not that you are allowed to fall asleep when you're in one of these stations?

I don't know that the policy has anything about falling asleep at the station.

Obviously, if someone's acting in a way that prevents others from using the facility or from um enjoying the same benefits, that's obviously gonna be something that staff will address.

But I don't know that there's no policy written about whether someone can or cannot sleep.

If that's does so in a disruptive way, then they'll correct that.

You can't you can't lay down on the library table or you can't sure.

Sure.

Uh so I I would love it if staff could get back to council on on whether there is a de facto policy.

It sounds like there's not an official policy on whether you're allowed to sleep in warming stations during during uh well that I guess that would be business hours as well.

Council members.

The answer to that is no.

You cannot sleep in a city facility.

It's like sleeping in a public park.

Uh and the bigger issue there is if an individual is lying down and sleeping, one of the first things we do is go over and check on them to see if they're having a medical issue, because on many occasions, as this happened in a park, the person's not sleeping, they're having a medical uh issue.

And we've had that happen actually as we go out to some of our sites.

And so allowing them to sleep in a facility that is not considered it's it's there as a cooling facility or warming facility, it's not there as a set up as a sleeping facility.

We certainly allow people, and they do on many occasions, sit over here in the corner and we give them bottles of water, even if we have a machine you know, a water fountain.

Um some occasions we've given them some crackers and stuff, but we don't allow them to lay down or sleep.

They can sit up and rest as long as they want, as long as we're here, and as long as we're open, but allowing them to actually be laying down and sleeping, no, we don't allow it.

That's just uh well, I I I will tell you then it um I'd like I I'd probably like to revisit that.

So I'll go through the mechanisms of revisiting that that policy in the future.

Um but in terms of the the actual questions here at hand, uh I I support the heat risk and the windshield uh realignment.

Okay, uh next representative from district uh four.

Thank you.

Um obviously fire stations are not built as warming stations.

So tell me what that looks like.

Um how how you convert a uh uh a fire station to a warming station.

Uh it doesn't require conversion.

It's um there's there's areas where you have seating that are are open to the public that are not sensitive or um there's nothing that uh kind of be disruptive or interfere with the operation where it's okay for someone to to sit, cool off, warm up uh without impacting the operations.

I wonder if uh the new fire stations five and six the the reconstruction of those is gonna take that into consideration, or do you know?

I don't know, but I can get back to you with uh I'm I'm sure they're meeting the same standard and and expectations that the other fire stations for the city are.

Okay.

Thank you.

Thank you, Mayor.

Representative from District 6.

I'm sorry, thank you.

Um I believe that you've said this a lot.

First of all, uh thank you for bringing this to us and all of the research.

That this was something that I requested and and wanted clarification on, and with that, I think it's good that we are all clear on what the policies are and that they're up to date.

Um our daily bread, our partner has agreed to be the designated overnight uh station.

Is that correct?

They do they do do it.

It lines with their mission.

Right.

Um and I I agree uh uh with council member uh rumor that uh you know we do need to know the additional cost from the the matrix you gave us, it does show that it will add days uh so of course it will add some expense, and I think that it's important to know what that is so we can determine where that comes from.

So of course it will add some expense, and I think that it's important to know what that is so we can determine where that comes from.

But I also agree with Councilmember Beck in that you know, lives are at stake when you're at certain uh weather points that are out of anyone's control, and so I appreciate that we do what we do.

Um I was curious that there's no there doesn't seem to be any national or Texas standard uh for these types of um warming or cooling stations or even uh information regarding what other cities in our county do.

Have you come across any of this uh information while you were uh looking into the topic?

There have been times where uh kind of neighboring cities and jurisdictions have opened up uh additional city facilities to do those things.

They often don't have uh the shelter like we have to to accommodate those things.

If you recall back in January, Louisville opened up I think one of their gymnasiums uh to allow people to stay in overnight.

Um I think we're very fortunate in having the the Denton community shelter and having a place where uh folks can go when it's dangerous weather, and um that's one of the great things about our community.

Okay, well, it's just interesting there's no standard out there you would think with uh all of the you know this must be happening everywhere, not just in Denton.

It's interesting that um there's no one kind of saying here's kind of the generally accepted uh the triggers.

Yeah, in in kind of the larger cities like Fort Worth and Dallas, um although these policies aren't for homeless people in general, people experiencing homelessness, it uh that is often the case of who's using them.

So in those types of places where the you've got a a continuum of care or a larger um group that is responsible for organizing the response, they do have kind of policies or um procedures in which they they do open warming stations with their community partners.

Well, um I am in favor of the staff recommendations, and again uh thank you very much for all of the work you've done to uh bring this information to us.

Thank you.

Thank you, ma'am.

Okay, anyone else representative from district one?

Um staff recommendations, um the the second part, the overnight wind chill, including precipitation.

Of course, we're appreciated everyone's input.

Um, just the ambient temperature.

Um hi to the staff recommending the heat risk excalation system.

Staff recording okay, got it.

All right.

Any any yeah, uh uh city manager.

So I know that both Councilmember Becking and the Mayor Bo Tim mentioned about the extra cost.

I want to I want to say though, um our partner over there at ODB, as Jesse mentioned, has done a great job of even doing some of this when we we weren't, you know, uh it was a big confusion because the public was asking for it, and so they went ahead and did this, which meant more people were coming into the shelter.

So while I know what you're saying about the money part of it, they've been doing it for quite some time and taking those folks in without additional funding.

They've been great about doing this and opening those doors to anybody that's in need to get out of the weather, whether it be high heat or the temperatures are really cold, the winds blowing, and those kinds of things.

So kudos to them because they have been doing it without us doing this, and we really want to memorialize an agreement that's more in line with uh what they're currently doing, but also current practice from our perspective and locking down, you know, here's what we all agreed on, here's what's going on.

And um I just wanted you to know that they've been doing this and taking people in at those different temperatures without the extra money.

I guess just I'll follow up on on on that.

Um so it looks like I mean I certainly support the what we've what they've been doing, which was I believe based on heat index.

Um heat risk looked like it was a jump of 20, 30 days, and I just I would want to hear, want to know from them especially what financial impact that has on them and would they have to cut, you know, how many people they're helping at a time, you know, during non-um inclement days and things like that.

We've been we've been having discussions with them.

So the 400,000 dollars that we provide to them is largely unrestricted.

Right.

Uh we want to become more clear about what are the things that we're paying for with our services or with uh with our allocation, and one of the things we would look to do is the inclement weather days.

Okay.

Okay.

Anyone else?

Yes, representative district four.

Thank you.

Um does anybody know of the people, the staff at uh ODB, those that are getting paid and those that are volunteers?

The total number.

Well, the total number, and then of that number, those that are that are volunteering and those that are getting paid.

Uh not off the top of my head.

I can get you that answer though.

Do you do you think the staff is 50 or 20 or just guess?

Uh probably in the ballpark of 20.

20, okay.

I I think they do a noble work, and and I'm I'm very, very impressed with them.

Okay.

Anyone else?

Uh yeah, I'm I'm I'm fine with syncing up with existing practices all the way across the board, like whatever we're doing, let's let's codify that.

But I do want to and I want to be supportive and make sure I understand what you're talking about from the county perspective.

Uh I heard you, I think I heard you say kind of syncing up and and working with them on a color coding and you know, kind of system.

Uh did I hear that right?

Yes, sir.

Yeah, I I'd like to see that, but I'd also like to take that a step further and ask you also if we could normalize uh uh locations, right?

And so that means and let me see how I say this gently.

Other cities in the county aren't as diligent about listing locations, and I think that needs to be normalized to say every time something goes out, here's the locations.

But I also think we need to be uh transparent in that we're only talking about on average after I don't know what time of library closes 8 p.m.

7 p.m.

what time is library close?

Yeah, I mean so we're not talking all day, you can go wherever you need to go in any public facility, and I think that's been miscommunicated oftentimes where people are like, oh, there's only this thing, and there's you can go any city build building that you you can get to during the day, and better part of the day.

And so it you're talking about a small fragment segment of the day, and I don't think that's that's communicated clearly regularly enough.

Uh I think it's it's miscommunicated more than it's communicated clearly.

So I I just the two ask is yes, I'm supportive of working with the county, yes, normalizing that, but then I also would ask us to go a step further and normalize locations, just you know, hey, maybe it's a meeting with the county and other cities, what locations, and we all agree and just put out a you know, here's a standard I list that we're gonna work from.

Uh, and then I don't think that has to be exhaustive.

I think you can then just say public buildings or public buildings and check for hours or certainly from eight to five most buildings, and so I don't need we we don't need to list fire station one through eight.

I just don't think that's necessary.

I think you can say public buildings and fill in the bank or call out specific ones strategically located throughout the city to to normalize that.

I just there's some messaging and and kind of just easy to consume, easy to communicate, cut and pay, share, those sort of things versus an exhaustive list of every library, every fire station, every you know, it's kind of um hard to share, if you will, or hard to get the message out.

So that that that's my thing, and then um I I do I didn't see anything here that's that aligns with our current position and the new position we're taking on drop-offs.

So is that codified somewhere where irrespective of weather event I'm I'm assuming that policy stands?

So we have been communicating with partners at the various kind of homelessness coalition.

I know you you attend those meetings, mayor, and uh making clear to um folks that it is not acceptable to drop individuals off at the didn't.

Yeah, but is that captured somewhere in this in this is it does it better say does it need to be?

I think that's something better to consider in the uh the operating agreement with our daily bread than with the inclement weather policy.

Perfect, thank you.

Yes, uh, because well then answer what is the answer to that question during the inclement inclement weather time periods is that prohibition restricted?

Or or or is that prohibit prohibition adhered to better say is it in place?

So I don't think there's a during the periods of inclement weather they waive uh they allow individuals to stay.

There's no check for who brought you here or how did you get here before you you're allowed to have a bed or um a residency um so there isn't a process in place to to vet those things.

What we're trying to do is prevent individuals from from coming here at any time from other locations uh from other cities, and not necessarily um just during the inclement weather period.

Right.

But let me maybe I didn't ask it.

I I think I heard your answer.

I just want to make sure.

But during inclement weather, if someone can someone say, oh, this is an extended circumstance, so that rule is not in place.

I'm gonna drop somebody off.

I mean that's a that's a tough question, Mayor.

I mean, uh there's no that's not something we would encourage, that's not something we would seek to do.

Um, but uh again, I think that those kinds of situations are maybe better done in the MSOA in the agreement with our daily bread and not the city policy on city facilities.

Got it.

Then I'll just say for the record, I disagree.

I I think we should communicate that.

I think it it should be hey, give us a courtesy call.

If we if either we're going to it sounds like we'll be acceptive and receptive, that's great, but we would say give us a courtesy call so that we know where this where the individual arrived from where you're going back to those sort of things, right?

I I just I I don't I mean I think you need those structures in place for you want to eliminate as much gray area as possible, and I think that is a gray area that could be um addressing and uh yeah, so I I think you it shouldn't be silent on it, but that's I'm just one.

But I I think we should take a position and then I and I'll say uh that I'm uh in agreement with the the city manager on making sure people are uh sitting up and not having medical issues seconds matter.

Uh that's why we're putting that's why we have the defib the defibrillators.

We have all these steps we're taking to make sure we can act if someone's having a medical emergency.

Uh that's why you have like the hey Carrie Narcan, you have all these things to be able to address things in an instant and being afraid to check on somebody is is a is is a dangerous thing in in my estimation.

And we've had people uh write recently right right by BCI uh mechanical behind there that unfortunately was found and and deceased uh and the Wells Fargo bench that they took out because someone was found deceased laying down.

I mean, I it's it's not um unfortunately it happens and we need to make sure that everyone in our community is safe uh and and not under medical duress, and we're hesitant to check on them.

Uh we we have to be able to be uh and we I want people to be diligent about that.

That's that's critical.

And and and the policy is no different than uh just to put a uh uh final statement on that.

When someone calls, they send the ambulance.

Uh if you call 911 or something, you say, hey, there's a person laying down not sure, they send the ambulance for that reason to make sure medically they're okay.

Uh so that's just that's consistent uh with with what practices throughout the city in a building or not.

So I think that's and that's good and right to do.

So all right.

Well, thank you very much.

Great presentation, great information.

Thank you, sir.

That takes us to item C, which is ID 251566 receive report, whole discussion, give staff direction regarding the city city managers proposed FY 2025-26 budget.

Okay, uh good afternoon, Mayor and Council.

I'm Christine Taylor, Assistant City Manager.

So today marks our final budget work session for fiscal year 2526 before it is scheduled for adoption on September 19th.

Uh this afternoon, we will cover uh the following key topics.

We'll go over resident feedback.

Sorry, uh resident feedback on the proposed budget.

We'll recap the our budget methodology strategy and expected outcomes as we went through the budget process.

We'll provide an overview on the general funds forecasted revenue and expenses along with the proposed reductions that led to the proposed budget uh balanced budget.

We'll cover the proposed tax rate and the estimated impact on the tax bill.

And finally, we'll have our uh final discussion on any addressing any remaining questions or changes uh before the next before next week's vote for background.

This is a slide covering all of the conversations and work sessions that we have had on the budget in preparation for FY2526.

We kicked off a little earlier than this year based on preliminary forecast starting in May with the current fiscal year providing an update and then going over preliminary forecasts and projected impacts.

In June, we gave an update and brought forward those proposed reductions in advance of submitting a balanced budget.

In July, we covered utility budgets and rates.

Again, in July, then you heard about the capital improvement program.

On August 9th, we held our budget workshop, covered the city manager's proposed budget, talked about tax rate and covered all funds.

On August 19th was our budget workshop follow-up where we reviewed utility budgets and general fund fees.

And then today is our final review of that general fund budget, proposed tax rate, and any remaining budget follow-up items that we need to discuss or go over.

After the budget workshop, the city kicked off a way inviting residents to provide feedback on the budget.

We uh have an interactive platform out on the website that invites residents to explore the budget and provide feedback.

As of uh September 2nd, we had 58 submissions and uh provided that data to you in an exhibit.

Uh this is a snapshot.

We had 15 responses that indicated to increase the proposed tax rate, 16 responses at keeping it what it's proposed at, which is the one cent increase, and 27 of those responses indicated they'd like to see a decrease in the proposed rate.

We have uh some metrics to break down what who we were receiving responses from, and then just in general, the uh of the 58, we received 33 written responses, and the responses reflected a widespread concern about rising property taxes, a desire for greater fiscal discipline.

Many residents urged uh the city to reduce internal costs, particularly administrative overhead.

There were calls uh to operate more efficiently, streamlined spending.

We had several suggesting reallocating funding from public safety departments to areas like transportation, parks, libraries, community development, while other responses emphasize maintaining adequate support for public safety and infrastructure improvements were mentioned several times, including road maintenance, expanding transit options, and received uh broad support along with an interest on affordable housing.

So, to recap going into this year, we took a new approach with methodology and strategy.

We implemented the zero-based budgeting, which we'd covered.

So all spending uh was justified from a zero base that did have an impact of increased budgets where we looked at right sizing a few things, and the objective there was to ensure every dollar provided a maximum impact.

We moved to a managed vacancy program mid-year to generate budgetary savings by strategically freezing opening open positions, and then additionally, we added a budget task force uh within city departments to identify review and rec uh recommend cost saving measures.

And those outcomes that were expected from that methodology and strategy were to have improved uh financial health achieve and submit that balanced budget as we were able to do and increase the city's financial stability and resilience for future challenges.

Does not include a cost of living or merit adjustments for non-civil service employees for as part of meet and confer our civil service employees who are eligible will receive their step pay increases on our health insurance for employees.

The employer paid premium, which is the city side portion, will be increasing by 2.19%, uh bringing the cost to where the city is paying uh 1,300 per employee per month towards their health contributions.

Employee contributions now what will be deducted from an employees' paycheck will just change based on what services they elect for the upcoming calendar year.

For our retirement contributions, TMRS, the rate is decreasing from 18.88% to 18.6, and then the fire pension rate uh remains aligned with TMRS.

This uh decrease is a good thing for the city, um, and it represents a citywide savings approximately 400,000.

At the budget workshop, we talked about two additional changes.

Uh we talked about the administrative offices closing at noon on Friday, and that we're proposing a pilot program.

Uh, we when we spoke to you about that in August, we did uh tentatively think it would happen in October.

We have a work group working on that right now, identifying what policies need to change, how will this affect time cards?

Um, so it will be at some point in next fiscal year, but we still have some work to do on that item.

And then the fire departments uh they took a vote and they are moving to a nine 4896 schedule, and that is tentative for implementation in January.

Uh moving into our general fund revenues, we have submitted a budget with 218 million dollars for total revenue.

Um, our property tax growth was around seven percent from last year, and um we are estimating that at I think 98 and a half percent collections.

Sales tax is showing a um four and a half percent growth, and those were the major changes on our revenue on our expenses.

Uh, we did see an increase, which we brought forward in talking to you about personnel costs and specifically seeing some rising costs in overtime.

Uh, we did kick off a mid-year audit, uh, which Madison is engaging in, and we'll bring that information forward on what we find when looking at overtime.

And then we had um a few changes from that zero-base budgeting, but again, we're at the 218 million submitting a proposed um a balanced budget.

This proposed budget does fall below our fund balance requirements at the 19.43 percent, but in our projections is expected to be back above that 20 percent in the next fiscal year.

When we spoke with you in June about the type of reductions that were uh being proposed, uh we did propose about seven million dollars in reductions that were conducted after the zero-base budgeting took place, and then departments um assessed existing operations to identify opportunities for cost savings through service reductions, eliminations, technology, implementation, and internalization of services.

That $3 million included in the recommendation is continuing on that managed vacancy program through next fiscal year.

We submitted various programs to be reduced.

Um a couple of those highlighted ones were the ambassador program being reduced out of the general fund, the after-school care um pausing our canine program.

Then we had uh small reductions to our contractual services, travel and training, and equipment supplies and other discretionary funding, which resulted in about seven million dollars in expense reductions for next year for our tax rate.

This is this chart illustrates uh the tax rate over the past several years and what our assessed value has looked like, and the breakdown between the OM portion of the rate and the debt service rate, and the change the proposed rate, it does include a one cent in increase on the debt service side.

This proposed change results in um for the proposed tax rate, is estimated to be an $84 annual increase on the average on the estimated tax bill.

A couple things here were showing for FY25.

The average homestead value was $378,000.

Uh values have increased too, and our new average homestead residential value is at $386,000.

Um, and again, then showing that tax rate increase, which is a one cent on the debt service side of the sales of the uh property tax, which is proposed to be an estimated average impact of $84 a year, $7 a month.

Uh so with that, that is a recap of everything we're proposing on the general fund, the tax rate, and we are seeking any remaining feedback on the city manager's proposed budget or any additional items that need to be discussed prior to uh the adoption next week.

Uh, we do have the public hearing tonight on the budget and the tax rate, and then the 16th is scheduled for budget adoption.

Okay, thank you very much.

Uh, just there's other comments I have, but I I want to put this out there so that people can respond to it.

Um, can obviously lots of conversations about the ambassador program and um thank you for the feedback and quick turnaround on the requested information.

But can you talk a little bit about the process to get specifics on how they how block by block would handle the um proposed reduction if if if we go down that route.

What my understanding we don't have the details yet, but that's correct.

Step us through that.

Right.

So in June, when we presented that the recommendation um for the ambassador program was to end out of the general fund.

One of the uh consensus items from council was to explore it being able to be used in hot funds.

So we did reach out to block by block, who is our current vendor and ask for um different revised pricing scenarios based on service.

So they provided preliminary information on what if we went down to five days a week, if we reduce the coverage area, so that we had some type of an idea of a budget number to work with.

That is all preliminary.

Um if a funding allocation is set for the ambassador program, that would need to be formalized through a contract and negotiated, it could go out for requests for proposals.

It could be a completely different vendor.

Um so none of that has been explored yet.

Got it.

And um so uh example of that, why that's significant to me is if I I'm looking for answers for an example, uh there's businesses that face this the square proper, but on not are not on the square proper, you'd have to cross the street, and I don't know if those are included or not.

It just we can't get a map until we get those things.

So I I just think it's pre premature to uh allocate three hundred thousand dollars to something we don't have information on, and then also could you talk about the requirements that that we were sent out in the in the status report, uh the requirements because it would have to change what they do, and so as far as a function, right, to collect data.

Right.

Well, so the um the ambassador program was currently funded out of the general fund, so there was a different type of data and things we were collecting.

So we're looking at uh what data needs to be collected and reported on to ensure we're meeting that tourism impact.

Which could drive the cost up.

Uh potentially, yes.

I mean any change to a program, yes.

Yeah.

And then Mr.

City Attorney, I don't want to speak out of turn.

Obviously, you sent out a status report.

So my my where I'm driving at, and I don't want to again don't want to say anything I'm not supposed to, but what I'm driving at is the question about heads and beds as it uh relates to this the ambassador program.

Can you what can you say about that question for this program?

Well, what I can say publicly, and and Christine addressed it.

We have never used hot funds for this purpose.

And so this would be a change, and we have never collected the data to basically support using the hot funds for this and justifying that.

So we'd have to go out and collect some data over the next few months, gather that information to to find support for the hot funds because to your point, it has to drive two things heads and beds and then very limited purposes within the tax code for what that those funds can be used for.

So looking at both acquiring data as well as looking at the program itself, what changes would have to be made to that in order to support using hot funds, that's something that would have to happen over the next period of time.

So given those gray areas, my proposal and I'd ask if and so we can't vote in here, but I'm asking for you to align and give direction to do this.

Uh I would say, and Christine, how much how much has the in partnership the county and the city, how much top line revenue or dollars have the has the county provided in support of city initiatives?

Uh we did look at this information yesterday for the bond program, the bond programs on roads was around 52 million from their last two bond programs.

52 million.

Yes.

Yeah.

So given all those things, the investment the county's made, the uncertainty in the structure and how it's in and imply how it's used and the new requirements and RFP, RFI, whatever those things are.

My my suggestion and and I'm I'm asking for people to support this would be uh to allocate 200,000 dollars to the counties, uh the his whatever that the culture looking for that line item.

And then 70,000 for the Texas Veterans Hall of Fame, uh and they've given an indication and staffs talk to them about their they just didn't understand the application and the questions, uh, but they do drive tourism and um then also the uh so 200,000 to the county, 70,000 to the Texas veterans, which is a reduction.

They ask for 90 something, so we're reducing them, and then 30,000 for dog days and dog days is noteworthy because that comes right back to the to the city.

So we we support them, but they're also fundraising for us to have the the all access park for people with all disability with all abilities, and so um that I it's it's critical that we uh provide funds for them so that they can continue to help us grow our park network and especially that specifically that park.

So that's that's my S 200 for the county, 70 for the Texas Veterans, 30 for dog days, and then in conjunction with that, there's there's a contingency money, and there's all those things in place to continue the ambassador program continues through December, and there's money to uh true that up if the down the after that rolls out.

The ambassador program continues through December, and there's money to uh true that up if down the after that rolls out.

It doesn't it doesn't prevent those conversations.

I just can't in good faith allocate money to something that we don't have the information for uh yet.

It's just not it's not ready.

So that's that's my ass.

That's that's what's for you.

Uh that's general direction.

Representative district six.

Um well, and and um after seeing the uh confidential backup material, it does seem that um the ambassador program with what we have now does not meet the standards for the hot funds.

I mean or it it with the information we currently have.

Sorry.

Please please go ahead and put it into context.

Yeah, I just want to the context is that we need to gather the data to support it.

Okay, and we don't know what that'll show.

Okay, but but that was it is unconfirmed and therefore potentially um I think dangerous to is too strong of a word, but concerning that we would then commit hot funds when we are unsure of its uh legal uh um uh what is the word I'm looking for?

Compliance, shall we say?

Um and and I had been in favor of keeping that, and I'm in favor of finding what we need to to ensure that the square and downtown area are as safe as possible, and I think that will take something affirmative on the city's part uh, not just um what we're doing status quo without the ambassador program uh with that and and also considering what the county's office of history and culture does as far as maintaining where the uh community um uh market is uh with what they've done in partnership with the city of Denton in restoring houses and bringing different historically important houses to the city of Denton to the uh park there with what they do with the museum on the square that does draw people and um uh so I with all that and and in consideration of being the county seat and wanting a good relationship with the county and appreciating the 50 million that they've chosen to spend uh to assist the city that they weren't obligated to.

Uh I'm also in favor of uh 200,000.

Uh that would be that would be an appropriate amount.

Um I'm not as familiar with the Texas veterans.

I do agree that the dog days does put the money right back to the city as far as it raises money for the parks.

Um I I do have concerns with um the Denton Arts and Jazz and the the holiday festivals.

So um, you know, I I don't know what everyone's else's feelings are, but those are those are my comments as far as what direction I can give right now.

Thank you.

Anyone else?

Representative from District 4, then two.

Thank you.

Um I went to Dog Days this past weekend, had a great time.

Great time.

Uh uh I can't I can't think of a better way to spend a Saturday than with about a million dogs.

This is the most unscientific study that you're gonna ever hear about.

But I talked to two people who had booths at Dog Days, one was from Austin and one was from Leander.

You know where Leander is, it's about 30 miles north of Austin.

Neither one of them spent the night in Denton.

They came, they got up early and drove to Denton, did their deal, and they were going back home.

It's exactly the point.

The the whole point of hot taxes is to encourage tourism and to contribute to heads in beds.

They're not doing that with with all respect, Mayor.

The uh the Texas Veterans Hall of Fame is simply not doing that.

There's no evidence that suggests that.

Can you give me their score?

Uh yes, the Veterans Hall of Fame, I can.

They uh I believe they scored around 70 points.

We did speak with them after the fact and have done some visits, and they had submitted their visitor impact information under some incorrect guidance, so their score would change a little bit, probably up closer to the 80s, but they scored around 77.

Okay, that's that's not information that I have seen.

Uh, what about the county historic museum?

What's what's their score?

There's the county historic museum based off their application scored 77.5 points out of uh 100.

Okay, so the suggestion is that these two the these two groups find fine groups.

I like everybody in these in these organizations, but they're they're taking more than they're giving.

Uh they're they're getting thousands and thousands, hundreds of thousands of dollars, and they're not replenishing that.

Um I suggest that every group has some kind of a pivot on the downtown square.

Uh they go there to to walk around the square to shop, to have to have a uh a meal to just bask in the ambience in downtown Denton.

Um what could be more uh tourism friendly than having a clean, safe environment.

It's the only it's the only effort that we're making downtown to uh to to minimize the impact of people experiencing homeless and and and visitors and and people in people in the city.

Um we're going to have to absolutely trash the criteria for the hot funds if we do this.

It it simply it simply doesn't work.

Um the the hot funds are to encourage tourism and um and it's and it's designed to to benefit organizations that put heads in beds, not a head in grandma's bed, Aunt Bessie's bed, in a in a hotel paying for it.

Um thank you.

Representative for district two.

Thank you.

Um so but before I ask my question, are we focusing on just your comments right now, Mayor?

Uh, and and in these particular programs, or are we doing the whole thing?

Whole thing, uh I just wanted that out there so that you know if you had a reaction to it similar to Councilmember Jester where she modified you know that sort of thing.

So it's just out there for consider for discussion.

But all comments is what I hear you saying.

Yes.

Okay, gotcha.

Well, I'll start primarily the short ones.

Yeah, I'll be short.

Um I I will start.

Um I have some of the same concerns uh that the mayor has and that have been you know brought to light even before the most recent uh information uh the the Mr.

Cine attorney was talking about.

So um I I'm I think that you know while there is an there's as we've all alluded to there's there's opportunities for us to design a program of some sort that manages um some degree of of uh economic development, public cleanliness, etc.

etc.

Um I I think there's probably different ways that we could do that, and with the ambiguities, uh I I can't so I could start off partially in agreement with what I've heard so far, is I I don't uh I I I wasn't gonna sign off on a budget where that got funded as is anyway.

So I really appreciate the mayor coming out out of the gate hot on that.

Uh I support that element that at this time is the wrong time for for that um 300,000-ish.

Uh I think we're all rounding, but whatever the actual number is.

Um now to to the point of of should it be, you know, should how should that money be reallocated?

Um I think there's there's uh there's probably an opportunity for um some additional discussion on that one.

Um I I respectfully disagree with Councillor Hall, and I I think that there are opportunities for reasons to come here because of these hot funded activities, and and otherwise people wouldn't.

The tourism wouldn't happen without that.

Um so you know, don't no disrespect, but I think that's why the people are coming to our portfolio of event structures and our cultural events.

Um and whether whether or not they specifically stay in a particular hotel or not, uh it is is to drive cultural events and tourism.

Uh and and I appreciate the mayor or counselor just or I forget who did it, um, talking about the amplifying effect of of some of our events like dog days.

I mean, all that money starts local, stays local, and amplifies uh, you know, there's a there's a multiplier effect for things like that.

Um so I I I think you're hearing uh substantial concurrence with some of the comments um so far.

Um in terms of actually how that's reallocated.

Um I think if you want to you if you want to try to split the baby a little bit, um I I think we could keep that 300,000 uh in a contingency fund um and and then see how that shakes out.

I understand that the shaking out is in a week from today.

Right.

Uh I'm I'm aware of that, but that gives us an opportunity if there is consensus on on not allocating that 300,000.

I think then we have a week to decide how would we prefer to allocate that as a consensus body.

And so that's what I'm gonna recommend is that that is out there and that we either put it in contingency funds or or you think about it for the final public hearing next week.

Um so that that's where I would be on that.

Um I'm I'm I'm a big fan of everything that the the historical park did.

So I'm I'm not uh out of the gate opposed to any any of uh that readjustment that you heard.

Uh I'm not I'm not fighting off any of those suggestions.

I think we just need to have a broader discussion on that.

So I appreciate people bringing that up.

Uh and then now some other comments the mayor asked me to be brief.

Um so this the $7 slash 84 dollars a year that that the proposed rate would um bring forward.

One of the questions I asked either the last meeting or the meeting before that um was what what is that number for the no new revenue rate, and what is that number for the the voter approved?

So I you know, is it something like six dollars for the no new revenue rate, seven dollars for the proposed, and eight for the um the the voter approved rate.

I mean I know it's gonna we're we got some rounding that I didn't do, but do we have those numbers?

We've provided it in a Friday report.

I'll need to pull that and then can after the question was asked that we we put it in the Friday report.

I don't have it offhand, but I can pull that for the I'm sorry that I missed that.

That's that's my bad.

If if we could at some point today bring that forward, and I I the point that I'm trying to make with it is it sounds like it's going to be on the order of a buck a month different for your average taxpayer uh depending on the rates.

Okay, maybe less.

And so that's the number I'm asking for.

We're not we're not talking about seven dollars a month or 84 bucks a year.

We're we've got a ceiling of whatever the no new revenue, or sorry, a floor of whatever the no new revenue rate is um in terms to meet our our service obligations unless council as a body chose to go below the no new revenue rate, which I don't see us doing.

So we really aren't talking about 84 bucks a year, we're talking about the difference from whatever that would be uh 72 bucks a year or whatever it is.

Uh and I'd so if you we could get back, I I I want to make sure that we're not you know getting lost in the weeds on that one on what we're actually talking about.

Um and then um okay, so a little bit.

I know this is about the budget for this coming year.

Some of the ways we made the um the ends sink up again and and and squared the circle were um a lot of cost saving, sort of semi-emergency cost saving measures, leaving vacancies open, that sort of thing.

Um is it is it our we we we cannot necessarily keep doing emergency cost cutting measures into subsequent budget years.

This is sort of like ah, we gotta get right this year, but that's not a good idea for next year and going forward because we will starve needed programs to death.

Do we have any feeling for what's gonna carry forward and and be I want to be mindful?

I'm not trying to do next year's budget session already.

So in a just a real crude term, what what we will keep and not keep in in terms of I mean, because we can't starve everything for years to come, uh, or we will just lose whole programs.

Right.

Um I I understand your question correctly.

I I think the deep dive on right sizing the expenses and then re looking at our revenues and have that more conservative conservative revenue approach.

We're not going to be in a position where we continually need reductions in the in the future year, if that's what you're asking.

We're we're continuing in the managed vacancy program for sure with our personnel because that is our highest cost.

We're doing the audit to look at overtime, and then we feel comfortable with the reductions that were made.

We have a manageable budget to manage those expenses, and the same thing on the revenue side.

Okay.

All right.

Um I I will say, you know, I am supportive.

This is my last comment, Mr.

Mayor.

I am supportive of some uh public sanitation effort.

Uh I think that should be in housed.

I I think uh taking it outside is is too costly.

There's clearly mixed feelings in the community about it, and I think there's an opportunity to grow and make a new new potential program.

You know, we we already divert folks from ODB to the landfill, we already divert them to the animal shelter.

I think there's an opportunity to uh plan and work out for future budget years, an opportunity to provide these kinds of services that kind of get multiple birds with one stone.

Um, and so that those dollars stretch further in the same way the dog days dollars stretch further.

So that's what um I'm gonna recommend in years to come.

Thank you, Mr.

Mayor.

Thank you.

Anyone else?

Representative district one.

I'm gonna sound uh very much like um council member Joe Holland.

Um he and I have spent a number of um hours together looking at these numbers and working with these groups and listening to these groups.

Um but we he and I also both know that you know we had some issues and problems with our downtown area, which caused us to look into uh this ambassadors program.

At one point, our downtown was a place where people did not want to go.

Uh, and since then we have made some strides in our community to make it one of the uh most you know exciting places to go.

I'm looking forward to October.

Um, so I don't want to dismiss the idea of having that support uh there.

I don't think that there's been any report uh from anyone that you know these people should be you know dismissed in that kind of way.

Uh I think that we should reserve some uh funding.

I don't think it should just totally go away and be um reconstituted to any other any other group because it is important.

We do have visitors that come from around the world that want to go to our downtown and experience what it is, and they want it to be clean, and they want it to be safe, and they want to, you know, have their time there with this last issue, significant issue that we just had, event that we had uh with someone passing away at our downtown area for whatever reason, uh you know that that that hurts.

So I am I am gonna be adamant in my own way about making sure that we in some kind of way um reserve some conversation to keep our ambassadors program.

Um you know, and the other thing is that we uh did not have um we didn't have that rubric for us in here.

Uh you've heard me state before it was great to be able to give all of these you know uh organizations an opportunity to perform.

It was great.

Uh and we had a a little bit of criteria that they should bring some people in and we give them a chance to grow.

I remember saying that myself.

We need to give them a chance to grow.

They may do better next year.

Um, but we had to put some boundaries on it, and this is why we asked for a rubric.

And when this rubric came back, it was clearly evident that there was just some, you know, it's just some boundaries had to be put.

It was hard.

That was one this was the hardest meeting that this was the hardest year for us to do this.

So I would like for us to uh stay steadfast with our ambassadors program.

They do matter in tourism.

I don't want to go to another city where I feel unsafe downtown.

And I travel quite a bit.

So uh and in if anybody else feels like I do, I want to go somewhere where I can see some people that are taking care of me, even though they're not speaking to me.

Um but other than that, I if we can find some other some other kind of way to bring in some of these other groups, I don't know.

Let's do it.

I'm not opposed to that.

But I do want us to stay safe.

Thank you.

That's all that I have.

Okay.

Mayor Patoon.

Thank you, Mayor.

Can I start with a request?

I mean, you can respond or not respond right now.

It would it be possible, maybe a monthly sort of vacancy report.

So, you know, how many MTs are supposed to be in each department?

Um, and then see a list of the positions that are vacant, just so we understand kind of who's being hit hardest right now, you know, and that may fluctuate throughout time, but maybe in the Friday staff report or something, perhaps a monthly update so we have some idea of like who's especially short staffed.

So if we're hearing people complain that, oh, this isn't being done like it used to, we can at least say, well, it looks like they're a little short staffed over there.

Um is that something we could potentially look at?

I think we can talk about reporting, but context will be really important to that.

And so we'll need to talk, we can explore how to frame that and see what what could be provided, but just number of vacancies sometimes doesn't provide the full context of their operational need or service levels.

Yeah, that's what I was gonna say.

So and then so hot funds.

Uh I'm a little newer to the process of uh allocating these.

So I understand it's the committee with Council Member Hall and Councilmember Byrd.

Who was on it before?

You're new.

There's four of you on it.

No.

Three.

You were on it, and now you're not?

Gotcha.

All right.

So um can somebody very briefly, maybe Christine, maybe someone else explain the process of how this funding is allocated.

So I know there's the rubric.

I guess one question is who does the scoring using the rubric?

Is that staff presented to the committee?

Yes.

And this was the first year we made the change.

Previously, uh there was an application process, and staff was uh just verifying eligibility.

So there's just with the state statute, who's eligible.

Then uh we started a couple years ago having these groups, organizations come in, talk to the committee about their event, how are they marketing it, what is their tourism draw to help that committee make those decisions.

Uh but the committee was solely allocating in prior years.

This was the first year we talked about resources aren't infinite.

We really need to make sure that we're maximizing our dollars.

So there was an application period, application process through our grant, our new grant software, our grants management um office and um three other finance employees uh reviewed.

Uh we brought the rubric forward to council, so indicating this is what the um what all events would be scored on.

They did uh had a four portion four-person review.

Uh those scores were aggregate, and then we did a funding formula.

So if you received 95 or above points, you received 100% of your allocation.

We brought that forward to the committee with the baseline recommendation, and then the committee had additional questions and changes to that recommendation as I'm saying recommendation multiple times as their recommendation as part of the city manager's proposed budget.

Okay, and have we received that formula?

I I see the um it was in the community um community partnership presentation from July when they did the allocation, it's got the rubric information, how each organization scored that baseline funding recommendation.

Um but I we can follow up and for ID that also.

I I do have the the scoring.

I just haven't seen the maybe the formula for uh funding necessarily.

Actually, maybe I do see that.

Uh okay.

So thank you for explaining that.

Uh it's on page seven of that presentation to CPC up in that right hand corner.

So anyone that scored 95 to 100.

And then we showed like how many organizations from that baseline organization what what they received.

Gotcha, I see it.

Thank you.

Um, and so whenever the idea to you know explore the idea of funding the ambassador program through hot funds, what was that process?

Did we go ahead and um remove that 300,000 dollars from consideration of events or how did that go down?

Like and and sort of what maybe you lost funding based on that or reduced funding?

When we had the June work session and talked about not uh funding the program any longer out of the general fund, there was consensus from council to explore hot fund eligibility.

Uh so an application was submitted and scored, but staff did not make any recommendation on funding to community partnership for that amount, so it wasn't taken away from any organization from the baseline funding.

And through those committee discussions, they landed on a an allocation of the lowest level uh of the ambassador program.

So what they would have reallocated the the committee reallocated baseline funding um which would have reduced from other organizations, yes.

Okay.

I think what I'm struggling with is the first time we talked about this, I it I didn't recognize that a trade-off might have been happening.

So I'm trying to understand whether there was a trade-off and what got traded, right?

I think we need to do an uh follow-up to show you because this is showing what they recommended, what they requested, right, and then the recommendation on the hotel occupancy tax funds, but that was just the final recommendation from community partnership.

It sounds like you're wanting to see like an additional column of the baseline and then what the final was because baseline to final will show you what reduced or increased.

Um we can pull that in between the break and so adding ambassador to hot funds or not eliminated but decrease the funding for events.

Yes, I don't know the specific ones, but it did reduce um some of them, yes.

Okay.

Um I didn't realize that the first time that we were talking about it, unfortunately.

I missed that.

Um so that's on me, but uh you know, knowing that and knowing that we do have the gray area with hot funds in the ambassador program.

Like I'm okay revisiting the topic at some point.

Um, but I think right now for this coming budget, I'm not comfortable right now with the ambassador program and hot funds.

Um I I'm good with the 200,000 uh for the Denton County um park.

Uh 30,000 for the the dog days of Denton.

The the 70,000, I'm I'm less familiar with that.

Um I'm gonna sort of hybrid with what council member Beck said about you know, potentially setting some aside to discuss further if that's an option, is that something that we can do?

Yes, I mean we have a contingency amount um budgeted, then that can remain if that's the direction of the council.

Right.

So the 70,000, I'm not sure about.

Okay.

Um I think that's what I have for hot funds, and then um can you address some of the themes that were raised in the community budget survey?

So you mentioned some people kind of had some ideas and there were sort of some themes.

Um and if you if you're able to go back and find what those themes were, if you can sort of provide a little bit of response to some of the ideas, perhaps if there's a brief way to in follow-up or now.

Oh uh are we getting the same presentation during the public hearing?

Um it doesn't include any of the public feedback portion, it's uh it covers some of the basic items.

Um but uh we provided you know exactly what those comments were, and so it was just continued.

We'd like to see the property tax decrease, overall concerns with this isn't the only entity taxing overall, right?

Um striving for uh efficiencies, uh financial discipline, those are all things that were already in the works and also have been expressed during the prior work sessions of bringing forward the financial policies, the audits, uh looking at the overtime.

So I I do feel the feedback we received, some of it's very broad, but we are making strides to address uh that resident feedback.

Sure.

Yeah, and if we can uh I guess kind of call that out when you know we heard this in the survey, and this is something that addresses that.

I think that's something that would be helpful.

So people don't feel like their comments just fell into a dark void or something that it was actually heard, and there's either reasons for or you know, we're working on it, or you know, just the the people are still feeling heard.

Okay.

Um I guess that's all I have for right now.

Thank you.

Okay, any other questions, comments?

Representative district two.

Um piggybacking off of what Mayor Pratem said and what counselor just said at uh it at a previous item, I I think we're we're clearly experiencing um a strong desire for public engagement, but actually a limited amount of statistically relevant can uh public engagement.

So I I don't have the answer to this, but clearly we need to do better because 58 people out of uh oh, whatever our tax base is 150,000 or something like that is not ideal.

And to the extent that we can all brainstorm and think of ideas to get people to to to engage, uh I really want to support what Councilor Jester said um earlier.

Uh and and uh one last comment.

I I uh I want to commend you in the this current presentation.

I don't think it rose up uh as as well in previous ones, um, but in this current presentation, you can see that we're keeping the the uh OM rate the same as last year, and it was really abundantly clear um and that what we're seeing is a lot of interest in but not a lot.

We're seeing an inter uh interest in sinking, and that that goes to some of the points we talked about in the previous budget discussion of we that's just not sustainable to constantly watch our interest in sinking go up and up and up and up.

So I appreciate you highlighting that.

Thank you, Mr.

Mayor.

Yeah, the city manager.

I I do want to say just one or two things that um I think uh Councilmember Beck, Councilmember Holland, Councilmember Byrd, um did a yeoman's job.

This would and I mean this because we've not had a rubric before, and that's not been lost on me because I have had some heartburn since I've been in this role about how the money was being allocated, and how do you know?

How do you know that this group deserves the hotel tax, which is heads and beds, is Councilmember Holland so eloquently put it.

And then you have to add on, but are they generating enough interest and bringing in are they eating in our restaurants and those kind of things?

So when you look at, you know, I would have never known, but the Tejas storytelling is bringing association is bringing in people all over the country.

And so I would say this uh yeoman's job, but also uh it can need to really continue to look at this because you all know that if you continue to give money to people and they get used to getting it, then it starts to lessen their ability to want to raise money.

And so it's one of those things where I think they've done a really good job of trying to balance this out, and certainly our partnership with the county is most important, uh, especially when you see the 52 million dollars over the last couple of years that they put into and um and then we just had a little bit of a hiccup there with our veterans because of not understanding where it needed to be.

So um I I didn't want that to go unnoticed because they had a really tough job this year, and they've taken a lot of heat, and I know all of you have, and I think um it's just I wanted to recognize that because it's something along with you know, we remember we said we had to update our fees for police and fire and our staff because for years we weren't charging enough.

We were eating the cost of these events through not appropriately charging.

So it's been a tough year for everybody, and the recognition goes to all people all the way around, including staff who've really worked hard to try to get this information out and still offer to all these entities.

How can we help you better promote, better look at getting sponsorships and those kinds of things?

Okay, anyone else?

So my my regular comments now.

I I agree with everything that's been said.

That's the interesting thing.

The the problem the problem I have is that you can't draw a hard line in one area without extending it forward, right?

And that's really where I have a hard time.

It's you can't be absolute, it's how many hotel rooms, period, point blank, that's it.

I'm not considering if it doesn't meet a threshold, and then not acknowledge that we've had multiple people say they didn't understand the application.

It's the first time we do it.

So it's the first time you change the rules, and it's the absolute first time we're gonna be heavy-handed.

I just those two don't go together.

And if you did not know, I encourage my peers to take a look and then just kind of pan out to leave these seats and pan out and explain this to the average Joe that's walking around Denton.

The rules change, there's confusion with the rules, and the benefactor that we're talking about primarily, the ambassador program, the city of Denton filled out their application.

No, wait a minute.

That that's difficult to reconcile.

That's hard for me to explain.

Uh there's a statement made, and and these these are just logical leaps that aren't accurate.

And so I'm not gonna use my words, but I need staff to say something.

The the the number of times it's been said that the ambassadors are here to address homelessness and help with homelessness.

Is that a fact?

I'm sorry, will you repeat that?

The ambassadors are here.

Uh one of their roles is the help with homelessness.

No, that's right.

So I like when those things are said, it's important to correct those straight away versus allow those to go unchecked.

They're providing like resource information, here's where to go, we coordinate with them ahead of inclement weather days to they are the information go to um for the square.

But that's the extent.

Yeah.

Great.

No, no, that that's my understanding as well.

Um, and so I um I agree with the need, but instead of renting, I think we need to pivot to ownership.

So we thank you for the answer to my question.

Staff provided it's like 70,000.

We can hire someone, and then if you can uh I know the answer, but if you can tell me, do you know there's how many officers are assigned to downtown?

Two, yes.

Yeah, so two officers are signed to downtown already.

So all you need is a parks person that can then report and radio in and say, hey, I need help, I need assistance, and and you you can have that network, and we have an employee that's uh available for other things, uh, and we're all and that's ownership.

And and that to me, we can get on board with, and it accomplishes what we need.

That they can clean, they can be visible, they can do all those things, there's no limit to location.

Um you know, heck, it even furthers my advocacy for us to have golf carts, uh, but well, that's uh that's not connected.

But uh I just I just think there's there's opportunities to accomplish a goal.

But when I look at because if I just look at this list and hard line it, I I'll point out, and it is a difficult job.

So I'm not I'm not taking any, I'm just saying I have to explain it to people.

And Day at a Dead Festival, I think you you you you can you can disagree, but I my my understanding was last year, Day of the Dead Festival economic impact on the city of Denton was 16 million dollars one weekend.

It was the that was the overall impact of the 31 days of how we presented about Halloween in general, it was a very good thing.

So it's 31 divided by no sixteen divided by 31, right?

Or what or four, let's say there's four weeks.

Yeah.

So I mean it's significant.

And they took a haircut.

It and no one brought, I mean, it it that is the biggest what I'm advocating for people to come to come to Denton.

It is the last Saturday in October.

It's easy to tell people, it's easy, it's consistent.

And so again, I'm okay with this number.

I'm just not okay with hard lines and at this phase, first time out, the city filled out the application.

Um, and so to that end, I I I appreciate those that have had some flexibility and and I to those that are adamant that we provide the service, let's hire somebody and own it.

But I I do think it's important and critical to point out, and no one's pointed it out.

The city of Denton, well, first let me go to the number.

The numbers 700,000 a year, 1.4 million dollars were in.

Like the city didn't provide it the service for free for two years.

Yes, for the ambassador program, the pilot program, yes.

Right.

And I would hazard to guess there's more vacancies on the square proper right now than there were two years ago.

Like Andy's is empty.

Uh the the who else is is now gone.

There may be uh yeah, gnome cones is gone.

There's there's there's and you go further down the other other whole oak and hickory.

There's some like uh pizza snob is gone.

Uh there's there's there's been some transition over the last couple of years, and so that's when the ambassador program is in place.

So it's not a guarantee that people are gonna be in business and they're gonna be there.

There's there's other things that that kind of guide guide those decisions.

And and so it's only been two years, and so people lived in the square thrived before the ambassador program.

Uh and so for me that it's the it's not stopping that process to me.

So the and then I I do there's a quote here that you you said um and and this is nothing against you, but it it's you said it, so I'm sorry.

But it says it's the lowest level, and that's the numbers we provided, but we don't know that.

We don't know what the cost is.

They they provided estimates, and their estimate was if we reduce the footprint and went to five days a week, it it that was the lowest option.

Yes.

I'm fine with that quote.

Are you?

I know because that's what we asked.

Because we got to add extra services.

Have we considered that?

The extra service that's that's not baked in there.

We don't know because there's no.

So I think just and I'm not I I'll leave it that.

I just would not say that.

I would not say it's the lowest.

I would say this is the number we have to work from, but we don't have any of the surrounding supporting data, and never would I be okay with voting yes for something that I I can't read it.

I can't know what it says.

I can't, and now we no one's talked to them about the surveying people, and then how is that gonna go?

If you're nervous about being downtown, or if you're not wanting to engage with people, you have somebody in a red shirt come up to you and hey, hey, I got a survey, like there's people that don't even go up to the to the to the brownies and to the boy scout, they'll go the other way.

And so you want to talk about hurting business.

I mean, those are things we gotta talk about.

Like I don't no one's doing that.

You go down to Fort Worth, those people aren't interviewing you to try to collect data.

And that's gonna make people real nervous.

It's not gonna, it's gonna have the opposite effect, and we've not even talked about that effect.

So there's just so much that's not established versus just hire somebody.

We have two police officers that can affect the and keep everyone safe.

It would actually extend to the post uh to the to the parking lots and areas and that sort of thing.

So I just think there's a better way to get to where we want to be and to make sure we have the things we need to do, and we've lived however many years in Denton without it for two years, and and understand the primary benefactors don't even see it enough value enough in it to pay for it.

That that you want to talk about an astounding thing.

We are taking more of an interest than the people that own the property down there if we move forward with this.

It in what world is that good business?

That just that amazes me that they yes, if anybody wants to come and do stuff at my house for free, I'm in.

But if I have to pay them, then you gotta think about it.

That I just I don't understand that.

So my my direction remains the same.

I and and I I every time I hear something about the application or the scoring on the same people, just keep this in mind because we got to explain it to the average person on the street.

The same people that and it may not be the same people, but the same entity that filled out the application for the ambassadors, set the rankings.

Yeah, it's not accurate.

No, uh the staff that submitted the application were not involved with the scoring.

But walk me through that.

How what's what's the what's the what's the firewall protecting that that conversation?

Uh it happened in two completely different departments.

There's no conversation.

I mean, community services filled out the application uh for the program because they're managing the block by block contract, and then separately the finance department independently of any department conducted those reviews and scoring of the rubrics.

But it's a new it's a new policy.

Right.

So did the did either entity finance or the community services get updated on the new policy and what's being considered?

Training, discussion, hey, we're changing the matrix, any of those things.

No, I mean they would have uh have been privy to the same information.

I mean, it was more so like they filled out the application after the council direction to look at it.

But I recognize your point.

Yeah, but let me ask you this.

Would they have more information than the Black Film Festival?

Uh potentially.

Yeah.

And I gotta explain that.

I'm not saying I'm not saying it has to be true.

I'm just saying it had I gotta, I have to explain it to people that no, no, it nothing to see here, and that's difficult.

That's all I'm saying.

Uh because I have I I'm just finding this out.

Like this.

I got that, I got the application yesterday.

Uh we provide you a yes, a copy yesterday.

Yeah.

So uh it's just uh so again, I'm all for it, just not in the vehicle that that is currently subscribed, and I certainly need uh I can't support anything where I don't have the there's no contract, there's pricing that's general.

I I just I can't believe in a world where the business the business uh they're gonna charge the same on Saturday or Sunday, Friday.

They may.

I and then we don't know we're getting pricing from an entity, and then we it has a does it have to go out for bid?

Uh we can, yeah.

An RFP is an option.

We work through procurement.

I mean, an amendment could be an option, RFP could be an option.

I mean we had not even started the procurement process if it doesn't make its way into the budget.

I I would say the answer is yes.

Um this is a situation where we were asked uh to look into opportunities and the staff did.

Um and yeah, the staff member filled out the the form to submit it to see what kind of funding would be available, still not knowing about all the intricacies that would be involved with uh this kind of program being funded through hot funds.

But the bigger picture is if this moves forward, no matter what funding is allowed, it would have to be an RFI or an RFP to find out what what could be funded and what cost, meaning, okay, if we only wanted to do three days, what would that cost be?

If we wanted to do five days, what cost would that be?

Here's the hours we would do for three days, here's the hours we do for four days, so that the whoever would bid on it, and actually, it may not be the same entity that we would get uh if we opened it up, which I would highly recommend we do if that's the direction.

I do want to say this though, I don't think uh in defense of staff in 2018 staff were filling out some forms for city for city um interest in getting hot funds.

Uh we do that with uh CVB fills out forms to get their hot funds discovered dentin right there.

Um so I there was and I know you're not meaning that, but I wanted I want to make sure that staff was trying to do the right thing by saying here's some potential cost, but those are not real cost until we know for sure what if any would even be funded.

So it was more of a here's what if we came across like oh, this is the actual answer, this is how much it's gonna cost.

That's that wasn't the intent.

The intent is this is an um an approximate, and this is the approximate location of the square.

We'd have to get really detailed about what we wanted and what hours and everything else, and I don't even know that it would cost 300,000.

It could be less, especially if somebody else were to do it.

But I get your point about 70,000 and only having one person, I'm all for that.

Yeah, no, yeah.

I mean, and then you're very good points, and and I and I don't and I I certainly align with those things.

I just want to avoid the the again appearance of you know uh this thing.

And so that that uh all great clarification, I accept all those things as true.

Um and I'm not saying that those things happen.

I'm just saying uh there's it's difficult from an optic perspective uh because people just don't track along.

You you were doing you and I were just talking about sometimes people you know conflate things.

Uh so okay, and then lastly, I'll just say this.

There's some folks on here, and I don't want to point them out, but that support hotels that don't even pay in the hot time hot funds.

All right, there's small because the smaller hotels don't don't don't pay in.

And so there's there's websites and they'll say, hey, come to this event and go to this hotel, and and those hotels aren't hot fund eligible to to pay in.

Now not a requirement, but I'm just saying as we're talking about what goes into it and uh all the different things.

And if we if we take that approach of a subjective, hey, let's let's see if we can make everybody bring everybody, help everybody inch them along gradually change versus from 300,000 to zero.

Uh those the I think that's just a better partnership, better aligned uh approach to moving towards um being more fiscally uh responsible with with these dollars.

And so uh that that's my thought.

I mean uh so my recap on the change, and then the floor is open is um so obviously I laid out what I thought, and then in response to that, uh Councilmember Jester was okay with the county, but then wanted to look at holiday lighting and arts and jazz, uh, and then um councilmember Beck was uh wanting to hold in the in contingency and and do more um studies and and look at more data, and then Mayor Pro Tem was uh okay with the county and dog days and more of a hold on the remaining funds not as familiar with the Texas veterans, et cetera.

So that's that's my recap of anyone else.

Representative from District 4 as an animal lover, I'm going to quit beating this dead horse.

Um but I and I love the idea about more police and park employees on the square.

I think that's a fantastic idea, but that comes out of general funds.

And I was trying to keep this out of general funds where the taxpayer didn't have to foot the bill.

And and the and the merchants around the square didn't have to put the bill, put the bill.

That was my point there.

As far as pairing this thing back, we can pair it back enough that it's guaranteed to fail.

You know, we can have somebody out there one day a week for 30 minutes.

By golly, it'll fail.

I promise it will.

So keep that in mind when you start pairing this thing back.

And and the last thing I'm gonna say, the H in hot stands for hotel.

Period.

Thank you.

Anyone else?

Representative District One.

I um, you know, I agree with Councilmember Holland that you know there was a lot of consideration taken and just even asking the question, how can we keep this going?

But if we really want to do this and we really want to see, and um see what what the conversation is gonna be next year if we pull those uh ambassadors off the square, because that was enough we know that that was a life before they got there.

That's why they ended up there.

Um then we'll we can you know we can go ahead and see that compensation.

I'll still be here to 27, and I'll be interested to find out uh you know what the community is saying about uh you know what's going on downtown.

Uh we are still very high number.

I don't want to uh just tag this to homelessness, but it is uh uh a consideration.

Uh, and I think that the community is used to seeing our are readvest downtown.

They feel secure.

Uh and again, you know, like you said, this is hotel.

Uh our hoteliers are doing a great job in in hosting people.

Um I I don't want to see anybody else lose anything.

My job is I don't feel like that that I you know we did this in in a way that we were just you know giddy about it.

Uh it was very hard.

Um so we just want to put that information out to the ones that didn't get what they felt like they needed or they wanted.

Um, but I'm just gonna stick to my guns on that.

I think it's just fair.

I think it's fair for and I think there was a um tell me that was a survey of the the businesses around the square.

I think I kind of maybe misstated or miss it was misunderstood uh the last time I was speaking in regards to them not being able to do it financially or not wanting to do it.

Uh so that had to move somewhere.

I don't know.

I'm okay with it, us just not doing it.

I I'll say that if we need to go on record, yeah.

Let's just go ahead and just dismiss um let's take the um the ambassadors out of the equation because I want to hear what we're gonna be seeing next year.

Okay, anyone else?

Sorry, Joe.

So uh I I forward looking, um can we come back and have some discussion on um how this is allocated because ultimately we can have a bottom line number that's hot funds that that are spent and then and then well and and all of it there I hadn't heard any disagreement other than the 300,000.

So it it can sit in contingency to councilmember Beck's point, and that can be we can have kind of a discussion uh around that.

If you want to have a discussion, we need to have it next Tuesday.

We'll um it will have to be we'll have a work session.

I'm looking at Cassie to make sure that's okay.

Um the bottom line number if we're saying that that stays the same, that 4.9, I think was the um expenditure amount if we're saying the 4.9, and then we want to have a discussion on how we're allocating within removing the ambassador program, funding the county at 200,000, and then what to do with the additional funding that could easily be done next Tuesday.

Yeah, okay let's do let's do that so that and and so people can ask their questions, do all their things.

Um and so in that spirit of for for future conversations.

I I don't want to put I'm trying to keep staff out of the middle of it.

I've heard that the hotel thing enough ad nauseum.

I I get it.

But I guess just resend me the the rule resend me the information on how that's how the the direction was given, how how do you equate that?

And then let me start there.

Let me let me level set on what what the uh kind of parameters are around that, and then I'll all email questions.

Uh any anyone else, anything else that that um for future conversation next week on this topic that that would be helpful.

Representative from district six.

Sorry, I'll try to go real quick.

I've had several comments asking about what about the downtown tours paying for it from understand that would necessitate some changes, and that board is not interested.

But I just wanted to if you could send us what would be necessary in order to allow that.

Okay.

Um I think it's information that we would like to have.

Okay.

Thank you.

Yeah, we quickly looked at it, and I think it was the program um that goes along with the funding, doesn't currently include it.

That doesn't mean it can't be modified exactly could happen.

Just I'd like to know some options um, even if it's a slim chance.

Thank you.

Representative from district two.

Yeah, then just real real briefly.

The uh Christine and the rest of the finance reported to the TURS, and I'm on the downtown TURS.

And and I'd look forward to the information you're gonna give counselor the Jester and the rest of us, because that what we were told last meeting was that the program was it's this ambassador's program was not eligible to be put into TURS.

So if that's not the case, but that's what we heard last time.

I'm just saying when they we because we just did the boundary expansion, we had a financing plan and project plan, and it wasn't currently part of that, but we'll follow up to see if that's a change.

If a change was made, could it be eligible?

Okay, anything else, any other information be good to have.

Mayor, can I can I recap what I heard?

Yes, just to make sure everyone's clear.

So the total included in the FY 26 budget, council will adopt the total bottom line of each fund.

So the what is the total total fund?

I think it's 4.9.

4.9 million for the hot funds.

I can tell you um next week we'll have a discussion on how exactly that is allocated.

However, in the proposed budget, we'll put the $300,000 program for ambassador front ambassador program into a contingency that we we will be discussed next week, but in order to facilitate the budget adoption discussion next week as well.

We'll have we'll focus on that total dollar amount in the fund.

So the $4.9 million.

Sorry, Cassie, it's it's right at five million.

Yeah.

So five million.

My only addition to that is that I would the the there's an existing 167,000 contingency.

I think 130, 100, 131, whatever that is.

Yes.

That's in the total, so uh your discussion next week.

If you want to go ahead and through consensus, allocate that you certainly can.

Okay.

Yeah.

Then yes, which you which said is accurate.

Okay.

Okay.

Very good.

Thank you.

Uh so we have one more work session.

I thank you.

Uh very well.

Very good job.

So uh we have one more item, and then this is a special call meeting, so I don't know what time dinner gets here, but we'll and then if dinner's not here, we'll go to the dais.

Take up um consent, and then we'll take up individual consideration uh, or we'll have a break in there somewhere, and then because we can't take up public hearings till 6 30.

So we'll we'll do what we can until either dinner or we get to an impasse on where how far we can go on the agenda.

But we have a two-minute pitch, and that is item D, ID 2503.

Receive report hold discussion and give staff direction on pending city council requests.

And this is uniformity on board and commission member terms.

Good afternoon, Mayor and Council Christy Fogle, Chief of Staff here to present uh today's two-minute pitch as a reminder.

Um the requesting council member will have up to two minutes to describe and justify their request.

Remaining council members will have a maximum of one minute to provide feedback and indicate their support.

Um and then staff will respond to all requests where a consensus of at least four elected officials is officially established.

And then um council members can indicate uh priority of high moderate or low in their direction to council.

And with that, um I will turn it over to the mayor to facilitate the process.

Okay, thank you very much.

Uh so uh councilmember Jester, you you have the floor uh to and you have two minutes.

Yep.

All right.

With this pitch, I would like to increase efficiency and engagement in the city of Denton.

Uh we looked at this in January of 2025, and we were given information regarding issues with some of our volunteer boards and commissions, of which there are 26, and in 2024 had 190 meetings and 221 members.

Those issues included quorums, vacancies, and the nomination process.

Uh at that time, with the city secretary's assistance, we were able to address the community services advisory committee by decreasing the number of members required, and we disbanded the internal audit advisory committee.

However, there were other committees that were noted that had to have several cancellations that have had other quorum issues that were not mentioned and has not been addressed.

My idea is I would like to not only uh conform some of the uniformity of the work, but to streamline the nomination process.

So right now I'd like to look at uh with quorum issues, the frequency of meetings.

I don't think all of the boards that we have necessarily need to meet every month.

Sometimes there's one item or one or two items on the agenda um with vacancies with new numb members.

We have current uh citizens that are serving two and three different boards.

Um, and not that there's anything wrong with that, but there are other cities that are affirmatively out there trying to recruit proactively, doing like a game of life where you've got different tables and the cities are invited, and the cities and the tables have different members from each of the boards and the staff liaison to talk about it.

Um the nomination process is so cumbersome right now.

We have separate PDFs and we don't know, and we have to look up ourselves.

Are they currently on another board?

Are they applying for multiple boards?

Are we missing on that board special qualifications such as is are they a vet?

Do they live in the ETJ?

Are they associated with construction?

There are all kinds of boards that we don't have that information at our fingertips.

There's got to be some kind of software or something out there where people apply electronically and it populates a spreadsheet so that we're not also creating ourselves and will also help us not to have so many vacancies because I Google people and try to find the appropriate person for the appropriate job, and we don't even have that section on the application to tell us why they're appropriate.

Thank you.

Thank you.

There's more if you someone wants to give me their time.

Okay.

Representative from district two.

Uh I I'm gonna keep with my practice of of supporting all pitches from to the council person just because they all go to the case.

From council person.

Um they all go to uh informal staff reports.

So I I look forward.

Um I I especially um support that the piece.

There was a lot of pieces in there that I heard.

Uh we'll see what staff come back to us with, but I especially support the piece of um uh getting the nomination process in and out of boards of commissions because council Jester and I ran into an issue ourselves as we exchanged positions, and that was weird.

So um I support that.

Okay.

Uh anyone else?

Representative district four.

Thank you.

Um I too support the the position, and I'm wondering uh if the movement would would like to eliminate or consolidate some of these boards.

May I answer?

And I'm not positive that's appropriate, but uh, but uh I I think we could eliminate or consolidate and or consolidate.

Thank you.

Yeah, I'd like a holistic view.

Sorry.

Council uh council member bird.

I'll support it.

Thank you.

Thank you.

Mayor Protoon.

I'll support as well.

Okay.

Um yeah, no, I'm I'm I'm uh I'm uh yeah, I'm I'm good.

I think it's a good conversation to have.

So thank you very much.

Yeah.

Um I'd like to accept this.

So the uh I just saw the food roll in on a cart.

So why don't we transition to uh the dais and at the same time we'll be on a break till it's 4 30, let's say 440.

That's yeah, so 440 will be at the dais, and hopefully that'll give us time to grab food and eat it.

And if not, we'll adjust accordingly.

No, oh I'm sorry, I'm looking at I don't know what I'm looking at.

It's 430.

Uh 440.

50.

I'm sorry.

There you go.

That that's awesome.

I was looking at the 10 and said 40.

Eight.

Eight is eight is 40, 10 is 50.

So 50.

Uh yeah.

I need I mean like a I need a fisher price clock.

And welcome back to this meeting.

Didn't city council is 508, and we still have a quorum, so that takes us to the uh consent agenda portion of our agenda.

Nothing was pulled, so I'll take a motion.

Representative from district four.

I move the um to uh um what move?

Approve, thank you.

Approve all the all the consent agenda items.

Oh sorry.

No, no, thank you.

I can't even tell time.

Representative from district two.

What I I think I can agree with what Jude just said, but I'm not 100% sure, but I'll I'll second anyway.

Yeah, we won't hold it to it.

Uh the the we have a motion to a second in discussion on the consent agenda.

Seeing none, let's vote on the screen.

The the motion by district four.

Yeah, and the second by Councilmember Better.

And that passes six to zero.

And that takes us to our first item for individual consideration, and that's item 3A, ID 251498 consider adoption of an ordinance of the city of Denton, Texas, a home rule municipal corporation authorizing the city manager to execute a contract and lease agreement with Mayhill Renewables LLC to design, fabricate, construct, commission, and operate a uh renewable natural gas uh facility to treat landfill and is that digester gas, uh the city of Denton landfill.

Good evening, Mayor and Council.

Thank you for having me.

I'm Brenda Haney, the solid waste director for the city.

Uh quick little background on this project for you.

So currently we have an active gas collection system at the landfill, but we capture all of that gas and we push it to a flare and simply burn it off.

We're not doing anything of any value with it.

We are destroying it, but we're not getting any kind of a uh money or benefit out of that gas.

Um as you can imagine, there's maintenance associated with that flare.

Um we've got in fact we've got parts on order right now for it to uh keep it up and running.

Uh and we're missing out on that opportunity to capture um some revenue from our landfill gas.

So we know it's an asset.

We are um we have processed this landfill gas in the past, but we're going to take it and make a reusable community uh or commodity out of it, pardon me.

Um that beneficial reuse then will increase the sustainability and lessen the city's carbon footprint, which is identified in our climate action plan.

Um and this project specifically is identified in there.

And um this will give us uh finance this will make a financially beneficial uh project out of our landfill gas, and it is absolutely a more environmentally responsible alternative.

So just a little bit of background on where we've been with our landfill gas in the past.

Um up until 2020, we had a leanfill gas to energy facility out there that was subsequently decommissioned.

Uh we revisited this project in 2023, and we failed to come to conclusion at the end of the negotiations, and so that project scaled.

Um we went back out in 2024 with the idea of um trying to get a beneficial reuse um and converting our um landfill gas into a high BTU fuel.

We have completed those evaluations.

We selected Morrow Energy, who by the way is with us this evening.

I appreciate them being present.

Um they will take over the um essentially the operation of our landfill gas collection system, which currently has 139 active wells.

Um and then they will take that items that are being diverted and push it into their system.

So in 2020 in May of 2024, we issued that RFP.

In August, um we came to an agreement that um we selected Morrow Energy um doing business as Mayhill Renewables.

Um again, they will assume operation of that uh well-filled operations, they will likely expand the system because their goal is to get as much gas out of that landfill as possible, um, improve the overall gas collection, and then clean and compress that and put it into the pipeline to sell it on in the open market.

So, with that, very brief synopsis of the project.

Um, we are asking for uh council to approve the ordinance authorizing the city manager to execute both a lease agreement and a gas rights rights agreement with Morro Energy.

Be happy to answer any questions.

Thank you very much.

Questions for staff representative from district two.

Thank you, Brandon.

I I know well, I don't know.

This is a question.

I I had heard that there was some beneficial reuse of our own uh landfill gas for other city purposes.

Will the entirety of what's collected go tomorrow for processing or or and or do we actually use our gas in any way?

We do not use our gas in any way.

Everything that we capture, we flare off.

Okay, all right.

That thank you, Mr.

Mayor.

Okay.

Any other questions for for staff?

Um I'll just say uh I it was um interesting to see the the uh the names, but can you can you talk about the process?

Because I think did say 2004 it started kind of uh uh 2024 is when we started this project.

23 RFP, yeah.

I'm having a hard time with numbers.

It was slow, but it wasn't that slow.

Right.

So so but in that process was that was there a pause there or is just evaluating.

It's just taking a minute to get this one over the finish line.

So um we had some staffing changes and some handoff of responsibilities amongst some of the leadership in the solid waste department.

Um, and then when I arrived in February, it was dropped in my lap, and so happy to say we pushed it over the finish line to get this done.

Okay, um, so it was really just um really finding somebody to kind of take the ball and run with it.

We've had a number of people trying to trying to negotiate, and that's really hard to do.

Got it.

Okay, thank you.

Uh representative district one.

Did you say how long will we uh recognize um the revenue for something like this?

Did I hear that?

Well, we've got a 20-year agreement, so we'll recognize the revenue throughout the entirety of of the agreement.

It is likely that we won't see any revenue for another 12 months or so.

Okay.

Um once we get them started, um, it'll take them several months to get the facility built and constructed and actually start producing um their their uh clean pipeline quality gas.

So have we set uh a an expectation or are we right now we're just in the mode of getting what we get and we don't throw a pit?

How are we doing that?

We have um well, any benefits more than what we're getting right now, but we do have a schedule of royalties that we will receive.

So it's a sliding scale, um, starts at a minimum of 15 percent, goes up to 27 percent.

So um the 15 percent is based on uh up to them uh receiving 500,000 dollars a month in royalties, we will get 15 percent of that.

And then as their revenues go up, so once their revenues exceed over a million dollars, we will be getting 27 percent.

So 75,000 minimum to begin with, once we start getting those numbers, you know, of that maximum number or so maximum at that low level, if you will, 270 on a minimum of the high level, if that makes sense.

Sure.

Does this uh funding stay within this particular uh department or does this go in ONM or where does this funding go?

It will stay in the solid waste fund um and it will be recognized as a separate line item in our budget, and then we'll use that money back for additional capital funds going forward.

All right, thank you.

Welcome.

Okay, any other questions?

Uh seeing none uh representative from district six.

Uh Councilperson Jester, I'd uh just want to say thank you so much for getting this across the finish line.

It is a win-win.

Uh and um I'm I'm very excited, thank you, and I'm pleased to make a motion to approve as presented.

Thank you.

Mayor Protoon.

I'd like to echo that.

I'm I'm really excited to see us not just wasting something that we could be getting money off of, but also you know, um reducing our carbon footprint as well.

Um so I really appreciate that you were able to nudge it over, you know, whatever you did to to participate in that, and so I'd like to second.

Okay.

Uh anything from the uh mural group, we anything you want to add or share while you're why you're here.

Okay, thank you very much.

And then I'm I'm gonna come down before we vote.

So we have a motion and a second, and it's discussion.

But we don't know how to vote, so we go so I'm gonna know.

Uh so we want to recognize you first on the present to us.

We're so honored to have you.

And so thank you very much.

So Alejandro member, thank you very much.

Oh, thank you.

Here we go.

The embarrassing part.

Excellent.

Thank you very much.

And sorry.

Right.

We can vote on the screen.

And that passes six zero.

There you go.

Thank you.

Good luck with your project.

Thank you.

Thanks for the church.

That takes us to um item B, which is ID 251520, consider approval of a resolution of the city of Denton nominating members to the board of directors for the Denton Central Appraisal District.

Mayor, members of council, Matt Hamilton, AD of Finance.

Here tonight to present uh the Denton Central Appraisal District or DCAD board of directors nominations.

So the board of directors um uh is a uh group with the Denton uh County appraisal district, the local property tax system um hires, I'm sorry, excuse me.

The um board of directors hires the chief appraiser and sets the budget.

The directors have no authority to set values or appraisal methods.

The chief appraiser carries out the appraisal district's legal duties, hires staff, makes appraisals, and operates the appraisal staff.

Uh as you can see on the screen, this is uh the current uh board of directors.

So two of the um uh uh places, uh their terms will expire on December 31st.

The board members serve uh staggered four-year terms.

The board is comprised of a nine-member board with five appointed by the taxing jurisdictions, one being the county assessor, and three publicly uh elected members.

Uh places four and seven, their terms will expire on December 31st, and the city council may nominate up to two nominees to fill these places.

The eligibility, they must reside in the appraisal district for at least two years immediately preceding the date they take office.

The city um uh city elected officials are not eligible.

Uh employees of a taxing unit are not eligible unless they are an elected official as well.

And um uh if any person is closely related to anyone in the appraisal district or related to anyone who represents owners in the district, or if the person has an interest in a business that contracts with the district or a taxing unit, yeah, they're not eligible.

So to summarize the nomination process prior to October 1st.

Um the DCAD notifies taxing entities of the number of votes they're entitled to cast for appointing board members.

We do not currently have that total.

The DCAD is calculating that total, uh, but we will bring that back to council once we have that.

Prior to October 15th, uh the nominations are submitted to DCAD by each jurisdiction, and each jurisdiction can nominate up to two candidates.

Prior to October 31st, the DCAD will then take those nominations and compile a comprehensive list of the nominees and forward that list to uh the city in the form of a ballot.

And prior to December 15th, uh the city will by written resolution cast their vote.

Um and the vote will be based on uh that number of um proportional votes that we're entitled to to cast.

It's based on our uh appraisal value relative to the other uh taxing entities.

And then uh on prior to December 31st, the DCAD will tabulate the votes and forward the results back to the city, and the two candidates that receive the most votes will start their terms as of January 1st.

Uh the vote we currently have set for um December 2nd to bring that back to council to submit the ballot, uh which is before the uh December 15th deadline set by DCAD.

So I got a little ahead of myself.

So December 2nd, city council will vote for board members.

Uh the total votes for 2024 for all taxing units is 5,000.

Uh the city of Denton votes last year was 189, so uh 3.78% of the total uh votes that were eligible to to be cast.

Uh current votes in uh for this year are currently being uh calculated by DCAD, and once we have that, we'll bring that back to you just so you know the number.

And any questions?

Okay, so questions, no no action today, though, right?

Today we're looking for nominations, the two nominations.

Even okay.

I thought they gave us they were gonna give us uh I think we have until October 15th.

But we have no nomination.

Okay, so if there's nominations, but but we have time if there's not any.

Yeah, got it.

Okay.

Uh representative from district two.

Yes, thank you.

Um, do uh do we know if a of a Pumaco and Hennefer are seeking renomination?

Those are the two that are those the slots are up, correct?

Correct.

I do not know.

Okay, but we could follow up with that information.

Uh yes, I'd I'd like to know that information.

Representative district four, thank you.

Um I find it interesting that that the uh applicants must reside in the appraisal district for two years.

I is is that unique to this board?

You there's no there's no residency requirement or length of residence, is there on other boards if I may Lauren Thoden city secretary?

This is specific for the sit the county of Denton.

This is separate from our city considerations.

So our city boards require a residency, but we we vet that there's it there's no duration of residency.

Exactly the answer I was looking for.

Thank you.

Representative from district six um as far as the process that is uh happened in the past, is that something that we typically the city will put out, hey, a call for nominations, or is that something that city council means is there a form?

I mean, how does the process can you tell me a little bit more about the process?

Yeah.

Uh to my knowledge in the past, this has been presented to council, and council has provided the names of the nominees, which we then uh include in a resolution and provide to uh to the DCAD.

Okay.

Um and what were the two members that are uh expiring currently?

Uh it is uh the vice chair in place four, uh Ann Pomical and uh Mike Hennefer place seven.

Okay.

And uh to the best of your knowledge, is there any set number of terms before they're termed out?

I don't know offhand.

Okay.

Well, thank you.

I'll look into it further.

Thank you.

Yeah, if you could just follow up, let us know if those if the the incumbents would all are seeking reappointment, that'd be good.

Uh I'd like to put forward the name Matt Hamilton to see if you're paying attention.

You're like, hey, wait a minute.

Representative from District 2.

Thank you.

Um in the in the first round of speaking, I didn't hear any nominations.

I don't know if anyone's going to nominate at this time, but uh it sounds like at least some of us had some additional questions, want to do some additional research.

I I would love to bring this.

I would love for the this body to consider bringing this back at at another time.

I don't want to conclude anyone's power.

It's obviously your power to nominate anyone you want at this moment, but uh and we'll vote on those later.

But I um I would encourage us to table this for this event today.

Yeah, and I don't know that it so it's gonna you're you're it'll automatically come back to us, right?

Like we won't need to do we need to table it or yeah, yeah, that's what you want to do.

All right, got it.

Okay.

So I didn't hear any nominations either.

I think there are some due diligence to do be done.

Um so any other requests for information or comments.

Great.

Then we will what is so we're meeting next week.

What thoughts on how much time we need to?

So the vote has to be on the second, right?

Is that excuse me?

Is that uh just we would not be able to do this for next week because our posting deadline is tomorrow for next week's meeting.

So September 30th would be the earliest we could have this come back on.

Perfect.

Okay, yeah, that works.

Okay, so we will table.

Is that the right monocular?

Yeah, so we'll table this issue, this item uh B until September 30th.

And we'll at that point we'll we'll provide names uh for and staff between now and then will let us know about the incumbent.

Yep.

Great.

Thank you very much.

Appreciate it.

Thank you.

Um do we need to vote on that?

No, just great by unanimous consent.

Thank you.

Uh and then we are uh adjourned until 6 30 when we take up the two public hearing items.

And in the in that time, please note um if you have contingency funds, we're really late in the time to get those allocated, so you would need to get with staff today, tomorrow on contingency funds.

Uh if so that because the posting as staff mentioned for the next meeting is tomorrow, so you we really got to hustle uh if you have those, and I'm in that boat, so forgive me.

But in uh yeah, so if anyone has questions about what that is or from not familiar to get with staff, they'll they'll give you the rundown.

So all right, we're uh adjourned until 6:30.

Thank you.

And welcome back to this meeting of the Denton City Council.

We are now to the public hearing portion.

That will be the last two things on our agenda tonight.

We do have a quorum, so call the meeting back to order first.

Item is uh 2A ID 242622, hold a public hearing and receive citizen input on FI FY 2025-26 proposed budget.

Good evening, Mayor, members of council, Matt Hamilton, AD of Finance, here to present an overview of the proposed fiscal year 2526 budget and receive resident feedback.

The property tax rate proposed in the city manager's uh fiscal year 2526 proposed budget uh is 0.595420.

This is an increase of one cent over the prior year uh rate.

Uh this rate is comprised of two components: the maintenance and operations rate uh and the debt service rate.

The maintenance and operational rate is unchanged from the prior year at point 334780 per 100 of valuation, and the debt service rate is proposed to increase one cent to 0.260640 per 100 of valuation.

The no new revenue rate, which is the rate that if uh it were to be uh applied to the same properties on the tax rule last year, this year is 0.554279.

The published max tax rate that council uh approved was 0.605420 or one cent higher than the city manager's proposed tax rate, which was done just to provide council flexibility in the budget deliberation process, tax um deliberation process, and the voter approval rate of point six one oh one five seven, which is the statutory maximum without triggering an election.

The proposed city manager's tax rate uh is below the voter approval rate, uh, but is above the no new revenue rate.

So to provide a summary um of the different funds, uh and you've seen these slides before, uh starting uh with the workshop and then on the night uh August 19th.

Uh the general fund revenues uh is proposed at 218 million uh 824,966.

Uh increases in revenue include property tax, sales tax, and franchise and ROI uh revenue.

The general fund expenditures are proposed at 218 uh million eight hundred and twenty-four thousand nine hundred and sixty-six dollars.

And so the budget is a balanced budget that is being proposed.

Uh increases on the expenditure side include uh notably an increase in personnel services of approximately um 11 million dollars.

And that came out of the zero-based budgeting that staff performed, in which we determined that we had public safety over time, notably under budgeted, as well as to uh account for state and federal funding that was lost and increases to operations or increases to benefits like health insurance.

The fund balance uh does dip below the target of 20% uh in 25-26, but as you'll see does recover above the 20% target starting in fiscal year, fiscal year 2027 uh out to 2030.

The internal service funds, this is a summary of uh the eight internal service funds that the city has.

Internal service funds are used to account for goods or services that are provided uh by departments only for internal purposes.

Uh so technology services, this provides the technology needs of all the departments, facilities provides the maintenance uh of all the city facilities.

Uh what you'll notice is that uh the budget actually decreased $2.2 million, and this was another outcome of the zero-base budgeting that staff performed, which does help uh the general fund and uh the utility funds, since those major funds rely on these internal service funds for their services.

So when their costs go down, so do the cost of the general fund and the utility funds as well.

The special revenue funds, these are uh funds with dedicated uh revenue sources, uh, and you can uh see the the list of the special revenue funds we have here.

The proposed budget is $93,240,340.

Um the largest funds of these include the health insurance fund as well as the street improvement fund.

So taking a look at our enterprise funds, which includes the airport and the utility funds, these funds are intended to operate as uh business like entities.

The airport is proposed, uh has proposed a balanced budget of $2,585,416.

Um it's important to note that uh the airport fund uh is not receiving any type of subsidy or transfer from the general fund.

They are truly self-supporting and um and uh that's a great step because they weren't always uh self-supporting.

Uh this budget was reviewed by the airport advisory board uh and recommended.

The electric fund is proposed at $526,631,020 in revenue and $509,582,231 in expense for a net income of $17,048,789.

There is not a base rate increase proposed uh for electric, and the net income is intended to uh boost the fund balance of the fund just to increase the health of the fund following uh some of the events that we've we've had over the last several uh years, whether it's winter storm year or uh in 2023, we had a uh finance and purchase power.

The solid waste fund is proposed at 45,353,673 in both revenue and expenses with no proposed rate increase for solid waste.

The water fund is budgeted with $59,167,356 of revenue and $62,799,520 in expenses for a net loss of 600, um $3,632,164, which is a planned drawdown of the fund balance because the fund balance uh was higher than the policy uh range uh that was established for the fund.

We are proposing a 3% uh rate increase for residential and commercial customers, as well as a 297% increase in wholesale treated water, which would not uh impact residential or commercial.

The wastewater and drainage fund is proposed at $50,426,572 in revenue and $51,361,578 in expense for a net loss of $935,000.

The majority of that is a actually all of it is a plann transfer from the drainage fund balance to a what we call the job account in order to spend the funds for channel rehabilitation.

So typically at the end of the year, we would make that transfer.

That transfer was not made at the end of last year.

And so in order to move the money from the fund balance into an account to spend, we need to make that transfer and appropriate that that dollar amount.

So that is a planned drawdown.

We are proposing a rate increase of 11% for residential customers and 11% for commercial customers.

This will keep the fund within the fund balance target ranges as well as within the debt service coverage ratio policy.

So taking a look at the rate change history, this is something that council has seen uh numerous times throughout this budget process.

Uh but essentially between 2019 and 2023, we either had rate decreases or no rate increase for all the utility funds.

Starting in 2024, we did start to increase the rates for electric and wastewater.

In 2026, we're proposing uh the 3% increase for water and the 11% increase for wastewater.

The capital improvement program includes $552.8 million in planned new funding for fiscal year 2026.

Of this, $127 million is for the general government, $2.2 million for airport, $64 million for electric, $94.9 million for water, $243 million for wastewater, and $21.7 million for solid waste.

This is an overview of the general government five-year capital improvements.

The $127 million that I just referenced of that, $44.2 million is the 2023 bond election.

Other notable amounts are $12.1 million for facility improvements and $32.8 million for roadway improvements.

Of the $127 million, $44.2 million will be GEO bonds, and $65.5 million are certificates of obligation, with $17.2 million being current year revenues, impact fees, or other external funding.

Taking a look at the airport, the airport's capital improvement program includes $2.19 million in fiscal year 2026.

Most of these, in fact, just about all of them have an IIJA component to it where they're funded at 90% by the federal government, and Denton provides a 10% match.

So it's really a good program for us to get some very expensive improvements done at the airport.

Electric, the five-year capital improvement program, 63 point uh 63,959,588 million for their fiscal year 2026 capital improvements.

Of that, 58.4 million is debt funded, 1.4 revenue funded, and 4 million from cost participation, uh, which are outside entities contributing to a project.

Waters five-year capital improvement program, $94,923,500.

Um $34.9 million is related to plant improvements, $27.8 million related to transmission lines, and then $10.2 million related to line replacement, as well as $11.2 million that you see there for the uh TAPS fire hydrants and meters, that's mostly related to meter replacement.

Wastewater, the five-year capital improvement program totals 242 million nine hundred-seven thousand dollars.

The majority of that are the plant improvements, um, 114,750,000, as well as the line replacement, the interceptors and such that are needed for development.

The majority of that are the plant improvements, um 114 million seven hundred and fifty thousand, as well as the line replacement, the interceptors and such that are needed for development of the 242 million, 141.8 million uh is debt funding, which does include the Texas Water Development Board SWIFT funding.

And then we also wanted to call out uh the 98 uh point two million in WiFi A funding, uh WIFIA being an EPA program.

This is a loan program uh that provides uh favorable rates and the deferment until the project is uh completed uh for payment.

The solid waste and recycling five-year capital improvement program 21 million seven hundred and twelve thousand, uh, of which the majority is the organics program infrastructure for 14 million, 18.2 million uh planned to be debt funded, and 3.4 million plan to be a revenue funded.

So tonight uh we're looking for public feedback uh regarding the the proposed budget.

I did want to note that a line item budget uh for the operating uh operating budgets are available online at the city's finance department website.

Um so certainly that would uh provide uh detail um for every department uh down to the lowest um you know budgeted line that that uh we budget to.

Um and then Mayor, I would also uh staff would request that the the public hearing remain open uh to the September 16th meeting to allow additional notice um provided for uh in new legislation to to provide to the public uh additional notice for the new legislation got it, okay.

And do you want to just go over briefly the discussion we had around the hot funds kind of our approach there?

Uh is it baked in the one of these numbers or is that later?

I thought we had a the the allocation we're gonna I just want to have it on the record in here as well.

Is is it this one or the next presentation?

Would it be captured in here?

Okay.

So just a high level summary is all I'm looking for, just so we're all we have it and people can know what we're up to.

Oh, okay.

Yeah, yeah, so um Christine Taylor assisting manager.

So our conversation at the prior work session was we're going to adopt the budget with the proposed total amount for the tourist and convention fund, hold a work session next week to talk about those individual um expenditure allocations, but we're gonna adopt it with the total five five million dollar budget.

Perfect.

Thank you.

Just wanted to have that kind of pointed out as well.

Okay, so uh any well, I'll open a public hearing.

It is a public hearing, so anyone that cares to speak can either fill out a blue card before or after you speak, but it is uh open.

And any questions for staff.

Seeing no questions, any speakers.

Seeing none, uh I I do have one thing I again I want to ask people consider.

Can you touch on the how the debt rate is how we arrived, so it went up one cent.

How is that arrived?

How do we arrive at that number?

Yeah, so um when the city issues debt, um that first payment is in the following fiscal year.

So when we issue, uh we just completed a bond sale uh year.

Uh it was in August.

Um, no, I'm sorry, July that we received the proceeds.

The first payment on that will occur in fiscal year 2526.

So how we calculate the debt rate is we look at all the payments that are due in that next fiscal year, uh, and essentially take that total uh payment number and divide it by the assessed value, and that's how that number comes up.

There's no adjustments uh that we can make to the number, it just the number is what it is to make that debt payment.

Okay, thank you very much.

And one thing I would like you you pointed it out, and then we'll we'll we'll move on, but um I would like to see I guess take us back like maybe four or five years, whatever's easy.

But on the airport, that that is significant that it's self-funding, uh, you know, self-sustaining.

And so if you could take us back, kind of just follow up with and say, hey, we here's where we arrived, but here's the path there.

That that's significant.

Shout out to everyone that made that possible.

Yeah, absolutely.

Yeah.

So thank you very much.

Yeah.

Uh any questions for staff?

Seeing none, then yeah, I will uh table, postpone.

Continue.

Continue the the public hearing on this item until our next meeting on the 19th.

16th.

Yeah, there you go.

Numbers today.

Uh it continues.

Uh 16.

So thank you very much.

And that takes us to item B, uh, which is 2B, which is ID 242623, hold a public hearing on proposed property tax increase that will not exceed 0.60524.065420 per 100 evaluation, the proposed rate will exceed the no new revenue tax rate of 0.55479 per 100, but will not exceed the voter approval tax rate of 0.610157 per 100.

And then I'll open a public hearing.

Mayor, members of council, Matt Hamilton, AD of Finance, here to present the uh an overview of the proposed uh tax rates for fiscal year 2526 and receive uh resident feedback.

So uh our appraised values uh for the coming fiscal year came in at 22.75 billion, uh excluding the TURS, but that does include the frozen values.

Uh this is a 7.1% increase compared to the 2024 certified values of 21.

uh two four billion.

We had a an increase in new value of 1.51 billion.

Um sorry, that wasn't new value, that was just total increase.

0.6 billion or 600 million uh was the increase in new values and 0.91 billion or 910 million uh was the change in existing property values, excluding frozen values, the taxable value is 19.3 billion, and the average taxable home value increased to 386,698 dollars.

The proposed budget includes a tax rate equal to 0.595420 of this amount, 0.334780 is provided for maintenance and operation expense, and as was uh uh noted in the prior hearing, that is not um that is unchanged from the current year, and a uh debt rate of 0.260640.

Um the debt rate is proposed to increase one cent.

Um this change in tax rate uh would result in about a seven dollar a month increase uh for the uh average homestead uh value.

And um council member uh Beck, you had inquired previously regarding uh what the change would be between the proposed rate and the city council's published rate.

If the proposed rate was adopted, uh it would result in uh it's six dollars and fifty-nine cents uh per month and nine dollars and seventy-nine cents at the published maximum for a difference of three dollars and twenty-two cents per month uh or thirty-eight dollars and sixty-seven cents per year just between the proposed rate and the um max published rate.

Uh this is uh just an overview of the property tax rates uh as you previously saw.

And the next steps will be to receive public feedback on the proposed tax rate.

I do want to note uh that we have the budget and tax rate adoption next Tuesday on September 16th, and that for the tax rate item in particular, it does require a supermajority five of the seven council members to vote uh in agreement to raise the rate above the no new revenue rate.

So thank you.

Thank you.

Questions for staff, all right.

And this is a public hearing as well.

Anyone who would care to speak can come down and speak and fill out a blue card before or after uh Mayor Pro Tim.

Thank you, Mayor.

Matt, can you remind us how much total revenue one cent represents in terms of the total revenue to the city?

Yes, so for next fiscal year, uh one cent would represent 1,939,887.

So about 1.93 million.

And so we've already established that the proposal, the proposed one cent increase is to make sure that we're paying off our debt payments that we've we've already committed to this debt, right?

Yes.

So can you remind us what happens if let's say we were not to pass the one cent tax increase?

Um, where would we get the money to pay off the debt?

Yeah.

So if a decision was made to lower the tax rate, it would not be able to come from the the debt side of the tax rate, it would have to come from the operations and maintenance side.

So a reduction in that rate would you know impact personnel, operations, programs, um, you know, all of those things that the general fund provides.

Um departments include police, fire, library, parks.

Um, so it would the cuts would need to come from those departments.

Right, and it's about 1.9 million, roughly, or is it closer to two?

Uh it's one 1.93.

93.

Yeah.

So that would be so we've already um made about seven million dollars of cuts this year.

Um we're holding positions vacant.

I know that's stressing out current staff.

Um, they didn't get a pay increase at all, even though inflation is going up.

We cut, you know, I've gotten a lot of emails about some of the programs that we've cut.

So just understanding that you know that was just that was seven million.

This would be almost two million on top of that.

So just understanding if we did not do this one set tax increase that's coming out of our our programs and our staff and and that side of things.

That's correct.

Thank you.

Okay, any other questions for staff?

And any comments from the public.

So seeing none, so I'll uh should I okay?

So I'll close the public hearing and um next action or next review.

We'll take action on the 16th.

On the 16th.

Got it.

Thank you very much.

Okay, that concludes our two public hearings.

Takes us to concluding items.

Last thing on our agenda, any concluding items.

Representative, no.

Any any concluding items?

All right.

Uh representative from district uh four mayor.

I was walking my dog yesterday.

And I and on my walk, I saw this pretty lady, and I introduced myself to her.

And she's British.

And uh I said, so so do you live you live around here?

That sounds sounds bad, doesn't it?

Um, do you live around here?

She said, Yeah, I live right over there.

And I said, Well, golly, I'm your I'm your city council representative.

And she said, I'm from England, I don't know what a city council representative is.

And I said, Well, we set policy for the city, and she said, Oh, you're a local MP.

I said, Member of Parliament?

She said, Yeah, we have local MPs as well as as as national.

And I thought, I like that.

So just refer to me as MP going going forward.

Um, I want to thank the staff for lighting the square.

Cassie, thank you.

Uh the North Texas beat Western Michigan Saturday afternoon, and the square was lighted in green lights, it was wonderful.

And I have a picture on the screen, I hope.

This is Denton High School.

Uh the key club at Denton High School, sponsored by Ba Kawanis Club, put out three thousand flags, one for every victim of the attack of 9-11.

And uh Buddy, you don't know how many three thousand flags is.

That is a lot, but show them show them the other picture.

That's very well.

Okay.

That's it.

There it is.

Anyway, we had we had a bunch of kids from the the key club and the uh ROTC at Denton High School.

The mayor came out and helped us.

It was a great afternoon.

And we knocked it out very quickly.

So thank you for the time.

Excellent.

Thank you.

Thanks to the the club and the kids that came out.

That's really really uh important work.

Representative from District Six.

Uh Councilperson Jester, I just uh want to comment on uh our current city secretary is leaving us.

Uh Lauren Thyoden, she's done a wonderful job.

I've very much enjoyed getting to know her.

She has made great uh suggestions throughout her time here and improved the process and uh has really made onboarding onto council so much easier.

And and I just wanted to say thank you uh for your sincere um heart and uh great job that you have done for the citizens here in Denton.

And uh we are going to miss you, but we wish you um much health, happiness, and success.

Thank you.

Yes, well said, thank you very much.

That's good.

Uh represent uh Mayor Pratemp.

Thank you, Mayor.

As the newest city council member, I've been getting tours of some of our city facilities.

Uh Stephen Gay over there has been uh setting some stuff up for me.

So I got to tour both of our water treatment plants, uh, and most recently our Pecon Creek wastewater plant.

And while we were there, this was two weekends ago, there was a downpour on a Saturday morning.

I don't know if y'all remember that.

So we're out there at the wastewater plant.

Lightning strikes, not the plant, but just nearby, and a lot of systems went online or offline.

Um so it was really interesting to see all of the work that our staff puts into it to very quickly get up online.

So our whole water plant or treatment plant is not uh getting backed up and bad things are happening.

So uh I just want to do a shout out to to the staff that we don't really ever get to see.

We don't understand or notice what they're doing, we just don't get the opportunity to see it.

And I I got to see it, and and I really appreciate it, and I want to call it out uh and just recognize our staff for uh keeping all of our facilities running and the pouring down rain.

I mean, we watched a guy he was getting in his pickup and going and getting systems back online, and I got to watch it all turn it back on.

So just wanted to recognize staff and and say thank you.

Excellent, thank you very much.

Anyone else?

Anything else?

Um so lots of events going on uh coming up and in the past, so uh just uh stay tuned, stay plugged into the to the website for those things and uh heart go out, hearts go out to the uh Denton Bronco football family.

They they had a loss, and so uh real tough time for the they had a balloon release last night, I do believe, and uh just uh keep them uh prayed up and uh I just thank all the the staff that that keep everything going, city management, etc.

Uh lots of moving parts, and you talk about the storms and the uh the airport and just a lot lots goes on uh in a in a in a growing city, and so uh to those that to all those efforts and and all those things, and then I'll conclude with uh first.

I think the judge had the most fun, but everyone else had a some set subset of fun at the dog days.

Uh, if you've never been, it's an amazing thing.

It's a they shut down the that that's the last thing that hits the Civic Center pool for the season, and it is uh fabulous.

So it's a lot of good fun.

Uh thanks to the parks department parks department and and the parks foundation and all those that that helped pull that together, and so it's a lot of a lot of joy.

So uh with that at seven o'clock, we'll conclude 701.

We'll conclude tonight's meeting.

Thank you.