Good afternoon.

My apologies for the uh for the delay here.

Uh the time is now 2.09 p.m.

on Wednesday, August 27th, 2025, and the City of San Antonio budget work session is called to order.

Madam Clerk, please call the roll.

Councilmember Corps.

Councilmember Castillo Angiano.

Present.

Councilmember Viegran.

Here.

Councilmember Mungia.

President.

Councilmember Castillo.

Here.

Councilmember Galván.

Here.

Councilmember Alarete Gavito.

Here.

Councilmember Mesa Gonzalez.

Councilmember Spears.

Councilmember White.

Mayor Mayor Jones.

Here.

Mayor, we have Quorum.

Thank you, Madam Clerk.

This meeting is to hear about budgets for the debt management plan, capital delivery department and capital budget, and public works department.

Eric, over to you.

Thank you, Mayor.

Good afternoon, Mayor and Council.

We'll start with Troy Elliott, the city's chief financial officer on our debt management plan.

Um and then transition to Mike Shannon with Capital Delivery Services.

And then finally, uh Razi will be giving his final budget presentation.

Um so ask a lot of questions on that one.

So good afternoon, Mayor, members of City Council, Troy Elliott, I'm the chief financial officer.

As Eric mentioned, I'll be kicking off the first of three presentations with the exciting debt management plan.

Um this will be probably my fourth year of doing this, so I think a lot of the presentation you see will be kind of duplicative.

I think it's um beneficial to kind of give a refresher on some of the slides and the contents of the debt management plan.

First, I'd like to start, you know, what really what is a debt management plan?

It's made up of several components that we're going to go through the presentation.

What debt do we have outstanding, what debt have we issued, how are we going to pay for that debt over time?

All the fundamental components embedded into the debt management plan and the assumptions that we that we use to make sure that we can actually pay for the debt that we have issued and any future debt that we're going to issue.

The debt management plan is really a compilation of several debt management plans.

For today, going to focus primarily on the advert lorem uh debt management plan, which is the property tax backed, as well as talk a little bit about aviation and stormwater, and that's where I'll spend the bulk of my time.

On the next slide, you'll have seen this before.

This is the primary tools or the debt that we issue as part of our debt management plan.

We issue general obligation bonds by statute, those are backed by property taxes and their voter approved.

The last time that we had our authorization for a general obligation bond was in 2022 for the 1.2 billion dollars.

That was in Mike will talk a little bit more about this, but we had the six propositions, roughly 180 plus different projects embedded in that general obligation bond.

The next three to the right, um, all three of these are not required under statute to be voted.

They are two certificates of obligations and tax notes are backed by property taxes.

Um there is a notice requirement for certificates of obligations.

Um if you remember, we came to y'all with a notice of intent to issue certificate obligations, I think in the June-July time frame.

And that basically puts a notice out there telling the the citizens that we are going to be issuing certificates of obligations for these specific projects.

The next item are tax notes.

Um those are also backed by property taxes.

They are not voter approved.

Tax notes are a little bit different and they have a shorter maturity.

We can issue um tax notes with maturities up to seven years.

We typically align in our capital improvement program um uses that are short have short maturities.

We don't want to be paying debt over a long uh period of time for something that has a useful life less than seven years.

Some of the examples of tax notes.

Um we have HVAC for the library, we have warranted traffic signal lights, we had a helicopter replacement for SAPD.

We also have technology replacements, certificates of obligations, also in support of our CIP, very similar.

They're focused on our city facilities, the street maintenance programs included in our COs, animal care facilities and also playground structures.

Those typical things have a longer useful life, and we tie that to the CO's.

Lastly, revenue bonds.

They are backed by a specific revenue.

Um specific examples of revenue bonds are gonna be our airport.

We'll talk a little bit about that in the future.

We also have stormwater revenue bonds.

Um other examples of revenue bonds that come before the council too would also be CPS and SALS under our enterprise funds that are municipal owned utilities.

Talk a little about the bond rating skills.

The bond rating skills shown on the slide represent how the city's debt issuances are graded.

It's like a report card.

ABCDF.

This is basically the three credit rating agencies use a proprietary methodology to actually look at us and they have different symbols for rating our bonds or our issuances, divide into prime, high grade, upper medium grade, and lower medium grade.

And you can see within each of those rating agencies how they assign a rating to our bond issuances, and I'll show you that in a couple of minutes.

Prime is where we tend to issue our bonds.

It's the highest rating you can actually receive.

And as a city, when you look across the nation, you look across Texas, you look at populations with cities, a million dollars, million or more.

We have the highest bond rating in comparison to those other cities in Texas and the nation with that identical population.

When you look at our city uh bond ratings, look at our advaloring property tax.

As I mentioned, Moody's and SAP, these are the prime ratings.

These are the highest ratings that you can achieve.

Fitch is slightly lower into the high grade at A plus.

All these are on a stable outlook.

When you look at the other bonds that we have issued, you have a public facility corporation lease bonds for our convention center, slightly lower.

Um you have the airport, and I'll talk more about the airport general airport revenue bonds, our PFCs are what we refer to as passenger facility charge revenue bonds and customer facility charge revenue bonds.

Um these are all investment grade, slightly lower because they typically are not backed by property taxes, they are backed by specific revenue pledge or an appropriation or a lease.

This is our current debt outstanding.

As of the last issuance that we had here about two or three weeks ago.

Our GO, our COs, and our tax notes, we have about 2.6 billion dollars outstanding, fairly low effective interest rate of 2.8, and an average life of 6.8.

And I'll talk a little bit more about the average life here in a couple minutes because that's one of the fundamental components in our debt management plan.

Just going down the list, looking at how much is outstanding in terms of our PFC lease revenue bonds for the convention center expansion, 537 million.

There is an opportunity that we're looking at right now or keeping an eye on for a possible defeasance and a restructuring for savings and for gaining capacity in our convention center expansion bonds.

The airport general airport revenue bonds, about 106 million dollars.

Our passenger facility charge revenue bonds, about 68.1 million, and those passenger charge facility um passenger facility charge revenue bonds, that's actually backed by a uh $4.50 per in plane passenger.

Those projects are typically approved by the FAA, and this rate is also approved by the FAA.

We also have the customer facility charge revenue bonds, those are backed by a $6.50 per transaction day on our rental rental cars transactions, and that supports the CONRAC.

Moving down the line, and we'll spend a little more, have an additional conversation here in a couple minutes on Star Mural Revenue Bonds, because I think there's some opportunities that we can talk about there.

Outstanding principal 24.5 million, relatively low interest rate of 3.34 and average life of 2.2.

We have our contract revenue bonds for Starbrite that support the Toyota.

That was issued.

Um we have 10.9 million outstanding.

That was for the property and support of Toyota as well as the site improvements.

Then we also have our municipal facilities corporations.

For uh Brooks, 3.9 million, that was for two facilities on the Brook campus.

Our city tower, 58.4 million in fixed rate bonds, 29.4 in variable rate.

And we have 30 million outstanding for the Edwards Oxford contract revenue notes for conservation events and land purchases.

A total of about 3.6 billion dollars overall.

Flipping back up to our GO and COs and tax notes, that is not that also includes a small portion of self-supporting.

Self-supporting are items like our golf courses that we receive revenue from the golf courses into our debt plan, and it's self-supporting.

It does not pay from the property tax, it is backed by property taxes.

Also, not including that number is approximately $469 million in tax notes for the airport.

That is backed by property taxes.

It's a large number.

I pulled it out for comparative person uh comparative purposes year over year, but that is being paid by the airport, and that serves as interim financing in support of the TDP, our terminal development program, until we get the permanent financing in place.

Talking a little bit more about airport, I mentioned we have 287.5 million outstanding.

Um list, but that's being supported by GARBS or General Airport Revenue Bonds, passenger facility revenue bonds, and customer facility charge revenue bonds.

When you look at that 287.5 million dollars, and you compare that to the capital improvement plan, you'll notice there's 2.2 billion dollars in the CIP.

So we we've talked in the past, and Jesus will talk a little bit more next week about the program itself, but to pay for that capital improvement plan, we're gonna be coming to y'all by the end of this year, first of next year, with a revenue bond issuance, asking for your authorization to approve that bond in support of the terminal development project.

That bond will be in the neighborhood of about a billion dollars.

After that first issuance, there will be several other issuances in order to complete the terminal development program, so there will be some frequency and cadence so that we can actually make sure that we have the funds available to pay for the construction that's going on in the terminal development program as well as the other improvements at the airport.

There is about, as I mentioned, there's about 470 million dollars of tax notes that are outstanding.

That is temporary financing that we put in place to kind of bridge the gap until we can actually issue the revenue bonds.

Of that $469 million, there's a large payment coming due in February that we will need to pay, and so we will have to have we will need to have the financing in place to make sure that we can cover that debt payment.

Then also additionally add that council approved last month some flexibility with a commercial paper program and a direct placement program that gives us some flexibility as far as timing in the event that we need to delay the issuance of the revenue bond.

But we will be coming forward here at the end of this year, early next year with a significant increase in the debt for the airport backing the terminal development program.

Also mentioned the stormwater revenue bonds as far as what's outstanding.

We have 24.5 million dollars.

Those stormwater revenue bonds are backed by the stormwater fee.

The stormwater fee not only backs the debt that we have in place, it's about 7.5 million dollars a year that we pay for these revenue bonds.

Also finances our pays for the operations for the stormwater operations and a capital projects.

These bonds mature in 2030, so there's about five years left, and so that has an opportunity once those are over, or once those have expired.

We can either call the bonds now and look at opportunities for additional debt to fund drainage projects.

And so I'll talk a little bit more about some of the when I finalize my presentation, or at the end of the presentation, some of the opportunities we may have to use these bonds to basically finance some additional drainage projects.

Um heard a lot of outcome a lot of conversation from the council about expressing interest in additional drainage projects.

This might be an opportunity to address some of those needs.

We had a very successful pricing August 14th.

We had the next fourth issuance of our 2022 general bond program.

We issued about 221.6 million.

We also issued 126.4 million in certificates of obligations and tax notes in support of our CIP for a total of 402.4 million dollars.

Some of the things I'd like to point out that as part of this transaction, we had over 1.1 billion dollars in orders for the 402.4 million dollars in debt.

Basically, what that means is based on our credit rating, based on the name of City San Antonio brings to the market, that there is a lot of interest from investors to participate on our bonds.

Additionally, we also saw 11 new investors above and beyond that we have not seen in the past.

That is a um that is really due to the San Antonio name or credit, but also our underwriting is really beating the payment, making sure that they can find these investors to actually pre-market and actually purchase our bonds.

There's also a refunding opportunity of $81 million that generated $3.3 million in gross savings and three million dollars in present value savings for a previous previously issued general obligation debt of the city.

Our overall interest rate that we achieved on the issuance of this bond is actually a fairly is a really good rate of 3.93 percent.

And again, just as a reminder, our credit ratings from Moody's or Triple A, triple A from SP, and double A plus from Fitch with the stable outlook.

Switching gears to the Advilorum property tax.

Um I showed this on the previous slide, breaking it down in a little more granularity.

$2.6 billion have broken down into general obligation bonds of $1.7 million uh billion, certificates of obligation of $800.4, and tax notes of $91.9.

Just as a reminder, those general obligation bonds are issued in support of our bond programs.

The COs and tax notes are issued in support of our CIP.

The effective interest rate of $2.79, average life of $6.72.

One of the things I like to show, and this is specific to our property backed debt, is when you on a per capita basis across Texas cities.

We are among the lowest in company with Houston, Arlington, and Corpus Chris Christie, and Fort Worth is somewhat lower.

Then you have Austin, El Paso, Dallas, and Plano, that's above us in a per capita in Texas.

We do not include our self-supporting debt, and we do not include our revenue bonds.

Those revenue bonds being paid for from a specific revenue source that is not property tax backed.

So this is purely just property taxes in Texas.

Quickly, one of the major assumptions in our debt plan is the property tax rate.

In addition to the property tax rate, we also look at values.

Those are the two primary things that actually drive what capacity you have and what we can afford.

Our total property tax rate is 54 cents.

I think when I met with y'all in the goal setting session, went through the breakout of the rate, 33 cents on the MO, and the debt service tax rate of 21 cents.

I'd like to really deviate from the presentation a little bit or deviate from the debt management plan and introduce or let Jeff come up and talk about kind of what we're seeing in the special session with respect to our MO tax rate and give him some colours give you all some color on that.

Thank you, Troy.

Jeff Coyle, Assistant City Manager, City Manager asked me to make sure we're we're focusing on the M and O tax rate for just a second, the maintenance operations rate.

Current state law has what's called a voter approval tax rate of 3.5%.

And what that means is that cities and counties can collect up to 3.5% more revenue than the prior year, above which we would need to seek voter approval.

And so it's effectively a revenue cap unless you go to the voters.

During the special session, Senate Bill 10 was filed by Senator Betancourt, and it lowers the 3.5% threshold to 2.5%.

This week, when that Senate bill made it to the House floor, the sausage making ensued, and uh amendments were made on the House floor, which lowered that even further to 1% with a carve out for public safety expenditures.

So essentially, the bill said you cannot grow your property taxes more revenues more than 1% without voter approval unless you're spending it on public safety.

Late last night, the Senate received the House amended bill and refused to concur with it, meaning they didn't accept the changes.

Both chambers established conference committee, and we believe that they are going to reject the amendments that the House made and go back to the original bill, which would lower that rate from 3.5% to 2.5%.

It goes into effect, it would go into effect, assuming it's passed and signed by the governor January 1 of 26, so it wouldn't affect this year's budget, but it will could come into play, would come into play if approved next year.

Thank you, Jeff.

As we talk about the M and O tax rate, and we talked about gold setting, we've seen property values decline.

Um in our forecast, we're looking at in 2026 about a growth rate of about a little less than a percent, about 0.8.

In our forecast, moving into the moving into the next year in 2027, we're looking about growth rate about half a percent.

And then it starts to increase based on our modeling based on our assumptions.

Um we are under the 2.5% cap currently, but should the market turn and our values start increasing, that caps could certainly come in and play a role in future um their future revenue as far as how we're capped.

On the debt service tax rate plan or debt service tax rate, which influences our debt management plan, that 21 cents, just to give you some context on an annual basis in 2026, we're expecting about 303 million dollars to be produced as a result of that 21 cents tax rate.

Um, with the lower property values, as you can imagine, our capacity on the debt plan is going to be reduced.

And as I summarize my presentation, I'll talk a little bit about based on some of the assumptions we've made, what we're expectation, what we're expecting in terms of capacity.

That 21 cents, you know, looking back through history, that 21 cent tax rate has been in place since 2004.

It has not changed.

Um that is, I guess what I'll say that's a self-imposed rate by having discussions with this body and council.

We have not moved away from that rate historically.

When you look at other cities and how they manage the tax rate and how they manage their debt plan, they may manage them a little differently.

When you're looking at cities like El Paso, Dallas, Houston, and Austin, you look at their debt service tax rate.

Their debt service debt service tax rate will change year over year.

Because based on their capital plans, based on their bond, their general obligation bonds, they adjust that tax rate to meet the debt service requirements.

We do not do that from a policy standpoint.

We keep that tax rate in place.

So as values go up, our values go down based on that constant tax rate, it's gonna impact the amount of revenue you have and the amount of capacity that we have in terms of our debt plan.

Troy, I'm gonna jump in here real quick just to add a little piece.

So when when Jeff is talking about or we're talking about the three and a half percent cap on the property tax rate, that is only applied to the MO.

It does not apply to the debt service under current state law.

So that's how other cities flex that debt service rate to be able to accommodate for debt needs.

No, thank you, Eric.

And I think that one other thing I would add on the debt service tax rate.

The debt service tax rate does not require an election be adjusted by you as a council body.

Some of the fundamental components of our debt management plan.

Now, I talked about this on one of the earlier slides, is that short average life.

That's a key lever within our debt management plan, and something that I think that we can talk about when we talk about capacity in a little bit in a little later.

We use that short average life, we can actually extend the maturities on our debt.

You know, typically we're gonna focus on a 20-year debt horizon.

We can move that out to 25 years, we can move that out to 30 years.

So in periods of low values, we can use that by lengthening that um amortization of our debt by increasing our capacity.

Currently, our debt plan has an average life in there as far as maturity about 20 years.

Um, and we can flex that as needed based on where values are.

We have moderately conservative projections, and I talked about our projections in terms of values.

The debt plan forecasts in terms of our value growth aligns with our general fund or an MO tax rate.

It doesn't really behave the same.

Um right now it's low, but should the market change quickly, then we can look at kind of what type of capacity that has.

We have a maintenance of a debt service reserve in there.

In our debt plan, we keep a balance in there about 25 million dollars.

It basically acts as a buffer or a shock absorber to basically catch any fluctuations in our debt plan.

So we keep that in there.

As I mentioned, it assumes no change in our debt service tax rate.

We keep that at that 21 cents.

There is an opportunity if council would want to, we could actually modify that and align that to what are the the capital needs are of the city.

We also do capital and capacity analysis and we do sensitivity analysis based on all these variables I've talked about.

How much debt do we have outstanding, um, what are we looking at issuing, what do we have in our capital program, what can we turn, what can we afford in terms of capacity, and also we do what if analysis.

If rates dive, if rates go up, what happens, then we look at the sensitivity based on that as well.

So looking at all those pieces historically going back to 1994, down at the bottom, you can kind of see where our general obligation programs produce in terms of capacity.

In 94, and I'll focus on that darker component of the bars on the chart.

110 million in 1994 stays relatively the same through 2003.

In 2007, based on our analysis and our debt plan, we increased to about 550 to 592 million.

2017, 850 million, then in 2022, up to the 1.2 billion dollar bond program that we talk about today that we are currently implementing.

Above that, you kind of have between those bond programs, or between 2017 and 2022, for example.

You see that green bar on the far right of 421.

Those are the certificates of obligations that were issued during that time horizon, as well as tax notes and then the self-supporting piece on top.

So very quickly, that summarizes my presentation.

And as I um and as I um move on to the next topic, just to kind of recap, that debt plan is made up of several different components.

We have our existing debt that we have to make sure that we have the revenue to be able to pay for that over the next 20 to 30 years.

We have the assumptions that are in there in terms of our tax rate.

We have the assumptions that are in there in terms of our value growth, and we also have those fundamental components that we can actually look at and managing our debt plan and also looking at the debt capacity.

When we bring all that together, in 2022, we had the 1.2 billion dollar program.

Today we're looking about 500 million dollars.

That is purely the result of the drop in values.

And so we're about 500 million dollars in total.

Some of the things that I would offer that we can actually look at on the on the slide, and that can actually influence that capacity over time, are the frequency of the bond programs.

As I mentioned, we have some, you know, the market right now is somewhat volatile in terms of housing values.

Um there's high inventories in terms of homes with rates potentially changing over the next couple of months or next um next year.

It can actually influence those values.

So we could look at the frequency of the bond programs.

Rather than doing a five-year bond program, we could skinny that up to three years, for example, or something less.

Give us an opportunity to look at the pathy, look at the market, see where it's going, and come back maybe with a different capacity or a different amount that we can actually introduce in future bond programs.

As I mentioned, the the debt service tax rate is consideration.

We look at how that is other cities operate that.

We could actually do something similar, or we could keep it at the 21 cents.

But there is some discretion in terms of the tax rate.

If we want to, of course, and um increase capacity, you can increase that debt service tax rate.

The timing of the next bond election.

Bond elections, of course, are in May and November.

We can look at pushing that off to November, late 2026, or we could actually push it back to give us some time to actually again let the market recover to determine what we need to do and how that impacts our capacity in the bond election.

Last thing I'd like to talk about, and I mentioned this are the stormwater revenue bonds.

So there was about 24.5 million dollars that was outstanding.

That rate, both residential and the commercial rate, can be used to leverage more debt or more capacity.

We could supplement that 500 million dollars in the geobond capacity with a revenue bond.

We could look at taking that 24.5 million dollars, it has a five-year remaining life on it.

We could refinance that.

We can call that bond, it is callable.

We could actually restructure that, and we could use that money to actually and lengthen the amortization or um refinance it for debt savings, and we could actually produce some capacity above and beyond that we could dedicate to drainage, pulling that out of the 500 million dollars for the bond program, and using that for drainage projects in lieu of the geo bond.

So that is something that we could actually go back and look at.

The council once um would like us to do that.

We can actually go back and look at those stormwater bonds, see how we could restructure those, look at the rate potentially, and come back with a capacity analysis as far as what we could dedicate to drainage in terms of a revenue bond.

So these items, you know, would like to get your feedback on this as far as the capacity as far as the frequency of the bond programs, the debt service tax rate, the timing of the next bond election, and if y'all would like to explore looking using the stormwater revenue bonds or the stormwater fee for um producing additional capacity for um drainage projects.

And this is my last slide, and I think Mike will probably go into this in more detail.

Very generally, if we wanted to look at the timing of a bond election based on past experience, this is what has taken historically to actually prepare for a bond election in total about eight months through looking at the project development, identifying the projects, affordable housing, drainage, streets, things of that nature, having city council work sessions, gathering community input, and then city council ultimately approves the projects and calls the elections.

And Mike will go into those different categories or those different buckets in more detail.

With that, Mayor, that concludes my presentation.

And I'll turn it over to Mike to um introduce his.

Before Mike starts, let me just let me just emphasize what um what Troy showed on on um on slide 14.

So what what I what I'd like to get from the council is some feedback on those key areas that are on the slide.

The the assumptions, as you said, the assumptions in our uh and the current financial conditions drive our current capacity.

And as you said, it's about 500 million dollars right now.

Um there is I would recommend strongly that that we look at um this the stormwater revenue bond as a as a source for additional drainage work.

Um that bond that was up it was uh issued by the city in 2004.

2003, 2004.

2003, 2004, when the city did that at that time.

Um they went um and used the entire capacity.

So we've not been able to utilize that as a as a funding source for debt since then.

Now that those bonds are callable as part of the analysis, we should we should do that and potentially leave ourselves capacity on the general obligation side of the of the bond conversation uh for um other needs and other things that you all have talked about.

Um the the frequency I have spoken to several of you all about this.

We have been on five-year plans.

Um it makes a lot of sense to me to adjust that with that adjustment um rather than doing uh five-year large programs, they would be shorter term, three or four years.

Um 500, 600, 700 million dollars is still a lot of money.

Um, but they're not you know, these every five years billion dollar projects.

So it's a balancing act.

Um and then um and then the timing of the next election that the staff at Troy and Ben and the financial advisors and and Marie and I have gone back and forth because uh as we're laying out these assumptions, we're doing so in a period where we have negative negative taxable value growth.

We're anticipating it next year.

We'll know for sure uh April, May time frame, what 27 looks like.

Um, and as part of the analysis uh for what uh that we need to do that we bring back to you all for consideration is does time help us or not?

Um and I think I think that goes to the sensitivity analysis that that we need to do.

Um the last thing I'll say is that in addition to your feedback, um we're we're going to continue to engage um our financial advisors and maybe others to help stress test our assumptions because we want to make sure that we are a realistic but not uh overly um uh liberal in terms of assumptions like this.

It's critical, especially as it relates back to the debt service rate.

And as Troy said, we have we have treated that debt service rate as an organization the same for 21 years.

There may be some benefits to doing something slightly different, um but with those benefits um come a little bit of risk, and we want to be able to evaluate that and give you all some good feedback and thoughts.

So thanks.

All right, thank you, Eric.

Uh good good afternoon, uh Mayor and Council.

I'm Mike Shannon, and I'm uh excited to present uh as the Capital Delivery Department Director Um what we're gonna do uh this coming year with our newly formed department.

So all right, so just very quickly, um what we're gonna talk about certainly our department re-org.

Uh Eric mentioned it a couple weeks ago uh when he presented the proposed budget.

Uh I'll spend uh a little bit of time talking about our focus moving forward and and really the the sole purpose of why we're we're doing this reorganization uh to help us do things uh really better, faster uh for our significant bond programs, not only that we're currently in, but moving forward.

Uh we're gonna talk a little bit about uh the comprehensive budget review uh that went through and some of the recommendations there and how we're following through with those, as well as an independent consultant department study that we had as well.

Uh certainly talking about our budget and uh the bond programs, and then a little bit more information um discussion on the potential 26, as Troy mentioned.

So when you look at our department reorganization, uh a little bit of details as what was laid out uh by um Eric a couple weeks ago, but really we are taking the current uh public works department and separating it into two departments, and we want to take capital project delivery uh and and have it standalone and focus solely on our capital projects, really our bond project projects, uh, and then from our ongoing maintenance, and as Razi will talk after me, uh and you all know we have significant infrastructure in such a large city that needs to be maintained over and over again continuously, a lot of need there.

So we want to have each department focus on their respective roles so we can find ways to do it even better.

And um, so uh we'll have 188 positions over in the capital delivery department.

Uh we take about 250 million dollars.

I'll break that down a little bit in a couple of slides.

But you know, again, that focus has to be on our delivery of these of these large-scale projects, whether it's roads, drainage, uh, city public facilities, and we have to be aligned with our our public expectations.

Uh, not only when we describe them uh to go out to voter approval in the bond process, but from start to finish, and all of our stakeholders and customers along the way through that uh construction project.

And construction is tough, it's messy, uh, it's challenging for all of us, but um, you know, that's gonna be our focus.

And uh, and then again, as was mentioned, uh, we'll be planning for uh you know future bond programs, however they're laid out uh that we decide.

Uh the rest of the department, um 698 with public works, Rodzi will talk more about it and their budget and their focus, but it's up there on that slide.

So this is really the slide that I want to focus on just a little bit because uh Eric a couple weeks ago said, you know, the 188 people that are coming uh to capital delivery, uh we're we're gonna wake up and go to sleep every day focused on this.

And and and that's really true.

And uh really since that presentation, and quite frankly, uh a few weeks prior to that when we were talking about uh making this happen.

Uh these are the priorities that we laid out and talking with uh the city manager uh and and John Peterek and really just try to figure out how we can do these things.

Um but we really have three priorities right up there, the three bullets, um, and and it's really one A, one B, and three.

Um A and one B are so critical.

We all we're gonna do is really try to figure out how to deliver these projects on time and within budget.

And that's not unlike any large development project.

I was involved with that for a long time on the private side in my previous role here with the city.

Um, but we we need to deliver these projects on time within budget.

Uh we do a lot of that right now, we need to do it better, and that's gonna be really our our our our main focus.

And I call it one A because just as important, and you all know this as uh whether you've been here a little bit or you've been here just a few months.

Um we need to do a better job communicating with our our stakeholders from start to finish.

Um, and what I what I think out there is our standard has to be excellent over communication uh and outreach to our stakeholders from start to finish.

Um we we owe that to everybody along that construction route, passing through that construction route, uh, whether it's a small business, residents going to and fro work.

Uh we have customers like our other departments that are expecting uh a library renovation or uh a new city facility to serve the public.

Um but we we can't just um do the same things over and over.

We have to provide that excellent over communication.

Um and and those um those that communication needs to be early and often, right?

And we need to find uh not only what's working well, but maybe what's not working well, and find find those improvements.

Um we need to uh we need to think of our our uh our business owners along the way uh along that construction route.

There are customers, and we need to help them uh stay in business uh throughout it so that they can enjoy the fruits of the new project uh that's gonna bring people to their you know retail or their restaurant or business.

Um so there are partners, and that's gonna be a major uh part of how we move forward, finding those improvements, and then certainly uh improved cost estimating.

You know, that's one of the things that we have seen and I've learned just as I've jumped into this and just in the last week or so is it's always difficult with these long bond projects.

We put an estimate together, and we all know construction costs are uh just really uh skyrocketing, and they have over the past several years, they probably will continue.

Uh we need to find some improvements in our cost estimating so that uh we're not having to pull back scope uh as much or um really hit those you know those projects within budget.

So those are the three things uh that really I'm gonna be thinking about with our with our team, and and we're already starting that.

Um and then you know, strategies that we're using.

We talked about we're gonna reorg the department uh pull pull out to be the capital delivery so we can focus on that.

Uh we we we have looked at our I've looked at our communication plan already.

We have to make improvements there.

We have some ideas from our staff.

Uh, and we have to be consistent and accountable.

Like we have to be accountable for our uh our communication.

If we do it well, great.

If we're not doing it, doing it well, we need to hold ourselves accountable and find ways to measure that uh moving forward and and improve on it.

And then certainly we need to standardize and and frequently update uh cost estimating tools uh that we're using today and that we can use in the future.

So that's the slide.

That's gonna be my that's gonna be on on my wall in in the office.

So uh that's gonna be driving us uh here in the next uh uh the next year.

So I do want to just talk a little bit about the comprehensive budget reviews.

Public works was one of the departments this past year that went through that.

Um that's been discussed.

But again, I'm just pulling out some key recommendations and findings.

Um, and I really already told you that we need to find some improved communication uh methods.

We need to be more effective.

Uh they identified through this process.

Uh there are communication responsibilities among personnel uh was maybe a little inconsistent, it varied a little too much.

We need to find some improvements there, and then again, we have a communication plan right now that's been developed over years, been tweaked over the years, uh, but we need to we need to comply with it ourselves, and then we need to find those improvements.

Um same thing with cost estimating was was identified through that process that we have some uh we have some templates that aren't used or are unused uh consistently.

Uh we have some uh unit cost or cost per square foot measures that we use on these that may be a little outdated, need to be looked at.

Um you know, again, inflation contingency assumptions.

Uh we have to look at all of those so that we can standardize processes, uh be more consistent, and again be more accurate.

So I'm just gonna move on.

Uh the other uh study that we looked at.

Uh we brought in a consultant, Robert Kissner, again to look at our organization, and again, some of the key recommendations from that study uh we're implementing.

Uh really the the big the big recommendation was to separate the two uh functions, uh building new through the bond projects, and then certainly maintaining the infrastructure uh so that we can focus as I mentioned earlier to deliver better was really uh the first recommendation uh that uh that we received.

Um and then again that that's just gonna help us with focus on those um issues like budget, our real estate acquisition of projects, uh contracts compliance, real estate, et cetera.

Um and then you know the other one was our communication uh staff staffing, not only at the department level, but really utilizing our CNE department, communication and engagement department.

Um our communication oversight working with CNE has to be uh really streamlined.

Uh again, I talked about it before.

We have to do more uh and really more effective communication throughout the process to all of our uh customers and stakeholders.

So uh again, just those two studies or two looks at our department uh as we were in FY25 is kind of leading some of these changes.

Uh we're taking some of those recommendations as we move forward.

So this is our tip, this is our budget here.

Uh 28.2 million will be our really our uh the capital uh operating budget for our staff operations, and then 221 of that, uh almost 222 million of that is the actual capital projects.

Um I just have a uh slide here breaking it down of the 222 million with drainage parks, facilities, streets, um, and then our staffing uh components over there, so you can see how we're broken down.

I want to take a step back and just actually talk about the overall city's capital department, I'm sorry, capital budget program.

So it's not just uh the capital delivery department, right?

So this year's budget includes over 1.1 billion dollars worth of capital improvements that we'll be working on this year.

Uh that certainly includes a large portion uh at the airport, air transportation at 650 million, uh, but it also includes the street, city facility drainage, uh housing, of course, some technology, uh parks, and again, I mentioned on the last slide uh the capital delivery department.

We have about 222 million of that that we're gonna be overseeing.

Other departments manage some other pieces of that, but again, that's a lot of of capital projects, a lot of money going into capital improvements throughout the city that are included in the four billion dollar overall proposed budget.

I'll take a another little step back, is just to remind us that we are certainly right now working on uh the 2022 bond program, and that was as Troy mentioned, the 1.2 billion dollar voter approved uh largest that we ever had in our history.

Uh and it was broken down into these six uh these six props, these six votes uh for streets and sidewalks and facilities, drainage control, parks, housing, library, etc.

Uh, there's just a breakdown of it, and uh I'm gonna talk on the next slide of where we're at.

But there are 187 projects total, uh, so that's a big lift.

And whatever we land in the next uh bond, uh whatever that is, and however big it uh we we can afford and or decide on.

Um I'm sure there'll be uh plenty of projects in each of these categories, or as much as we can because we know the need is there.

So just a little snapshot.

Uh the end of last month, we took a snapshot of where we're at.

Uh, this is what this tells us.

So at the end of July, uh almost half of the projects, 49% of the projects were either complete or under construction.

And that's that's very um, that's very normal in terms of we're in the middle of the 2022 bond project.

So um early on, everything's in pre-design or design, right?

For all these projects, and as as uh so it's mostly green or light green, and uh and as we start getting the projects designed, out for bid approved, we pick the contractors that go into construction, and then we finish them off.

So uh by the by fall of this year, that'll move to uh 65% of the projects or 122 will be under construction or complete.

And by this time next year or you know, September next year, uh we're predicting that will be about 91% of the projects will be under construction or complete as we move to the end of it in 27.

So a lot of progress is happening, but this is a real big uh year for us to transition a lot of those that are finishing up design, and if they're not in construction yet, they will be.

So uh we're making a lot of changes by separating the department.

There'll be a lot of uh things that we need to work through, decide upon.

But uh, I just threw a couple of slides together here just to remind you there's a lot of work that's going on, which is exciting.

It's throughout the city.

This is just a sampling of some projects, right?

In in all around uh the city.

You you all know which ones uh that you're expecting, waiting for, your residents are waiting for, but some really exciting projects here as we as we make this transition with the department structure.

Uh but the work continues day to day, uh, and you just see the list here, pick one you like.

Uh certainly the police station has come up in the in the in a few uh council budget town halls, uh which is exciting, uh, but they're all exciting uh so we can get to work.

So these will start construction uh as we as we move forward.

I noticed one didn't make the list that I am very um looking forward to.

It's it's because of my stop last year in animal care.

Uh we will be starting construction of the vet hospital at the ACS facility uh next year as well.

Uh I think we must not have enough room on the slide.

Uh but I am uh I am partial to that one too.

Uh not only will things uh start uh under construction this year uh for the 22 bond, but certainly we'll complete a lot uh from the 22 bond.

Uh certainly there's plenty that will be completed from the 2017 bond that we're still working on as well, but we're calling out a few here that we're excited about that we can say is complete.

Uh certainly finishing up the uh the work at the zoo, uh, a few city uh citywide bridge improvements, a lot of park improvements, um, OP Sable Park, Frezen Hand, South Side Lions, all that stuff, some pedestrian mobility projects.

So those are all actually coming online complete in the next uh 12 months.

So we're excited about that.

And and lastly, um, I'm gonna talk a little bit more, uh, a little more context, a little more detail to the potential 2026 uh bond program.

Uh as I was talking to Eric about making this change, and we were talking about you know having a conversation about bonds.

I said I said to him, I said, you mean the 2027 bond?

And he said, Well, we'll see.

And we're gonna have that conversation.

And I said, Okay, well, let's take a look at uh what we have here.

But no matter how we shape this out, we're gonna have to do certain things to make this successful.

No matter how much capacity we have, no matter how much which projects we choose, when we do it, we have to spend a lot of time on project development, whether it's several months as as as we put on the slide and on Troy's uh identifying projects, cost estimating, etc.

Uh fortunately, public work staff.

Uh we we've already done some of that, some of that initial legwork.

We have some ideas, right?

We know with some of those projects that the community and and and some of you have been asking for, so uh we can really get started on that.

We have to have council meetings and get your input as to which projects that you think are uh are worthy from our recommended list if we put in front of you.

Uh we have to have some sort of uh significant community involvement.

We've used community bond committees for the last uh three or four of these.

Uh and and certainly the last one in 2022, uh, there was a significant uh amount of committees uh and involvement with communities, so we have to have that to make this successful, and then certainly uh bring it to you all uh after that process in some way, shape, or form so you can vote on it, call it election, and then really put it in front of the people to vote on it.

Uh so that's some of the timelines or some of the key uh key steps that we need to do.

As Eric uh had mentioned, there's a lot of conversation we'll need and feedback.

Uh, but we're ready to get to work to make that happen as soon as we can, as soon as you're ready, and uh looking forward to that conversation.

So, again, just to summarize again, uh there's our focus.

We need to deliver these projects on time and within budget consistently and provide that excellent overcommunication and outreach to our stakeholders, business owners, residents.

They know what's going on, they have early and often communication and access to us.

Uh, they feel part of the process, and uh, and certainly cost estimated we're gonna keep keep uh working to improve on that to make this successful.

Uh with that, I will uh that ends my presentation.

I will hand it over to Razi to uh to finish this off.

Thank you, Mike.

Good afternoon, maid and council.

I am Razi Hosseini, director and city engineer of public works department.

I will be providing you today.

An overview of the department, if y 26 proposed budget, infrastructure, program improvements, reduction, and summary.

Public works department manage three major programs, streets, which include street maintenance, sidewalk program, right-away, Ali maintenance, stormwater, flood management, channel restoration, vegetation management, street sweeping, traffic payment marking, traffic signals, school pedestrian safety, intelligent transportation system, and traffic calming.

This slide shows the public works department funding from 2019 to 2026.

For 2025 and 2026, as you can realize, there is a reduction of 11 million in general fund, which is a VR contribution is 5 million, and we have 4 million efficiency totaling.

The total budget for public works department is 303 million and includes 698 position.

113 million is budgeted for general fund, which funds street engineering and maintenance, traffic management, traffic engineering, and citywide program such as street light.

70.6 million is budgeted for restricted fund that includes ADT, ATD, right-away management, stormwater operation, and stormwater regional funds.

Capital budget totals 117.4 million and include street maintenance, sidewalks, new traffic signals, traffic signal improvement, stormwater, traffic calming, school paid, and drainage improvement.

This slide shows the proposed 2026 infrastructure management program or IMP, totaling 159 million.

Other programs are listed and included NAP, Warranted Signal, Traffic Calming, and I will be discussing each of these programs more in detail in next few slides.

Regarding the communication improvement, we are continuing to improve our communication, which includes quarterly forecasts regarding project construction to council's office and its stakeholder is posted assay speak up and distributed via mail, monthly update to council's office regarding upcoming IMP construction, five days notification of the project construction, and of course improving neighborhood associating outreach.

This slide shows the street maintenance program 122.4 million and will be delivered estimated 1,464 project.

102 million is allocated per council district based on street condition.

Any council district has street condition lower than others, they will get more money.

20 million funded for F Street and is allocated per council district based on 50% street condition and 50% size of district as specified in 2022 bond program.

For last number of the year, we have funded our SP program over 100 million annually.

However, we are not certain we are making maximum impact and on payment condition.

Review existing payment condition survey and tell us if we are doing the way we're supposed to do surveying.

Many of you know inside the Loop 14, we have very high clay.

The idea is are we using right application on these areas?

Package SMP project to ensure minimum inconvenience for neighborhood.

We want to hear to see are we packaging these and advertising for contractor to build?

Is it required are we making minimum inconvenience for public?

Peer city comparison of the payment condition index and of course refined SMB long-term gold.

Our sidewalk.

This slide shows the historical investment made to sidewalk improvement.

For FY26, we have a total of 17 million, of which 12 million will be constructed, 21 mile of gap sidewalk.

Gap sidewalk means there is no sidewalk today.

Overall total of 55 usable miles.

Repair funding, 50% will be based on distressed mile and 50% equity.

Again, any council district, special older part, they have their sidewalk not in good condition, they will get more money.

FY26 sidewalk will be completed by March 2027.

Total of 1.8 million is budgeted over three years for sidewalk condition assessment.

The assessment will provide the condition of the sidewalks to include cracking, slope, displacement, obstruction, and missing or non-compliance curb ramps.

The result will be used to prioritize repair in future.

Phase one, which is in the orange area, was completed February of this year.

Phase two, everything in loop 14 will be done September of this year.

And phase three will be starting October after budget approved and will be completed May 2026.

On sidewalk, this slide shows the existing sidewalk at gap mile per council district, gap mile location where sidewalk doesn't exist.

We use the prioritization criteria listed on this slide for project selection, which they include pedestrian safety is very important, proximity to schools, transit access, arterial roadway access, zero car households, healthcare facility, and other destinations.

NAMP program is used to address mobility and traffic calming in neighborhoods.

Eligible project includes community requested infrastructure improvement, which address safety, multimodal transportation, and roadway functionality within the public right-of-way.

Project example is like ADA ramp, sidewalk, flashing beacons, payment marking, traffic study, and etc.

Project recommended in two rounds, and district may submit eight projects per round.

FY26 budget maintained 11.3 million for payment marking.

This will be result in 1,153 miles to remark in FY26, and we will be in three and a half year maintenance cycle.

This is within the three to four years.

Service Alies, 1.5 million.

There are 952 service alleys used weekly by Solid West Management to collect garbage.

FY26 budget includes 1.5 million to improve 63 alleys.

Non-service alleys.

Phase one address AD F and DLEs and was done in September 2024.

Phase 2 will improve LA with C rating, public works department will be completing 120.

Phase 3, which is next year for FY26, include a preventative maintenance on 20 non-service alley with no utility, and also in 2026, staff will be developing preventive maintenance program.

Traffic infrastructure, school pedestrian safety includes one million, upgrade eight, upgrade six existing school zones with 12 new flashing beacons, maintenance of 230 existing flashing beacons, maintenance of 729 school zone crosswalks, maintenance job 2000 210 school zone signs, traffic calming 1 million.

The FY26 proposed budget maintain is 1 million to design and construct traffic calming project to reduce the speeding and cut through traffic.

This project has neighborhood focused, and that may include future like roundabout, ballboard and chicanes.

Traffic signal 3.1 million in FY26 includes construction of new seven traffic signal.

This slide shows 3K traffic improvement in FY26, enhanced vehicular and pedestrian detection, improved improving detection, improving detection and signalizing intersection enables the intersection to operate maximum efficiency, which improves safety, reduce the delay, and reduce the vehicle emission.

Traffic signal communication, maintaining communication to traffic signal infrastructure is critical, ensurance our signals operating efficiently.

Today we have 1,400 signal.

We can communicate with most of them when there is a problem on the signal.

Audible PET signals, audible pedestrian signal allows pedestrians who are sight impaired to know when the roadway is safe to cross.

These operations help maintain infrastructure to ensure public safety, protect private property, protect natural resources, and ensure water quality.

As part of proposed 26 budget, we have 11.5 million to include emergency repair to damage roadway and drainage system.

There are Biddle Creek at Wiker Road, Old Ocona Road, and Old Gersim Road.

We are also partnering with San Antonio River Authority and Bear County to enhance the flood warning system.

To improve the existing low water crossing, we are in we are planning to install camera at each location to be able to monitor remotely when they when during severe weather effect.

Today we do not know when there is an event, what's happening on that low water crossing.

This camera will allow us to see on time what's going on on that low water crossing.

Hazard Medigation Action Plan.

There are 105 hazard medication action plan, which include 100 drainage projects and five other activities, a total cost of 1 billion dollars.

Today we have completed 11 projects totaling 86.5 million.

FY26 budget includes five projects at value of 3.7 million to design this project and make those projects shovel ready for potential future bonding.

As Troy mentioned, Stormwater Utility fee was established in 1993, funds moving, street sweeping, channel restoration, greenway maintenance, and capital drainage project.

Fees access to residential and non-residential property based on impervious cover.

Intend a fee increase to generate revenue for to provide maintenance and capital drainage project.

Public work will be engaging stakeholders throughout the 2026 in preparation for 2027 possible fee increase.

Late last year and early this year, of course, we and some of the public works and some other departments went through the comprehensive budget review, and they identify certain area we need to improve.

Identify every year when we end up using one year, we end up adding the following year without really doing any refinement.

The recommendation is develop new methodology to forecast the entire five years plan.

On the traffic engineering, traffic engineering vacancy remains difficult to fill.

We are working with the HR department to help us to see how we can fill this position.

Also, the three hours process is not fully staffed for 311 workload.

Lack of project repository for traffic engineering request.

Recommendation is develop process to attract and hire qualified traffic engineers, develop a standard operating procedure, which we are working on that one, and of course, developed project repository.

We are working on that one also.

Almost 50% is not end up being a project.

Two round and out-of-cycle request is insufficient.

Recommendation, incorporate project selection in annual budget process, include project in budget ordinance, and limit out of cycle request.

On efficiency, moving two million from street maintenance program to right-of-way fund.

Right sizing non-service ally since we have completed DC and F, and that will save us 793,000.

Reduction in 1 million for flashing stop sign and radar feedbacks, and of course, we had two position also reduction.

This is the last slide for new improved public works department.

Street division maintaining over 2,400 of roadway annually.

Traffic division maintains over 1,400 traffic signal to ensure the public work, the public can arrive at their destination safely and on time.

Traffic division maintains over 1,000 lane of payment marking annually to ensure roadway is visible at night and during rain event.

Stormwater division perform flood management, channel and creature maintenance, vegetation maintenance, and street sweeping to ensure public safety, protect private property, protect natural resources, and enhance water quality.

Mayor and Council, this is my last presentation.

We are happy to answer any question you may have.

Great.

Thank you for the very helpful presentations.

Well, maybe Eric, you and Eric can tag team this one.

I think it was you or Eric that talked about, you know, does this time help us in this instance?

I think when you're trying to make major financial investments or decisions, time always helps you, right?

Because that allows you to get as much information as as possible.

Unless there was more, was that you, Eric, that made that statement or you both did.

Okay.

Um so can you help us then understand the sensitivity analysis that you would conduct and how that would help us with the most immediate decisions we need to make?

Yeah, yeah, kind of going back to the time, you know, as I mentioned with the housing market, like it is, it gives us a little bit of opportunity to really assess kind of where it's going in what direction in terms of values.

As far as sensitivity sensitivity analysis, we'll take that debt plan and we will stress it to make sure before we do any type of bond issuance in the future, or whatever our capacity analysis is that we can make sure that we afford it.

So we will stress it in terms of values, in terms of growth, to make sure that if, for example, if it is a $500, $500 million bond program, that things get worse, we can still afford it.

So I just want to make sure that when we're recommending something, now we're not putting the council in a position in the future to where we have would have to do a tax rate increase because we can afford the debt.

So we will look over time and stress that model to see how it performs.

And Mayor, there are credit implications to that stress testing, because if we don't, depending on the direction and the and the foundation we set, if we don't align the assumptions to ensure that we have some flexibility, then there will undoubtedly be credit implications as it gets reviewed.

And so we want to be thoughtful about that as well.

Yeah, couldn't agree more, um, which is why I would always advocate for, you know, you make decisions when you have to, right?

Um, and you have as much information as as possible.

Um the uh on the sensitivity analysis, can you give us a sense of um what is the most what I mean with your recommended kind of most immediate sensitivity analysis when when is the soonest do you think we'd need to make a decision on something, and when would you present that sensitivity analysis for us to understand where what our options might be?

It's a hard question to answer.

Um I don't think from a I mean certainly if $500 million is a number y'all would like to move forward with, we could start planning on moving forward with the $500, $500 million bond.

We could push it off to the November election or 2027.

Again, that's gonna give us more time to actually kind of understand the market and conduct that sensitivity analysis, but I don't think I can give you a firm answer as far as what when we should pull the trigger on the bond.

Yeah.

When we look at just what's happening in the economy writ large though, um are other entities moving forward in this space, or are folks frankly not unlike consumers in our own economy, um, our own community, kind of holding back, right?

Go ahead.

Thanks a little.

Um we looked at cities across Texas because we're all under the umbrella of the state statutes.

Every city operates a little differently.

There's the cities I mentioned, a lot of them look at their tax rate and they go out and they look at what is the need in the community in terms of capital investment or a bond.

And then they look at their tax rate and they will adjust that tax rate to meet the need.

So they don't they don't have the same restrictions that we impose on ourselves in terms of a flat tax rate.

They move that tax rate based on the need.

There are other cities that we're looking at right now, bless you, that um have kind of followed our lead, I guess I'll say, that have a self-imposed tax rate from a policy, but it's kind of split in half across the state.

That answers your question.

Yeah, I mean, I'm just based on the sentiment of of frankly regular folk, right, that are kind of keeping uh keeping more money in their pocket for as they also try to kind of suss out what's happening in our community, um, what are the ways in which we might be able to help ourselves do that?

Um, certainly informed by the sensitivity analysis that that you described, but again, understanding when what when might we have to make a decision based on some of the other things that we want to do?

I think to your point about the volatility in the market, um, 500 million, I don't think is where anybody thought we would we'd be at this point, right?

So can you speak to kind of I mean, even three months ago, would you have said that we were gonna land at 500 million?

Um if and if it's significantly different, you know, the the value then and and frankly holding our cards for a little bit longer, cons considering what may happen in the next three months.

Three months ago, I couldn't give you a number of 500 million.

There are a lot of factors that were looking at that were moving.

Um for example, we had the bond sale that was issued in August.

That plays a role in it.

We're getting the certified role, that plays a role in terms of values.

Um working with our FAs to see how we can structure the model.

So I knew it was going down, um, you know, just based intuitively based on values are going down.

I could not have given you a number back then for certain, like we have today.

And I think, Mayor, that that part of this is uh a little bit of um art and science here, that there is a sensitivity in the financial aspect of it, and and we we have to blend um the risks and alternatives from a policy making standpoint into one.

It's not one or the other.

Um there are some risks on on that green box that that um we would likely still want to be conservative on, but there may be some of those that that maybe after doing it for the same way for the 20 for the last 21 years, maybe we maybe we adjust accordingly and and and accommodate for that risk through another way.

I yeah, appreciate the kind of art and science of it, but wanted to see if we could um frankly lean on as much of the science based on what your sensitivity analysis would would be able to provide for us.

Okay.

In terms of understanding what we could do with the um the storm water um bond piece, how soon would it take, would it help to help us understand?

Again, that's um, you know, 14 projects, 411 million uh worth on this just on the state's flood project plan.

So helping us understand what that capacity looks like.

How soon could we understand that?

I have to go back and look at and get back to you with the time frame.

It's gonna take a lot of work with budget looking in and public works as far as what they have planned in terms of operations.

Need to sit down with our financial advisors and look at what opportunities there are to restructure it, and also looking at targets.

Where do we want to target in terms of projects?

Yeah, yeah, and how we meet that need.

Yeah.

So um, Eric, I don't know if you want to.

I think I think we could bring back on the stormwater piece the next 30 to 45 days.

An idea of what that looks like.

There am I saying it right?

Yeah, I mean, 45 days.

At the most, we could do that.

Great.

Thank you.

Uh Mr.

Shannon.

Um I appreciate the uh the the focus just on these on these major projects.

I think um, in part because it helps folks um that are frustrated with the the speed at which current projects are done.

It it it brings into question can we do bigger projects when some of the bigger projects that we've had have been have been so delayed.

So I appreciate the um the priorities and and one thing I would add on there, just because not only is is this significantly a significant frustration for small businesses, but it's also um it it not only costs us in terms of having to pay folks uh when there are delays, um, but it's also money that we're not getting into the general fund.

Uh so to your priorities, I would ask, and this is something that we can you can help us understand how we would do this, which is on on slide four, it would be minimizing cost a general fund, right?

What is the opportunity cost of these things going on longer?

How much money did we not get in the general fund as a result of of that delay?

Um great.

That's my only feedback.

Okay, Mr.

Hosseini.

Your presentation is very helpful.

Um and it's it's uh it speaks to a lot of um activity.

Uh what still and and it's not just your presentation, it's some of the others as well.

Um, in terms but in particular, yours jumps out just because of one, the size of your budget and the number of projects, but helping us get a sense of if we do this, this gets us toward X percentage of where we'd like to be, right?

Whether you're talking about uh was it 412, um slide 16, for example.

Right, like even so non-service alleyways.

Um, okay, so 412 alleys.

Is that is that all of them?

Is there is that half of them?

I I don't know.

So some appreciation for how your activity helps us meet goal and an understanding of what the what the goal is, and again, maintenance I get is kind of ongoing, but some appreciation of by doing these things at FY26, we are able to make say that we have satisfied that I don't know, 80% of our streets have been yeah have X activity X by this time.

Something that helps us again speak to the progress that we're making versus just the the activities that we're accomplishing.

Mayor, on non-service alley, there's three thousand five hundred twenty forty four hundred twelve of them is there is no utility, they're completely city early.

And on those, we have done the one is needs to repair because we did the survey on early, like we do on payment condition index.

We categorize this A being excellent and F is being failed.

We are we have been addressing and by phase two, we will be addressing all of the ones that needs to be addressed.

Then next year we are going to develop the maintenance program to maintain these alleys to make sure they don't fall to F category.

In the meantime, we are working with the utility, they have utility line on those alley.

They need to share some of those costs to maintain those alley.

And for and for can great contextual question, Mayor.

Prior to the the scoring that Razi talked about, the city was not maintaining those 412 alleys.

And so when they did the survey, we put in place a plan to, as you said, take care of the ones that needed to, and then once once those get resolved, then build that into an annual maintenance program for us because we weren't doing it before the um slide 17, kind of similar, still similar feedback.

Um, you know, how do these activities get us um closer to to where we want to be, right?

So 12 upgraded flashing beacons, I don't know how many are actually requested to be to be upgraded.

Um again, idea of how these investments and activities get us closer to to whatever the goal is.

On slide 21, um and to confirm just because again there's lots of attention on on the uh on the flood projects.

None of these have to are on the those these are not one of the 14, is that correct?

The 14 on the state's flood production plan?

Are some of them some of them are?

Okay, that'd be helpful.

Thank you.

Okay.

Okay.

That's all my feedback.

Thank you.

Um Chair Mungia.

Thank you, Mayor.

I'll start with uh Troy also.

Um I think you just talked about the stormwater revenue bond.

I think sending us you know a memo when when y'all do some backup work, what that could mean for us and how that could help would be very beneficial.

Uh we go back to that slide that they just showed with the different projects.

I don't think any one of those was in district four.

And obviously our low water crossings are different across the city, but just interested to know what projects were done with the original stormwater revenue bond.

Um what capacity we could have if you all answering, and that could help us take some pressure off the the geo bonds.

And I also agree the frequency of bonds and timing of the elections um is is really good and worth looking at.

I think every five years with those large bond packages has probably been part of the reason why there's been some delays in those projects.

I mean, that's it's a lot of projects, and even if we were to do you know to talk about a bond this upcoming May or even the following May, you saw the 22 is still you know not even halfway done.

So I mean that's I think more time also helps get those projects completed in a much faster manner than if the staff had to deal with another round of projects.

Um and so I understand that for general obligation bonds that we do, we are able to put on that bond, require with the passage of that bond a tax property tax increase to cover the payment of that bond, and it takes off the capacity that we have.

Is that true?

Can you kind of elaborate briefly on that?

And if I don't answer it correctly, let me know.

But when we um look at our tax rate at the 21 cents, we hold that flat.

In the event that you and council y'all have the authority to adjust that tax rate up or down.

Um historically, based on conversations we've had with this body, we want to keep it flat.

But it would not require an election.

Y'all have the ability to adjust that tax rate by vote.

Yeah, but let's just say once you know we're gonna do a bond just for Zars and Moro Street, just to give an example with a general obligation bond.

We could though ask for a payment from the voters to specifically cover just that bond.

Is that true?

Um I'd have to confirm with um our bond council.

But um you could do a general obligation bond for a specific project if we could isolate a tax rate specific for that piece.

I'd have to defer to our bond council.

And then once the topic, I think that's gonna add something.

So council, when we when we sell general obligation bonds, we're doing it based on full faith and credit of the city.

That means it's our tax rate.

So we're not able to carve the tax rate up for specific projects because now we're losing that full faith and credit of the city.

So anytime we go out, and what Troy mentioned is that 21 cents has been by financial policy.

We've said you look at any of our bond brochures, any of the previous bond programs, we'll say there's no projected increase in the debt service tax rate.

It's projected.

At the end of the day, when you when we issue bonds and we pass an ordinance saying we're gonna do that on the GO side, we're legally saying we're going to raise the tax rate if we have to to pay for that debt.

Now through financial management, we've not had to do that.

We've been doing that since 2004.

Okay.

All right.

Councilman, are you are you suggesting or maybe asking um because it do other cities do do this sometimes in Texas?

Um I'll use an example.

Um the council of of a city puts on the ballot um 500 million dollars, 400 million dollars worth of projects, and as part of the proposition to the voters, part of the in addition to the list of projects, it's that your uh property tax will go up three pennies to pay for those projects.

Is that what you're talking about?

Yes, that's what I'm talking about.

Yeah.

I think that's something we can certainly explore.

We haven't done that, but other Texas cities have done that.

Yeah, I think it's it's it's worthwhile exploring, especially if we look at very particular bonds or very specific project type bonds.

Uh and uh if we do that three pennies, that takes it off of our current capacity, correct?

Yes, it it it it adds additional capacity to it.

Yeah, okay.

I think that's worth looking into as we talk about these different discussions.

Uh so uh I have a couple questions for capital delivery.

So with capital delivery, you'll exclusively be doing bond work.

Um I I think the answer to that is probably about 98% bond work.

I think there are a couple of non-bond work that my team will work on that just happen to flow into that project.

Um maybe a small piece of the IMP came in there, but um, but I think uh you know I'm confident to say that that's the that's the idea is that we are working on bond projects.

If there's some non-bond work that makes sense for me to also and my team to also oversee and package together, we will, but um so that's the one.

That'll be overseen by the thing.

And I'll just add that you know we've done some pedestrian mobility funds with bond funds.

I'll give you a very good example.

We had a street.

I had an IMP sidewalk on one side of the street, because I can only afford to do one side, use ped mobility for the other side, two different contractors, two different sidewalks.

One had curbs, one didn't, right?

And so, you know, to the residents, that's just the city doing us two different sidewalk projects.

And of course it comes down to well, the people with a curve must know somebody right at the city because they got a curb uh or retaining wall when we didn't get a retaining wall.

So it comes down to that.

Um but I really hope that we get some really clear-cut design standards between y'all and those programs.

Um that'd be great.

I'll just add because I've already had those discussions or we started those discussions.

The team, we know the first year there's good we're gonna have to figure some of this stuff out.

We want the end product to be excellent for both sides of that street, right?

So whatever overlap there is initially as we kind of carve this into two departments, uh there's there's definitely gonna be collaboration coordination, no matter which you know, would which t-shirt you have on, capital delivery or public works.

And I think we'll figure out some improvements so that we can deliver that kind of the concept that you're saying is that going down the street, it looks like one contractor did it.

Doesn't matter what funds.

So those conversations are already starting.

Okay, that's great.

And I think hopefully you're also gonna look into the contracts that we do with contractors about timeliness of projects.

Uh, because you know, a couple years ago I was talking to Rosie and I was joking I brought up St.

Mary's, and he said, Oh, actually it's it's on time, right?

And it was kind of like how is it on time if all this stuff is happening?

So hopefully when we look at the contracts, that's something that we could get into about that also.

Um so I have a couple of questions for Razi.

I'm so glad to hear you say mention soil conditions.

As you know, we've talked about that with y'all for many years now.

Uh and the question came up at our budget town hall last night, actually, and and thankfully Anthony was there and he laughed.

I told him I I promise I didn't plant the question because someone literally said, why is it that Zarzamora is very different when I drive around town and I had to explain the soil conditions and obviously that's gonna affect budgets, right?

Because it's gonna be slightly more expensive, I imagine, to do a street uh with clay soil conditions.

We're seeing that in my district in Lago Vista, Ansley.

Um, but it's it's needed.

And I think residents have even told me we're willing to see less street work if it means a higher quality.

They they keep telling us don't come to the district and and tear up the street, and then in two, three years it's back to what it was.

Uh and I have to tell people it's not the quality of construction, it's just the the soil underground, right?

We're not building to that spec.

Uh and it's gonna eventually have effects on the UDC also.

I had a meeting this morning with Rex and I told them be prepared because that is going to be a conversation, it's gonna require more, it might cost more to build, but it's better long term.

I have properties in my district that are not that old where the driveway is separating from the house, and you can see rebar coming out, and that is just because of the soil condition underground.

So look forward to that.

Councilman, you're correct.

The concrete roadway has a 10 years longer than Sbald Roadway.

S well road may be designed for two niggers.

Of course, it costs more money in the beginning.

Construction is a little challenging for people as to understand because asphalt, if we lay the asphalt before noon, after noon, we open for the traffic people to go to their houses.

On concrete to three or four days, they cannot absolutely use that roadway.

The other agency doesn't lack concrete is it is utilities.

Yeah.

Because it is much, much difficult for them to dig into to do the repair on there.

But the right thing to do.

Absolutely.

A quick note on your street condition measuring.

I we did a tour in Quintana and I talked to Anthony a little bit about this.

I don't know how well I trust the current measurement system because I have seen projects that you all have approved, Gillette being one, where you say this is the president, this is the application we're going to do on the street.

When you go to the street, it's worse than you thought it was, and we've had to do concurrence memos to substitute and swap out projects.

So if I'm getting street funding based on that measurement, and I can tell you already there are several projects that you have listed that are incorrect, that tells me that my condition is worse than you think it is, which means I'm not getting all my money that I need.

So a thought.

Well, I'll come back second round.

Got plenty more questions.

Thank you, Mayor.

Um I'm gonna start with you, Troy.

Uh thank you first off for all the work that you and your team do to keep our ratings so high.

Um I think that that's um we often don't express enough gratitude for that, so I just wanted to make sure that and I appreciate you all consistently using conservative debt management and budgeting methods because I think it keeps us safe so we can have really good bonds.

I had a question about the debt service tax rate.

I started trying to look up what other cities do, and to your point, all the other cities are different, Austin's different, Houston's different.

So can you all help me understand why we set it where it's at and how long ago that was set?

What was the thinking?

What is the past council's thinking on keeping it there?

Well that debt service tax rate's been in place since 2004.

Okay.

Based on conversations we've had with the council in the past, um, in keeping the tax rate the same.

I guess there really wasn't the um the appetite to increase the rate.

Um and so based on conversations we had with this council and previous councils that we self-impose that tax rate.

But um there is an opportunity if you as council would like to, we can adjust that tax rate to basically um influence our capacity.

If we're looking at so just a couple things, uh just a couple of different factors.

If we're also looking at the frequency of our bonds, would it help to potentially increase our debt service tax rate?

I don't think I can answer that question.

I think, like I said, if we change the frequency of our bonds, I think it does a couple of things.

I think I heard the comment of maybe it gives us more bite size um dollars and projects that we can focus on, but also gives us an opportunity really to see where the market's going.

I mean, right now I don't know if we've bottomed out in terms of the housing market.

Our assumptions actually show next year it's gonna dive a little bit deeper.

But debt service um performs a little differently as well because it is uncapped in terms of how high the values can go, yeah, versus our M and O that is capped at potentially 2.5%.

Interesting.

Yeah, I was I was just curious to see if and how you know you know.

I think we would also need to think about and fully understand the pros and cons of you know a more frequent bond schedule.

I know that we've done the five years for a while now, so I'd be curious to see um if we were to do it at three or four years.

Um I I could see you know the advantage of you know more bite-sized chunks.

I also, you know, as Councilman Mungia said, Um we're having the execution of it is also um a problem.

So and uh also too, just how that would you know how that would factor into us keeping our debt service tax rate the same or not?

Um just a lot of different components there.

Yeah, we have a lot of people.

We can certainly model those assumptions, and we can also if there was an appetite by the council, I could show you that if we want to modify that debt service tax rate, what it could produce in terms of additional capacity.

Yeah, I'd like to see that um whenever you have a chance.

Thank you.

Um that's all I had.

Mike, for um capital delivery.

First off, congratulations on your new role.

I will give another round of applause for you're gonna be tired of all the congratulations.

I also do want to thank uh Razi for leading the way up into this point, Razi.

Where is Rossi?

Oh, there yes.

You've been amazing to work with, you've been so helpful to District 7 and gotten us a lot of projects executed on time.

So thank you so much for leading the way.

Uh so thank you for that.

Um, I know that managing major infrastructure projects is no easy task.

Um I think our one of the biggest points I want to hone in on is that that improved communication is critical.

Uh that is one of the biggest things that we hear about from residents.

You know, they prepare for construction projects, uh, then the date comes and nothing happens, and it's disruptive to their daily lives.

So can you walk us through what the current communication process is and potentially where there are gaps?

Sure.

So there is a lot of communication happening.

Um, we use things like uh, you know, email, you can sign up for SA speak up every time there's an update, uh, you can get pushed out some information.

Um we do community meetings, neighborhood meetings, stuff stuff like that a lot early on in the project, uh, as we kind of propose the project, talk about uh what you think this project could and should look like, especially on the municipal facilities side.

Um and then you know, as we go, we're pushing out information and and and in those various forms.

I think one of the things that I've just seen, and I'm I'm gonna be looking for uh certainly not every project needs to have the same communication execution.

Smaller projects may need a little bit less to be very effective.

Uh so it's not a one-size fits all, but at the same time, the larger ones need a little bit more constant uh communication to the stakeholders as they're trying to run a business along that let's say street half closure, a full closure.

Um a lot more maybe in-person phone call communications that are a little more easier to effectively communicate.

And then we also have to listen a little bit more, I think.

Um that's usually where I have failed in the past, and my communication is listening and and hearing from those stakeholders.

Well, wait a minute, how does this plan affect you uh with enough time in advance?

Uh so that if there is a big oh no from their side of it, how can we how can we take that in consideration?

Uh there we may not be able to always agree on every request that we get.

I'll actually I'm probably sure of that, but at the same time um finding ways in our procedures to build that in, and then also have our project management team, executive team, our communication team, ensure that we're accountable to to that standard.

So I think we have something.

Uh those reports that I mentioned identified some areas of improvement, and I've already, you know, started talking with the existing team about hey, where where can we where can we do better?

And I think we have some ideas within.

Yeah.

And we're gonna be listening from our uh from you all and and our residents and businesses as well.

Yeah, well, um I would just offer, you know, our district 17, we block walk year-round to check in on residents.

So if you need us to block walk and had a partnership that probably uh myself and some of my council colleagues would like to offer, then take us up on it.

Because we all need to get our block walking shoes on.

Um I am gonna run short on time, sorry.

I do have some questions for public works.

One of the things that uh things that councilman Mungia brought got brought up is um, you know, that the the frequency of the projects.

I I also think you know, one of the things that we need to factor in, I know it impacts uh councilwoman Terry Castillo's district five and district seven um is drainage and how building on the north side really impacts us.

And so we look at the ratings on our streets um, and we could have a B, but it's really not a B.

You know, it's it's pretty bad.

And and so I think you know, I I'd want us to consider what we're doing to see the frequency to to expedite the frequency of those projects, especially in districts with high drainage problems.

Because you know, I always tell my residents you can't uh drive down St.

Cloud with coffee because it's it's dangerous.

And and but that is the reality that we see in a lot of our streets.

Um especially um in certain districts.

And so I think that we need to take a step back and factor that into the frequency of how how quickly we're complete um into like the the lifespan of the streets and sidewalks.

Um one of the other things that we hear a lot of with uh public works is the communication between public works and other departments.

That's why I filed my utility coordination CCR and we had an amazing utilities town hall with SAW, CPS and our fiber companies, Google Fiber primarily, uh, because the left hand needs to know what the right hand is doing, and we're seeing our streets.

This is a common concern for residents.

They're seeing certain streets torn up again and again and again, uh one time for CPS, the next time for Google Fiber and uh whatever else.

And so, you know, I would just want to stress again that we need that communication to be um lockstep with our utility providers because the residents are the ones impacted at the end of the day.

One of the other things, and I thought this was an interesting conversation with uh a woman at the election site.

She said, and and it again it goes to Councilman Wingaya's point about the quality of work.

She said, I don't know why y'all get so excited about filling 3,000 potholes.

She's like, if you're filling that many potholes, maybe you're not doing something right.

And I'm like, that's a good point.

You know, we I I do think that you know, we've we fix a street and then it's broken again, or we even fixed the trail at Woodlawn Lake, and like a couple months later, it's already cracked.

So I think it's worth us taking time, and I know Councilman Mark White and I have had some conversations with past mayors about this on how do we improve the quality of our work.

I mean, is some parts of the district concrete streets?

I don't know.

You know, I mean I'm gonna leave all of that to you all, but I think that um it's worth our time to say how do we do this right and not just check a box?

Because sometimes I fill that with with public works we check a box.

I mean, my um infrastructure director Frank and I, we do infrastructure walkthroughs once a month, so we look at the completed projects and then we'll just go walk them.

And there's been several times where I'm having to um send text uh to city staff to say, hey, this is subpar work, you know, and you know, I'm saying, hey, y'all wouldn't do this on the north side or whatever, but uh it it shouldn't take me having to go do that to to have a good job done.

Thank you.

Thank you, Mayor.

Uh Chair Viegran.

Thank you, Mayor.

Um I'll I'll go ahead and start with um Troy and the debt management plan.

Um I am, and to answer some of the questions that Eric asked, I am uh for looking at the debt services tax rate, seeing how we can use that to help leverage as we move forward and the ad velora management plan.

I just think we would I would need to hear a little more on that, uh you know, one on one.

Um Ben and and you, Troy, have been really good about being conservative, and so when we talk about y'all know I think y'all are a little too conservative.

So when y'all talk about risk, I'm like, is it really a risk?

So I know Eric said more risky, but I'm like, is it really?

Um so on the feedback, so let's look at the debt service uh tax rate.

I do think we're gonna need to do um the bonds, at least for the foreseeable future, a little more often in those bite sizes.

If it is the 500 million or and then another 500 million in two or to three years, uh, I'd like to see it go either May of 2026, if that's too short of an R notice, then it has to go by fall of 2026, and then we need to look at if 2028 is is the next round in fall or in May or fall.

Um I like keeping it in November because of the um we've already got an election going on in November of 2026, but I I am not opposed to May because that is when other school elections happen.

So um, if we could if I could just get more information on that.

In terms of when we talk about stormwater fee and took looking at the drainage, and this is for both Mike and Rosie too, is you we're gonna need ordinances and policies because I need to see where the damage and where the buildup is coming in some of our creeks and drainage ways.

If it is coming from encampments, if it is coming from um the shopping carts, large furniture.

We as a council need to get together and write policy to make sure that we are trying to prevent that from getting into the the creekways, the drainage ditches, and I know specifically in district three uh along the Brooks and Military Drive is at one point we had something like six to eight shopping carts in one of the drainage ditches.

So we we've got to help the process because if I'm just if we are just making improvements and then the rains come or the floods come when they come, we're just seeing damage happen because of there were things in there that shouldn't have been in there.

We're gonna continue to see this problem.

So um if we could just get that, and I hope that answered the questions, Eric, that you wanted in terms of feedback.

So um Mike, the next step is for you on the uh capital delivery department.

Uh where is the slide on the 2017 projects?

You knew that was coming.

Um, because I have 2017 projects that need to be completed.

So where are we prioritizing that?

Yeah, we can we can certainly um we can certainly follow up with you.

We do have some, you're right, that are still uh under construction, not done yet.

John, did you have one of the things?

Oh, I'm sorry.

Well Mike's Mike's memory, you're correct.

We have two projects has 27 and 22 fund.

Is Rosa Bel is one of them and Pro Band is the other one.

Rosa Bell and ProBan originally was going to turn back from text up to us.

Unfortunately, what happened on Broadway, they backed up from that idea.

Our design, we were almost done.

We had to go back, redesign it to meet the requirement, and is moving forward.

But you're right, we have also, and also we have in District 5 is a Zarazamaro overpass.

We had 17 and we have 22 bonds.

Yeah, and I I think project is moving forward.

Okay, and I and thank you, thank you, John and Razi.

And I I knew y'all were prepared for that one because it's been uh four years in the making.

Um but I think when we talk about bonds and we talk about do we have time, I think we all need to remember as a council that we are dealing with other entities that we have to work with, in particular Text Dot, and that's why sometimes it's gonna take longer than expected, and we've experienced that um in the southern sector, and so that's why I'm for making the bond cycle a little uh moving that up, doing it in less than five years, but understanding that if if there are partners involved that move slowly or uh it takes more uh political back and forth that it's going to be a long time.

But I do want to thank public works team uh in terms of what they've done so far in Capitol E and the Capital Delivery Department before it was that is um the concept Concepcion Dog Park, the District 3 Aquatics Facility, uh we opened the World Heritage Office, um Maria Villa Gomez and the leadership with the uh with the um new new South Side substation and the opportunities we're gonna have there because Razi and and the team work, I mean it's what 18 acres we have there, 18 acres to work for with.

So I mean, this is just investment and opportunity that we have to grow, and and the team does really well with that.

So I look forward to kind of seeing how we can move this forward.

Uh but I do want to move on as in my last four minutes to talk about public works and Razi, you know you're not supposed to retire until I term out, but I guess that ch that's gonna change.

But um in terms of what we've talked about, the soil and the projects, I think the um importance is so with the efficiencies that we're making, we are we are not seeing a reduction to NAMP or CIP, or are we seeing a reduction in that?

Yes, we are on both.

Okay.

Um, because that is where this this whole process gets problematic.

I think we need to look bigger, and that's why I think we need to look at bond coming a little a little more faster, because if you're gonna ask me to put a hold on NAMP and CIP, I'm gonna need a bond to to kind of deal with some of these bigger projects because for district three in particular, our F streets are problems, they're just gonna turn into bigger problems because we know what soil we have out there, we know what's coming, and I know the growth that is happening in and around the area.

So, in addition to that, I think we need to see that the number of F streets in my district are are not getting any better, and I I mean we're working, but I still have so many D streets, and I still again have no streets, and I've got developers coming in, and I need to be able to have the toolkit and churs available.

So I think as we have those conversations, we need to continue to remember is if we if we don't keep moving forward, districts are gonna get stuck, and district three in particular, because while I would love concrete streets everywhere, the fact is if I don't have the infrastructure, the fiber, and SAS doesn't know what sort of um pipes we have or how old these pipes are, it's it's not going, it's not gonna be helpful.

You can put concrete streets in, but we're just gonna have to go back.

Um my utility is gonna have to go back in and change it because of the older infrastructure in there.

I don't have fiber.

I'm trying, I'm you know, our our internet service, we've got two.

Somebody they mentioned Google Fiber.

I've got ATT and spectrum, and we do not have it underground.

And so I this is struggling.

So while I want the better streets, right now, the quick fix is gonna be asphalt for district three and parts of the southern sector because we don't have the infrastructure there.

So it's so multi-layered that that capital delivery department that we're having needs to start prioritizing what we've got in district three, especially in the inner city.

And the other thing in terms of the problems, it's happening because of the climate, because of the heat and because of the drought.

That is where we're seeing this problem also.

So we can get the best materials out there, but if we still have the the heat coming the way we have the heat coming, and then the flooding coming the way, because and I I tell my residents it's not if it's when the rains come and it floods again.

We're back to the same problems we had before.

So this is gonna be multi-layered, and so I'm I'm okay.

I'm understanding that we need to to be efficient, but we're gonna need to address the bond sooner rather than later on this project.

And I last thing, and and Razi, you can sit down because this is just my speech on alleyways.

Non alleyways and I can cast you to come back in the round time.

Okay, so non-use alleyways is next.

Thank you.

Councilwoman Castillo.

Thank you, Mary.

Uh, thank you all for just seeing were you gonna if I could clarify something real quick on the neighborhood access mobility.

So we did a budget, there was a budget amendment that was approved in fiscal year 2025 to increase it a hundred thousand dollars per district.

That was a one-time amendment.

So it it was back to it.

The 2026 budget is back to the 550.

So that was a one-time amendment.

Okay, thank you, all right.

Thanks, everyone, for the presentations, and I also wanted to thank Troy for answering some questions that Justin on my team had regarding certificates of obligation.

Um, with the appetite from council to restore the funding for CIP, would there be opportunity to use certificates of obligation uh to help supplement uh CIP funding?

We today, the certificate obligations based on our capital improvement plan.

We use COs today to actually supplement our our um capital improvement program, and I guess let me clarify that.

So between our bond major bond programs, we have operational needs on facilities, IT, and things of that nature.

So every budget, we look at our CIP, we look at those infrastructure needs, and we will actually issue COs or tax notes to actually support that.

I'm I'm referencing the district specific CIP allocation.

Oh, I'm sorry.

Yeah, so uh we did not put it in the proposed budget because of the pressures we had on the capital budget.

We also included within the budget this year the 11 and a half million dollars in unforeseen and unplanned work that we need to do with the two streets and the drainage channel, one in district six and one in district ten from the floods of June.

We didn't have the capacity.

Obviously, if that's something that the council wants us to look at, we'll look at developing some alternatives to free up some dollars.

I I will uh I would like to share with you all maybe we can do it in as part of the follow-up memo, kind of where we're at in terms of spending of the CIP.

Um but but really it's we we if if you guys want us to do that, then we'll come back and give you some alternatives on how that affects the the capital budget.

Yeah, I I would look to like to look at some alternatives because as the councilwoman mentioned, oftentimes we use CIP to help address some of those uh minor infrastructure improvements that if they don't get addressed, they'll expand to something much larger.

An example of that is a something we thought was going to be a resurfacing that turned into a potential drainage project, right?

Um so I I understand um there's questions in terms like what balances folks currently have, um but like for example with our remaining balance, we're working with parks on addressing like a heat island within the community.

Um so the dollars aren't necessarily spent, uh, but we are working on plans on how to to spend those dollars.

Um so I'm hopeful that we can review ways to restate the IMP dollars for each council district.

And I apologize, I misunderstood your question.

The only thing that we'd have to consider by using COs is making sure it qualifies for a CO in terms of its life and capitalization.

Okay, thank you for that, Troy.

And then I'd also like a follow-up briefing in terms of the key policy discussion items for us to talk offline and for me to provide direction just based off of some questions that I have.

Um, because again to the councilman Via Ground's point in terms of the timing of bond elections, right?

If we are not going to have the CIP restored, uh which I'm hopeful that we can, um I I think we are going to have to have uh more frequency of those bond cycles to help meet those infrastructure needs uh throughout the city.

Thanks, Troy.

Um a couple of different moving pieces um with the district five budget town hall.

I know many of you all were present for that.

And my heart was very full.

One, because of the input that we were hearing from community members.

I think it was evident of the work of my team with their teachings, their door-to-door outreach, and so much more.

But also I had asked a question regarding how many of you all may have an infrastructure needing or community.

And the hands raised were very minimal.

And then I was asked to restate the question, and it was the same amount of hands.

All that to say, right, I think that's the great work of not just the district five team advocating for increasing IMP, C CIP and not IMP, uh NAP dollars rather and CIP over the last several years, but of course the public works team working hand in hand with our infrastructure director, Stephanie, to ensure that we're on budget and on timeline with these projects.

So just really grateful for the public works team.

Of course, I see Marco and then uh I know James for his work as well for making sure that we're ex we're expanding those dollars.

Um a couple of questions that I do have for Mike Shannon.

In terms of the projects that may not be bond projects, is it a specific dollar amount uh that the project will fall under your umbrella?

No, no, it's it's not a dollar amount.

It's it's we look at those projects that make sense to have a certain team member or a certain you know project management team, you know, coordinate those together.

We don't we don't move funding around or anything like that.

Uh it's just who's kind of taking the project management role of that.

Um I think the example being the the more we can have kind of one team uh working together to to deliver the project the product uh project well, I think that's that's what we're looking for.

So I think still something we're gonna continue to look at, but it's it we're not looking to move money money around from different funding sources.

Okay, and then in terms of the communication plan that you are going to explore, uh for example, I was at the Lone Star Neighborhood Association meeting, and uh one of the last questions that was asked was regarding a project that was taking place, and they shared, you know, no one knew about it.

I was like, well, typically you get a letter in the mail, and you know, she shared, like, yeah, we got it, the letter.

I'm like, yeah, that was the communication, right?

So also understanding and acknowledging that we can over-communicate, but there will continue to be issues in terms of we didn't know.

Uh and I think a way to help address that um is potentially like those billboards for IMP projects that are put in the neighborhood to also like play to make those bigger potentially at the entry side of these large scale projects because she had the letter with her and said she wasn't aware, and I was like, that's that was the communication.

Um, so I know y'all are doing that work, and of course, we always need to continue to over-communicate.

And then similar to the question that was asked regarding the communication with different departments.

Um, is that something that y'all intend to streamline?

And an example of that is uh the project on Zal Samora.

Um, the essentially there wasn't communication with the small business owners, so where there's typically an apron, it was now a curb, right?

And now folks, customers can't park to access the business.

So is there going to be a communication with, like, for example, the transportation team uh in terms of what these projects can look like?

Uh the short answer is yes, yes, yes, absolutely.

I mean, again, something I'm looking for is not only talking uh again with you and your experiences as you talk to your residents, just like that one, for example, talking with our teams, talking with other departments.

I mean, it's we're all the city working together.

Yeah.

Uh so certainly that's that's that's an absolute yes.

Okay, thanks, Mike.

I appreciate it.

Uh Rosie, just want to thank you and your team for all the great work these last several years.

I feel like we've accomplished so much.

And when I look at the drainage projects on the presentation in particular, uh, that's the result, right?

Of a three-signature memo with Councilman Courage and Perry.

Um, but of course, your team and uh Luis and uh Nephi, who was with the team, uh, making sure that District 5 continues to receive their fair share of investment, and then of course, always answering the questions that my team may have.

Um so just extremely grateful for the leadership of Rossi and the team that you have, and then uh of course your stormwater team is amazing, uh Jessica, and I know this is a budget meeting, but I just feel like you should know the great team that you've led uh over these last few years and the impact that they've had uh on district five residents.

Thank you.

Thank you, Mayor.

Chair Corr.

Thank you, Mayor.

So obviously everyone knows today is my favorite day because everybody wore purple ties, Mike, John, Eric, Andy.

I'm loving it.

Um so I wanted to see we had this discussion before you walked in.

Okay, anyways, I'm gonna start off with um debt management.

So uh Troy, can I ask you a couple of questions?

So with the debt service tax rate, as was mentioned.

I just have a clarifying question.

Are we is it for sure decreasing the MO rate to point uh 2.5% in gener in this upcoming year?

Is that done?

No, ma'am.

No, ma'am, it's not.

Okay.

So if it does, I think it would make sense for us, otherwise, we would not have as much capacity if we do not increase our debt service tax rate, correct?

Two different pieces.

MO is separate from the debt service tax rate course.

The MO is gonna be statutorily governed in terms of a cap.

The debt service tax rate, that cap that Jeff just talked about doesn't apply to our debt service tax rate.

I understand, but our total tax rate impacts all the amount of uh what we can take out all of our bond capacity and etc.

Right?

No, only the 21 cents is going to impact our debt service um our bond capacity.

The 33 cents is going to fund 460 million goes to the general fund to fund our operations.

Got it.

So that the only thing that M and O is going to affect is general general fund.

But in the event that that happens, then we should try to at least capitalize as much as we can, moving up our debt service tax rate to try to take on more project as many almost like all of our public works is gonna have to go to that certainly if you increase the tax rate, you're gonna have more capacity for more projects.

No, but I'm saying if we have an impact to our MO and our general fund gets hit.

Does that make sense what I'm yeah, you could um based on any capital that's done in the general fund, you could shift that to the death service tax rate.

So that's what I would like to see if we could if that happens.

Do we have enough?

Would we be able what would it look like to increase our debt service tax rate to be able to cover the loss that we would have in our general funds?

Does that make sense?

For capital needs.

Yeah, for capital needs.

Okay, all right.

Um so frequency of bond programs, though that the question that was asked there, the challenge that I've faced with my community for bond programs is when as soon as the bond passes, people are expecting projects to be completed.

And when I have um uh talked with the public works team previously, it has been stated that that is never the intent, that it is always an intent to do a phased five year approach, and that's why when we get our public works monthly updates, it says in design for three years at a time.

And so if that were to change, if we were to do shorter timelines, I think it would actually be more beneficial for folks because they wouldn't be expecting a project to be completed in a year that's actually not even planned for year five.

The second challenge with the um the long the five-year uh periods is that folks don't know what they're going to need in five years.

So, especially for our facilities, like five years is a significant gap for them to be able to know what's gonna have changed for our parks and our community centers.

Like, it's hard to predict that far in advance what the need is.

So the I think if we can turn around projects quicker, our community might be able to better pivot and adjust for what things that are needed, right?

So maybe one year uh the one community center or park is uh upgrade is needed, and in a couple years that might change.

Um, and I just think it's really important.

I just wanted to reiterate that if we do do a bond in the upcoming year, it needs to include affordable housing um streets and sidewalks and streets and sidewalks for everyone in all of our neighborhoods.

Um, as far as the stormwater revenue bond, my question is the slide with 25 million, is that the capacity left on it, or is that how much we could call?

No, ma'am, that's what's left on the bond that we have to pay off.

So, how much can we call on that?

The full 25, the full 24.5 million.

It is currently.

Sorry, how not on this one, but if we were to re-issue a stormwater revenue bond, what would that look like?

What would its capacity be?

That's what um if y'all want me to go look at, we will actually go have those discussions and come back to y'all with the recommendations.

Okay, yeah, I very much support that.

I think, and I think if we can tie it to what Councilman Alda Govito was saying, is that street repair is often tied to drainage.

And so if we can figure out how many of our drainage issues, if we did them with stormwater revenue bonds, would also affect some of our street ratings.

That would be really helpful for us to be able to see because it would be impacting what we would need from our streets and sidewalks street maintenance program.

Okay, um, for a capital delivery department, Mike, you've been so great already uh coming to meetings and meeting with folks.

I have so many ideas for you.

So we could do weekly meetings and I could give you all the ideas.

Um we need a dashboard.

We need a public works updated dashboard.

And something happened to the IMP one last week, but um we need a dashboard and we need to be able to update projects on it.

We need to be able to see what the timeline looks like.

We need you should we should be able to click on a street and it said expect it to be worked on April of 2026.

So uh dashboard that also includes funding sources, percentage of work completed, project manager contact information that's easy to use, that doesn't take 10 like a few minutes to load, all of that is super important, and it and we should be able to filter by IMP by bond, and but you should be able to click on a street and know all of that information.

Absolutely, councilwoman.

There is an existing dashboard, right?

That has lots of what you're describing.

Happy to take a look at it with you and talk about its form.

But it's been an existence of the year.

It doesn't have updates, it doesn't get project updates on it.

It's supposed to.

There's a lot of supposed to's.

Okay.

Yeah.

And it's also not user-friendly.

So, anyways, I hear you.

Um, but we we got some work to do on our tech for this.

Um, also I would argue that project management, you mentioned this, right?

It's stakeholders.

It starts from the beginning.

We need to get timelines in the beginning versus retroactively after it's complete.

So, especially for big street bond programs, let's bring everyone together and show them the timeline and ask them on the front end.

Is anything need to be is anything going to completely conflict here?

Is there a um is there a concert happening at the same time as Mortos Fest that needs to change all of this happening on the um in the month of October?

So I think that starting in the beginning is super important.

The the Robokistner feedback on the CNE component is interesting to me, only because CNE is such a small team and they are already doing so much.

And so I think they could help provide oversight as to like what good user-friendly comms looks like, but we've got to think about, and you know I've said this a lot.

We've got to figure out in our um budget that has lots of money, how do we support CNE because they are doing so much, and I think they would be a great um asset to public works in terms of communications because sometimes you saw it, right?

We get those communications that sent out last week, and you're like, what is this trying to say?

Yeah, and I'll just jump in and I say I I I think it's important that we uh we certainly use our CNE staff.

I've already talked to Alana a little bit about getting together and seeing how um I know she helped me a lot with my DSD team and how we would communicate uh to different stakeholders or different size groups from grassroots to large organizations, and some of it we naturally did well uh ourselves, and and some of it I think our CNE team does extremely well.

We need to find a way to bridge those, you know, you know, with our team that's staying with our capital delivery along with the resources that Alana and her team bring together.

So I think that's why I put it up here.

Uh it's an important recommendation that I think our consultants saw, and and I think it's something we're gonna definitely uh jump into.

I agree.

The um so thank you for making sure that's a priority.

The next thing that I wanted to comment on was the cost estimating piece where you mentioned the cost estimating isn't always the same.

Cost estimating is something that we really have a challenge with, and it it's hard for us.

We just had this challenge with Maverick Park, where the cost estimates came out too high.

So I would love to see a new that that tool and the standardization of that go into effect, and then communicating that to us and the community as well, so we know what we can expect and figuring out how best the best way to get bids on things.

I maybe it's just people, but like private folks will when I tell them how much things cost in public works, they're always really shocked.

So maybe it's folks knowing that we're the city, so they increase the the bids for us, but we need to think about how do we get more uh negotiating heavy on some of the bids that come back.

You know, councilwoman, I think that the Mike has on the slide the inflation and contingency assumptions.

I mean, especially now, right?

There's a lot of um there have been a lot of ups and downs in terms of concrete and asphalt and and steel and so forth.

But and and I I get accused of this as city manager because I want I want all of this for this amount, um, and and partly is making sure that as we set those budgets that they're realistic and and trying to do you know one or two projects rather than trying to spread them across, and and we we struggle with that internally, and I think at the end of the day, we're gonna have to increase those contingency assumptions in every project because we're gonna see that whether it's a whether it's just you know a block of sidewalks or or three streets in a neighborhood.

I agree.

And the um last thing I'll end with uh for you, Mike, is I'd love for us to come back to a transition infrastructure committee meeting when you are you know in your uh in your shoes already and talk about goals that you have for communication for outreach.

Let's set some numeric outcomes-based goals that you we can um all hold each other accountable to for capital projects.

And I'll come back on my second round for public works.

Thanks, Mayor.

Councilman uh, can I ask one quick follow-up question?

And several of you have talked about the stormwater, but um I I would be interested as we as we work on bringing that back to you within the next 30 to 45 days, um, layer in some alternatives for an adjustment to the stormwater fee, because that likewise will have an impact on the capacity, and and just at least give you some something to react to.

That's something that we'll do as well.

Councilman White Thanks, Mayor.

Um, first on the debt.

that back to you within the next 30 to 45 days um layer in some alternatives for an adjustment to the stormwater fee because that likewise will have an impact on the capacity and and just at least give you some something to react to that's something that we'll do as well councilman white thanks mayor um first on the debt I just I find it you know a a little bit um it just stuck out to me that that our our debt obligation from from 2012 to to 2022 has risen risen about 600 million dollars um I think I think that's something we we certainly need to keep an eye on uh the same with our uh our non-voter approved debt as well uh from 2012 to 2022 it's increased about uh 200 200 percent and so I I think I think we've got to uh keep an eye on that um because it looks to me there's a significant percentage of our total tax rate that that isn't going to streets or sidewalks or anything it's going to debt service um Jeff real quick for you uh you mentioned the property tax bill that uh that's at the legislature right now uh the city is not going to take a position in opposition to that are we uh we haven't taken a formal position period it's been moving pretty fast through the special session okay uh and and I hope I hope that that we certainly don't and and and that we we don't we don't oppose that bill um I I understand the impacts this could have to to city revenue uh down the line uh but property tax relief is something that uh all Texans including those here here in our city uh are very very much in need of and so I hope that um that we're not going to to take any sort of uh opposing position I'll just say councilman real quick that we we're probably not the best city to make the case anyway this this session we're well below the 3.5 that hasn't been a factor so there are a lot of cities who are engaged on it but sure we we have uh adjustment in our in our budget if we needed to with the tax rate yeah I understand it's it's not an issue now but but again property tax relief is much needed around the state um on to capital delivery uh oh I don't know where Terry is because I wanted to talk with Terry but um there's all these things we want right see more CIP money more NAMP money you know all things that I agree with but we cannot have it all uh 4.8 million dollars for homeless hotels a hundred thousand dollars uh to hire lawyers for people uh a hundred grand it was last year to a uh museum in Mexico uh 500,000 dollars uh for art maintenance like you you got all of this in the budget yet at the same time you say we all say you know infrastructure it's a core service it's a priority we need to be putting uh our money there we cannot have it all and so I again would ask my colleagues that when we're looking at this budget and we're looking at the adjustments we may be able to make before it's finalized we need to be focused on uh core city services the basics what we're talking about today your favorite subject uh is of course right right at the top of the list because I don't know about y'all but this is what my residents are calling about uh every single day again I think it's public safety and I think it's infrastructure and so um Mike on the on the capital delivery one of your slides up there talked about um finishing projects on time and within budget and I my question here would be uh I love that and how are we gonna do that and really a lot of that comes down to how we select contractors right we we have to select contractors that um have a good history in my opinion of completing projects on time and on budget we need to be hiring them based on merit and really nothing else so what's the plan there well it's absolutely right you're right we we know we know there's some good contractors out there that that produce quality work on time under budget uh regularly and and that's some that don't um and certainly I dealt with a a lot of them that uh I heard from private development that people would say this contractor was great to work with and others not so much uh we we have we have some tools in place already responsible bidder ordinance uh we we certainly can look at that to see if there's anything else we want to add or modify to that that would something could be something we bring bring bring to uh this this body um we we need to look at things like incentives and and penalties for for uh not following a contract or coming in on time and under budget uh so those are some of the some of the things we're gonna be looking at um you know and then and then just you know to be quite frank we we need to develop some metrics internally that we hold ourselves accountable to because you know not construction is messy right it's it's it's difficult it's challenging and uh but there's a role that we play as well and I I'm I'm gonna be looking for our team to develop some metrics when we go back to the transportation and infrastructure committee uh so we can show you our goals metric hold ourselves accountable so it's a it's a team kind of effort uh but working with call quality contractors is absolutely one of the top ways to be successful in any construction project whether it's street drainage

Um, and then and then just you know, to be quite frank, we we need to develop some metrics internally that we hold ourselves accountable to because you know, not construction is messy, right?

It's it's it's difficult, it's challenging, and uh, but there's a role that we play as well.

And I'm I'm gonna be looking for our team to develop some metrics when we go back to the transportation and infrastructure committee, uh, so we can show you our goals, metrics, hold ourselves accountable.

So it's a it's a team kind of effort.

Uh but working with call quality contractors is absolutely one of the top ways to be successful in any construction project, whether it's the street, drainage, horizontal, vertical facility, whatever.

Yeah.

So I agree.

Okay, great.

Um, and I'm calling it.

Consident, though, if my if I might clarify when you we refer to the responsible bidder, that applies to low bids, which under state law we have to go with the low bid unless we've established a history, which is what the responsible bidders aim to do.

But on low bid, we have to go with the low bid.

Yeah.

Um, I'm glad you mentioned incentives, because my colleague mentioned it this week at some point.

Uh, and I definitely agree with that.

Again, to the extent that we can put money in these contracts, incentives, penalties, uh, et cetera, uh I think we we need to be uh doing that.

Um increased uh uh communications, right?

And um, you know, when when we talk about uh you know separating delivery and maintenance and strengthening coordination and eliminating silos, what's what's the general plan on how we're gonna do that?

Well, right now, um you know I I think we want to set the expectation that uh communicating is not good enough.

I I the example I think the councilwoman used that we had sent out, we had sent out the cart, she had it in her hand telling talking about a project, but obviously it didn't land well for that resident.

And I'm not sure why uh it'll probably never be perfect.

But our standard has to be excellent over communication.

Um just communicating, just sending out an email, and and we're not just doing that, we're doing a lot already uh because I've started looking at that.

But uh really sitting down talking with people, uh, I think the councilwoman had talked about very early on, setting the stage, options, big critical items.

Uh we're gonna be looking at all of that to try to figure out like, hey, really, what is what are we doing that's working well?

I'm not gonna not gonna change that, but clearly something needs to be done on certain types of projects at certain stages, and we need to we need to build processes and procedures that we can stick to and be consistent.

And then again, how effective our communication is, I think we need to measure that as well.

I'm not exactly sure how we're gonna measure it yet, but we will.

And um, because I think that'll tell us are we moving the needle uh on that effective communication?

Is it quality project project from start to finish uh for for everyone involved?

So I don't have all the answers for that one yet, but I have some ideas, and I really want to set the vision and focus that we have to come back with something on that.

Great.

Um all right, uh public works.

Uh I I do want to voice again.

I don't want us to reduce our CIP dollars.

I don't want us to reduce our our NAMP our NAMP money.

Did you just say you wanted it to go above?

Huh?

Didn't you just say you wanted to go up?

Yeah, I don't want to reduce it from where from where we were.

Is that not what I said earlier?

I I don't want to reduce it.

That I wanted to say.

Sorry, sorry, council.

Um we'll work it out.

Uh we need more money for this stuff.

Again, that this is this is what this is what our residents are are asking for.

Um out of cycle NAMP requests.

I saw that in there.

The one of the recommendations is we need to reduce out-of-cycle NAMP requests.

What exactly are we talking about there?

We do two rounds, each run is eight project, which is multiply by two is 16.

Then multiply that from by 10 console district, that's 100 60.

When we add out of cycle additional, and when you end up selecting only, I don't mean you, just overall, 49 percentage of the project selected just cost estimate.

We spend a lot of time working on those, not really delivering the project you want us to do.

So what we're suggesting, and not for this fiscal year.

We're we're suggesting, and we can work on it during the fiscal year, that for the fiscal year 27 budget, that that would give everybody time to identify what the NAMP projects are, and we would put them in the budget ordinance in September of 2026, so we can start executing.

But I but but I've heard from several of you that the flexibility needed, you know, and so it's not in this year's budget.

That what they laid out was kind of one of the one of the recommendations, and it's I think it goes more to process um, but but not in the this year's budget.

Okay.

That's exactly where I was going.

The flexibility I think we all appreciate and and need.

So Rosie, that's all I've got.

Thank you for all you've done for the city.

Just um one other thing, and and um uh really nobody's talked about it, but it is a major part of making sure that the major capital projects, because there are about four or five that give me have given me gray hair, and they all deal with um utility coordination.

And and and it's a good opportunity to to remind the entire council that that you all approve the the new ILA with the utility CPS and SAWs to make them either signatories to our contracts or uh coordinate and oversee the replacement of that infrastructure, and it's less of an issue um with CPS because there aren't that many underground gas lines um and and has been more of an issue with SAWs.

I think we're working better with SAWs, and as we look at uh Councilman McGee and Councilman Galvan, the Marbach project has a major SAWS component on it.

And um, as we go into that project, that's gonna be a portion that they're gonna be responsible for that we're gonna coordinate rather than have the city undertake um the utility work on behalf of SAWs.

So that's a major change and is an ordinance that you guys approved earlier in the year.

Thanks, Mayor.

Councilman uh Mesa Gonzalez.

Thank you, Mayor.

Uh just wanted to start with the debt management.

So quickly, just want to support uh the debt financing option on the stormwater revenue bonds.

Um also want to support those smaller packages.

Support the smaller packages, but make sure they're focused on their critical needs, flooding infrastructure, drainage, housing.

I know was mentioned.

So it would that be the plan, I guess, on how those are structured versus how they are now with pretty much anything and everything goes in if we do those smaller packages.

Councilwoman, thank you for your question.

I think we're still working through what that would look like and are looking for feedback from you as a body on what would go in those smaller packages as we move forward.

Okay.

Uh I think that's it for debt management.

So I don't know, just making sure I got that noted that supporting that uh shorter packages or smaller packages and uh using those stormwater revenue bonds.

So I want to make sure we move forward on that.

Um for the capital deliveries.

Um we've tried this before, right?

Where we've separated public works and capital delivery.

Yes.

I know through that cycle in history.

Yes, so just make sure we do it right this time, right?

Or that we really do something different this time, right?

That would be great, right?

Um so yeah, I think because I'm just saying that to the room, not looking at anybody when I say that.

Um, because I know that I was looking at the bond dashboard as we were talking, speaking of dashboards.

I was looking at the dashboard, and it you know, 14% of my projects in district eight, uh, that's a completion rate net right now.

There's only four districts that have above 20 percent completion rate.

I know they vary, and I know a projects are it's not every project, but that number it just seems so small.

Um, and curious why or how, or what do we do about that?

Yeah, so I I think Councilwoman Corps made the point for us that from the beginning we intend for the bond cycle to be phased, right?

Yeah, and maybe we knew it need to do a better job about communicating about that.

So it's always been intentional about when projects are gonna start.

They don't all start at the beginning, they're not already.

There's a few that are ready at the beginning, they start then.

The vast majority of them go under design work, and then they're delivered in phases, councilwoman.

So I mean that's intentional, so maybe the dashboard needs to reflect that.

Okay, thank you.

Um, and I think slide four talks about street maintenance, how we fall behind on this.

So we have examples of this.

I know every district does, but Dezavala and Prue Road are prime examples for district eight.

If you say Prue Road, uh the Woodwich Wood Ridge Neighborhood Association will have a whole lot to say about that.

So if you need to talk to anybody about how to communicate on these projects, please feel free to reach out to Woodridge.

Um, and part of that I I think we've talked about this too with the contractor capacity, and you know, I agree with any sort of incentives or penalties um uh for these contractors.

Also, do we have any sort of like mentor protege program for these contractors?

Have we thought about that?

No, we have that in other departments.

Oh okay.

Councilwoman on certain project, yes.

Can we talk about that?

On that road, we had contracted had financial problem.

John and I got with the funding bonding company.

It's about too late to fire the contractor because it was majority of the work done.

We worked with the bonding company and contacted, of course, you know if you finished your project.

Do we have any of the contract the mentor protege program for these projects?

We we do under certain solicitations, like not under low bid, but when we do some of these larger projects, um vertical with um construction manager at risk or uh competitive SEAL proposal.

Or design build.

Or design build, we can encourage those to be part of that.

Okay.

Yeah, I'd like to see that.

Um and then on the I think we talked about overcommunicating a lot, but making sure it's timely communication, not just overcommunicating.

We ran into a problem a few weeks ago.

We have a uh bond project on George Road, um, a low router water crossing, uh, and folks got notice of that the day of.

So they went to the uh Hardburger Park and nobody was there.

So we had a lot of answer a lot of questions there.

So just making sure they're timely communication.

Um and we really are the best folks to go to with you know these communication goals you have because a lot of us have come off of campaigning.

Uh so we know exactly how residents are receiving for information, and so just really look to us as a resource and and how we're communicating um to residents.

Uh and then is there a specific I guess is that internally within your department, a communications person?

Are you taking borrowing from CNE?

Yeah, no, right now, right now public works has a communications team.

Uh we are we are looking to take some of those and leave them in capital delivery, some of those will stay uh with public works.

Certainly there'll be a lot of coordination there because I think some of you shared it communicating to a bond project.

Yeah.

Is some of the same challenges and opportunities for certainly an IMP project that stays with public works.

Some of that's gonna be uh we need some consistency there in collaboration.

So uh that's our strategy right now is to is to just kind of put some in in CDD and some in public works, and then we'll figure out how that's gonna uh be effective.

Okay, thank you.

Uh I that's all for uh capital.

Uh let's go to public works.

Just really reiterating what uh other council members have said about supporting uh NAMP and CIP.

We talked about how those CIP dollars are helpful to us and our districts, making sure that those small projects don't become larger and and more hazardous down the road.

So want to make sure that we continue that investment.

And I think also again support efforts on our flood mitigation program, and I think that's it.

Thank you so much.

Councilman Castillo Angiano.

Thank you, Mayor.

Thank you all for the presentations.

Uh I'll start with uh debt management with uh stormwater uh revenue bonds.

Uh council member core made a very good point that street repairs are often tied to damage.

Uh so I think it's worth us just looking into that.

Um then I had a question.

Uh what factors do we consider when we make the decisions to take out bonds?

And how do we know uh if property taxes will be strong enough to generate enough revenue to pay that back?

As we talked about earlier, it's a sensitivity analysis analysis and the capacity analysis.

We look over time to make sure that it's affordable.

And that um based on the assumptions in the plan that we can meet those assumptions.

Gotcha.

Okay, that makes sense.

Um and then we we mentioned the bond election in 2026.

Um particularly for Product Marvel, and I don't know if this is the best way to bring it up.

Um, but do we anticipate that we'll be able to do a 27 bond program and what would that look like?

I think it depends.

It depends on a lot of the factors that we're discussing today in terms of the the frequency, the timing.

Um looking at the tax rate based on all those assumptions, like we mentioned.

If y'all want us to come back and consider those, we can come back with the capacity analysis and also determine the proper timing for that that uh bond program.

So councilman, right now, as it stands, the next the next planned according to our plans, uh municipal bond program is scheduled for May of 2027.

So part of the conversation that initiated in Troy's presentation is do we look at the factors and assumptions to possibly do it earlier in 2026?

And and so if if the answer is yes as we go through that, then there would not be a 2027.

We're pulling it up early, and then we would set the frequency of which we do it.

Is it every three years, every four years, every five years?

And and and those are the issues I think some of the council members are talking about.

Cool.

Okay, thank you.

That helps clarify.

Um yeah, let's go to capital delivery.

I just want to give kudos.

Um, we're very, very happy to hear about the uh uh the upcoming construction with the ACS uh animal hospital.

I know our district fought pretty hard for this project uh in the 2027 bond, so we just want to stay updated.

Um let's see, public works.

Uh so the revamp on the street maintenance program.

This is pretty exciting, and this probably ties into capital deliveries um as well.

Um, because I know that a lot of our you know, residents and people just have a lot of issues with um you know the streets being redone, and then we have Google Fiber and other utilities kind of just tearing it up.

Um, and this could probably just be a communication issue as well.

So I think over the communicating is something that we should definitely do.

And then want to echo my support of of course with NAP and CIP dollars just because I know that we want to make sure that we can respond to the needs of our residents in between budget cycles.

Um, and so you know, this is how we can do that.

And then I wanted to see what the average PCI score and F-street miles are per district.

We have that one, Consumer.

Okay, perfect.

Thank you.

Then that clarifies it.

Thank you, Mayor.

Councilwoman Spears.

Thank you, Mayor.

Um thank you for your presentations.

Um, I guess I want to start with congratulations, Rosie and Mike on uh Razi for retiring and Mike on your perceived promotion, I guess.

But um let me see here.

I might I think I want to start with public works and um capital development.

So to me, you kind of go you definitely go hand in hand, but um, this is core services.

I am seriously focused on how we can reduce our spending, but I do see already in the short term time I've been here the need for the CIP and the NAMP in my district.

I do have um 14 projects for the 22 bond that we did for D9, only three complete, two in construction, and the rest are in design.

And um, so I do appreciate that we're breaking down the department so that we we can focus on timeliness and um trying to keep the costs down because you're right.

That my so I mean councilwoman carr.

They they do uh they expect it like now the minute they they vote they want it done.

So um it's very hard there.

Um but I wanted to ask if we could focus on in district nine, we have a lot of construction, and and this includes collaborating with the utilities and with TechStot because it's impacting my small businesses a lot, and the detours on top of the detours are killing us.

Like we're going through neighborhoods for and it's it's really impacting even the roads then, but I agree this communication piece could not be more important and impactful, and how our office can help and how we can come up with ideas, totally willing in my office to do that.

Um the stormwater, I noticed there was nothing sit there in district nine, yet I hear constantly about flooding issues in district nine, and we can't overlook the county impact, at least in my district, because they develop too in their ATJ and they meet those requirements and they pay the philo as well.

And the the developers pay it in, and we do our own assessment and guarantee that we're not gonna be impacting the neighborhoods, yet they're flooding out my neighborhoods, and I'm frustrated with it.

Um, and now I have to look at putting it in a bond when when I don't understand.

I feel like the fees are there, that's why we do it for the impervious cover.

Um I look forward to learning more about it.

I know that I'm just expressing a little frustration there because we're over the recharge zone, so it seems super important to pay attention to what's happening with stormwater and D9.

Um, but this is a core service, and I'm super grateful for everything that y'all do.

And aren't and and and I love being able to say that we've done it.

It it my neighbors and constituents just love it.

So thank you both very much.

Um but I would and I do too want to see the coordination, and you brought it up, Eric.

I I had it on my list about the utility, the utility um I have subsurface utility engineering.

That that was there too.

So um when we get to debt service, I had a question about that.

So how so I I wanted to know how much of our short-term debt has been converted to long-term debt over the last five years, and how much of additional interest we've incurred in doing so.

And do you know that offhand?

Mark, is that a follow-up?

To my knowledge, I'll go back and look in terms of converting short-term to long term.

I can't think of top of my head that we've done that.

Um our tax minutes are typically the short-term vehicles that we have.

They have a short amortization and we pay them off very quickly.

Um I can go back and confirm that for you.

Okay.

Um reserves?

I know that would be a key.

You had that as a on slide 12 as being a that's a major assumption and a fundamental component of our debt service plan to make sure that we have that.

I guess I call it a shock absorber in there.

Yeah.

About 25 million dollars, 20 to 25 million.

And we expect to be able to maintain that.

Yes, ma'am.

Um I do too, Mayor, look forward to seeing the sensitivity and the capacity analyses because my initial concerns are that if we is that if we shift to more frequent bond elections with a variable rate, it it would seem that that would yield a higher overall rate and maybe affect our credit rating if we're doing both.

No?

Sorry, because we'll will we not be incurring more interest-heavy payments at that point too, and not really affecting our principal.

So when we're talking about short shortening the duration of our bond programs, we're not going to variable rate debt.

We're still issuing long-term debt.

But rather than a five-year bond program, we might do a three-year bond program.

So we would do them more often, but we're still doing fixed rate debt.

And we're not talking about doing a variable rate debt?

No, ma'am.

There's only probably a couple of instances where we've done that, but very limited.

Because of the interest because of the interest costs.

Yeah.

Okay.

Okay.

Um I noticed too that we were shifting front to an interest heavy bond payments already.

Did we refinance already?

Or what was the the shift in that?

I'm not sure I know the instance you're talking about as far as shifting.

We have we do, I guess let me answer the question like this.

We do work with RFA to look for opportunities when the market conditions are right to refinance um for refinancing opportunities.

And when they arise, we take advantage of those.

Okay.

So and that's not gonna limit our future capacity at all.

If anything, when those opportunities arise, it would help us increase our capacity in the future, taking advantage of savings from refinancing.

Okay.

Do I have minutes left over?

Wow, I thought this would go way over.

Um, thank you very much.

And then I wanted to echo too what councilman councilwoman Quarr and Councilman Galvan and Councilman White said about the incentivizing the projects and penalizing, and and you're completely right.

I think that's a great vehicle.

And I know it's really hard with the contractors, and it's it's complicated, and we do have to take the lowest bid, but um maybe it is about building that case at some point, really paying attention to that because um, and yes, incentivizing local people to get involved and developing their businesses.

I think that's a very attractive way for workforce development to get involved.

But um I would love to see that because it's frustrating when we hit you know a utility line or something, and it sets you back a year, and then now they want more money, and it's very frustrating.

So I think that would be helpful.

But all right, that's it.

Thank you so much.

Chair Galban.

Thank you, Mayor.

Uh thank you to everyone for the presentations today.

Uh I know we're getting closer to five, and so I just want to say thank you for having this good conversation.

I think I want to echo pretty much everyone's comments today that are it's been a really good conversation about uh all the different elements of infrastructure.

So I think everyone, all the comments that are been made by the folks here at the moment were really great.

Um and so I'm supportive of those pieces if anyone's counting.

Um I did want to ask a couple questions for public works and capital delivery.

They're gonna kind of go back and forth.

So I'll try to get them all within one person at a time.

Um I know we talked a little Mike, you mentioned a bit about uh what you're gonna be looking at for making sure that we're delivering these pieces on time, uh, whether it is uh different contracts or things like that.

Um something I wanted to ask about, I know you mentioned utilities and the ILD with that.

Are we also looking at uh maybe this is also for maintenance too a little bit with public works, but the MOU with the fiber optic companies as well?

I know it's an older MOU, but yeah, I haven't had a chance to look at that yet, but certainly can.

And I don't know if that would be jumping up.

Yeah, absolutely.

So I mean we have an existing uh right-of-way entry agreement, right?

That applies to those utilities.

There are some limitations uh from state law that uh okay that are in place for us.

Yeah, but certainly happy to have a conversation with you about uh what we can and can't do offline if you'd like.

That'd be great.

Okay.

Um then I also I think maybe potentially looking at the I think it was the good night construction ordinance.

Um that's a tougher one.

I get also with like our residents as well, want to make sure that everyone's on board.

But it is something that I think about sometimes when I talked about some residents uh throughout the campaign cycle, mentioned, you know, if it's gonna be one week of a little bit of a headache, I'd rather have that over three months of a headache.

Um so some things like that I think would be worth discussing or thinking about uh if you weren't already looking at it.

Um it actually did come up already in the first uh 10 days here uh doing this, and um I'm familiar with that ordinance.

I I was there when we brought it forward.

There is a little bit of wiggle room in that ordinance, but it may be if we want to look at potential exceptions that we can we can modify, then we can look at options of what that would look like, and then I'll work with our development services team that kind of oversees that as they issue permits and and uh so I'd be happy to take another look at that.

And uh I think that came up in one of our meetings in uh district one already.

So that's great.

Perfect.

Um, thank you so much for that.

Um and yesterday I know we talked a lot about coordination um and implementation about S tomorrow plans, bike network, TOD, vision zero, complete streets, all those different pieces.

So I kinda wanted to ask both uh Razi and Mike, what is that coordination gonna look like uh going forward with both departments for both the bond planning and delivery of those projects, as well as um the maintenance work as well, so we where we can implement uh some division zero traffic calming conversations, making sure we're being proactive on complete streets as well.

Where does that come in?

Councilman, so we we are fully integrated with CAT's work.

So as as bond projects are delivered, um as much as possible, those pieces are weaved into those projects, right?

So you can look at uh Broadway or you can look over here at Santa Rosa, those pieces are being built into the projects.

And then as maintenance projects have availability, absolutely.

So those are front of mind both for uh you know, both street reconstructions but also any signal work that's done at a at a construction site um and any sidewalk work that's done.

Okay, yeah.

Yeah, and I I guess you know, keeping track of all those pieces so that we can make sure that those things are happening, because I think there are some times that I do see where I mean of course it depends on the project, right?

There's sometimes just a simple mill overlay, it's not gonna be too much otherwise there, but there is sometimes like the work that's getting done on a street multiple times on mill and overlay, maybe reconstruction later, and there's still that lack of the traffic calming request that's been put in there.

Uh what does traffic calming need, right?

Sometimes I think it's also maybe a larger conversation on the traffic calming request piece about uh is always needed requests, or can we already see that this street is dangerous based on other plans, other pieces, other uh information we already have, and other ways that we can be proactive on the work that needs to be done there as well.

I know that there's things that y'all look at already, but I think figuring out maybe some ways that we can get those things moving.

Absolutely.

Thank you.

Um similar question on coordination um with drainage.

I know this work already does happen as well with the river authority, but I wanted to ask a bit more about what does that look like going forward, or what does it look like now a little bit um with especially with the expanding floodplain pieces, um, some of the damage centers that Santa River Authority identifies.

I know they're updating their uh pieces as well with that, um, and then making sure that we're implementing natural solutions to drainage needs too, not just always concrete.

Council Roman, part of proposed budget, we have 11.3 million to improve those three of the damage roadway which was causing the June flooding.

We are working, John and I have attended number of the meetings with San Antonio River Authority and Bear County.

They have already funding that are going to assist us on uh improving all of our and their own robot across things.

More importantly, they are going to add camera.

Today, we cannot really see what's happening when there is a rainy day.

When there is a camera, you can absolutely see is people using that robot crossing.

Do we have the better kid?

What's the dangers there?

Right.

Councilman, I would just highlight that you know um those watersheds ignore jurisdictional boundaries, right?

And so there's been a renewed effort of the of the group that exists to try and pay attention to how we're treating not only low water crossings but our existing uh flood models that exist for our community, right?

So all that is a part of what Sarah is doing that the county has funded so that we can be intentional about moving forward and how we protect residents in the area in the region in the watershed.

I think that point there, right, on the area too is important, right?

Because it's not always just right at the damage center, but it's kind of around to where the water flows.

Uh seeing that we're are there ways that we can coordinate with the river authority to make sure that we're identifying those pieces where not only public works needs, maybe parks needs too to make sure that those are happening at the same time.

Yeah, the conversations are active and ongoing and that's cool.

Yeah, great.

Make sure I got time.

Um on the stormwater fee.

Um I know we I mentioned this, I think in our I can't even remember if it was the goal setting or the other piece around when we first started talking about the budget.

Um I wanted to ask if we if I could get the information about uh what the current rates are for stormwater fees um and what they are for different uh different types, I guess of uh of usage, whether it's residential or commercial or industrial types, varying from single family to multi-family C1, C3, all these different pieces.

And largely kind of figure out like what are those compared, what are those stormwater fees compared to other tech cities or national pure cities?

Um because I really want to see is that mechanism that are able to support us with not only within our own general fund needs, but also to address our sustainability goals, but of course, under not being too burdensome uh to our commercial users as well as our residential users.

Um that's just something I want to just throw out there as well.

Um and on that note, I think last coordination asked on uh infrastructure overall.

Where does the office sustainability and resiliency uh come in to kind of support their work too with infrastructure regarding urban heat island uh urban heat island mitigation, um cool neighborhoods, and even some of the low impact development work.

Yeah, councilman, absolutely you may be aware, but um on the cool pavement efforts that are involved there, public works delivers those.

So there's a lots of active coordination also around where trees are placed within our projects.

So there's an integration into uh what's going on in our previous bond cycles, there's been uh review of projects by those groups and helping us understand how we might rank them.

So great.

And I think that's something overall for the future bond conversations we're gonna have, right?

Finding out ways that if we need to expand that capacity a little bit to make sure that there is a sustainability efforts being met on a more wide scale.

Uh I think that's something I'd really be interested in seeing so we can make sure that we're not only doing uh infrastructure improvements where we're doing ones that are a bit more natural, right?

That aren't always concrete or asphalt or other pieces.

Well, asphalt is different for streets, but um other ways that we can make sure that we're still delivering on these pieces to reduce the urban heat island to improve our drainage infrastructure through a better solution.

Um and to also in a way beautify too, right?

I think a lot of we have the conversation about the West Side Creeks a lot.

Um District 6 is a little further away uh with West, but they also feel very similar, right?

About these pieces about uh love what's in what's going on downtown, love seeing this renaturalization.

When does it come our way to?

Um see.

I really wanted to note the appreci I really appreciate the sidewalk analysis or the sidewalk index uh that public works has been using for a while and been working on.

Uh, would love to see some of the work continue with uh even the street maintenance program work.

I think it's just a great model to look at ways that we can improve uh our delivery of projects or even what's needed uh on these different levels, specifically for um the inner city and then kind of going further out.

I just love that model overall, even though district six is a little further out.

A lot of my folks always mentioned, you know, my mom still lives in the inner west side or lives on the south side, and their streets are really messed up.

So I would rather wait for my street that's maybe a B, which of course already kind of does, right, to be improved when my know my mom or my dad is getting uh still has a major infrastructure needs and gaps.

Um so I just wanted to uh really say I appreciate that work being done over there with that one.

Um definitely want to echo what I heard about the uh stormwater revolution bond.

Um looking into that and see how we can make uh expand our our general obligation bond capacity.

Um and then also the debt service uh rates, I think it's something we should definitely explore.

I think it's just worthwhile that our residents get an opportunity to vote on um well, I guess under the debt service one's a bit different, but overall it our residents are able to vote on uh whether they want to see a tax increase to deliver the services that they're looking for.

I think a lot of times on the campaign trail too, we heard a lot of I heard a lot of folks mentioning, you know, if it means that I had to pay just a tiny bit more percentage, um, I'm willing to do it because I want to see this park improved.

I want to see this infrastructure piece improve.

I want to see these things improve for myself and my community over around me.

I think they should have an option to vote on that.

And so it's of course, if we can't, if we don't need to do it, let's not, but I think it's worth exploring to see how we can make sure that we're still delivering on these pieces, especially if we're looking at some of these budget constraints.

Um I think those are all my comments that I got in in 10 minutes.

Chair Mungia, thank you.

And just to touch on something, my colleague uh Councilman Corps brought up.

I as a staffer wrote a C CR for the dashboard, and it's supposed to be different phases, so hopefully at our infrastructure committee, we will bring that up and see where y'all are on that CCR process.

Uh because it's supposed to be very comprehensive, including NAMP, CIP, Bond, all those categories.

So I'm hoping they'll have a good update on that.

When it comes to uh you know, NAMP and CIP, you know, and I spoke to Eric about this too.

We definitely have to have flexibility.

There are sometimes when an issue arises and we have to be nimble enough to spend some money to fix that issue.

Um that's come up several times.

So that's a future discussion.

We'll keep talking about.

Also, you know, and I know recently um the team, uh Public Works and Sean Pateric helped me with some things that were very behind.

That's another reason why some of us save money is because we have an initial request, they do some studying, and then we have to save money to fund the eventual conclusion of that project.

Uh and that was several projects I had that were just behind that I didn't know ultimately what the final cost would be.

And I'm not gonna go on and move on these other projects when I'm waiting on something for two to three years to figure out what's going on with that.

So I appreciate that there's been some movement on that now.

Also, and I also want to give a shout out to Genevieve and Marco on the team.

They're very, very helpful.

Anytime I have a site visit request, and sometimes I surprise y'all and show up there too.

Y'all are there.

Um, and so we put y'all through a lot of work.

You know, expeditiously we work and how detailed our office can be.

Um so I really appreciate that time.

And you know, we had a good conversation with Shirley yesterday about with some residents about trying to get creative on some drainage issues in our district, so I appreciate that as well.

Um I'm not sure if traffic signals will become capital or it'll stay in public works, but we've had some also that are behind, so they're supposed to be two-year processes once they've been approved.

Um there are some in my district that are taking three even longer years to solve.

So that's something that goes beyond the timeline that we're supposed to have.

Yeah, councilman.

As we visited about those signals, absolutely know what you're talking about.

But um as we've reorganized the department of public works, there's gonna be a new assistant director in charge of traffic.

So there's gonna be a renewed focus on how we deliver those.

So I hear your challenge.

Yeah, I appreciate that very much.

Thank you.

Those are very important things for our residents.

Uh and since it was mentioned the cool pavement, uh meaning I was block walking one of my streets that had that.

It um looked like it was dusty versus being a cool pavement.

So I don't know how long term those projects are.

And I know and I talked to Doug Nunak about this, and he said that they're trying to rework that and see what the best use of that is.

But I don't think the application stays as long as we think it will stay.

Um, because it looked like you know, concrete dust basically at this point.

So it was kind of rubbing off already.

Uh and then we did do a tour of Quintana recently, and there's a lot of non-service alleys in that area uh that do need help.

So if we can provide just a little bit more information on what you're looking at with those alleys, I'd certainly appreciate it.

And then for capital delivery, um, will our offices have a liaison like we do at public works, or do we just call Michael Shannon?

Um I would say I would say that's something we're looking at.

I mean, we need to have you know, I talked about our communication efforts.

Uh we need to be accessible uh to you all because a lot of the calls go to you first, and you hand them off to us, or say go to three on one.

So uh I don't have that part figured out, but uh we we have to we have to figure out a way to be accessible.

So I don't know if it's gonna be one person for each one of you or how we could we tie our project managers to you.

Um but we have to develop uh that that kind of clear um kind of accessibility and communication with you all.

So uh more to come on that.

Uh I need to figure that out, but um uh I'll keep that uh something important to to figure out soon.

Appreciate it.

And I believe um Eric CIP has been funded through debt.

It has been okay.

That's something that uh the councilwoman asked.

I wanted to make sure that was clear.

So still important to us also.

So thank you very much.

Chair Corr.

Thank you, Mayor.

Um Razi, I know you're gonna be on a beach somewhere next year wishing you're at these meetings talking about public works with us.

Actually, I'm going to miss this budget meeting.

I'm not gonna say I know, right?

Yeah, we'll always welcome.

Uh I just want to thank you for your work in partnership.

I know um our demands from district one have been pretty high on public works, so I appreciate it.

I also had no idea you guys shared Marcos with us.

Um I thought he was just for district one.

Now I feel even worse about the amount of time.

There was one afternoon where we literally hopped from three site visits, three public meetings all throughout the district.

And me and him were joking at like seven o'clock, we're like finally ready to go home.

He's uh you're a champ.

You're an absolute champ, and you do it with such a smile, and you're always looking for an innovative solution.

So I really want to shout you out for the work you're doing.

Um couldn't be happier to have you just as a district one liaison.

Um okay, questions that I have for you.

Uh on the one of the slides, it said five-day minimum for communication.

I'd love for us to have that as two weeks.

Um the more communication that we can provide for folks, even if it's a simple slurry seal, it's it's we if we can reach for two weeks, I think that would be a goal, a great goal to have.

Um, for the school zone work, the 12 upgraded flashing beacons, I'd love to see which schools those are and understand what the upgraded flashing beacons are.

We've gotten a lot of requests for um pedestrian crosswalks, especially for our elementary schools.

So I would like to see which ones that are being upgraded this budget cycle.

And then these traffic signals, I had no idea how expensive traffic signals are.

I have two spots right now in the district that need a traffic signal, and they're like 600K.

So I know I said this multiple times, but I'm gonna say it one more time.

The reason why I still have my balance and Eric knows this is because I can't decide who gets that, who gets to win, who gets that traffic signal, who gets that crosswalk.

So I'd like to see what the which ones are going to be located, if potentially they're any of the ones that we have researched, and how we decide which the which of the traffic signals get installed or maybe not installed if you're a council member of Mungia.

Um but I'd like to know what are is it 311 calls, is it um data for traffic accidents?

It'd be really helpful to know which uh how we're making those decisions for that.

Um and then for the traffic engineer recruiting, I'm super glad we're getting an assistant director because right now I know I we've been bothering you a lot with all of our speed bump requests, but we've asked previously, I think we need to figure out how to recruit more.

We had some of the folks go out to Fox Tech with us a couple weeks ago, and they it the public really wants to hear from our traffic engineers, and I also think we need to come up with a little bit of a stronger policy for how we I know they have like best practices, but everything kind of seems like a best practice versus like a policy.

Obviously, we've updated the speed bumps one a couple of times, but if there's other ones for like stop signs, you mentioned this at our town hall yesterday.

You guys know we have some really strong advocates for uh stop signs and then no councilman, all that the Gabito deals with this too with speeding, and people don't want speed bumps, they don't want stop signs, they don't want um and they just want people to stop speeding, and so um we've just got to figure out how do we um help that and I think one of the big ways is through those radar feedback signs.

So I would love for us to reconsider how we're gonna fund those flashing stop signs and radar feedback signs because we've had so many requests for them, and I know they were back ordered, but I just wanted to double down on that.

So, as um the last thing I just want to add for the CIP uh CIP funds.

Obviously, I know some of my council colleagues feel that they're really important.

I have funding still that I haven't been able to decide on how to spend.

So, you know, what I I but I do understand at least with the NAMP, we need flexibility and just want to figure out overall at by the end of this year, would love to have a better idea of how we're gonna support our streets and sidewalks, and I I think that's our biggest challenge that we have ahead of us.

And but I I know council member White called me out on that when he's not here anymore.

But you know, a lot of us use the saying of we can chew gum and um uh what is it talking chew gum at the same time, council member walk and sorry.

English is not my first language, clearly.

Um we we say that for things when it's convenient for us when we're talking about like you know, the sports and entertainment district, but we it it it's also true for sidewalks and uh street lights and our delegate agency funding.

I think it's true across the board, but okay, that's it, Mayor.

Uh Chair Viewan.

Thank you, Mayor.

Um, I just wanted to loop in once more.

I do want to give credit to first my neighborhood associations, Highland Park NA, Mission San Jose Neighborhood Association, and Harlandel McCullum, who all uh kind of inputted on how important that NAMP and CIP are.

So thank you, Justina, for uh straightening that out in terms of that was a bonus, and we're back to our regular budget, but I do think as we move forward, it is critical to what our um neighborhoods ask for, and I felt like a Taylor Swift song, hi, I'm the problem, it's me, because when um Councilman White was mentioning uh out of cycle that that is district three, and and we can we we own it, we admit that.

So the one thing I did want to talk about is the alleyways on slide 16, the non-use alleyways.

Um I don't know, Eric, if you could answer this or or John, is there a possibility we could possibly pilot something, and I've asked this before, to try and get residents to purchase the property behind their homes that that they need.

Yes.

Okay.

Because I'd really like to see that done.

I think now with the in thinking of the casita program that we have rolling out, uh, working with our utilities to make sure that we get it back there.

If there are legacy homes, and I and we can start in district three because the district three loves to pilot, but I know that some of y'all are in the same position.

If we could start in the districts where we know we have legacy homes or we have family homes and they they need that, those two structures, one for grandma and one for the family, or one for you know the family member that just came back home from their job.

If we could do that so that we could help with the housing and kind of sell that back to them, so then we wouldn't have to maintain that.

Um the other thing is if they're being used as a back entrance in if it's a non-use alleyway, but they're using it to enter in and park in the backyard.

I think we need to try and monetize that because from this point forward, for me, it's all about where we get the dollars that we need for the city of San Antonio.

So uh the permitting that we can do for that, if you're gonna use a non-use alleyway to to drive into your backyard, I think we need to look at how we permit.

Again, I'm gonna go back to we need to look at ordinances, we need to look at policies as a council.

So it's gonna be very exciting because it's policies to um make money.

The other thing I want to caution, and Jeff, I'm glad you're here.

And just because it was brought up is um I I do think we need to pay attention to what we do in terms of um what the state is doing regarding property tax, because we are a state that is property tax.

Whenever they they would reducing um the amount that we could charge as we're looking at right now, I'm very nervous because they're gonna need money.

We have a GDP here in Texas that we expect.

Where is that gonna come from?

And I'm afraid it's going to start coming from sales tax and school school taxes, and we do not need any more higher school taxes.

Or the word nobody in Texas wants to hear, uh, an income tax.

So I think we really need to be mindful, and Jeff, please, as we move forward, how is the state going to reconcile this if we if we if we keep on reducing this?

And I'm really interested, as you mentioned, what Houston and Dallas and Austin are doing on this issue.

Um, in addition to our smaller communities that um that rely on this, and that would be New Bromfels, um, Bernie, and and our smaller towns, so our neighbors.

So while San Antonio is in the position we're in, uh I think we need to start looking at as Team Texas and see what what the region is doing around here.

So thank you for that input and uh thank you for the presentation.

I look forward to piloting an alleyway program this next year.

Thank you.

Has everyone spoken who'd like to speak on this topic?

Okay.

Um a couple of follow-up questions on um on slide 21, Mr.

Husseini, the uh hazard mitigation action plan.

Can you um the 18 projects that are identified here?

Um, where is the the pinroad project?

Um I know we've often talked about this one, um, and I'd like to understand why it's not on this list.

Pendro, there's uh already a fund that we are going to put gate when there's a rainfall, we have closed the gate.

It is very expensive a project.

We propose to be a part of 22 bond program.

It wasn't selected.

Right.

Now we have selected contract that is going to start next week or two.

Okay.

Providing that gate.

When there's a rainfall gate will be closed on that people cannot drive through.

Okay.

But that's not a that's not a permit.

I mean, the gate is permanent.

That is not a permanent solution.

The the project that uh that we talked about in 2022 with the council um was elevating that road um and was darn near 40 or 50 million dollars.

That is a permanent solution in that area.

So that this hazard mitigation action plan comes from that required FEMA document that we've got to submit every five years and um there's uh there's a total of six hundred and sixty million dollars of of projects identified in that hazard mitigation fund plan.

Okay, and I go back to um certainly Chief McManus, but also Sheefrosto, when we talk about their staffing levels, it's based on workload, right?

And so understanding how our investments in these projects can help us with the costs that we may need to see on the on the personnel side.

Um I'd like to understand it sounded like based on what you just said um what you indicated, John, uh, some of these projects, um the 18 are part of the 14 or partial, maybe 14 of the uh on the state's flood mitigation plan, is that right?

Mayor that's correct.

And we're happy to highlight those for you in the response memo.

Yeah, that'd be helpful.

Um then as we understand if those may then what is covered here versus what maybe needed to cover uh as part of the other the storm, the stormwater bond related, just so if we wanted to say, hey, you know what, we're not sure when the state is ever going to help us with these.

Um so maybe we just take care of these ourselves.

Understood.

Yeah, thank you.

To that point, Eric, the uh on slide 20 um so the 11 uh 45 this then leaves still a balance of of 10 million from the damage on uh on July uh June 13th is that right it does it was a total of twenty one million dollars uh between the city and the county um and the but the remaining damage is um we'll give that we'll we'll provide that list uh in the follow up mayor that these were the three major items in that uh on that list the cost of cleanup we have been spending for the last two or three months for cost of cleanup that's right okay so the cost of cleanup the cost of the of the uh temporary repairs were all part of that 21 million dollars but we'll break that back out for you well i honestly what I was really more concerned about is what's the balance and how are we paying for it if we're not going to get reimbursed by the state um so as a result of you know helping us understand it as a result of not being reimbursed by the state the 11 the 21 million that is now going toward these things what is not being funded as a result uh and then also separate is the the the county Eric is still expecting us to reimburse for the low water crossing is that right well they they in their proposed budget mayor um budgeted for all of those low water crossings in Bear County including within the city of San Antonio so I thought there was some discussion though of us uh they were going to cover it and then by wink wink like hey you're gonna reimburse us right so I don't know if you'd have that that was the last time you and I spoke on it so I wanted to make sure if we were still on the hook for for our that reason we're not on the hook for anything San Antonio is inside uh Bear County so I think it's a good opportunity for us to work together.

Yeah um and I haven't heard anything different from them regarding the expectations I do think that there may be some uh broader um potential drainage projects down the road with the uh the the larger regional uh drainage group that John and uh Rosie mentioned okay that includes the county and and stormwater and um sorry the county and the river authority and if there are some joint projects that we should be working on that's another opportunity to force okay well great I'm glad to hear that that is modified and we're we're not gonna have to reimburse them for that.

Great.

Okay.

The um I'm agnostic in terms of the the frequency of of the bonds I think um I don't want to make the assumption though that more frequent bonds means more timely timelier completion of projects and so how can we help ourselves understand um if we do want to spend uh that money or issue that debt faster the um analysis that ensures we have sufficient labor to to meet the frequency of those projects mayor that that's a great point that it really depends on the type of projects right if we are doing uh trail improvements at a park yeah that's a lot different than uh Marrak and 410 so it really depends on the type of project yeah the the um so I think I think is as we move into that we should be the staff should be a little bit more uh transparent in terms of length of time and complications um and solicitation methods that's just not low bid they're gonna be heavy design so we we need to do some reflection on on those different types of projects there won't it won't be a cookie cutter approach and I think a lot of times for the last couple of years the city has taken that five year increment and said we're gonna have 90 percent of them done uh by the time the voters go back in five years but we have two examples of Zarzomora which relied upon two other public entities for funding and here we are now finally getting close to and and we need to be a little bit more realistic.

Mayor my suggestion for future bond please have number of the project fully funded for design and construction and have few projects is funded for design only it takes especially drainage project two or three years to design and permit because we've got to get permit from Core of Engineers and no matter how good is our cost estimate is not good enough until you design the project.

When you design number of the project through the bond funding you have a good cost estimate then you need to you know how much you are asking for future bond those projects to be funded.

Yeah thank you Mr.

Husseini I think that exactly you know that helps also to accomplish what Mr Shannon just discussed which is how do we better communicate to folks and and just better meet people's expectations about when they're going to see these things on the the bond piece uh the infrastructure bond um Eric when will we have again I know the first uh the first phase of the uh infrastructure bond for the downtown development we'd originally talked about 220 to 250 um when will we have an idea of of the minimum though that's needed for the downtown infrastructure and and by when I know these are these are moving right so yes ma'am yeah um so that that 220 to 250 we gave to council at the beginning of June we still have a lot of work to do on that and in particular as it relates to um the textile coordination we're gonna need the next continued we haven't gone back to that we've been focused on budget we need to go back to that probably over 60 day time frame I I think part of that also plays into um looking at the timing of it um and then um you didn't ask this but it's hanging out there we have uh over maybe

We still have a lot of work to do on that, and in particular as it relates to um the textile coordination.

Um we're gonna need the next continued.

We haven't gone back to that.

We've been focused on budget.

We need to go back to that probably over 60 day time frame.

Okay.

I I think part of that also plays into looking at the timing of it.

Um and then um you didn't ask this, but it's hanging out there.

We have uh over maybe a twelve uh 10 year 11 year cycle, maybe another bond infrastructure downtown as it relates to um other improvements around the convention center, or not the convention center, the Alamo Dome.

Right.

That that would be my recommendation.

We we slide off because there's a lot of a lot of work that still needs to be done in terms of planning and feasibility around dome.

Um, but we would need uh at least another 60 days to do some refinements on that 220 to 250.

Helpful, thank you.

Okay.

60 days.

Okay, great.

Um that 500 number was uh was not what we wanted to hear, um, but appreciate the uh sensitivity analysis that'll help us understand you know what we're actually dealing with here um in the near term as we frankly Hugh, you heard a lot of types of projects and now understanding options to how to pay for those uh is is gonna be the most helpful.

Okay, great.

Thank you.

Uh the time is now 520 and this meeting is adjourned.

Mayor, we're gonna go to exit exec.

Okay.

Sorry, sorry.

Oh, the piece, yep.

I'm sorry.

Not adjourned, sorry.

Not adjourned, not adjourn.

Okay, here we go.

Uh the time is now 5.20 uh p.m.

on August 27th.

And the San Antonio City Council will now re Hold on, sorry.

We'll meet an executive session to consult with the city's attorney.

City attorney's office pursuant to five chapter 551 of the Texas government code and to deliberate or discuss the following items.

Economic development negotiations pursuant to section 551.087, the purchase exchange lease or value of real property pursuant to section 551.072, and legal issues related to litigation involving the city emergency preparedness and collective bargaining, all pursuant to section 551.071.

The time is now 5.57 p.m.

on August 27th.

Uh and the San Antonio City Council will now um reconvene in open session.

No official action was taken in executive session.

The time is now 5 50.

558, um, and this meeting is adjourned.