 in the equestrian show business recovery by going above and beyond his normal job duties including shoveling, pre-bedding, unloading trucks and anything else required to ensure that Will Rogers clients are taken care of with the utmost respect and service. Please join me in congratulating Claude on his recognition from Visit Fort Worth. Claude would you like to have some remarks? Elizabeth Beck and I were at the table when they showed your presentation and it was the only time we really got silent because it was so moving to hear how important you are to the workers there so congratulations. You're welcome, thank you very much. I don't want to speak too long. People know I like I'm a preacher so I won't talk too long but I was very humble and honored by the nomination and thank Chris Rowan for that I do truly appreciate that and thank you very much. Thank you so much. Next I'm going to call on William Johnson to recognize several employees who have received recent awards. William, I hope the skinny podium helps. Good afternoon. We wanted to recognize we've over the last couple of months received a number of awards so just bear with us. We won't be long-winded but there's just a lot going on in TPW. I want to start out by recognizing Shweto Rao. She's the recipient of the 2022 Young Engineer of the Year Award for Fort Worth by awarded by the Fort Worth Chapter of the Texas Society of Professional Engineers. The award was issued on the 25th of February. She's this award is presented to individuals who establish and exhibit outstanding contributions to public welfare and advancing the professionalism of the profession of engineering. Shweto began working with the City of Fort Worth in 2018. She received her PMP certification in 2018, her PE in 2019 and she's currently working as a project and program manager in her capital delivery division under Lauren Priers division, managing multiple projects, intersection improvements, signal improvements, etc. So Lauren. So Shweto is someone I often describe as I will be gladly working for one day. She is exceptional and hardworking in everything she does and is certainly deserving of this award. So congratulations Shweto. Congratulations. All right. Greg, you want to come up, Henry? Henry Cannon. I mean, I'm sorry. Cannon Henry is an engineering manager. Engineering manager, the consultant. Is there any rep from half? No. Okay. The City of Fort Worth storm drain rehabilitation program was a gold medal winner of the 2022 ASEC Engineering Excellence Award. The award is going to be presented on the 28th of March. The gold medal winner in the study was a gold medal winner in the studies, research, consulting, engineering, service category based on uniqueness, originality, technical value to the engineering profession, complexity and how the project met the needs of the city. Greg? Yeah. And so Cannon's work is just critical to helping us strategically optimize the use of our resources to one of our highest priority needs, which is to rehab all the old pipe around town and prevent some of these sinkholes, which can be a great hazards to the community. So Cannon, as our asset manager, did a tremendous job at that. He's handed down the San Antonio at the end of the month for an event to actually accept the physical award, but we wanted to recognize him here today with other people. So congratulations. Tiana. Are they here? Yes, they're here. Tiana Thompson, Larry, Riones, Robert Lipton, Phillip Sosa and Randy Gill. The TPW stormwater also won the APWA 2022 in-house project of the year award for the Schwartz Avenue restoration project. Great. So Schwartz Avenue was a channel up on the north side near Meacham with some severe erosion issues, threatening a city sewer line and some private property. And so the work they did armored that, mitigating that risk and preventing that from happening in the future. And again, the TPWA recognized that with one of their in-house projects of the year. So join us in congratulating this crew. All right. And finally, Jerry Bill, Elsie Kegler and George Snowden. Are they here? Come on up. TPW stormwater streets division, I mean, streets division won the APWA Transportation 2022 in-house project of the year award for the 6.6 lane mile street reclamation project. So the in-house street reclamation crew, again, is really critical to our ability to respond quickly and responsibly to a lot of needs that don't necessarily meet the bond program. So this crew did a great job in completing all that. And again, last month at the TPWA annual conference down in College Station, we're recognized with an in-house project of the year award. So please join me in congratulating the great work. Thank you everybody. It's nice to recognize all the work out there. Next up are informal reports. And the first informal report is on the December 2021 sales tax and Mark McVoy is available if there are any questions. The next informal report is on the 2021 International Building Code adoption. And Alison Gray is available if there are any questions. All right. The third informal report is on developer funding. David, I think Leonard has a question. Sorry. Yeah, just a quick question. Is there? I am obviously not Alison Gray. I'm Evan Roberts. Alison couldn't be here today. Okay. Is there a summary of that report anywhere? And what kind of impact will it have on our local construction? So the summary of the report, the Building Code over the last year, we've been meeting with stakeholders going through. So there is a there are recordings and everything. The summary is the culmination of the amendments which are available. The cost impact on it, it's hard to know right now with every there's so many variables involved with the construction industry right now, sort of supply shortages, inflation, everything else going on. So a cost impact. It's not I don't expect it to be significant. Maybe I can help you out here. I was at the DAC meeting last week or the week before there was a PowerPoint presentation given by Alison that probably it might be helpful for council members to see as part of that answer your questions. But the DAC has been supportive of these changes as part of that. Great. Yeah, thanks. All right. The next info report is on developer funding agreement with Walsh Ranch Limited Partnership for a regional drainage study and master drainage plan. And Greg Simmons is available for any questions. The next info report is on emergency closure for food services and Brandon Bennett is available if there are any questions. I think council member Moon was the one to raise that one. All right. The next info report is on the municipal court judicial reappointment and compensation recommendation. And Judge Danny Rogers is available if there are any questions. I don't have any questions. But I think if Judge Rodger would give a one minute synopsis on the record for the public, that'd be helpful. He's coming. Okay. I missed it. I'm an inside joke inside joke. Good afternoon, Mayor Council. Thank you for the opportunity. Our judges are appointed for two year terms that begin on April 1st and even numbered years and end March 31st two years later. I made a presentation to the Legislative Committee last week. And there was a motion made and seconded and unanimously voted on to reappoint all of our current municipal court full time judges to two year terms beginning April 1st of this year and ending March 31st of 2024. Also voted in regard to compensation to increase the chief judge of salary 4% this this year and then 4% for the next year for the other judges 8% this year and 4% next year. Is that succinct enough? That's perfect for me. Thank you very much, Judge. Okay. Thank you all. Great job, Judge. The next info report is on the proposed council initiated zoning changes for properties located along Canyon Creek Trail in Timberview Court. That's in Council District 4 and Daniel Yale is available 30 questions. Alright, move it on. The next informal report is revisions to the floodplain provisions ordinance and Claire Davis is available if there are any questions. We're rolling and the last informal report is on hotel occupancy tax collection. Is it relates to short term rentals? I do think John Samford is available 30 questions. They'll have plenty of help. Yeah, John, before we take questions, if you don't mind, why don't you summarize what your IR says that we've all read and let council sort of react to that. I think there's a lot of interest from the community on this topic. And that was over here. And that was going to be what my request was, you know, again, I've gotten a lot of calls on other council members have as well on this particular topic. So I think it's, you know, a good idea to get it out there so the public can hear what those discussions are. Absolutely. John Samford City Treasurer. So this IR really kind of is kind of an update from the IR you saw back in December of 2021. Really this IR is more focused on the hotel occupancy tax collection piece related to short term rentals, which currently we receive hotel occupancy tax from short term rentals on a voluntary kind of a voluntary remittance basis, which are very small handful about 20 or so, and represents a real small percentage of the overall hotel occupancy tax revenue. So really, the hotel occupancy tax code chapter 32 article two really doesn't define an STR under the hotel definition, but the definition is broad enough to where STR should apply. So basically, what we're proposing to do is kind of a phased approach here. So the first step in our phase approach would be to bring in an outside data mining firm to come in and help us identify these STRs. That's part of our problem right now in our challenges, knowing who should be remitting. And so with that data, the appropriate city departments that would be code enforcement, planning development services and finance will be able to take that data and use it to actually formulate proposed regulations on these STRs. So it's really kind of a phased approach in the first steps going to be getting the data. Dana, if you have anything to add, go ahead. Thank you. And thanks to finance for spearheading this IR for us. So the first step is really getting the data on where the short term rental locations are. What's the frequency of bookings? You know, we expect some folks do it occasionally. Some may do it regularly. What's the nature of the operating characteristics? Are they owner occupied homes or or rental occupied investor owned? And then also what's the what are the locations or their particular areas of the city? Code compliance has been also working heavily on this because they are the ones who respond to complaints that come in. It requires a lot of inspections for them to investigate short term rental complaints. It's very difficult to know what's happening within a home, right, or within an apartment unit. And so one of the things that we'll be talking about in a future phase is whether it makes sense to have a third party company help us with registration so that not just to collect the hotel occupancy tax, but to have a registration program so that we have a 24 hour contact. Perhaps we look at liability insurance or other other things that just make it a good operation for everyone who might be affected by it. And then the bigger picture question that will come before council is whether or not we need to address any of our policies related to where short term rental is allowed or not allowed or under maybe a conditional use permit or other special conditions. And so some of that again will relate to the nature of the use, the frequency of the use and other things that we hope to to gather from this data mining effort. Thank you, Dana. Council questions for Dana or John. Dana, I have a question for you. As part of that, give me an idea of the timeline going forward. I don't know if we know yet how long it will take the data mining company to do their work, because if we're going to go into a policy discussion about land use, that will take time because that will involve stakeholder engagement, property owners, residents, other neighborhood organizations, and the like who will want to be part of that conversation. And so we'll rely on direction from council about how we approach that and lay that out. But I think with regard to hotel occupancy tax collection and also just registration, those are fairly basic activities that I would think we could be working on in the next, say, six months or so. Thank you. Leonard. Yeah, thanks, Mayor. Thank you all for the work on this. Very much appreciated. I know by a number of neighborhoods in District 7 that have been impacted by the bad side of the short term rentals. So thank you very much. I guess my question is if we're going to address the taxes and the SDRs in general, do we need to change the ordinance? Because it just seems like it's out of step if you are doing something in violation of the ordinance of the city, but then we're going back to you, acknowledging that and trying to collect occupancy tax. Is that that just seems, did I miss something? No, no, no, I think you're spot on. And I think one of the reasons of needing to get the data is to know what's in front of us. At the same time, what you just described, it there are areas where it is legal to have a short term rental. And so if you have a legally operating short term rental, they ought to be remitting hotel motels right now. And so it'll give us data on two fronts, right? Data that might suggest that the zoning doesn't exist to allow the short term rental and the data to identify where they legally exist and we need to collect revenue. But it's simply going to get us information data to respond to at that point. Yeah, yeah, agreed. And I'll just mention, I apologize, in our communications to property owners, if we get to the point of moving into registration, we'll be to advise them on what their options are, right? So property owners can apply for a zoning change now if they want to. If short term rental is going to be the primary use of that structure, they should apply for a zoning change potentially if they're not allowed, if you know their zoning doesn't allow that and we'll communicate with them about those options are. But again, in addition to that council may want to direct us to make other policy changes that we can talk about. So let's go count council does maybe want to direct you to some policy changes. I think it's my opinion that registration is probably the first step that we take in this. I think we'll work out the software and the reporting piece of that as a as a city. But I know I get calls about them all the time. And if we have them registered and I know we've talked about other types of of rental or home structures that that I think we should be keeping track of. It helps us regulate them in a way that is responsive to the neighbors when you do have a you know a negligent host or you know rowdy rowdy guests in a way that will help give some sort of redress to our neighbors and our neighborhoods when when they're disrupted by it. And so knowing where they are is the first step. Yeah, we agree that the registration will also particularly help code compliance. And it should there should be a fee associated with that registration to help us recoup the cost of regulating this. Yeah. Well part of what you're bringing out back to us say what other cities are doing is sort of a landscape of what what's happening in other cities. Yes. Okay. Yes. And I'll say this that I think whatever we do and I agree there's probably a policy change that has to happen as part of this. We get calls all the time. I've got TCU area etc. But there's a balance that we have to find and that's what hopefully we'll do with that balance the property rights owners that want to rent these out of short term rentals. But the other side the neighborhoods that are going to be affected and what that looks like and that will we will continue if there are nuisances of these properties that we will address that and we have will have the ability to really address it by maybe pulling license or registration as part of that. Yeah. Yeah. Carlos. Thank you Mayor. Another thing to Dana. There are a lot of people right now thinking about doing short term rentals and don't give a second thought where it doesn't occur to them. We have an ordinance that specifies where they're going to be. In fact over the weekend I talked to a gentleman who called and asked me if he needed to what he needed to do as far as certain things were and I informed him of the ordinance completely unaware. Can staff do in the meantime some sort of information campaign what we're doing right now to look at the current policy and also a reminder what the current policy says otherwise our problem is going to continue to compound. Sure. Just a friendly suggestion. Any other questions council. Thank you all very much. Appreciate you. Mayor that concludes my report. Excellent. So our next item on the agenda usually there's not much here but I'll ask it anyway. It's pertaining to any action items that are on next month's next week's agenda March 8th anything that we need to bring up now. No. Next is questions regarding significant zoning cases for the March 8th council meeting. Go ahead Michael. Yeah I have a question Daniel. I think is he. Yeah. Make his way up. This is on ZC 21 172. This is actually in Council District 4 but Kerry's not here. I just have a question. This is 100 to 500 Beach Street. I talked with the developer yesterday about this and they made a comment that at one point this was they had staff approval for it or you know staff recommended approval and then at some point it changed to denial and that's then it went to zoning. Can you speak to that at all? I just want to check the veracity of that statement and maybe what happened. Yes. Well zoning processes take some time. Sure. Sometimes it's continued by the zoning commission a couple of times. So there was an initial staff report that recommended approval based on some policies such as the economic development plan and existing zoning surrounding the area which is primarily industrial. However it was brought to our attention some other plans like the Gateway Park Master Plan which does not affect this property but is in close proximity of it and also the open space program which identifies the area in a very big way but that whole area as a priority area. So out of percussion given the police expectations the staff recommendation now is for denial. So two other points I want to make. One is the comprehensive plan Future Land Use designation is residential and so there was a significant deviation from the comprehensive plan and I think Daniel's team was able to talk with Eric Flattiger who's our assistant director in planning and data analytics about some of the background of why the residential Future Land Use designation was placed there to support Gateway Park. The other piece that we didn't I don't think Daniel's team knew at the time and I learned since the fall was Tarrant Regional Water District purchased a very large tract adjacent to Gateway Park which is again one of the high priority open space acquisition areas to support you know open space and the Trinity Revision Project and so knowing that that property which is zoned industrial is not going to be developed as industrial was also an important factor that changed since that zoning case started. Is that correct? Yes, correct. Thanks, thanks for that insight. So just to finalize everything as the current zoning so all what is the change in the staff report that's is to stay or leave things as they are as those other programs may develop. So the safest option was to keep the zoning intact until other priorities are taking place. Okay, I think that property is B2. Yeah, it is B2, two thirds of it is B2 although the southern one is industrial already which was also one reason for the initial recommendation for a program. Okay, thank you for the explanation. Thank you. Any other questions? I don't think so. Thank you. Looks like we're moving next to our presentation on fiscal year 21 annual comprehensive financial report. What did you say? Page one flip the caffer. Sorry, that's right. New name. Old habits die hard. Actually the annual comprehensive financial report. Good afternoon and happy morning, girl. I'm a new Alenian today. We're here to present the FY 2021 annual financial report. But we'll try to highlight pull out some of the highlights from the document. Today's agenda will go through the purpose of the financial report, some accomplishments. We'll touch on a few highlights. And then we'll get into a little more detail on some of the fund performance from some of the major funds within the organization and do some other highlights of pension and reserve compliance. And then of course, the audit results earlier today during the audit committee, the external auditor BKD presented the final audit for 21. And during that meeting, there was a discussion of the various audit results and findings. As you know, the annual financial report is a required document. Every government agency is required to produce the report based on the various accounting requirements that are established by GASB. This document incorporates the annual financial results for the fiscal year. And as you know, all government agencies are required to engage an independent auditor on an annual basis. The actual reports are used by many users throughout the country. Mayor and council obviously the citizens of the city bond rating agencies, granting authorities and of course investors. The major accomplishment with this year's audit is that the auditors have rendered an unmodified opinion, clean opinion on the financials. This is the highest level of assurance expressed by by an independent review conducted by BKD. There were no material weaknesses identified, and therefore the city continues as a low risk auditee. The actual financial report was completed in 148 days, well within the state requirement of 180 days. Couple of accomplishments. The financial report itself has received the certificate of achievement for excellence for 11 consecutive years. We're reporting on the fiscal 20 here in this presentation, but we expect the same award to be provided to the current years annual financial report. The city has previously received the GFOA's Distinguished Budget Presentation Award, as well as the General Treasurer's Organization of Texas Investment Policy Certification Award. I'll just go through a couple of highlights. On a gap basis and we'll review gap versus budgetary basis. Within the general fund, our fund balance is up by 36.6 million. It was previously reported that the balance was up by 46.8 million for the general fund only. This particular document for the general fund incorporates the gas endowment activities, as well as various gap basis adjustments. The increase in fund balance is primarily related to property and sales taxes that where we exceeded the budget. And on the expenditure side, we were well within the budgeted, the original budgeted amounts. And some of that was influenced by the receipt of the CARES allocation. Within the crime control and prevention district, fund balance is up 21 million. And that's primarily due to the additional sales taxes received during the year, as well as expenditures well under the budget. Water and sewer had a net increase, net position increase of 181 million. Within the water and sewer fund, the financial statements are prepared based on a gap basis, which incorporates several non-cash adjustments. So within this 181 million, approximately 127 million was account was due to revenue from capital contributions primarily from developers for either cash or non-cash and the receipt of impact fees. On the operating revenue side, there the funds revenues were up as well. Approximately 20 million due to service increases in service revenues. And again, the fund managed its budget and was well within the original budgeted amounts. Overall, the report prepares data based on a gap basis, which in accounting jargon, it's when revenues are recorded as they are earned and measurable, expenditures are recorded when they are matched against those revenues that help to generate. On a budgetary basis, revenues are recorded when the cash is actually received and expenditures are recorded or basically when payments are made. The key difference is the timing of revenue and expense recognition and that's the major distinction between gap and budgetary basis. On a fund performance basis we'll first review governmental funds. Within the general fund, we ended the year at approximately 240.4 million in fund balance, of which 164 million approximately is in the unassigned category. This fund itself that's presented incorporates as I indicated previously, the endowment fund gas leases, which aren't necessarily reported through the planning and data analytics reports that are provided to council and we'll do a crosswalk between budgetary basis and these gap statements. Overall for the general fund, revenues were up as I indicated and expenditures were well within the budget. We had a contribution to the fund balance of the 30.4 million on a combined basis. So this slide basically provides the crosswalk from the budgetary basis to gap basis, which the financial statements are prepared on. And the first column is the data that was presented to council maybe a month ago relative within the year in financial report and that document was prepared on a budgetary basis. And the next two columns provide the various adjustments that are made within the accounting regimen to get to the gap basis schedules. Just of note, the amounts reflected under the assigned fund balance or or allocations to be approved by council, I believe the balance of the 22.6 million will be approved at the next council meeting within the debt service fund, healthy fund balance a year in of 47 approximately million. The fund balance decreased slightly due to the early retirement of debt obligations that were outstanding within the CCPD budget has indicated an excellent performance as well. Ending fund balance of approximately 50 million. And again, that balance was influenced by sales tax collections as well as control of expenditures. Culture and Tourism, the year ended with the fund balance of 27 million. That's an increase of approximately 1.5 million. And really the messaging here within culture and tourism is that the revenues are continuing to rebound, but still are yet slightly below pre covid levels. Enterprise funds, the major fund within the enterprise group is water and sewer. Water and sewer ended the year with a change in net position of approximately 100, 181 million. And that increases primarily influenced by non cash developer payments as well as non cash developer assets as well as some other developer related cash additions. Stormwater ended the year with approximately 113 million in the fund balance, an increase of the 5.6 million. Again, related to capital contributions from developers as well as the efficient management of the budget. Solid Waste, another positive story for fiscal 21 ended the year with an additional 4.1 million in the fund balance and within the net position. That's a dramatic improvement over fiscal 20. And that's the result of prudent management of the activities within the fund as the fund implemented some revenue enhancements to strengthen the solid waste fund future financial stability on an entity wide basis. The city ended fiscal 2021 with a value of approximately 3.9 billion. On a cash basis, the city actively manages a portfolio of approximately 2.5 billion. This is an excellent credit story for the city government. That balance was influenced some due to debt issuances during fiscal 21 as well as the city manages its capital asset portfolio of approximately 6.9 billion. On the debt side, at year in the city has an outstanding debt obligation of 2.2 billion, of which 1.1 billion is related to governmental activities that are managed internally with the remaining debt the responsibility of water water and sewer and storm water primarily. Pension and other employment benefits is the next section. There was a slight increase in the unfunded pension liability for fiscal 21. That increase is influenced by a number of factors that go into the calculation of the actuarial report. But we'll we'll touch on a few matters within the pension area. Overall, the pension funding guidelines are issued through the Texas Pension Review Board with a target funding period of anywhere from 10 to 25 years with a maximum 30 years. At the time of the various pension reforms in 2019, the pension fund had a 7.75 investment rate of return. Those pension reforms which were initiated by council and administration assumed a 7.5 percent investment rate of return. That reduced the funding period from an infinite period to 29 years, which is which was at that point in time well within the 30 year horizon. Subsequent to those changes that we initiated locally, the pension fund adopted a slightly lower investment rate of return of 7 percent. And that in essence increased the funding period to 42 years, which obviously sits outside of the 30 year maximum that is the standard. As I indicated previously, there was a hundred million increase in the unfunded liability from 20 to fiscal 21. And that was the result of several minor fluctuations in the actuarial calculated liability. And there will be a more detailed presentation provided to council at a future work session. We will plan to bring in the city's actuarial consultants to provide a little more history on where the fund has been over the last three to four years, but still pension probably remains as an area that we'll continue to have to pay attention to. Can you go back to the previous slide, Margie? So total pension liability unfunded is that two point three five nine. Yes. Yes. And it increased slightly. Yeah. Did you have a question, Michael, that your way and went up? OK, thank you. Other post employment benefits. This is basically retiree health care. And as you know, the pension the health care system is a closed health care operation employees that were hired prior to two thousand nine or are included within the city's health care benefit. Those employees that were hired after two thousand nine aren't eligible for retiree health care. At the end of fiscal twenty one. We ended the year with the liability of approximately slightly less than a billion. We currently have assets and trust of approximately ninety five million. The health care benefits are operated on a pay-as-you-go basis. The resources necessary to pay employee health care, retiree health care is budgeted within the various funding sources. City, the city's general fund, sewer and sewer and water and the other funds within the organization. But we still have an unfunded liability within that area and we're projecting that this program would be self-sufficient in twenty sixty one, twenty sixty two. So it's several years away from being fully funded within the operation. But the positive thing is that the health care is funded on an annual basis on a pay-as-you-go basis. Reserve compliance. Within the general fund, we are actually ending have ended the year with an unassigned balance of one hundred and fifty nine point nine million that represents nineteen point two two percent as a comparison to the current year's budget. That is a slight increase from fiscal twenty's reserve percentage of eighteen point four seven percent. The next slide provides a historical view of the undesignated fund balance and has depicted the balance has increased substantially since fiscal sixteen, actually. Our overall goal is to reach the twenty five percent or three months of expenditures for the unassigned balance. The review of other governmental funds and within the Culture and Tourism Fund, we have two areas that are currently out of compliance. And as I indicated previously, Culture and Tourism Fund is slowly starting to rebound from the pandemic. And so we are expecting that these two operations for Project Financing Zone and the venue tax will within the next year or two be within compliance of the policy. That service funds are well within the current reserve requirement within the Enterprise Fund Reserve category. We are continuing to be out of compliance within the municipal parking operation. And again, though that funds revenue was impacted dramatically with COVID and we're expecting we currently have a plan in place to bring that this program into compliance during fiscal twenty two. Can you elaborate? Yes, we we're actually have worked with that operation and they have and they have initiated a funding plan. We in addition, we have come up with three million from the debt service fund to fund that operations debt service. In fiscal twenty two to assist with that recovery. The solid waste. There's still one category that the fund is slightly out of out of compliance, but we're expecting that to reverse itself within the next two years. And now I'll turn it over to Tony Russo, who will review the audit results. All right. So this is just a reminder that the city received an unmodified, which is a clean opinion, which is the highest level of assurance expressed by the auditors. And there are no material weaknesses were identified. Therefore, the city remains a low risk oddity, which just means the auditors have to review less programs. So material weakness is a deficiency in internal control such that there is a reasonable possibility that a material misstatement exists in the final financial statements and won't be detected in a timely manner. A significant deficiency is a deficiency in internal control that is less severe than a material weakness, but the auditors believe it needs to be brought to governance attention. So this is just just background as a reminder, said he has six point nine billion dollars in assets. We have approximately two hundred. We spend approximately two hundred and thirty two million in grant expenditures and have to deal with forty one federal and state agencies. This year, we actually had five the audit findings this year. We had five significant deficiencies, which can be categorized as two were minor corrections of errors in the past that the city identified and brought to the auditor's attention. And then we fix them this year. One is a repeat finding that was just due to the timing of the audit. We fixed it during last year's audit, but because it still showed up in this year, it's an automatic finding. And one was a one was a one was a process improvement due to we didn't have documentation and we weren't reviewing a report before it was submitted. However, no issues were were found in the reports. And the other one, one was actually an error in that accounting made, which we'll discuss again in further detail to find it. So the first two, these are the ones where the we made corrections to prior period adjustment to prior period. So the first one has to do with capital assets. When we implemented the capital asset system, the amount added to the sub ledger didn't equally mount in the general ledger. So over time, we've made corrections. And then this year, we finalized those corrections and it became a correction of a prior period amount. And then one, we over recorded a asset, a bridge, and then that was corrected at the same time. The net effect was 10.2 million dollars on the six million dollar balance. And we also corrected during the year, the city implemented GASB 84 fiduciary fiduciary activities. And part of that implementation, we looked at the way we were recording Rock Creek Pid. It's not that the debt for the Rock Creek Pid is not that of the city. However, we had been reporting it in the general debt service fund. So we've actually moved it out into what's called a custodial fund. Because all we do is essentially receive the money and pay the bill. We have no obligation to pay that debt. The third one is where we, that's the accounting error where we recorded the match incorrectly of $500,000. So it essentially resulted in us under reporting amounts on the schedule of expenditures for state awards. So we've put procedures in place where we're checking that. And there's also some system, issues, some system enhancements that we can put in place to help that going forward. The fourth one is where we couldn't provide proof that we were reviewing the report before it was submitted. Now we'll put process in place to review and make sure that's documented. And the fifth one was what's called a repeat finding just because it was found last year, fixed during last year's audit, but due to timing it's still persisted during this fiscal year and it's been corrected. And then the city also has, as part of the audit, we also have the auditors review certain other things like compliance with budget, investment compliance with Public Funds Investment Act, certain TCEQ compliance, and then the water system insurance and water access revenue compliance to make sure that they're in compliant with the master, water master ordinance. There were no issues, no errors found in that, no findings. That's it. Questions, council? Go ahead, Leonard. We did have a audit committee meeting this morning. I just comment that the auditors presented the information and I think it's their first year doing so. And I think fair to say everyone was impressed and thought they did a very good job. So, good choice. Thank you. Anything, no? I'll just say I'm looking forward to the pension. When we do that, because I know it was a cause of lots of consternation a couple of years ago and I don't want us to get back in that same situation at least. Sure, actually, absolutely. Thank you. David, any other thoughts on that? I'm good. Excellent. Well, that can't be it, but it is. But future agenda items or reports, council? No. Crickets. Okay, with that, we're gonna adjourn our work session and then reconvene based on what legal tells me we can do for the special call meeting on redistricting. Can we come right back in or do we have to wait? Come right back in. Let's take a few minutes to break in bathroom and start redistricting. Thank you.