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[CALL TO ORDER]

[00:00:03]

WE'LL CALL THE MEETING TO ORDER THIS EVENING.

WOULD YOU PLEASE RISE AND JOIN US IN THE PLEDGE OF ALLEGIANCE? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

JENNIFER, WOULD YOU CALL ROLL, PLEASE? THANK YOU, MAYOR.

OUR FIRST ITEM IS THE APPROVAL OF THE JULY 18TH COUNCIL MINUTES.

[APPROVE MINUTES]

MOTION BY COURTNEY. SECOND BY JULIE.

ALL IN FAVOR? AYE.

ANY OPPOSED? MINUTES ARE APPROVED, MODIFICATIONS THIS EVENING? NONE THIS EVENING. THANK YOU.

[CONSENT AGENDA]

NEXT ITEM IS OUR CONSENT AGENDA, WHICH ARE ITEMS ONE THROUGH NINE.

ALL MATTERS LISTED WITHIN THE CONSENT AGENDA HAVE BEEN DISTRIBUTED TO EACH MEMBER OF THE GOVERNING BODY FOR REVIEW ARE CONSIDERED TO BE ROUTINE AND WILL BE ACTED ON BY ONE MOTION WITH NO SEPARATE DISCUSSION.

IF A MEMBER OF THE BODY OR THE AUDIENCE DESIRES SEPARATE DISCUSSION ON AN ITEM, THAT ITEM MAY BE REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA ITEMS ONE THROUGH NINE. MOVE FOR APPROVAL.

SECOND. MOTION BY DAN.

SECOND BY JOE. ALL IN FAVOR.

AYE. CONSENT AGENDA IS APPROVED.

I'M GONNA TURN MY PAGE FAST ENOUGH.

WE HAVE NO NEW BUSINESS.

ANY COUNCIL MEMBER REPORTS.

[COUNCILMEMBER REPORTS]

I'LL JUST NOTE THAT IT'S A SPECIAL DAY FOR THE ONE MEMBER ON THE COUNCIL HERE WHO TURNED A MAGIC 68.

SO YOU KNOW WHICH ONE IT IS NOW.

HAPPY BIRTHDAY TO TOM.

HE'S GETTING OUT JUST IN TIME HERE, RIGHT BEFORE WE HAVE TO CELEBRATE THE BIG ONE.

STAFF REPORTS.

[STAFF REPORTS]

I KNOW WE HAVE FINANCIAL REPORT.

ANYTHING ELSE TONIGHT, BECKY? JUST A COUPLE OF QUICK THINGS.

WHILE NATE IS MAKING HIS WAY UP TO PULL UP THE FINANCIAL REPORT.

UM, JUST A REMINDER THAT TODD SENT YOU ALL AN EMAIL ABOUT A ROLLING RIBBON CUTTING FOR FRIDAY FOR A NEW TRANSIT ROUTE THAT IS BEING STARTED.

AND IF YOU'RE INTERESTED IN PARTICIPATING IN THAT, REFER BACK TO TODD'S EMAIL FOR THE DETAILS AND OPTIONS.

BUT IT'S AT 87TH AND SCARBOROUGH AT ABOUT NOON ON FRIDAY.

AND THEN AFTER NATE IS FINISHED, MAYOR, I THINK YOU WANTED TO TALK ABOUT CITY HALL SELFIE DAY AND AND POTENTIALLY GETTING THE COUNCIL TOGETHER.

SO WE'LL DO THAT WHEN NATE IS DONE.

GOOD EVENING, MAYOR AND COUNCIL.

NATE BLUOM WITH THE FINANCE DEPARTMENT.

AND I HAVE THE SECOND QUARTER FINANCIAL REPORT FOR YOU TONIGHT.

AND I PROMISE I WILL BE BRIEF.

JUST FOR THOSE THAT ARE LISTENING, THIS REPORT IS UNAUDITED, PRESENTED ON A CASH BASIS.

WE HAVE FIVE KEY INDICATOR AREAS THAT WE LOOK AT, AND WE HAVE A RATING SCALE THAT IS COLOR CODED THROUGHOUT THE PRESENTATION.

IN TOTAL, OUR REVENUES HAVE INCREASED $5.1 MILLION OR 7% OVER LAST YEAR AT THIS TIME.

IN ADDITION, EXPENDITURES FOR OPERATING ACTIVITIES ARE WITHIN BUDGET FOR FISCAL YEAR 23.

ALL GREEN ON OUR REVENUE INDICATORS.

YOU'LL NOTICE WE ARE TRACKING SLIGHTLY BEHIND ON FRANCHISE TAX ELECTRIC.

WE HAVE BUDGETED FOR A 3% INCREASE.

IT'S ABOUT 2% SO FAR THIS YEAR.

ALTHOUGH IF YOU'RE LIKE ME AND RUNNING YOUR AC UNIT REALLY HARD DURING THE LAST COUPLE OF WEEKS IN THE HEAT, WE MAY CATCH UP BY NEXT QUARTER.

THE OTHER THING YOU MIGHT NOTICE.

SALES AND USE TAX.

WE HAVE BEEN SEEING 15 TO 20% INCREASES THE LAST TWO YEARS COMING BACK DOWN TO EARTH A LITTLE BIT WITH THE 7%, WHICH IS STILL REALLY STRONG FOR FISCAL YEAR 23. EXPENDITURE INDICATORS GENERAL FUND UP SLIGHTLY, BUT STILL WELL WITHIN BUDGET.

AT THE BOTTOM THERE, YOU'LL NOTICE DEBT SERVICE EXPENDITURES INCREASED 19%.

WE HAVEN'T ISSUED THAT MUCH DEBT THE LAST COUPLE OF YEARS.

HOWEVER, IN 2021 WE HAD TWO BOND ISSUES.

ONE OF THEM WAS LATER IN THE YEAR, WHICH CAUSED THE MARCH 22 INTEREST PAYMENT TO BE RATHER SMALL.

AND THEN THIS YEAR WE'VE REALIZED THAT FULL PAYMENT.

SO THAT'S WHY THERE'S A 19% INCREASE THERE.

RESERVE POLICY INDICATORS.

AS YOU CAN SEE, ALL GREEN GENERAL FUND DEBT SERVICE FUND DOING REALLY WELL.

THOSE WILL BE SPENT DOWN MORE TOWARDS OUR TAX POLICY FOR BOTH THOSE FUNDS.

I WILL MENTION STORMWATER FUND WE ARE CASH FINANCING A LOT OF OUR CAPITAL PROJECTS IN THAT FUND.

SO RESERVES ARE SLIGHTLY HIGHER IN ANTICIPATION OF THAT.

SAME WITH REC CENTER FUND.

WE HAVE BEEN BUILDING THOSE UP SLIGHTLY IN ANTICIPATION OF SOME MAINTENANCE IN THE NEXT 4 TO 5 YEARS.

[00:05:06]

DEBT MANAGEMENT INDICATORS DOING REALLY WELL AGAIN GREEN.

WE WILL BE ISSUING $14.2 MILLION APPROXIMATELY IN GO BONDS LATER THIS MONTH.

IT SHOULDN'T HAVE TOO MUCH OF AN IMPACT ON THESE RATIOS, SO I EXPECT THEM TO REMAIN GREEN.

NATE, I WAS THINKING ABOUT A SLIDE BEFORE.

COULD YOU GO BACK ONE SLIDE, PLEASE? I'M SORRY. ONE MORE.

SO YOU TALKED ABOUT THE REC CENTER FUND BEING WE'RE PREPARING FOR SOME CAPITAL, I ASSUME, OUTLAYS IN THE FUTURE.

MY QUESTION THERE WOULD BE, IS IT TYPICAL TO KEEP THAT IN A RESERVE ACCOUNT OR IS IT MORE LIKELY YOU PUT THAT INTO A SUB ACCOUNT WHERE IT'S TRACKED SEPARATELY FOR THE FUTURE? DOES THAT MAKE SENSE, WHAT I'M SAYING? I MEAN, I UNDERSTAND THE RESERVE IS AVAILABLE, BUT I JUST WONDER IF WE WOULD OBLIGATE IT TO SOMETHING ELSE.

THERE ARE SOME FACILITIES MAINTENANCE FUNDING THAT COULD GO TO CERTAIN PROJECTS AT THE REC CENTER.

THERE ARE SOME OTHER BUCKETS OF MONEY.

WE HAVE BEEN BUILDING THIS ONE UP FOR THE PROJECTS THAT MAY NOT MEET LIKE A COMPLETE CAPITAL NEED, LIKE IN THE CIP OR SOMETHING LIKE THAT, BUT ARE STILL LARGER AND EXPENDITURE FLOORING, MAYBE AC UNIT, THAT TYPE OF THING.

SO I GUESS THE CRUX OF IT IS, YOU KNOW, IF SOMEONE'S LOOKING AT THIS, ONE OF OUR CITIZENS, THEY'LL SAY, WOW, YOU KNOW, AND ESPECIALLY IF IT EXPECTS TO GROW.

SO I JUST DIDN'T KNOW IF THERE IS AN AVENUE TO TO PUT IT IN A I CAN'T REMEMBER WHAT NOT OBLIGATED FUND BUT BASICALLY, YOU KNOW, TO SIGN IT.

PARDON ME. SPECIAL RESERVE.

THANK YOU. YEAH. JUST SO THAT THAT THE REVENUE OR I'M SORRY THAT THE RESERVE DOESN'T SEEM SO HIGH AND WE CAN HELP EXPLAIN IT THAT WAY.

YEAH, WE CAN DEFINITELY LOOK INTO THAT.

I'D BE INTERESTED IN OTHER THOUGHTS AS WELL, BUT THAT JUST STRUCK ME, YOU KNOW, IF THAT'S GOING TO BE GOING ON FOR A WHILE, I THINK THAT COULD BE BENEFICIAL.

SO A READ OF THE FINANCIALS UNDERSTANDS THE TRUE STATE, NOT THE FACT THAT WE HAVE 103% OF OUR REVENUES IN IN RESERVE.

TOM. YEAH NATE I'D LIKE TO JUST JUMP TO THE ONE BELOW THE TOURISM AND CONVENTION FUND AT 297%.

SO WE GOT A LITTLE BIT OF MONEY IN THAT PILE.

I DON'T THINK THERE'S A LOT OF MONEY, BUT IT JUST SOUNDS LIKE A BIG PERCENTAGE.

BUT MY QUESTION IS THIS HOW DO WE HAVE THAT MONEY THERE? WHAT SORT OF EXPENSES ARE WE LOOKING TO USE THAT MONEY FOR OR HOW CAN THAT MONEY BE USED? I KNOW WE'VE USED IT IN THE PAST ON CERTAIN PROJECTS, BUT I WAS JUST TRYING TO SAY HOW IS IT EVER GOING TO GET DISPERSED OR WHAT ARE WE LOOKING FOR ? SO WE CAN USE IT ON A SPECIFIC TOURISM TYPE EXPENDITURES.

AS I MENTIONED IN THE PARAGRAPH AT THE BOTTOM THERE, WE'VE HAD A LOT OF HOTELS COME TO THE CITY, SO THAT'S WHY THE EXPENDITURES ARE RAPID OR SORRY, THE FUND BALANCE IS RAPIDLY INCREASED. WE ARE LOOKING AT WAYS TO SPEND THAT, INCLUDING IN SOME UPCOMING PROJECTS.

SO YOU'LL PROBABLY SEE THAT GO DOWN IN THE NEAR FUTURE.

SO LEGLER BARN, PUBLIC MARKET AND CONVENTION CENTER ALL QUALIFY FOR LEGITIMATE REQUESTS FOR THAT FUNDING? YES. AND WE ALSO HAVE DEBT SERVICE COMING OUT OF THAT FUND AS WELL.

ALL RIGHT. THANK YOU.

AND THAT DEBT SERVICE LASTS TILL ABOUT 2035.

AND COUNCIL MEMBER NOLTE, THAT'S WHERE WE PAY THE ECONOMIC DEVELOPMENT COUNCIL.

THE LEDC AND CVB FUNDS COME OUT OF THERE AS WELL.

ALL RIGHT. THANK YOU, JOE.

APPRECIATE THE COMMENT.

AND I DON'T KNOW WHY I'M SO LOUD TONIGHT, BUT IT SOUNDS LIKE I'M IN AN ECHO CHAMBER TO ME.

I THINK THIS IS THE MOST TRANSPARENT WAY WE CAN DO IT.

THAT'S LEGITIMATE MONEY REGARDLESS OF WHERE WE PIGEONHOLE IT OR TRY TO HIDE IT FROM A RESERVE NUMBER.

I KNOW THAT'S NOT YOUR INTENT, BUT PROBABLY WHAT THE DISCONNECT IS WHILE THAT'S A GREAT BIG NUMBER HERE, THERE'S NOTHING ON THIS SAME SLIDE THAT GIVES THE EXPLANATIONS THAT WE'RE GOING TO YOU KNOW, WE GOT BOND PAYMENTS DUE.

IF WE LOOK BACK AT 1231, THAT DEBT SERVICE FUND ISN'T GOING TO BE SO OVERSTATED BECAUSE WE'RE GOING TO MAKE A BIG PAYMENT HERE.

STORMWATER FUND, THE CAPITAL COMMENT IS RELEVANT AND OUR INTENTION WITH OUR PLAN THERE IS TO SPEND THAT DOWN OVER THE NEXT FEW YEARS AS WE INCREASE.

I MEAN, WE'RE KIND OF OUT OF THE REAL STORMWATER ISSUES WE'RE IN PIPE MAINTENANCE THAT'S THERE FOR THAT REASON.

THE REC CENTER FUND, I MEAN, WE JUST NEED TO EXPLAIN THAT IT'S PAYING FOR ITSELF.

WE'RE REQUIRING IT TO PAY FOR ITSELF AFTER THE INITIAL CAPITAL.

BUT MAINTENANCE, JUST LIKE THOMPSON AND EVERYTHING, WILL BE CHARGED TO THAT.

AND WE HAVE TO REFRESH THOMPSON BAR EVERY FEW YEARS.

WE HAVE TO REFRESH THE EQUIPMENT AND WHATNOT.

I DON'T THINK WE SHOULD BURY IT SOMEWHERE.

I THINK WE JUST NEED TO SOMEHOW GET THAT EXPLANATION, WHICH IS LATER IN YOUR SLIDES CONNECTED TO THIS SLIDE.

SO IT'S AN OBVIOUS FOOTNOTE OR SOMETHING THAT HAS THE EXPLANATION RIGHT HERE WHERE IF THE PUBLIC LOOKED AT THIS RIGHT NOW, OH MY GOD, THOSE ARE HUGE NUMBERS.

[00:10:03]

IF THEY DON'T READ THE NEXT PAGE OR TWO, WHICH HAS THE WRITTEN DETAILS, THEY'RE NOT GOING TO KNOW.

AND I THINK WE JUST HAVE TO DO A BETTER JOB OF TYING THAT INTO THE PRESENTATION AS OPPOSED TO CHANGING CHANGING ACCOUNTING.

YEAH, THAT WOULD BE THE OBJECTIVE IS TRANSPARENCY.

SO I THINK THAT'S PERFECTLY FINE.

THANK YOU. [INAUDIBLE] GET THAT ONE SLIDE BUT IF NOTHING ELSE.

WE'LL FIND A WAY TO INCORPORATE THAT GOING FORWARD.

THAT'S GOOD FEEDBACK. OUR INVESTMENT INDICATORS.

I LEFT THEM GREEN.

WE ARE TRENDING BEHIND BOTH BENCHMARKS AS FAR AS THE LONG TERM AND SHORT TERM YIELD.

THAT IS DUE TO THE RAPID INCREASE IN INTEREST RATES OVER THE LAST YEAR.

AS SOON AS WE INVEST INCREASE IN INTEREST RATES, WHICH INCREASES THE BENCHMARK.

SO WE'RE KIND OF PLAYING CATCH UP A LITTLE BIT UNTIL INTEREST RATES KIND OF LEVEL OFF A LITTLE BIT AND THEN WE'LL BE AT OR ABOVE THAT BENCHMARK GOING FORWARD.

HONESTLY, I WAS SURPRISED WE WERE DOING AS WELL AS WE WERE AS FAST AS THEY WENT UP.

IT MEANS WE DID A RELATIVELY SHORT DURATION, ESPECIALLY ON THE THE SHORT TERM.

I'M A LITTLE SURPRISED THAT THE LONG TERM IS AS CLOSE AS IT IS JUST BECAUSE OF THE THE THE SPIKE.

YEAH. YOU INVESTED IN PRIOR YEARS LONGER.

YOU INVESTED THE HIGHER INTEREST RATE YOU GET INVERTED.

SO THE SHORTER YOU INVEST, THE HIGHER THE INTEREST RATE YOU GET.

SO WE'VE HAD TO ADJUST OUR INVESTMENT STRATEGY RECENTLY.

AND THEN I'LL JUST POINT OUT THE $3.8 MILLION UNREALIZED LOSSES TO THE CITY.

THAT BASICALLY IS JUST A PAPER LOSS.

THAT'S ASSUMING WE SOLD ALL OF OUR INVESTMENTS TODAY PRIOR TO MATURITY, WHICH WE TYPICALLY HOLD ALL INVESTMENTS TO MATURITY AND SHOULD NOT REALIZE THOSE THOSE LOSSES THERE. THE ONE YELLOW BOX ON THIS PRESENTATION.

SINGLE FAMILY BUILDING, RESIDENTIAL BUILDING PERMITS.

FIRST QUARTER WAS TRACKING WAY BEHIND, HAS CAUGHT UP QUITE A BIT IN THE SECOND QUARTER STILL BEHIND.

BUT IF IT CONTINUES THIS TREND, WE WILL BE BACK TO GREEN AND CATCHING UP TO OUR LAST FIVE YEAR AVERAGE OF $44.4 MILLION.

I'M CURIOUS.

THE APARTMENTS, THE FACT WE'VE ISSUED NO PERMITS DIDN'T MEAN IN MY MIND $37 MILLION IN HOUSING VERSUS $44 IS JUST PART OF THE WORLD RIGHT NOW.

AND AS LONG AS ASHLEY KEEPS DOING THE GOOD JOB SHE HAS IN THE COMMERCIAL, OUR TOTAL IS WHAT MATTERS.

IF WE HAVE ANY ISSUED ANY APARTMENTS, THAT'S A RED FLAG.

IF YOU'RE JUDGING IT BY THE SAME STANDARDS YOU ARE WITH SINGLE FAMILY.

I DON'T KNOW. I DON'T KNOW THAT EITHER ONE NEEDS TO BE GREEN OR YELLOW.

JUST WE EXPLAIN IT. BUT WE'VE GOT I KNOW ONE PROPERTY GETTING READY TO PULL PERMITS HERE ANY MINUTE NOW.

THE FIELD WORK IS DONE.

SO THAT'LL FLIP THAT PRETTY FAST TO A BIG NUMBER.

YEAH. SO THAT THAT'S ONE REASON IS GREEN IS THE FACT THAT THERE IS SOME IN THE PIPELINE.

IN TOTAL, OUR BUILDING PERMIT REVENUE HAS INCREASED $120,000 COMPARED TO THIS TIME LAST YEAR.

SO EVEN WITH THE LAGGING BEHIND IN RESIDENTIAL AND APARTMENTS, WE'RE STILL DOING VERY WELL FROM PERMIT REVENUE.

THAT'S ALL I HAD, UNLESS THERE'S FURTHER QUESTIONS.

I JUST HAD ONE ON THE CLAIMS REPORT.

OUR VIDEO SYSTEM WAS $70,000.

I THINK IT SHOWED.

AND I DON'T WANT TO SPIN THROUGH ALL THE PAGES, BUT IF YOU CAN GET TO THAT, I DON'T REMEMBER IT BEING THAT BIG OF A NUMBER.

IT'S ABOUT 24-25.

THAT'S THE ANNUAL IS 20 SOMETHING AS OPPOSED TO BUT. OKAY.

OKAY, GREAT.

THANK YOU. THANKS, NATE.

BECKY MENTIONED WE HAVE A REQUEST FROM MID-AMERICA REGIONAL COUNCIL TO PARTICIPATE IN THE ANNUAL CITY HALL SELFIE DAY.

AND WE HAD TALKED ABOUT GETTING ALL OF US TOGETHER.

IT'S THE 15TH, IF I REMEMBER RIGHT OF AUGUST.

WE DON'T HAVE A MEETING THE TUESDAY BEFORE.

SO I WANT TO DO A COUPLE OF THINGS EITHER.

UNFORTUNATELY, BILL IS NOT HERE, BUT WE GOT EIGHT OUT OF NINE, WHICH IS PROBABLY AS GOOD AS WE'RE EVER GOING TO GET.

IF EVERYONE WOULD JUST TAKE A FEW MINUTES, WE'LL RUN OUT AND DO ONE.

ANYBODY IN THE AUDIENCE THAT WANTS TO JOIN US, PLEASE COME ALONG.

I DON'T THINK WE HAVE ANY EXECUTIVE SESSIONS OR ANYTHING.

I ALSO THOUGHT BECAUSE WE'RE DOING THE TRANSIT STOP AND WHAT'S THE TIM? TIM? TIM SHEBOP OR WHATEVER DOWN IN THE PUBLIC MARKET RIBBON CUTTING BETWEEN NOW AND THEN.

[00:15:02]

IF YOU COME, THEN WE CAN.

CAROL WOULD LIKE TO BE IN IT AS A MARKET REPRESENTATIVE.

THEY'RE TRYING TO PUT SOMEONE IN.

SO I THOUGHT, YOU KNOW, GOVERNING BODY GROUP TONIGHT WITHOUT CAROL WE CAN EITHER PHOTOSHOP HER IN OR WE CAN DO ANOTHER ONE THAT SHE CAN USE FOR MARK'S PHOTO.

AND WE CAN HAVE OUR OWN WITH ALL OF US AND STAFF MEMBERS, HOWEVER WE WANT TO WORK THAT.

SO IF NOBODY HAS TO RUN REAL FAST, IT'LL TAKE FIVE MINUTES.

OR YOU CAN OR YOU CAN NOT BE ON THE WEBSITE COME NOVEMBER.

OKAY, DENISE WILL TAKE IT.

THEN I NEED A MOTION TO ADJOURN.

MOTION BY THOMAS. SECOND, YOU HAVEN'T DONE BUSINESS FROM THE FLOOR, MAYOR.

I'M SORRY. THIS WILL END OUR RECORDED SESSION.

* This transcript was compiled from uncorrected Closed Captioning.