 This is again this is the operation side last week. We had capital since capital went first because capital's what really drives our operating piece So mr. Cook I'm looking everybody's leaving. This is the exciting part of the meeting Finance is fine, right? Mayor as you mentioned last week we covered the capital budget side and The property tax rate or the recommended property tax rate for fiscal year 2017 today We'll talk about the operating budgets will focus mostly on the general fund budget because that's where the taxes are collected and spent on the services that I Think people are I won't say most interested in but the his police his fire its parks libraries and so forth The presentation will be a highly summarized Presentation of the recommended budget. I'm gonna ask Jay to hold up the binder and the materials that are all waiting for you in your offices So you can't wait. Yeah, you can So there's a lot of detail that we're prepared to go over as part of the again the fiscal year budget But again today we'll run through on a summarized version of it We talked a little bit a little bit about this last week We had the retreat back in February and I we identified a number of goals for the upcoming budget You'll recognize some of these the first one was Preparing a budget that did not include a tax increase and then as the Spring and summer continued We also talked about ways that we would present a recommended budget with a property tax rate Property tax rate decrease and we'll talk a little bit about that Increasing funding for cash fund to capital you heard about that last week Again funding our operations and priorities and mainly The implementation of the 2014 bond program and operating the facilities that we're building as part of that program Transparency has been a big push and again preparing a budget without using any reserves So here's the total operating budget for the city. It's about 1.6 billion dollars And the way we think about it is this is a big business. It's a 1.6 billion dollar business We run a regional water and wastewater utility three airports a stormwater utility a solid Waste collection and you think about disposal system Invention Center will Rogers Golf courses and Then we have the general fund which provides a lot of the other services that we think about but when we describe The city's budget. It's 1.6 billion dollars and it is really a big business a lot of different enterprises in there Again, we'll spend most of the time on the general fund But as we work through the budget, we're glad to talk about any of the other funds as well Here gives you a breakdown of what the budget looks like in the current year compared to the upcoming fiscal year Just taking the general fund at the top that will grow by a little under 5% From 610 million or 611 million to roughly 639 million You see enterprise funds in there. We'll talk more about those And special revenue funds Breakdown of the general fund. I'm just gonna highlight that the property and sales tax make up about 75% of all revenues and That's primarily where the growth and the revenues come from for the upcoming fiscal year for next fiscal year The increase in property taxes roughly 24 million the increase in sales tax is roughly 4 million and the total budget is going up 29 million So it's predominantly the property and the sales tax This is where we spend it Again, just highlighting that most of the budget goes toward public safety This the public safety piece of this pie includes Municipal court it includes code, but police and fire just those two departments make up approximately 366 million of that amount just a moment on this slide since we've had a number of I won't say conversations there's been a lot of numbers in the newspaper the top line is The total assess value so if you read in the newspaper that the total assess value went up 12% That's accurate the number from 16 to 17 top line is a 12% growth That's not what we're able to use when we build a budget. So now we're to the second line That's the adjusted net taxable value That number from 49.6 to 54.5 is just under a 10% growth All right, but that number also includes Revenues that go to TIF districts It doesn't come to the general fund So the bottom line number is the money that we get to spend from property tax revenue That number is growing less than six percent and One of the reasons it doesn't follow the other trend lines is because we're recommending the decrease in The property tax rate by two cents Okay We talked about this last week just as a reminder. Here's the breakdown of the current property tax rate I'll have you focus on the overall 85.5 The amount for capital here the page you go 4.75 is Changing we dropped the overall tax rate by two cents. We're increasing the amount that goes to the page you go cash side So that requires a decrease in the other two components You've seen the slide last week. This is what's changing For what's for operations what's for debt and what is for page you go capital again resulting In a two cent reduction in the property tax rate Again, just hitting some of the goals that we set one is increasing the money to capital We talked about this last week. So I won't dwell on this slide But this is really the money that is shifting to the page you go cash funded capital Our priority in the budget I'm going to start with public safety so when we talk about the Budget that's on the table. It includes the second year of the three-year plan for the sixth patrol division for police It includes Oh, let's see School resource officers for the new schools as well It includes opening the fire station down at spinks airport And it also reflects the general fund Funding firefighters that were previously funded by a safer grant. So the federal grant goes away 10 firefighter positions have to be picked up by the general fund. And so that's reflected in the Recommended operating budget infrastructure and capital maintenance. We've talked about The 2014 bond program Victory Forest Community Center will open in the upcoming fiscal year Uh, the silcox animal facility has had the the expansion There's two veterinarians and a supervisor that was also related to that animal shelter task force recommendations that you received earlier We have new parks opening Chisholm trail park is one of the examples So this is Meeting our commitment of One building The projects that were in the 2014 bond program, but then operating and once they come online Neighborhood improvements we talked about last week. That's a half penny that's in the cash funded part of the page you go and then other priorities in the budget technology and training And making sure we have competitive compensation and benefits and pay for performance Still on the general fund. I talked about the property tax going up 20 Property tax revenue going up 24 million sales tax goes up about 4 million That's really where all the new growth is in the general fund budget Uh, a lot of that is being then shifted to the page you go capital And then we've got public safety new facilities pay for performance and then all other Adjustments in the budget That transparency side This is the second year we worked with stakeholders stakeholders being Essentially chairs vice chairs of the different advisory committees. So they got to participate in the budget process since we started back in march The idea is to get feedback throughout the budget process and to share with them also where we stood along the way Communication with departments has Always been important And then this last part the aligned aligning funding and positions is really the continuation of Making sure that all our funds are self-sustaining Right, so we had some funds that were underwater. We had some funds that were caring Expenditures that could not do that over the long term And so this is the second year of making some changes to as we call it Align the funding and positions for sustainability Also for two years in a row. We're not using any reserves to balance the budget That goes without saying That's the general fund water and sewer fund. I'm just going to touch on some of these other funds briefly Or our enterprise funds first here's the breakdown Water and sewer obviously being the largest But we also have a number of other enterprise funds in there Here's the change year to year For the different enterprise funds You look at all of the changes just a little over three percent on a year-to-year basis Water and sewer The first two bullets up there The revenue requirements for water and wastewater with a lot of effort from the staff in the water fund Below 1.5 for water and essentially 1.1 for the wastewater side There are still costs driving that budget the biggest Is the cost of raw water which we buy from our partners at the trwd And those are some other costs that are in the budget stormwater utility no fee increase We're focusing on a long-term financial plan And again a lot on capital That revenue growth year to year is approximately three percent Solid waste no fee increase And you've heard about the 20-year master plan that's being developed for solid waste Municipal airports We have spanks mechum An alliance And special revenue. Let me jump to What it looks like year to year ccpd we Put on top that's for the crime control and prevention district I'll talk more about that. We have culture and tourism municipal golf red light enforcement environmental protection and Others ccpd Sales tax revenue is estimated at 4 growth just like the general fund It's funding school security officers code blue positions for code blue We're going to plan to conduct For recruiting classes three of which will graduate during fiscal year 2017 Uh, it includes body cams To equip all patrol officers You know that four worth was early into the body cams Or officers and this will fully equip uh patrol and there's Money in there to replace a helicopter And that's where the use of the fund balance comes from is to Do the helicopter culture and tourism Again the operation of the convention center and will rogers When we talked about the capital budget, that's really the What I'd say the big part of the upcoming year is the financing of the arena municipal golf You will remember this used to be considered an enterprise fund but It wasn't an enterprise fund could it because it wasn't self-sustaining Right, so we've now put it in a special revenue fund We contribute about 600 thousand dollars a year to the golf fund To subsidize the operations along the way Big news for the upcoming year is that the new rockwood golf course where will open this fall And so the revenues and expenditures will go back up with the opening of the new golf course red light enforcement This was one of the funds for during the recession. I think we had moved some positions from The general fund to the red light fund. That's not self-sustaining over the long haul So we've started that process of moving positions back to the general fund And again, this is an item. Mr. Jordan that the state has a lot of interest in as well And that might be part of the legislative Uh, one of the legislative issues coming up. Let me briefly Talk about positions The budget all funds Net increase of positions is just over 142 positions most of them in the general fund Most of those related to the fire stations the grant being transferred to the general fund and the Six patrol division those are the ups and downs We are reducing a number Those are on the right side of the column On the left side of the column or the where we're adding the positions I failed to mention so far. There are five being added and planning for workload I think we all know the workload that randall and his staff have Had to deal with with the rebounding economy so just summarizing the budget We're reducing the property tax rate two cents. That's the recommendation It's a priority on the public safety you've heard that with the Items being added both in police and fire More money for capital And part of that capital was for neighborhoods And implementing the 2014 bond program and opening those new facilities And again not using any reserves to balance the budget Here's the schedule moving forward And again staff we're looking forward to working with you on any of the details and any of the funds On the budget This is the schedule so far the first budget work session is scheduled for august 25th We have several requirements to do the ccpd budget So part of that's going to be on august 16th part of that will be on august 25th And again, we'll have as many budget work sessions as we need to work through the budget with the Current plan that will have the budget adopted on september 13th And at the same time we have to have three public hearings On the budget as well during that period of time I want to take this opportunity. There's a lot of work that goes into preparing a budget and let me ask the budget staff to stand up here Good job They're all working over the weekend too right to make sure that this all Got finished and finalized for the day So it's super work So I want to thank that team and really thank all the departments too the department's put in A tremendous amount of effort And again getting the budget to where it is today All the staff looks forward to working with you On addressing any of these issues as we work toward finalizing the budget for fiscal year 2017 But that I'll be glad to answer any questions David, I think it's an excellent budget. I think uh Budget finance are being commended I was here saturday and one of the budget folks was here for a meeting had his kids with him And they were looking at council and looking back here to see where we were it was kind of fun for them to see it But your hard work is much appreciated. We do appreciate I think this is an excellent budget That delivers a two cent reduction not just because it's the right thing to do that We don't take that whole windfall and just spend it But it also continues to make us as we said last week more competitive in the market You saw also today's announcement that our counterparts to the east were dropping their tax rate also Everybody realizes they have to stay there But this budget continues to focus on public safety And our neighborhoods and transparency and still deliver the services that we need While managing to the growth that we're having we were in carry in Dennis's area last night at heritage and talked a little bit about Getting one big force because we're so geographically diverse That we have to pull people in and this will allow us to do that with the sixth division And the library and several other things. So I really think y'all have done a great job on it so Yeah, David you and I visited briefly on two of these issues and I told y'all I was going to bring them up Just for a future discussion number one. We have an aging population and I had asked senior citizens of Of greater turn county had asked for some funding to provide Full-time directors at some of the senior citizen centers I know that in council district two right now. They're sharing a Director between the north side and domino hill senior citizen center I didn't know where that stood and I'd like to see if we could fund that The second issue is more of a public policy issue The t put out their master plan And they had a proposal for at least starting a program in north fort worth And that was going to be the the starting point because as you know We need to have a world-class public transit system And and you and I have briefly discussed what the discussions were on how we help the t fund that at least that first part So when I continue having that discussion the plan that I saw I don't remember the number so don't hold me till it was like three million dollars or so For at least the north for worth area. I know but citywide is a large price tag So I want to have a larger discussion about how we fund public transit And you know even starting with this budget going forward Because I do believe there is some validity the argument that half a cent doesn't get us there So we're going to have to look at how we get there if we want a world-class Public transit system in our cities we continue to grow because right now the t's doing their best, but we're not there yet We've gone to other cities. We've seen excellent mass transit systems and we don't have it there We have a bond program coming up in 20. We really need to be creative. We need to talk to the county and other partners How do we get there? So I want to continue to have that and then we need to have a workshop Let's have a workshop on how we fund mass transit in our city in our county Jengus One of the things and David I sort of alluded to it and you and I've talked about it one on one about And it's not just to talk to our legislature in the future battle that we've got coming But it's to talk to our citizens Who are concerned about the taxes and the property tax rate and that is When you show us the the increased appraisals, you know, we there's a lot of things that go into that You know each year we have more and more more folks that become 65. Yes and each year we bring in new houses and new commercial into the Into the inventory and and you know on paper, you know I could argue that well not just two cents We ought to be reducing it by five cents or eight cents or ten cents. Everybody's going to have a different opinion on that But what we have to have a discussion of it is How you got to to that two cents? Understanding we've got growth that's coming understanding. We've got to pay for that growth Not only in infrastructure But in public safety and you've said the chief has Strategic plan that he's coming forward with and I look forward to hearing that But I think we need to have time set aside For the strategy that you and staff used To say two cents was the right number because you know We Sal's gonna say well, we need to do the transit and there's several of us that support transit But that's not our role. You know, we did away with the seven million dollars That that the t was paying in street use fees that we could argue about so All I'm saying is in your exercise allows We went through the retreat But come back to us and talk about why is two cents the right number Because at the end of the day That's that's been sort of a negative when you're looking at us, but You go back to 2008 2009 when we didn't have the growth rate that that we're experiencing we still had growth and What we have to understand is we're not putting a future tax burden on a future council That we're taking care of the strategy as we grow And we're not just doing it to talk to the taxpayer. We're doing it because it's this right thing to do So I I'd leave some time in the in the budget hearings for us to work through that number with you and know your thought process You and I've talked about it and and I think it's it is the right thing to do but You didn't just pick it out of the air and and we need to understand where that came from and understand Because we're going to talk be talking to the legislature who thinks that We're getting 14 percent increases in in our revenue base. No, we're not and We we have to understand the distinctions of What we're paying for with growth and what we're doing with maintenance and going forward Thank you. Be glad to Sam I'll certainly echo what Sal said about transportation We're not ever going to have a world-class transportation The way we're going about it right now If we're expecting the t to make a profit It ain't gonna happen So we have got to strongly look at what the t is doing Because what they're doing right now is to try and make more efficient Systems that they've got in place But they're not adding any they're just except text right moving the deck chairs around on the titanic would be what it would be But to make it more Uh, particularly focused on things like the north side of town and whatnot where we know there's some interest Uh, so I you know and then from jungles to standpoint, I think we need to validate Two cents, but I also tell you That there's infrastructure that's required in this city And I don't want to see us go make a huge tax reduction And then wind up back where we were when I first came on the council So I think we need to really be weighing The best interest of the citizens because when you talk about a two cent reduction You're not talking about a grand amount of funding from the city standpoint That's one of the things that we probably need to focus on with our citizens is You want things from us We're only about a third of the total tax bill that you're paying Sure, we want to make sure that you're you're getting a fair share and we're utilizing the taxpayer funds correctly But at the same time we want to make sure that we are providing the Infrastructure and the services that our citizens expect and demand When I was tax assessor it used to be interesting when I would speak to groups one of the things that I would do Would polem and say can you name 10 things that your property taxes pay for? And Rarely could anybody get to 10 things that that pays for they would kind of hum and ha and and not quite get there Most people who study it at all can but I think it's council would be who thus to be out working through social media and other ways to Promote to say what we pay for and what sales tax and property taxes together pay for David it might be interesting in this budget workshop To get a comparison back to where we were before the recession when we started cutting Owned the number of employees that we had versus the growth in the city And where we are now because we're pretty much back where we were But yet the city has grown faster than we have at it Which means that we're doing a much better job at delivering those services more efficiently Gina Mayor when you mentioned People not knowing what what they're getting with their tax dollars It brings me back to my conversation before about those signs That we we grew up reading your tax dollars at work I think it's important that people know Exactly what they're getting because they supported our recommendations through the bond issue because before we go back If we don't tell them this is where it came from It's not they're not just going to go online every day and look to see what's going on And so i've seen some more of those signs recently and they're tied to the bond issue of course But you know, I'd really like to stress the point to staff in communicating to realize that not everybody has online And it's the people who drive on the the bad streets with the potholes who need to see that that sign And the other thing i'll i'll mention again sal brought this up The sacred cow that we have is the crime control district the money there The you know that that's the other half set that the team needs It's it's as plain as day We don't have to go do some kind of surgery to find money throughout that budget It's it's that's the other half set and so I think when we have a conversation on transportation Making it world-class we need to be bold enough to put that on the table in that discussion Certainly worth looking at thank you, david. Thank you youngest. Did you have something else? Yeah, just a follow-up comment and let me say I fully support A reduction in the tax rate, okay for to start there And and but what we have to walk through is is a process to ensure that we're strategic and we mentioned the ccpd and looking back With with hindsight What previous councils did and it's not a criticism But if you compare the revenues that were generated by the ccpd And the reduction in the tax rate I think you'll find that The ccpd is about 60 million or a little over And the reduction of going from 97 to 85 Is about 60 million dollars so The in texas you've got to have a balanced budget and we balance ours every year It I think there's a huge misconception that we don't Do that, but we do Well, what a balanced budget means is You either reduce your if you have a surplus Over last year you either spend it or you give it back to the taxpayers So the strategy you have to wrestle with the strategy we have to wrestle with Are the the decisions that we make this year Don't impact the strategy of the growth that the city's on in the future and Let's not just reduce the tax rate To just supplant the ccpd that was done previously But let's do it because it's the right thing to do And I firmly believe it's the right thing to do and we can Find ways There's other ways to pay for transit and it doesn't have to be on our back So I want to commend david and the staff. This is a very good budget I support the city manager's recommendation on the two cent tax rate reduction I just want to have a larger policy discussion on how we fund Public transit mass transit and again my my specific request about senior citizen services But this is a great effort. We're prioritizing all the right things The economy has rebounded. We do have more tax revenue There has been an increase in appraised values people's property taxes are likely not going to go down because there's other taxing entities But you know, and we do have additional tax revenue, but we have a lot of needs We have both the older city older section of the city the needs continued attention as well as the newer parts of the city So I think this is that proverbial balance That the city manager has done that we as policy holders have to look at in the upcoming budget work sessions I want to commend you and your staff for your hard work david and thank you for visiting with us and addressing our concerns Thank you Okay, we'll move on