[ DISCUSSION/DIRECTION/POSSIBLE ACTION] [00:03:14] THIS IS THE VISION, THE DIRECTION OF WHERE WE NEED TO GO AND THE THINGS THAT WE NEED TO DO TO IMPROVE THE QUALITY OF LIFE OF THE RESIDENTS FOR THE TOWN OF MARANA. TODAY YOU'RE GOING TO SEE THROUGHOUT THE BUDGET A NUMBER OF THINGS. WE'RE GOING TO GET TO THIS IN A MINUTE, BUT THERE'S A NUMBER THAT'S GOING TO STAND OUT TO ALL OF US AS WE GO THROUGH THIS. AND IT'S A NUMBER THAT'S GOING TO HIGHLIGHT THE FACT THAT THE INVESTMENTS THAT WE'RE MAKING IN THIS COMMUNITY ARE BECOMING GREATER AND GREATER. SO THIS IDEA OF MAKING SURE THAT WE ARE ATTENDING TO THE NEEDS OF THE COMMUNITY, RAISING THE BAR TO IMPROVE THEIR QUALITY OF LIFE, I THINK YOU'RE GOING TO SEE THAT WITH SOME OF THE ACCOMPLISHMENTS THAT WE'VE ACCOMPLISHED IN THIS LAST YEAR AND THEN WITH THE THINGS THAT WE'RE GOING TO BE DOING GOING FORWARD. SO LET'S KICK THIS OFF WITH SOME OF THE ACCOMPLISHMENTS. ONE BIG MAJOR THING, I THINK, WAS THE TWIN PEAKS. RATTLESNAKE PASS WIDENING OF THAT ROADWAY AND I GO OVER THERE EVERY ONCE IN A WHILE AND THEY DRIVE OVER THE PASS AND I TURN AROUND AND COME BACK OVER AND THEN I I GO BACK OVER IT AND I DRIVE BACK AND FORTH ACROSS IT A NUMBER OF TIMES AND I DO THAT BECAUSE IT'S JUST BEAUTIFUL IT'S REALLY A WONDERFUL AMENITY FOR THE PEOPLE THAT LIVE IN THAT AREA THAT HAVE TO COMMUTE IN THAT AREA THEY HAVE TO GO OUT TO THE HIGH SCHOOL THE PEOPLE IN SAGUARO BLOOM ETC NOT ONLY ONLY JUST FROM BEING ABLE TO DRIVE YOUR CARS THROUGH THAT BEAUTIFUL WIDE ROAD, BUT ALSO TO YOU SEE PEOPLE RIDING THEIR BIKES, PUSHING THEIR STROLLERS, WALKING ALONG THOSE WIDE PATHS. PRETTY SOON THEY'RE GOING TO HAVE A BEAUTIFUL SCULPTURE TO LOOK AT. AND WE'RE PUTTING IT THERE, [00:05:02] A GIANT SNAKE IN HONOR OF, BECAUSE THE VICE MAYOR LOVES RATTLESNAKES. SHE DOESN'T, BUT WE'RE GOING TO DO A GIANT PIECE OF ART THERE, AND THAT'S COMING ON THE HORIZON. WE'RE GETTING READY TO PUT THAT UP THERE AS WELL. SO, YOU KNOW, JUST SOMETHING THAT CERTAINLY HAS ELEVATED THE QUALITY OF LIFE FOR THE PEOPLE IN THAT AREA. YOU WILL NOTICE WE'RE RIGHT IN THE MIDDLE OF THE TANGERINE SQUEEZE, BUT WE HAVE ALREADY ACCOMPLISHED SOME OF THE ELEMENTS OF THAT PROJECT WITH THE OFF-RAMP ON TANGERINE AT I-10, THE WESTBOUND OFF-RAMP. AND WE CONTINUE WITH THE OTHER ON AND OFF-RAMPS, MOVING THE SIGNAL OUT, CREATING WHAT IS GOING TO BE A MUCH SAFER INTERCHANGE FOR OUR COMMUNITY, ONE THAT'S GOING TO GREATLY ENHANCE PEOPLE'S ABILITY. TO MANEUVER THROUGH THAT AREA AND GET WHERE THEY NEED TO GET SAFER AND MORE QUICKLY. SO THAT PROJECT CONTINUES. I THINK PUBLIC WORKS, FAUSTO AND HIS CREW HAVE REALLY DONE AN AMAZING JOB. I THINK WHAT VIC AND HER CREW ARE DOING FROM A COMMUNICATION STANDPOINT TO LET THE PUBLIC KNOW WHAT'S GOING ON, WHAT TO EXPECT, WHEN THE CLOSURES ARE GOING TO BE, I THINK JUST A REAL TIP OF THE CAP TO BOTH OF THOSE DEPARTMENTS AND THE WORK THAT THEY'RE DOING IN THAT AREA. THIS NEXT ONE HAS BEEN TALKED ABOUT FOR A LONG TIME. I'M TALKING DECADES, AND THAT'S THE BARNETT LINEAR PARK. AND YOU TALK ABOUT SOMETHING THAT'S GOING TO TRANSFORM THIS NORTHERN MARANA. I THINK THAT'S GOING TO BE ONE OF THOSE PROJECTS THAT WE'RE GOING TO LOOK BACK ON AND BE JUST UNBELIEVABLY PROUD OF BECAUSE OF THE CONNECTION IT'S GOING TO GIVE PEOPLE IN NORTHERN MARANA, THE CONNECTION TO THE LOOP. THE ABILITY FOR PEOPLE TO COME TO DOWNTOWN MARANA HERE, RIDING THEIR BIKES, WALKING, WITH RECREATION ALONG THE WAY, REALLY IS GOING TO BE AN AMAZING AMENITY. SO WE ARE IN DESIGN ON THAT, AND WE LOOK FORWARD HERE IN THE NEXT YEAR OR SO TO BEGINNING THE ACTUAL PROJECT OF BUILDING THAT AMAZING AMENITY. JIM, WE'VE BEEN INCREDIBLY PROUD OF THAT FOR 25 YEARS NOW. INDEED WE HAVE BEEN. SO I'M REALLY HAPPY TO HEAR THAT WE'RE, YOU KNOW WHAT I MEAN? WE'VE TALKED ABOUT THAT ONE FOR A VERY LONG TIME, SO IT'S NICE TO SEE IT COME TO FRUITION. IT IS, THANK YOU, SIR. ANOTHER ONE THAT'S PROBABLY BEEN MAYBE JUST AS LONG THAT WE'VE BEEN TALKING ABOUT IT, WORKING TOWARD IT, TRYING TO GET OTHER ENTITIES ON BOARD WITH A TOWER OUT AT THE AIRPORT. AND WE HAVE GONE THROUGH A COUPLE OF THE PHASES SO FAR. WE'VE GONE THROUGH THE SITE STUDY, AND WE JUST COMPLETED THE ENVIRONMENTAL STUDY THIS PAST YEAR, AND WE ARE NOW IN DESIGN. SO WE ARE INCHING EVER CLOSER TO AN AIRPORT TOWER, SIGNIFICANT FOR THE TOWN AND FOR THE REGION FROM A NUMBER OF PERSPECTIVES, CERTAINLY FROM A SAFETY PERSPECTIVE WITHOUT QUESTION, BUT ALSO FROM AN ECONOMIC DEVELOPMENT STANDPOINT. FROM A QUALITY OF LIFE STANDPOINT FROM OUR RESIDENTS. THERE'S EVERY SINGLE ONE OF YOU HAVE GOTTEN EMAILS FROM RESIDENTS ABOUT THE AIRPLANES FLYING OVER THEIR HOMES. AND UNFORTUNATELY WE HAVE TO TELL THEM THAT WE DON'T CONTROL THE AIRWAYS. AND, BUT WHEN YOU HAVE AN AIR TRAFFIC CONTROL TOWER, THE FAA WILL CONTROL THE AIRWAYS. AND SO THEY'LL BE ABLE TO ADDRESS SOME OF THOSE PROBLEMATIC REPEAT OFFENDERS THAT ARE DISTURBING PEOPLE. 2 IN THE MORNING AND 3 IN THE MORNING AND THINGS OF THAT NATURE. SO AGAIN, IT'S A SIGNIFICANT INVESTMENT FROM THE TOWN AND SOMETHING WE'VE BEEN WORKING ON FOR A LONG TIME. SO TO INCH SO MUCH CLOSER AND TO BE ON THE VERGE OF BEING ABLE TO BEGIN THE CONSTRUCTION OF THAT FACILITY IS CERTAINLY WORTH NOTING. COUNCIL APPROVED, THIS IS A BIG ONE, COUNCIL APPROVED THE DOWNTOWN MARANA DEVELOPMENT AGREEMENT. AND, YOU KNOW, CERTAINLY THIS IS ANOTHER ONE THAT THE TOWN HAS TALKED ABOUT FOR DECADES, WANTING TO HAVE A TRUE DOWNTOWN AND A PLACE, A GATHERING SPACE FOR PEOPLE IN THIS COMMUNITY. AND ALTHOUGH, YOU KNOW, WE'RE CERTAINLY IN A POSITION RIGHT NOW WHERE WE'RE TAKING IT THROUGH THE COURTS, YOU KNOW, WE HOPE TO HAVE SOME ANSWERS ON THAT AND BE ABLE TO MOVE FORWARD. BUT IT WAS NO SMALL... ACCOMPLISHMENT TO GET THAT ACROSS THE FINISH LINE AND I'LL TAKE A MOMENT TO ONCE AGAIN TOOT THE HORN FOR JANE FARRELL BECAUSE I KNOW SHE WON'T DO IT HERSELF BUT THE THE AMOUNT OF TIME THAT WAS SPENT ON THAT DEVELOPMENT AGREEMENT WORKING THROUGH MAKING SURE THAT IT MET ALL THE REQUIREMENTS THAT WE [00:10:01] COULD EXPECT IN THE SCRUTINY THAT WE COULD EXPECT. YOU KNOW, I JUST CAN'T SAY ENOUGH ABOUT WHAT SHE DID WITH THAT AGREEMENT AND THE COUNCIL'S DIRECTION AND TELLING US TO JUST MOVE FORWARD, MOVE FORWARD. AND, AGAIN, WE HOPE TO BE ON THE VERGE OF BEGINNING THAT DOWNTOWN AS WELL. THE NEXT ONE SAYS, THESE NEXT THREE, YES, I'M SORRY. SURE. YOU CAN ALL HEAR ME. SO I WENT THROUGH AND CHECKED THEM ALL. THERE WERE ONLY EIGHT PEOPLE THAT WERE VOLUNTEERS COLLECTING SIGNATURES. THE REST OF THEM WERE ALL PAID SIGNATURE GATHERERS FOR THOSE 02,600. AND OF THOSE EIGHT, THEY COLLECTED A TOTAL OF 36 SIGNATURES. WELL, YOU KNOW, I DID THAT AND I WAS A LITTLE SURPRISE. BUT SO, WORKER POWER COLLECTED $2,500 AND WHATEVER. YEAH, THERE YOU GO. YEAH, YOU KNOW WHAT I MEAN. IN ANY CASE, I JUST HAD TO SHARE THAT NEWS. POOR ERIC, I CALLED HIM AT THE END OF THE DAY ONE DAY, AND I SAID, OH, MY GOD, I CAN'T HAVE TO TELL SOMEBODY. EIGHT PAGES. ANYWAY, OKAY. YEAH. YOU BET. SO THESE NEXT THREE REALLY KIND OF FOCUS ON THE DIRECTION FROM COUNCIL TO DO EVERYTHING WE CAN TO CONSERVE AND PRESERVE WATER. WE JUST FINISHED TO MAKE SURE, ALSO TO MAKE SURE THAT WE'RE SAFELY DELIVERING CLEAN DRINKING WATER TO OUR COMMUNITY. WE JUST COMPLETED, IT SAYS SUBSTANTIALLY COMPLETED. I'M GOING TO SAY COMPLETED. I THINK IT'S ABOUT AS CLOSE TO COMPLETED AS YOU CAN POSSIBLY GET. SO THE MARANA PARK WELL AND RESERVOIR PROJECT WILL BEGIN ONE OF THE WATER TREATMENT CAMPUSES AT THAT VERY LOCATION AS WELL IN THE VERY NEAR FUTURE. SO AGAIN, A SIGNIFICANT INVESTMENT. A NUMBER OF YEARS AGO, I THINK 2016, THE COUNCIL TOOK AT THE TIME WHAT WAS UNPRECEDENTED ACTION IN DECIDING TO INVEST TOWN RESOURCES, TOWN MONEY, TO THE TUNE OF $16 MILLION TO BUILD TWO WATER TREATMENT CAMPUSES. I'M HERE TO TELL YOU TODAY THAT ONE OF THOSE CAMPUSES NOW WILL COST MORE THAN THAT. THEY'RE IN THE NEIGHBORHOOD OF, I BELIEVE, $20 TO $24 MILLION. I DON'T KNOW IF I HAVE A WATER...IS IT $20? YEAH, $20 TO $24. SO TWO AND A HALF TO THREE TIMES WHAT WE PAID FOR THEM IN 2016. BUT WE HAVE MORE OF THOSE WATER TREATMENT CAMPUSES ON THE HORIZON HERE. THE WATER DEPARTMENT DID AN INCREDIBLE JOB OF PURCHASING AND INSTALLING 03,500 NEW WATER METERS. SIGNIFICANCE OF THAT IS THAT THESE ARE WATER METERS THAT WILL PROVIDE GREATER FLEXIBILITY TO OUR COMMUNITY TO BE ABLE TO MONITOR THE USE OF THEIR WATER, TO BE ABLE TO KNOW WHEN... THEY LEFT A HOSE ON IN THE BACKYARD AND THOSE KINDS OF THINGS TO HELP, AGAIN, TO PRESERVE WATER, AND SO THEY KNOW WHEN THEIR PEAK USAGE IS. SO VERY SIGNIFICANT INVESTMENT THAT THE TOWN MADE, AND A GOOD SHARE OF THAT ACTUALLY CAME THROUGH WIFA LOANS. THAT PARTICULAR GRANT WAS FOR THE METERS. BUT OFF THE TOP OF MY HEAD IT WAS... AND OUR MATCH PORTION, A VERY SMALL PERSON. WE WERE ABLE TO REPLACE ABOUT 10 TIMES THE METERS WE WOULD HAVE IN... AND I BELIEVE IT WAS A COUPLE OF YEARS AGO THAT WE REALIZED THAT A PORTION OF OUR WATER WAS BEING HAULED AWAY TO OTHER JURISDICTIONS. AND SO WE PUT TOGETHER A WATER HAULING POLICY THAT HELPED TO MAKE SURE THAT WATER THAT IS [00:15:01] TAKEN FROM THE WATER TANK WAS BEING HAULED AWAY. HERE IN MARANA IS KEPT HERE IN MARANA, MOST OF THAT FOR CONSTRUCTION PROJECTS. BUT AND THEN OF COURSE FROM A QUALITY OF LIFE STANDPOINT, MAKING SURE THAT OUR RESIDENTS ARE SAFE IS VERY IMPORTANT. IT'S NO SECRET TO ANYONE SITTING ON THIS COUNCIL WE HAVE AN AMAZING POLICE FORCE LED BY OUR POLICE CHIEF JEFF BRIDGET AND THEY DO AN AMAZING JOB. AS A FORMER POLICE CHIEF, REALLY WANTING, DESIRING TO HAVE A BIKE UNIT, I WAS NEVER ABLE TO ACCOMPLISH THAT TASK. WE'RE NEVER ABLE TO QUITE GET THERE, BUT CHIEF BRIDGET WAS ABLE TO ACCOMPLISH THAT THIS LAST YEAR AND PUT THOSE GUYS TO WORK. AND I THINK WITHIN THE FIRST 20 MINUTES, THEY APPREHENDED A SHOPLIFTING IN PROGRESS. SO THEY'RE OUT THERE DOING THEIR THING. I THINK IT'S GOING TO BE SOMETHING THAT REALLY NOT ONLY HELPS FROM A CRIME STANDPOINT BUT I THINK IT'S GOING TO BE A GREAT METHOD FOR CONNECTING WITH THE COMMUNITY IN A WAY THAT WE HAVEN'T BEEN ABLE TO DO IN A LONG TIME. BIKES ARE JUST AN EASY WAY FOR PEOPLE TO RIDE UP ON, TALK WITH, AND INTERACT WITH. SO IN ADDITION TO BEING A GREAT TOOL IN FIGHTING AGAINST CRIME. THIS ONE IS PROBABLY THE CROWN JEWEL. WE COMPLETED THE... THE MARK LAST YEAR, IT CAN'T BE OVERSTATED, I THINK, THE WISDOM, SIMILAR TO WHAT THE COUNCIL DID WITH THE POLICE DEPARTMENT, PASSING A HALF-CENT SALES TAX TO PAY FOR THAT LITERALLY SAVED TAXPAYERS TENS OF MILLIONS OF DOLLARS. SO SAME WAY WITH THE MARK HERE. YOU KNOW, ALTHOUGH THE MARK IS COMPLETE NOW, WE JUST, NEXT WEEK ACTUALLY. I THINK THIS COMING SUNDAY WILL BE ONE FULL YEAR OF OPERATION. AND THE COMMENTS, THE FEEDBACK THAT WE CONTINUE TO GET FROM THE PUBLIC AS A RESULT OF THAT INVESTMENT HAS BEEN NOTHING SHORT OF OUTSTANDING. SO WE CONTINUE TO HAVE PEOPLE TELLING US, WRITING US, CALLING US, INDICATING THAT JUST AN INCREDIBLE INVESTMENT THAT THE TOWN MADE TO IMPROVE THEIR QUALITY OF LIFE. AND THEN THIS ONE, NAMED NUMBER THREE BEST PLACE TO LIVE IN ARIZONA. THERE'S A NUMBER OF DIFFERENT PUBLICATIONS THAT COME OUT AND ANNOUNCE THESE THINGS. ANOTHER ONE THAT PUT US IN THE TOP TEN, I THINK, WAS NUMBER SEVEN FOR SAFEST CITIES. THOSE ARE THINGS, THOSE ARE METRICS THAT, YOU KNOW, THEY PUT TOGETHER. IT'S NOT US SAYING WE'RE THE THIRD BEST PLACE BECAUSE WE THINK WE'RE THE FIRST BEST PLACE. WE'RE NOT RANKING OURSELVES IN THE TOP TEN FOR SAFEST CITIES. THESE ARE METRICS THAT ARE USED BY OTHER ENTITIES THAT PLACE US IN THESE HIGH CATEGORIES, AND THAT'S SOMETHING TO BE EXTREMELY PROUD OF, NOT ONLY FROM THE POLICING STANDPOINT, BUT THERE'S SO MUCH ELSE THAT GOES INTO THAT AS WELL. AND THEN SOME DECISIONS THAT HAVE BEEN MADE BY THE COUNCIL HERE IN THE LAST FEW YEARS, FULLY FUNDING THE POLICE PENSION, THAT'S GOING TO SAVE US ABOUT $1.7-PLUS MILLION A YEAR. SO THAT WAS A BIG DECISION THAT WAS MADE AT LAST YEAR'S RETREAT, I BELIEVE. AND SO THAT'S GOING TO REALLY HELP US GOING FORWARD AS WELL. AND THEN THE PAYOFF OF THE 2014 REFUNDING OBLIGATIONS, THERE'S ANOTHER $650,000 A YEAR. SO WHEN YOU START ADDING THOSE THINGS TOGETHER, JUST SHY OF A COUPLE OF MILLIONS, ABOUT $1.7 OR SO MILLION. THAT THE TOWN IS SAVING AS A RESULT OF THOSE DECISIONS. THE PAYOFF OF THE DEBT RELATED TO THE TANGERINE FARMS IMPROVEMENT DISTRICT, THOSE AREN'T MONIES THAT WERE DIRECTLY COMING OUT OF THE GENERAL FUND, BUT IT IS A BIG ACCOMPLISHMENT, RIGHT? THAT IMPROVEMENT DISTRICT WAS PUT IN PLACE BACK, I BELIEVE, IN THE EARLY 2000S, AND THAT'S FINALLY PAID OFF, SO THERE WE GO. SO WE'RE GOING TO GO OVER COMPLETE BUDGET. THIS GIVES YOU EACH ONE OF THE DIFFERENT FUNDS THAT WE'RE GOING TO BE LOOKING AT. IT'S ALL OF THE FUNDS. AT THIS POINT, I'M GOING TO TURN IT OVER TO YANNI. UNLESS YOU HAVE ANY QUESTIONS FOR ME, I'LL BE BACK UP HERE IN JUST A FEW MINUTES. BUT IF YOU HAVE ANY FURTHER QUESTIONS FOR ME BEFORE I SIT DOWN, I'M HAPPY TO TAKE THEM. ALL RIGHT, YANNI, IT'S ALL YOURS. THANK YOU, SIR. MR. MAYOR, VICE MAYOR, COUNCIL MEMBERS, COUNCIL MEMBER KAI, FOR CLARIFICATION ON THAT LAST QUESTION, WE RECEIVED ABOUT $1.1 MILLION FROM WIFI. [00:20:01] AN ADDITIONAL HALF MILLION FROM ANOTHER GRANT RELATED TO METERS AGAIN. AND FOR THAT OTHER GRANT, WE MATCHED ABOUT $600,000. SO JUST OVER $2 MILLION. AND WE ARE, YES, SIR, WE ARE VERY HAPPY TO HAVE ONE SUCH GREAT GRANT WRITER. SO THANK YOU. SO AS WE HAVE DONE IN THE LAST SEVERAL YEARS, WE ARE HERE TO PRESENT COUNCIL WITH A COMPLETE BUDGET, ALL OF OUR FUNDS, INCLUDING OUR SPECIAL DISTRICTS, FOR THE YEAR. I WILL TRY TO BE AS BRIEF AS I CAN. SOME OF THIS INFORMATION WE HAVE LOOKED AT WHEN WE MET FOR THE RETREAT IN FEBRUARY. WE DIDN'T HAVE VERY MANY CHANGES UP TO THIS BUDGET. I WILL POINT OUT SOME THAT WE DID HAVE. AS FAR AS OUR ECONOMIC OUTLOOK, WE ARE STILL SEEING STABILITY IN OUR REVENUE STREAMS. HOWEVER, WE ARE RECOGNIZING THAT JUST ON A GLOBAL SCALE, THERE ARE SOME GEOPOLITICAL PRESSURES THAT ALSO ARE HAVING AN IMPACT ON US, SPECIFICALLY WHEN IT COMES TO INFLATION, WHEN IT COMES TO CERTAIN COSTS SUCH AS FUEL AND HOW THOSE WILL TRICKLE DOWN TO US IS SOMETHING WE'RE MONITORING, AND WE WILL CONTINUE TO DO SO. BUT FOR NOW, OUR INITIAL FORECAST OF STABILITY IS STILL HOLDING, SO WE'RE VERY LUCKY. AND THIS IS BEING SUPPORTED ALSO BY THE STATE. THE GRAPHIC WE HAVE HERE IS FROM THE LATEST MEETING IN THE LAST COUPLE OF WEEKS FROM THE STATE'S FINANCE ADVISORY COMMITTEE, AND EVEN THEY ARE STILL SHOWING A SLIGHT DECREASE IN WHAT THEY'RE EXPECTING IN REVENUES IN THE FUTURE YEARS, BUT IT IS STILL WITHIN THE PARAMETERS OF THE FORECASTING THAT WE DEVELOPED WHEN WE WERE PUTTING OUR REVENUES TOGETHER. WE ARE STILL SEEING, UNFORTUNATELY, THAT UNEMPLOYMENT IS INCREASING. YOU WILL SEE IN THE NEWS THAT WE HEAR A LOT ABOUT THE IMPACT OF AI, ESPECIALLY ON THE TECH SECTOR. BUT OUR UNEMPLOYMENT RATE AS OF LAST MONTH, AS OF MARCH, IS AT 4.3 PERCENT. SO WE'RE NOT YET AT A POINT WHERE WE WILL SAY THAT WE ARE IN DANGER. SO WE'RE STILL LOOKING AT A HEALTHY RATE AS FAR AS UNEMPLOYMENT IS CONCERNED. THE FED RATE HAS DROPPED A COUPLE OF TIMES OVER THE LAST YEAR OR SO. WE'RE NOW AT 3.5 TO 3.75 PERCENT, BUT WITH EVERYTHING THAT'S HAPPENING, WE DON'T REALLY SEE THAT RATE COMING DOWN AGAIN. THAT WOULD BE, I GUESS, GOOD FOR US AS A GROWING COMMUNITY. THAT RATE HAS A HUGE IMPACT ON MORTGAGE INTEREST RATES, AND IT IS GOOD FOR DEVELOPMENT, IT IS GOOD FOR GROWTH WHEN YOU HAVE A NEW HOUSE THAT'S BEING BUILT. FOR PEOPLE TO BE ABLE TO HAVE AN AFFORDABLE MORTGAGE WHEN THEY BUY THAT HOME. OVERALL NATIONAL INFLATION AS OF MARCH IS HIGHER THAN IT WAS BEFORE. IT'S AT 3.3%, AGAIN, BECAUSE OF THE PRICE INCREASES FOR FUEL AND THE ANTICIPATED KNOCK-ON IMPACT. BUT WE ARE SEEING OUR SALES TAX REMAIN STABLE. SO OUR FORECAST REMAINS THE SAME AS IT WAS BEFORE. BECAUSE OF THAT AND WE ARE STILL SEEING POPULATION INCREASES AND ANTICIPATING THOSE SO WE ARE STILL PLANNING FOR GROWTH HOWEVER IT IS BEING ADJUSTED FOR THE INCORPORATION OF SANTAN VALLEY SO ANYTIME IF YOU RECALL AND YOU'LL SEE THAT IN OUR REVENUE PROJECTIONS WHEN WE GET OUR STATE SHARED REVENUE OUR URBAN REVENUE SHARE FROM THE STATE THAT IS A PRORATED CALCULATION. WE TAKE OUR POPULATION IN RELATION TO EVERYBODY ELSE, AND WE'RE ALL GOING TO GET A SMALLER PIECE OF THE PIE BECAUSE WE'RE ADDING ABOUT 100,000 IN POPULATION TO THAT GRAND TOTAL. THAT'S WHAT HAPPENED WHEN SANTAN VALLEY BECAME A MUNICIPALITY OVERNIGHT. MOVING FORWARD THEN FOR THAT REVENUE OUTLOOK, NOT VERY DIFFERENT FOR SALES TAX IN THE GENERAL FUND. WE ARE PLANNING AN INCREASE HERE AS COMPARED TO THE BUDGET FROM LAST YEAR IT'S ALMOST FIVE PERCENT OR 2.3 MILLION DOLLARS BUT IF YOU LOOK AT WHAT WE HAD IN OUR ACTUAL AMOUNT FOR 25, $48.3 MILLION DOLLARS IF YOU LOOK AT WHAT WE'RE PROJECTING ALMOST THE SAME AMOUNT FOR THE END OF THIS FISCAL YEAR THEN WE'RE LOOKING AT RELATIVELY SMALLER INCREASE FOR THE NEXT FISCAL YEAR TO $48.9 MILLION DOLLARS WE SEE OUR RETAIL STAYING PRETTY STRONG WE DO SEE OUR CONTRACTING SALES TAX COMING DOWN A LITTLE BIT. THIS YEAR WE WORKED PRETTY HARD IN COORDINATION WITH DEVELOPMENT SERVICES AND KUDOS TO THEIR TEAM IN DEVELOPING A NEW MODEL FOR FORECASTING NOT JUST OUR SINGLE FAMILY RESIDENTIAL CONTRACTING SALES TAX BUT ALSO MAKING A VERY GOOD EFFORT [00:25:01] ON THE... SIDE. SO WE'RE VERY EXCITED TO INCORPORATE THE NEW TOOL INTO OUR BUDGETING. AND WE'RE STILL, IN GENERAL, SEEING GROWTH IN OUR MAIN CATEGORIES. SO PRETTY GOOD, PRETTY STABLE FOR OUR SALES TAX REVENUES. ON THE SHARED REVENUES, NOT VERY MUCH OF A CHANGE FROM BEFORE. WE ARE EXPECTING AN INCREASE FROM THIS YEAR INTO NEXT YEAR. I WILL TELL YOU THAT JUST AS WE DEVELOPED THIS PRESENTATION, WE DID GET PRELIMINARY REVENUES FROM THE STATE. SO IN THE NEXT BUDGET, FOR TENTATIVE BUDGET, WE WILL ADJUST THESE REVENUES SLIGHTLY. THEY WILL BE SLIGHTLY LOWER. HOWEVER, BECAUSE OF WHERE WE ARE IN OUR BUDGET, BECAUSE OF THE WAY THAT THE MANAGER'S OFFICE AND DEPARTMENTS WORKED THROUGH THIS BUDGET YEAR, THERE WILL BE NO ADVERSE IMPACT BY US ADJUSTING THOSE REVENUES SLIGHTLY LOWER. AS WE HAVE IN PRIOR YEARS, WE ACTUALLY DID NOT SPEND ALL THE MONEY, ALL THE NEW MONEY WE RECEIVED. SO... HAVING SLIGHTLY LOWER REVENUES BY TENTATIVE BUDGET WILL NOT HAVE ANY IMPACT ON US. MOVING FORWARD, LICENSES, FEES, AND PERMITS. THROUGH THE END OF LAST MONTH, WE HAD 609 PERMITS. WE HAD BUDGETED 786 FOR FISCAL YEAR 26. I CHECKED EARLIER TODAY WITH BRETT AND HIS TEAM, AND THROUGH TODAY, WE HAVE AN ADDITIONAL 97 PERMITS FOR APRIL. SO THAT PUTS US OVER 700 ALREADY. SO WE SHOULD BE ABLE TO, BARRING ANY SURPRISES, HIT BETWEEN 750, I MEAN EXCUSE ME, 850 AT LEAST AND 900 BY THE END OF THIS YEAR. LOOKING AT NEXT YEAR THEN AND LOOKING AT MORE LAND BEING OPEN TO HOME BUILDERS, THAT WAS PART OF OUR CONSTRAINT IN THE CURRENT FISCAL YEAR, WE'RE ACTUALLY BUDGETING FOR 926 SFRS NEXT YEAR. AND THAT'S WHERE YOU'RE SEEING THIS LARGE JUMP OF 22% OR $1.4 MILLION IN THIS CATEGORY. WE'RE HOPING TO SEE AND WE'RE PLANNING TO SEE MORE COMMERCIAL GRADING, MORE ACTIVITY TO OPEN UP COMMERCIAL SPACE, BUT ALSO THESE ADDITIONAL SFRS FROM LAST YEAR. WITH THAT, I WILL NOW TURN IT BACK OVER TO TERRY, AND THEN I WILL COME BACK IN A FEW MINUTES. ALL RIGHT, THIS FIRST SLIDE HERE, I WANT TO SPEND JUST A FEW MINUTES ON THIS BECAUSE YOU MIGHT NOTICE A NUMBER ON THAT SLIDE OF $502.9 MILLION. THIS IS OUR FIRST MANAGER'S RECOMMENDED BUDGET THAT EXCEEDS HALF OF A BILLION DOLLARS. SO PRETTY SIGNIFICANT AND WANTED TO KIND OF SHOW YOU GRAPHICALLY. FIRST OF ALL, I THINK IT'S KIND OF INTERESTING THAT THE MOUNTAIN RANGE IN THE BACK KIND OF FOLLOWS THE GRAPH. BUT I DON'T THINK THAT WAS INTENTIONAL, BUT IT JUST SO HAPPENS THAT THAT'S THE CASE. SO YOU'LL SEE IN THE GREEN COLOR, THAT IS OUR OPERATING BUDGET. AND THAT LINE HAS STAYED PRETTY STEADY, PRETTY LEVEL WITH GRADUAL INCREASES OVER THE YEARS, WHICH IS EXACTLY WHAT WE WOULD WANT TO SEE IF WE'RE BEING... FISCALLY RESPONSIBLE IF WE'RE GROWING AT A PACE TO TRY AND KEEP PACE WITH THE GROWTH OF THE COMMUNITY, MAKING SURE THAT WE HAVE THE APPROPRIATE STAFFING, THE APPROPRIATE EQUIPMENT AND THINGS OF THAT NATURE. WHERE YOU SEE THE BIGGEST CHANGE IN WHAT'S HAPPENED OVER THE LAST SEVERAL YEARS TAKES PLACE IN THAT BLUE AREA. YOU'LL NOTICE BACK IN FISCAL YEAR 2017 AND 18 THAT THERE WAS A KIND OF A HIGHER PEAK THERE AND THEN IT DROPS OFF. I THINK WE ALL KNOW THAT THAT BIG DROP OFF THERE WAS A RESULT OF WHAT HAPPENED WITH COVID. EVERYTHING CAME TO A SCREECHING HALT AND IT DIDN'T REALLY PICK UP UNTIL FISCAL YEAR 2022. AND AT THAT POINT, NOT ONLY DID THE PROJECTS START PICKING UP AGAIN, BUT THE COST OF THOSE PROJECTS WAS EXPONENTIALLY HIGHER. AS I JUST ALLUDED TO EARLIER WITH REGARD, GAVE THE EXAMPLE RELATED TO THE WATER TREATMENT CAMPUSES GOING FROM $8 MILLION TO CLOSE TO $20, $24 MILLION, TWO AND A HALF TO THREE TIMES THE ORIGINAL COST. AND WE'RE SEEING THAT ACROSS THE BOARD WITH ALL OF OUR, IT WAS TRUE FOR THE TWIN PEAKS RATTLESNAKE ROAD WIDENING. IT WAS TRUE FOR THE TANGERINE WIDENING. IT'S TRUE FOR WHAT WE'RE DEALING WITH RIGHT NOW WITH THE TANGERINE INTERCHANGE. SO THOSE LARGE INCREASES FROM 22. UP TO WHERE WE ARE RIGHT NOW, YOU SEE A LITTLE BIT OF DIP LAST YEAR, AND THAT WAS BECAUSE WE COMPLETED THE MARK. [00:30:01] SO THAT'S WHY THAT'S DOWN A LITTLE BIT AND THEN COMING BACK UP AGAIN BECAUSE WE HAVE OTHER MAJOR PROJECTS GOING ON IN THE COMMUNITY TO INCLUDE WASTEWATER, THE CAMPUS OUT THERE, THE RESERVOIR AND THINGS OF THAT NATURE. SO YANNI'S GOING TO TALK ABOUT, KIND OF BREAK THAT DOWN A LITTLE BIT FURTHER HERE IN JUST A MINUTE, SHOWING KIND OF WHERE ALL OF THOSE CAPITAL IMPROVEMENTS ARE HAPPENING. THE VAST MAJORITY OF THAT IS IN WATER AND WASTEWATER. NOT TO THROW WATER AND WASTEWATER UNDER THE BUS HERE, BUT THOSE ARE INVESTMENTS THAT WE HAVE TO MAKE IN THIS COMMUNITY TO ENSURE THAT THEY HAVE SAFE, RELIABLE DRINKING WATER. SO THE WATER TREATMENT CAMPUSES TO TAKE OUT THE PFAS AND THE OTHER CONTAMINANTS, CERTAINLY WE HAVE MULTIPLE. CAMPUSES THAT WE'RE GOING TO HAVE TO DO THERE. THEN WE HAVE THE ADDITION, THE EXPANSION OF THE WASTEWATER TREATMENT PLANT. SO THOSE ARE THINGS THAT ARE LEADING TO THAT. BUT THAT $502.9 MILLION, THAT'S A BIG NUMBER. AND THAT WILL PROBABLY INCREASE BECAUSE OUR TA PASSED, RIGHT? SO WE'LL BE ADDING SOME MONEY TO THAT. IT'S NOT OUR MONEY, BUT IT WILL STILL BE IN OUR BUDGET. AND I THINK YOU'RE GOING TO COME UP AND WALK US THROUGH. SO TERRY, WHEN WE WERE AT THE RETREAT, WE DIDN'T KNOW IF RTA WOULD PASS, AND THANKFULLY IT DID. SO ARE WE GOING TO GO BACK AND VISIT THOSE NUMBERS? REMEMBER WE WERE KIND OF, IF IT PASSES, IT'S GOING TO BE THIS. IF IT DOESN'T, IT'S GOING TO BE THAT. SO WHAT DO THESE NUMBERS REFLECT? IT SOUNDED LIKE... WELL, THESE NUMBERS HERE DON'T YET REFLECT THE... THERE'LL PROBABLY BE ANOTHER, HOW MANY, 30, 40, 50 MILLION? JUST OVER 50 MILLION FOR THE TANGERINE ROAD WIDENING TO BE. OKAY. OKAY. AS A RESULT OF THE PASSING OF THE RTA. EXACTLY. SO THAT'S NOT INCLUDED IN HERE YET. OKAY. SO THAT LINE WILL JUST BE HIGHER THAN WHAT IT IS RIGHT NOW. OKAY, I GUESS THAT WOULD BE IT WITH JUST TRANSPORTATION. SO, OKAY, GREAT. THANK YOU. SO WITH THAT, OVERALL, OUR CAPITAL OUTLAY ENDS UP BEING 69% OF OUR TOTAL BUDGET. AND AS TERRY MENTIONED, SINCE WE'RE GOING TO ADD ANOTHER 50-PLUS MILLION FOR JUST THE RTA FUNDING, WE'RE GOING TO BE CLOSER TO 550 MILLION PLUS. WE'RE STILL WORKING ON REFINING NUMBERS TO BRING YOU FOR THE TENTATIVE BUDGET. THAT'S JUST PART OF OUR NORMAL PROCESS AT THIS STAGE, NOTHING UNUSUAL. THE AMOUNT IS UNUSUAL, BUT WE KNOW THE REASON BEHIND IT. OUR OPERATING THEN COMES IN AT ABOUT $135 MILLION, JUST A LITTLE OVER, AND THE REST OF IT IS DEBT SERVICE, WHICH IS A COMBINATION OF SERVICING OUR DEBT, BUT ALSO MONEY THAT WE WILL USE TO PAY FOR THE COST OF ISSUING NEW DEBT, AND I WILL COVER THAT IN JUST A SECOND. LOOKING AT HOW DO WE PAY FOR ALL OF THIS, WE ARE GETTING A GOOD AMOUNT OF REVENUES BETWEEN SALES TAX, INTERGOVERNMENTAL FUNDING. WE HAVE RTA FUNDING IN HERE. WE STILL CONTINUE TO COLLECT OUR FEES FROM OUR USERS. WE STILL CONTINUE TO COLLECT IMPACT FEES FOR GROWTH, LICENSES, FEES, AND PERMITS. BUT UNFORTUNATELY EVEN WHEN WE PUT IN 60 PLUS MILLION DOLLARS OF ACCUMULATED FUNDS THAT WE HAVE IN OUR BANK, THE AMOUNT FOR THE CONSTRUCTION, AS TERRY POINTED OUT, THE COST OF SOME OF THESE PROJECTS HAS JUST GROWN EXPONENTIALLY. SO WE FIND OURSELVES HAVING TO ISSUE A GOOD AMOUNT OF DEBT FOR SOME OF THESE PROJECTS. AND WHAT WE DID HERE SPECIFICALLY, WE WANTED TO SHOW TO YOU THAT A LOT OF THAT, AS WAS ALREADY MENTIONED, IS RELATED TO WATER RECLAMATION, THAT WATER RECLAMATION PLANT EXPANSION AND RECHARGE BASINS, AND THE WATER FUND, WHICH IS A NUMBER OF PROJECTS, INCLUDING SOME PFAS. NOW, WE ALSO TALKED ABOUT HOW DO WE PAY FOR THESE, AND WE TALKED ABOUT SOME OF THE SETTLEMENT FUNDS WE GET. SO WE ARE GOING TO HAVE ABOUT $2.5 MILLION IN SETTLEMENT MONEY THAT WE WILL HAVE COLLECTED BY THE END OF THIS FISCAL YEAR. SO AS PART OF THIS BUDGET PROCESS, WE ARE PUTTING ALL OF THAT MONEY TOWARDS THE DESIGN OF PFAS. FACILITIES TO MAKE SURE THAT WE'RE MAKING GOOD USE FOR THAT. BUT WE CONTINUE TO UTILIZE TRANSPORTATION FUND MONEY FROM OUR CONSTRUCTION SALES TAX COLLECTIONS, GENERAL FUND WHEN IT'S NEEDED, GRANTS WHEN WE RECEIVE THEM, ALONG WITH IMPACT FEES. [00:35:02] FOR MANY OF THESE PROJECTS. SO THROUGH A COMBINATION OF THOSE THINGS, WE WILL STILL HAVE TO ISSUE SOME DEBT FOR TRANSPORTATION PROJECTS, BUT LESS THAN THE OTHER ONES BECAUSE WE DO HAVE THIS ADDITIONAL REVENUE SOURCE IN THE TRANSPORTATION FUND. AND THIS YEAR WE DO ANTICIPATE HAVING REQUESTS FROM OUR CFDS. SO WE HAVE BUDGETED UP TO $18 MILLION FOR THE COST OF ISSUANCE AND DEBT ISSUANCE FOR THE ACQUISITION OF ELIGIBLE INFRASTRUCTURE. LOOKING AT OUR OPERATING BUDGET, THIS IS SOMETHING THAT IS ALWAYS SOMETHING THAT SHOULD CONCERN US, AND I AM HAPPY TO SAY THAT WE CONTINUE FOR PROBABLY THE BETTER PART OF TWO DECADES NOW TO PROVIDE A STRUCTURALLY BALANCED BUDGET TO COUNCIL. THAT MEANS THAT OUR ONGOING EXPENSES CAN BE COVERED THROUGH OUR ONGOING REVENUES. WE HAVE A VERY GOOD... COUNCIL, MANAGERS OFFICE AND DEPARTMENTS THAT HAVE ACTED IN A CONSERVATIVE, RESPONSIBLE AND DEDICATED MANNER THROUGHOUT THE YEARS. AND THAT REALLY PUTS US IN A VERY GOOD POSITION FINANCIALLY WHEN WE LOOK AT PROVIDING THESE VALUABLE ONGOING SERVICES TO OUR RESIDENTS. WITH THIS BUDGET WE PROVIDED A CONSISTENT BUDGET WITH VERY LOW GROWTH EXPECTATIONS. AND WE CONTINUE TO HAVE $5 MILLION IN CONTINGENCY FUNDING, WHICH, AS ALWAYS, WOULD ONLY BE UTILIZED THROUGH COUNCIL APPROVAL IN A PUBLIC MEETING. A QUICK SUMMARY OF NUMBERS, BECAUSE THIS IS WHERE I PROBABLY BORE EVERYBODY WHO WILL LOOK AT THIS. ANYBODY WHO'S STREAMING NOW IS PROBABLY GOING FOR A BREAK. BUT THE GENERAL FUND IS NOT SHOWING A VERY BIG INCREASE, EVEN THOUGH WE... ARE MAKING ADJUSTMENTS, WE ARE INCREASING SALARIES AND SUCH, AND YOU'LL HEAR MORE DETAILS ABOUT THAT, BECAUSE OF SAVINGS THAT WE HAVE BEEN ABLE TO REALIZE THROUGH THE PAYOFF OF SOME OF THE PSPRS UNFUNDED LIABILITY, BUT ALSO BECAUSE OF THE COMPLETION OF SOME PROJECTS AND PURCHASES THAT WE MADE IN THE CURRENT YEAR, WE'RE ABLE TO NOT SEE A VERY LARGE INCREASE OVERALL IN THE GENERAL FUND FOR EXPENSES. SPECIAL REVENUE FUNDS, VERY SMALL INCREASE HERE. THIS IS WHERE WE SEE OUR BED TAX FUND, FOR INSTANCE, IS PART OF THIS. SOME OF OUR GRANT FUNDING AND OTHER RESOURCES COME OUT OF THIS AREA. MOVING ON TO CAPITAL PROJECTS, AGAIN THIS IS PART OF THE FUNCTION OF THE PROJECTS THAT WE BUILT, PART OF OUR CIP, NOT VERY MUCH CHANGE HERE, BUT WHEN IT COMES TO PROJECTS WHERE WE ARE SEEING THE BIG DIFFERENCE IS GOING TO BE IN THE ENTERPRISE FUNDS. THIS IS NOT NECESSARILY BECAUSE WE HAVE NEW PROJECTS THAT WE DIDN'T KNOW ABOUT. THIS IS BECAUSE OF A COMBINATION OF JUST THE INCREASE IN COSTS FOR THE PROJECT THAT WE WERE ANTICIPATING, BUT ALSO AS WE GO THROUGH DESIGN AND NOW WE KNOW WHAT THESE PROJECTS WILL LIKELY COST US, WE'RE ABLE TO COST THESE PROJECTS BETTER AND NOW PUT THEM ON THE BUDGET AND PRESENT THEM FOR WHAT WE... NO WILL LIKELY BE THE COST AS WE GO INTO CONSTRUCTION IN THIS UPCOMING FISCAL YEAR. AS WE SPEAK, THE RECHARGE BASINS THAT IS PART OF THE WATER RECLAMATION FUND EXPANSION ARE ACTUALLY UNDER CONSTRUCTION AND WE EXPECT WITHIN THE NEXT PROBABLY SIX MONTHS OR SO WE WILL BE UNDER CONSTRUCTION FOR THE PLANT EXPANSION ITSELF. SO THAT IS A PRETTY BIG PROJECT THAT WE WILL BE WORKING ON. LOOKING AT THE DEBT SERVICE FUNDS, YOU NOTICE THAT THERE IS A DECREASE OF ABOUT $1.7 MILLION. TERRY ALREADY COVERED THAT. WE HAD THE PAYOFF OF A COUPLE OF DEBT ISSUANCES, ONE OF THEM BEING ONE OF OUR IMPROVEMENT DISTRICTS. AND OUR INTERNAL SERVICE FUNDS, THESE ARE THE FUNDS THAT WE UTILIZE FOR OUR EMPLOYEES' HEALTH INSURANCE COVERAGE, FOR THE DENTAL VISION, FOR THOSE BENEFITS. TO CLAIM EXPERIENCE WE ARE ANTICIPATING MORE THAN AN 8% INCREASE THERE. AND WE WILL COVER THAT MORE IN A FEW MINUTES. AND FINALLY, THE MAJORITY OF THE INCREASE THAT WE'RE EXPERIENCING WITH THE SPECIAL DISTRICTS HAS TO DO SIMPLY FOR THE ADDITIONAL DEBT AND ACQUISITION OF ELIGIBLE INFRASTRUCTURE DURING THE UPCOMING YEAR. AND YOU WILL NOTICE AS WE GO THROUGH IT IN THE TENTATIVE BUDGET, AND WE GO THROUGH EACH OF THE DISTRICTS, THAT WE HAVE TWO ADDITIONAL DISTRICTS. WE NORMALLY HAD THE THREE. A COUPLE OF DISTRICTS FOR THE GLADDEN DEVELOPMENT, ONE FOR SAHUARO. MANDARINA WAS A NEW DISTRICT LAST YEAR. THIS YEAR WE WILL ALSO BE PRESENTING THE CASCADA CFD. OVERALL, THE RATES, THE TAX RATES FOR THOSE DISTRICTS HAVE NOT CHANGED. [00:40:02] WITH THE ONE EXCEPTION OF THE GLADDEN CFD, THE FIRST ONE, THAT RATE HAS GONE DOWN. SO NOW WE ARE AT ABOUT $1.90 FOR THE DEBT SERVICE PLUS THE $0.30 ADDITIONAL CENTS FOR THE OPERATIONS AND MAINTENANCE. SO I WILL NOW TURN IT BACK TO TERRY. ALL RIGHT, I JUST WANTED TO COVER A LITTLE BIT SOME OF THE INVESTMENTS. AND I SAY INVESTMENTS BECAUSE I THINK THAT'S ONE OF THE AREAS THAT THIS COUNCIL HAS REPEATEDLY ENCOURAGED THE TOWN TO GROW IN, AND THAT IS IN OUR PERSONNEL, WHETHER IT'S TO ENSURE SAFETY OF THE COMMUNITY, TO ENSURE HIGH LEVELS OF SERVICE. AND YOU REALLY KIND OF GET A PICTURE OF THAT WHEN YOU SEE THE NUMBERS OF NEW POSITIONS THAT WE'VE ADDED OVER THE YEARS. I'LL GET TO THAT HERE IN JUST A MINUTE. CERTAINLY HAVING OUTSTANDING EMPLOYEES, BEING ABLE TO RECRUIT THEM AND RETAIN THEM IS VERY IMPORTANT TO US. AND SO THIS IS SOME INFORMATION THAT I'VE SHARED, AT LEAST IN BITS AND PIECES, WITH ALL OF YOU. THE INCREASE FROM A MERIT STANDPOINT THIS YEAR IS ACTUALLY GOING TO BE HIGHER THAN WHAT WE HAVE NORMALLY DONE. AND IT'S GOING TO BE A 6% MERIT-BASED ADJUSTMENT. AND WE DID THAT REALLY BASED ON WHAT WE'RE SEEING IN THE MARKET IN PIMA COUNTY. WE DID LOOK A LITTLE BIT AT WHAT'S HAPPENING IN THE PHOENIX VALLEY AREA. THAT WAS EVEN MUCH MORE THAN WHAT WE'RE SEEING IN PIMA COUNTY. BUT LOOKING AROUND AT OUR COMPETITORS, WE FELT THAT 6% PLACED US IN A REALLY GOOD POSITION TO REMAIN COMPETITIVE. WITH RETAINING THE EMPLOYEES THAT WE HAVE AND MOVING, MAKING A MARKET ADJUSTMENT TO OUR PAY SCALES OF 5% WILL ALSO ENABLE US TO RECRUIT AND RETAIN EMPLOYEES AS WELL. SO IT'S NOT A 6 PLUS A 5, 6% IS THE MERIT, BUT THE MARKET ADJUSTMENTS FOR THE RANGES ARE ALSO GOING TO HAPPEN. SO THAT MEANS SOMEBODY WHO'S TOPPED OUT RIGHT NOW. WON'T BE TOPPED OUT. WELL, THEY'LL BE TOPPED OUT, BUT THEY'LL GET A LARGER RAISE. THEY'LL GET CLOSE TO THE 6%. THEY'LL GET 5%. PENSION RATE CONTRIBUTIONS, THE ASRS PRETTY MUCH STAYS THE SAME. SO THAT HAD NEGLIGIBLE OR NO EFFECT OR IMPACT TO US. AND OF COURSE, BECAUSE OF WHAT WE DID WITH THE PSPRS FUNDING AND PAYING THAT OFF, THAT PROVIDED A LIFT. TO US THIS YEAR TO THE TUNE OF $1.1 MILLION. NOW, YANNI ALLUDED TO THE INCREASES IN OUR HEALTH CARE AND THE PREMIUMS. THAT TOTALS ABOUT $600,000. THE TOWN IS PICKING UP JUST SHY OF $500,000 OF THAT, AND THE EMPLOYEES ARE PICKING UP THE REMAINDER OF THAT. SO WHAT DOES THAT MEAN FOR THE EMPLOYEES? IT DEPENDS. IT DEPENDS ON WHAT PLAN THEY'RE ON. BUT ANYWHERE FROM 8% TO 17% THEY'RE GOING TO SEE. SO, YOU KNOW, ANOTHER REASON WHEN YOU LOOK AT MERIT INCREASES OF 6%, IT HELPS COVER THOSE INCREASES IN HEALTH INSURANCE. NOW, SOME PEOPLE SAY, WELL, WAIT A MINUTE, I'M ONLY GETTING 6%, AND NOW I'M GETTING AN 8% INCREASE IN MY INSURANCE, BUT THAT'S AN 8% INCREASE OF WHAT YOU'RE PAYING. SO IF SOMEBODY'S PAYING... $100 A PAYCHECK, THEY'RE NOW GOING TO PAY $108, DEPENDING ON WHAT PLAN THEY HAVE AND DEPENDING ON WHETHER THEY HAVE A FAMILY PLAN, AN INDIVIDUAL PLAN. ALL OF THOSE THINGS MATTER WHEN WE START TALKING ABOUT THOSE NUMBERS. BUT I THINK THE MESSAGE HERE IS THAT, AND I HEARD THIS REPEATEDLY FROM THE COUNCIL, MAKE SURE WE'RE TAKING CARE OF OUR EMPLOYEES, MAKE SURE WE'RE TAKING CARE OF OUR EMPLOYEES. AND THEY FEEL THAT THESE ADJUSTMENTS... FROM THE MERIT STANDPOINT AND FROM THE MARKET ADJUSTMENTS REALLY HELPS US RETAIN THOSE GREAT EMPLOYEES AND STAY COMPETITIVE IN THE MARKET THAT WE'RE IN. MR. MAYOR, THANK YOU FOR DOING THAT MARKET ADJUSTMENT. YOU KNOW, OVER THE YEARS, I THINK THAT REALLY HELPS A LOT OF PEOPLE. WE'VE BEEN DOING THE CHECK AND EVERYTHING. SO, I MEAN, THE RAISE IS GREAT, BUT DOING THE MARKET ADJUSTMENT SO THEY DON'T HIT THE CEILING IS... MUCH BETTER. SO I'M REALLY HAPPY TO SEE THAT. OUR HR DIRECTOR, CURRY HALE, SAID THAT TYPICALLY IT'S EVERY THREE TO FOUR YEARS THAT YOU LOOK AT MAKING MARKET ADJUSTMENTS, BUT WITH THE WAY THE MARKET'S BEEN MOVING IT'S BEEN MORE LIKE EVERY TWO TO THREE YEARS. [00:45:01] THE LAST TIME WE DID ONE, WE'LL... THREE YEARS THIS JULY, SO I THINK MAKING THE ADJUSTMENT NOW MADE A LOT OF SENSE. ALSO CONSIDERING WHAT OTHER JURISDICTIONS ARE CURRENTLY DOING WITH COMPENSATION STUDIES AND MOVEMENTS AND ADJUSTMENTS TO THEIR PAY AND THEIR PAY SCALES, IT ALL MADE A LOT OF SENSE TO US. SO NEW POSITIONS, YOU KNOW, I MENTIONED THIS EARLIER AND, YOU KNOW, JUST BACK IN 2017. FISCAL YEAR 2017 WE WERE SITTING AT, AND I'M GOING TO HAVE TO PUT MY GLASSES ON, IT'S KIND OF SHAMEFUL, IT'S REALITY, 364 FULL-TIME EMPLOYEE POSITIONS. AND THIS YEAR WE'RE GOING TO BE AT 508. SO WHEN YOU START TALKING ABOUT 130 PLUS NEW EMPLOYEES OVER THE COURSE OF NINE YEARS. THAT'S A SIGNIFICANT INVESTMENT THAT THE TOWN IS MAKING TO ENSURE THAT WHEN WE TALK ABOUT WE HAVE THIS VISION OF CREATING A GREAT QUALITY OF LIFE FOR OUR COMMUNITY. AND WE HAVE A MISSION THAT TELLS US HOW WE GET THERE AND THAT'S PROVIDING FIVE STAR SERVICE. AND YOU KNOW THIS COUNCIL HAS STAYED COMMITTED TO THAT MISSION AND KNOWING THAT YOU CAN'T PROVIDE FIVE STAR SERVICE IF YOU DON'T HAVE THE EMPLOYEES TO BE ABLE TO DO THAT. AND SO STEADILY EACH YEAR WE'VE BEEN ABLE TO ADD THE POSITIONS THAT WE BELIEVE WE NEED. THIS YEAR WE'RE ADDING A TOTAL OF 11.4. THAT'S DOWN FROM WHAT WE'VE HIRED IN THE LAST FEW YEARS, BUT WE HIRED IN THE 20S, IN THE MID-20S FOR THE SEVERAL YEARS BEFORE THAT. SO YOU CAN SEE KIND OF THE POSITIONS THERE. I WON'T GO THROUGH EVERY ONE OF THEM, BUT YOU CAN SEE WHAT EACH OF THOSE POSITIONS ARE. THOSE ARE THE ONES THAT WE'LL BE ADDING HERE IN FISCAL YEAR 27. AS FAR AS RESOURCES AND TOOLS, WE HAVE A NUMBER OF INVESTMENTS THAT WE'RE MAKING THERE, AS USUAL. REPLACEMENT VEHICLES THROUGH OUR VEHICLE REPLACEMENT PROGRAM, AND THEN NEW VEHICLES. MOST OF THOSE ARE ONLY WITH POSITIONS THAT REQUIRE VEHICLES, SUCH AS POLICE OFFICERS. THOSE VEHICLES ARE VERY EXPENSIVE. RIGHT NOW TO TOTALLY EQUIP ONE, I THINK WE'RE RIGHT AROUND $100,000, ROUGHLY. $115,000 TO FULLY EQUIP A POLICE VEHICLE. AND THEN WE HAVE A NUMBER OF PROJECTS THERE, AND I WON'T GO THROUGH EACH AND EVERY ONE OF THEM, BUT EACH ONE OF THOSE ARE IMPORTANT IN TERMS OF THE GROWTH OF THIS COMMUNITY, THE SPACE OPTIMIZATION THAT WE'RE GOING TO BE DOING TO THIS. THE EDHONEY-MORANA MUNICIPAL COMPLEX, IT'S PROBABLY A YEAR OR TWO OVERDUE. WE'RE SQUEEZED INTO SOME OF OUR PLACES, LEGALS HAVING DIFFICULTY FINDING A SEAT FOR ATTORNEYS TO SIT. AND SO RECONFIGURING SOME OF THOSE SPACES IS GOING TO BE VERY IMPORTANT, AND WE'RE GOING TO BEGIN THAT HERE IN THE VERY NEAR FUTURE. TANGERINE SKY PARK, I'LL HIGHLIGHT THAT ONE BECAUSE I THINK IT'S A REALLY IMPORTANT ONE. THIS COMMUNITY TAKES REAL PRIDE IN THE PARKS THAT WE HAVE AND THE STAFF TAKES GREAT PRIDE IN KEEPING THEM CLEAN AND NICE AND BEAUTIFUL AND WELL-TRIMMED TREES AND GRASS AND WE'RE GOING TO BE ADDING A LARGER PARKING LOT OVER THERE AS WELL AS A SPLASH PAD AS WELL AS A SPLASH PAD THERE AT TANGERINE SKY PARK. I THINK THOSE ARE THE TWO MAIN THINGS. WAYNE, IS THERE ANYTHING ELSE THAT WE'RE ADDING THERE TO THAT PART? THOSE ARE THE TWO THINGS THERE. COURTROOM REMODEL. THE COURTS ARE GETTING BUSIER AS THE TOWN IS GROWING. THAT'S JUST THE NATURE OF THE BEAST. AND SO REMODELING ONE OF THE COURTROOMS SO THAT WE CAN HAVE ACTUALLY TWO JURY TRIALS GOING ON AT ONCE IS WHAT WE'RE DOING THERE. AND THEN, COUNCIL MEMBER KAI, YOU'LL BE HAPPY TO SEE THAT WE'RE GOING TO DO MORE WATER. METER REPLACEMENTS THERE AS WELL. SO IT'S SOME OF THE INVESTMENTS FROM A STAFFING STANDPOINT, FROM INVESTMENTS AND PROJECTS AND EQUIPMENT. I DON'T KNOW IF THERE'S ANY QUESTIONS ON ANY OF THOSE ITEMS BEFORE WE GET INTO BUDGET SUMMARIES. ALL RIGHT, SO ONCE IN A WHILE WE DO A QUARTERLY FINANCIAL UPDATE AND WE UPDATE COUNCIL ON SPECIFIC FUNDS AND THESE BUDGET SUMMARIES REALLY COVER MANY OF THOSE SAME FUNDS. SO JUMPING RIGHT IN AND I'LL TRY TO BE BRIEF BUT PLEASE FEEL FREE TO STOP ME OR ASK ANY QUESTIONS. STARTING JUST WITH A GENERAL FUND, [00:50:01] WE ARE SEEING ABOUT A 7%... INCREASE IN OUR PROJECTED REVENUES OVERALL BUT YOU WILL ALSO NOTICE THAT ON THE EXPENSE SIDE WE'RE NOT INCREASING VERY MUCH WE KIND OF COVERED THAT ALREADY A LITTLE BIT ON THE REASONS WE'RE SEEING INCREASES TO PERSONNEL THAT TERRY JUST COVERED A MOMENT AGO BUT NOT VERY MANY INCREASES IN THE OTHER CATEGORIES THE ONE AREA WHERE WE ARE INCREASING SUBSTANTIALLY IS TRANSFERS OUT WHAT WE ARE WHAT THIS REPRESENTS THIS INCREASE FOR THE MOST PART ABOUT $32 MILLION, $33 MILLION OF THAT ALMOST, IS REALLY FUNDING THAT WE ARE TAKING FROM THE GENERAL FUND TO USE FOR ONE-TIME CAPITAL PROJECTS. AND ALL OF THESE CAPITAL PROJECTS ARE PART OF THE CIP PROGRAM THAT WE PRESENTED AND THAT IS INCLUDED IN THIS BUDGET, BUT THIS IS US BASICALLY NOW SHOWING THAT THIS IS HOW WE ARE MAKING USE OF THOSE AVAILABLE FUNDS THAT WE HAVE IN THE GENERAL FUND. AND SOME OF THESE PROJECTS TERRY ALREADY COVERED IN THE PREVIOUS SLIDE. AND THIS IS AN EARLY REPRESENTATION OF WHAT WE ANTICIPATE OUR AVAILABLE REVENUES TO BE AS WE CLOSE OUT THIS FISCAL YEAR AND GO INTO THE END OF NEXT FISCAL YEAR. AND EVEN THOUGH THIS AMOUNT AT $85.5 MILLION CONTINUES TO BE A VERY HEALTHY AMOUNT, PLEASE RECALL THAT SOME OF THIS MONEY WE ALREADY HAVE PROMISED TO USE, BUT ALSO, WE HAVE PROJECTS COMING UP THAT WE ARE NOW WORKING ON DESIGN. PRIMARILY, ONE OF THE BIG ONES IS THE BURNETT CHANNEL. WE ARE IN DESIGN. WE DON'T HAVE YET AN AMOUNT IN OUR BUDGET FOR WHAT THAT WILL COST, AND A GOOD PORTION, I IMAGINE, OF THAT MIGHT LIKELY COME FROM THE GENERAL FUND. SO WE ARE IN A GOOD POSITION RIGHT NOW, AND WE ARE TAKING THE NECESSARY STEPS TO MAKE GOOD USE OF THE FUNDING THAT WE HAVE AVAILABLE TO US. ONE OF THE USES, AND I WANT TO BRING IT UP AGAIN, THAT COUNCIL MADE, IN MY OPINION, A GREAT DECISION TO DO FROM THIS MONEY WAS NOT JUST FOR PROJECTS, BUT IT WAS ALSO THE PSPRS UNFUNDED LIABILITY WHERE OVER THE COURSE OF THREE YEARS, THROUGH A COUPLE OF PAYMENTS, COUNCIL MADE THE DECISION TO PAY DOWN AND PAY OFF AN AMOUNT OF ALMOST $20 MILLION OF THAT LIABILITY THAT ULTIMATELY IS GENERATING GREAT SAVINGS FOR US. ON AN ONGOING BASIS. LOOKING AT THE BED TAX FUND, WE ARE HAPPY TO BE PROJECTING THAT OUR REVENUES CONTINUE TO BE STRONG. WE'VE HAD RECORD REVENUES SINCE AFTER COVID, AND THOSE REVENUES SEEM TO BE PRETTY STABLE. WE'RE PRETTY CLOSE TO ABOUT $1.9 MILLION ANNUALLY RIGHT NOW, SO WE'RE VERY THANKFUL FOR THAT. ON THE EXPENDITURE SIDE, WE CONTINUE TO MAKE USE OF THE MONEY THAT'S AVAILABLE HERE. AS YOU KNOW, WE CONTINUE TO UTILIZE THIS MONEY FOR TOURISM-RELATED PURPOSES AS REQUIRED BY STATUTE. THIS FUND IS RESTRICTED AS TO USE. AND WE CONTINUE TO PUT ABOUT A MILLION DOLLARS OF RESTRICTED FUNDING IN THIS FUND, SPECIFICALLY IN CASE DURING THE YEAR THE TOURISM STAFF IDENTIFIES TOURISM-RELATED OPPORTUNITIES. WE ARE ABLE TO THEN NOT DENY ANOTHER FUND OF THAT FUNDING, BUT WE'RE ABLE TO MAKE USE OF EXISTING FUNDS THAT EXIST IN THE FUND BALANCE HERE FOR THOSE OPPORTUNITIES. HOWEVER, IN ORDER FOR STAFF TO USE THAT FUNDING, IT DOES REQUIRE TOWN MANAGER APPROVAL. SO THERE IS OVERSIGHT AND APPROVAL FOR THOSE OPPORTUNITIES IF THEY COME UP. LOOKING AT HEERF, THE REVENUES HERE TEND TO BE FAIRLY... STABLE OVER THE YEARS. THIS IS ONE AREA WHERE ELECTRIC VEHICLES ARE NOT WORKING TO OUR BENEFIT. AND WE CONTINUE TO SEE YEAR AFTER YEAR THAT OUR NEEDS TO PRESERVE, TO DO MAINTENANCE ON OUR ROADS CONTINUE TO INCREASE, OBVIOUSLY AS OUR ROAD NETWORK INCREASES. SO WHILE RIGHT NOW WE ARE SEEING A DEFICIT SIMILAR TO WHAT WE WERE SEEING IN PREVIOUS YEARS, THIS IS AN AREA THAT OVER THE NEXT SEVERAL BUDGET YEARS WE WILL BE ADDRESSING IT. WE HAVE A PRETTY HEALTHY BALANCE IN THIS FUND SO WE CAN MAINTAIN THE PROGRAMS THAT WE NEED TO DO THROUGH THE USE OF THAT FUND BALANCE AND THEN START IN A VERY SYSTEMATIC MANNER OVER THE NEXT SEVERAL YEARS WORKING THROUGH THE SHORTFALL AND ADDRESSING IT AS WE MOVE FORWARD. BUT WE CONTINUE TO HAVE PAVEMENT PRESERVATION HERE, WE CONTINUE TO HAVE LANDSCAPE MAINTENANCE OF ROADWAYS SO WE CAN STILL HAVE THAT WONDERFUL LOOK AND THE GREAT ROADS AND NETWORK OF ROADS THAT MARANA IS KNOWN FOR. YEAH. YANNI, IS THAT EXPENDITURES? IS THAT MAINLY PRESERVATION ON THE EXPENDITURE SIDE OF THE HEERF FUND BUDGET? MR. MAYOR, COUNCIL MEMBERS, VICE MAYOR, COUNCIL MEMBERS, [00:55:02] COUNCIL MEMBER CAVANAUGH. YES, THE MAJORITY OR AT LEAST MORE THAN HALF OF THAT MONEY IS FOR PAVEMENT PRESERVATION. PAVEMENT, OKAY, THANK YOU. AND THERE'S A NUMBER OF TREATMENTS. THERE IS CRACK SEAL THAT THE DEPARTMENT IS DOING. THERE IS THE REGULAR PAVEMENT PRESERVATION. I'M NOT THE EXPERT. MAYBE FAUSTO CAN TALK ABOUT IT MORE. AND THERE'S NEW TREATMENTS THAT THEY'RE ALSO GOING AHEAD WITH AS WE MOVE FORWARD IN THIS AREA. AND THEY RECENTLY COMPLETED AN UPDATED STUDY THAT WILL HELP US CONTINUE TO PLAN AND PRESERVE OUR ROADS OVER THE NEXT FIVE YEARS. LOOKING AT OUR WATER OPERATING FUND, WE ARE SEEING AN INCREASE IN REVENUES HERE. THIS IS A COMBINATION OF OUR GROWTH. WE EXPECT A LOT OF THE GROWTH IN THE NEXT YEARS WILL HAPPEN IN THIS AREA, NORTHWEST. AREA OF TOWN WHERE IT'S THAT'S OUR MAIN SERVICING SERVING AREA SO COMBINED WITH THE RATE INCREASES THAT COUNCIL APPROVED THAT WENT INTO EFFECT IN FEBRUARY THAT'S WHERE WE'RE FORECASTING AN INCREASE IN OUR REVENUES OUR EXPENDITURES YOU WILL SEE DID NOT INCREASE SUBSTANTIALLY OVERALL WE CONTINUE TO USE OUR GRANTS EFFECTIVELY. THAT'S WHY YOU'RE SEEING OUR INTERGOVERNMENTAL REVENUES GO DOWN ALONG WITH SOME OF OUR CONTRACTING SERVICES AS WE RUN THROUGH THAT MONEY. WE WILL JUST SPEND, WE SPENT MOST OF IT IN THE CURRENT YEAR AND WE'LL SPEND THE REMAINING IN THE NEXT YEAR OF THOSE GRANTS AND THEN WE WILL HOPEFULLY KEEP LOOKING FOR MORE GRANTS AFTER THAT. BUT EXCUSE ME. BEYOND THAT. IN THE OPERATING FUND, THE CAPITAL OUTLAY THAT WE HAVE, THAT INCREASE OF ALMOST 26%, IS WE HAVE A COUPLE OF NEW POSITIONS, SO WE NEED TO BUY A COUPLE OF NEW VEHICLES FOR THOSE POSITIONS, AND WE'RE REPLACING A COUPLE OF MORE VEHICLES, AND THAT'S WHAT THAT CAPITAL OUTLAY REPRESENTS, ABOUT FOUR NEW VEHICLES. OUR TRANSFERS IN, THAT'S OUR DEBT SERVICE. FOR THE MAJORITY OF IT, ALMOST A MILLION, IS FOR THE TWO WATER PLANTS THAT WE BUILT. THOSE ARE THE WATER QUALITY PLANTS THAT TERRY MENTIONED EARLIER. AND THE REST OF IT IS BEING COVERED THROUGH IMPACT FEE COLLECTIONS. AND THE TRANSFERS OUT AMOUNT, SIMILAR TO LAST YEAR, WHAT THIS AMOUNT REPRESENTS IS USER RATE MONEY THAT WILL BE USED TO MAINTAIN, UPDATE, OR REPLACE EXISTING EQUIPMENT AND INFRASTRUCTURE. AND THESE ARE PROJECTS THAT WE ACTUALLY SET ASIDE. IT'S PART OF THE LIST OF PROJECTS, PART OF CIP FOR THE MOST PART, BUT IT'S ALSO SOME MAINTENANCE AND UPKEEP, AND THE MONEY IS SET THERE, IT'S PROGRAMMED THERE, AND WHEN AND IT IS SPENT AS IT'S BEING SPENT IN THE CAPITAL FUND AND WE TRANSFER IT FROM THE USER RATES THAT WE COLLECT INTO THE OTHER FUND. A SIMILAR THING HAPPENS WITH THE WATER RECLAMATION FUND, SO I'M GOING TO START AT THE BOTTOM HERE. THE 5.5 AND A QUARTER MILLION THAT WE SEE OF TRANSFERS OUT IS PRETTY MUCH THE EXACT SAME THING FOR WATER RECLAMATION. AS WE DO OUR MAINTENANCE, OUR UPKEEP, OUR UPDATE, REPLACEMENTS, THAT IS EXISTING ASSETS, THAT'S WHERE THE MONEY WILL COME FROM. THEN WORKING BACKWARDS AGAIN, OUR TRANSFERS IN ARE GOING TO BE FOR DEBT SERVICE. THIS IS WHERE WE COLLECT THE MONEY FROM VARIOUS SOURCES, INCLUDING IMPACT FEES, AND MAKE OUR DEBT SERVICE PAYMENTS. THAT'S WHY YOU SEE, AT LEAST THIS YEAR, NOT VERY MUCH CHANGE FROM LAST YEAR. UNFORTUNATELY, NEXT YEAR, ONCE WE ACTUALLY ISSUE A LOT MORE DEBT FOR SOME OF OUR PROJECTS, THIS NUMBER WILL ALSO INCREASE. OUR EXPENDITURES OVERALL DIDN'T INCREASE A LOT IN THIS AREA. IT DOES SHOW 11% 600,000. A GOOD PORTION OF THAT EXPENSE IS FOR ONE-TIME EXPENDITURES. WE WANT TO UPGRADE SOME OF THE SECURITY AT THE PLANT. WE WANT TO ADD SOME STORAGE THAT IS NEEDED, JUST PHYSICAL STORAGE SPACE THAT IS NEEDED, AS WELL AS THERE IS A BAFFLE CLARIFIER. THERE'S NOBODY HERE FROM WATER, SO IF I DIDN'T SAY THAT RIGHT, IT'S OKAY. BUT ALSO IT'S SIMPLY INCREASE IN VOLUME. AS MORE VOLUME COMES INTO THE PLANT, SOME OF OUR UTILITY COSTS AND OTHER OPERATING COSTS INCREASE, AND THAT'S WHAT'S ALSO REFLECTED HERE. INCLUDING PERSONNEL, WE'RE ADDING A COUPLE OF POSITIONS HERE, SO THAT IS PART OF THE EXPENSES. CHARGES FOR SERVICES ARE ALSO INCREASING IN A SIMILAR FASHION DUE TO ACCOUNT GROWTH, BUT ALSO DUE TO THE INCREASE IN THE RATES THAT WAS APPROVED AND IMPLEMENTED IN FEBRUARY. SO FROM THERE, FINISHING OFF WITH THE AIRPORT, VERY LITTLE CHANGE IN REVENUES. WE'RE EXPECTING A VERY SMALL DECREASE. THAT'S PRIMARILY PROJECTED IN FUEL COLLECTIONS AND IN FUEL USAGE. OTHERWISE, OUR REVENUES ARE PRETTY STEADY AND STABLE. LOOKING AT OUR EXPENDITURES, [01:00:01] WE'RE SHOWING AN INCREASE, BUT WHEN WE TAKE INTO ACCOUNT THE COST OF THE AIRPORT, ACCOUNT THAT WE ARE BUYING A PIECE OF EQUIPMENT THAT'S NEEDED AT THE AIRPORT. HISTORICALLY, THE AIRPORT HAS USED EQUIPMENT THAT IS VERY, VERY OLD AND WE KIND OF TRY TO MAINTAIN IT FOR AS LONG AS WE CAN, BUT AFTER 20-25 YEARS SOME THINGS JUST DON'T WORK LIKE THEY USED TO AND REALLY SOMETIMES THEY SHOULDN'T BE USED FOR PURPOSES OTHER THAN WHAT THEY WERE DESIGNED TO DO AND WE RECOGNIZE THAT. AND AS PART OF THAT, THE AIRPORT IS PURCHASING A SKID STEER ALONG WITH A LOT OF ATTACHMENTS THAT WILL HELP THEM MAINTAIN THE GROUNDS. SO THAT'S WHERE THAT INCREASE IS COMING IN. IT'S A ONE-TIME PURCHASE FOR THE MOST PART. THE REST OF IT IS JUST OPERATIONAL IN NATURE WHERE WE'RE SEEING SOME INCREASES FOR MATERIALS RELATED TO MAINTENANCE AND FOR PERSONNEL. WITH THAT, WE WENT THROUGH AND WE'RE VERY APPRECIATIVE OF EVERYBODY'S PARTICIPATION INCLUDING COUNCIL BUT ALSO THE DEPARTMENTS WHO YEAR AFTER YEAR WORK WITH US AND REALLY IT'S A TEAM EFFORT WHERE WE ALL SAY WHAT DOES THE TOWN NEED HOW CAN WE PROVIDE BETTER SERVICES SO A BIG THANK YOU TO ALL THE DEPARTMENTS WHO HAVE PARTICIPATED IN PUTTING TOGETHER THIS MANAGERS RECOMMENDED BUDGET. AFTER TONIGHT WE WILL CONTINUE TO REFINE THE NUMBERS AND UPDATE THE NUMBERS. THE MAJORITY OF THE CHANGES THAT YOU WILL SEE IN THE TENTATIVE BUDGET WILL REALLY BE RELATED TO CAPITAL ASSETS, AND THAT IS TO THE CIP PROGRAM. THAT IS WHAT HAPPENS PRETTY MUCH EVERY YEAR. WE MENTIONED SOME OF THEM. SO ONCE WE BRING THE TENTATIVE BUDGET TO YOU, WHICH WE PLAN TO DO ON MAY 19TH, AND ASK YOU FOR YOUR CONSIDERATION AND ADOPTION OF THAT BUDGET, AT THAT POINT WE WILL SET A CEILING FOR OUR BUDGET. ONCE WE DO THAT IN MAY, WE CANNOT RAISE THAT BEYOND. AFTER THAT POINT, WE CAN STILL MAKE CHANGES, BUT THOSE CHANGES ARE LIMITED TO ALLOCATING WITHIN THE AMOUNTS THAT WE'VE PRESENTED OR EVEN REDUCING THE BUDGET. AND ONCE THAT HAPPENS, WE WILL COME BACK JUNE 16TH FOR FINAL ADOPTION OF THE BUDGET AND FINISHING THE PROCESS. AND THEN A COUPLE OF WEEKS LATER, STARTING OVER AGAIN FOR THE REST OF US. WITH THAT, IT NEVER ENDS. WHICH IS AS IT SHOULD BE. WITH THAT, WE CONCLUDE OUR PRESENTATION. WE WILL BE HAPPY TO ENTERTAIN ANY ADDITIONAL DISCUSSION OR ANY RECOMMENDATIONS FROM COUNCIL. DOES COUNCIL HAVE ANY QUESTIONS FOR STAFF? YEAH, I HAVE ONE, MAYOR, IF I COULD. COUNCIL MEMBER CAVANAUGH? YEAH, SPEAKING ABOUT THESE ENORMOUS CAPITAL OUTLAYS, ESPECIALLY FOR WATER WASTE IMPROVEMENT, THAT'S A BIG ONE FOR US. THE SETTLEMENT'S GOING TO HELP, BUT IT'S... NOT EVEN CLOSE, BUT HOW ABOUT GRANTS FOR THINGS LIKE THAT? ARE THERE ANY GRANT MONEY TO HELP INCREASE THE SAFETY AND THE DRINKABILITY OF OUR WATER? MR. MAYOR, VICE MAYOR, COUNCIL MEMBER CAVANAUGH, WE CONTINUE TO EXPLORE OPPORTUNITIES. THESE OPPORTUNITIES INCLUDE REQUESTS OR OPPORTUNITIES WITH CONGRESSMAN SISKAMANI, WHO HAS APPROACHED US AND HAS ASKED US TO PROVIDE. HIS OFFICE WITH RECOMMENDATIONS ON PROJECTS AND FUNDING THAT WE REQUEST, AS WELL AS ADDITIONAL MONEY FROM THE FEDERAL GOVERNMENT AND OTHER RESOURCES. ONE OF THE THINGS IS THOUGH WE ARE NOT THE ONLY ONES THAT HAVE TO DO PFAS. SO THERE IS A LOT OF COMPETITION AND WE CONTINUE TO TRY TO BE AS INNOVATIVE AS POSSIBLE TO LOOK FOR GRANTS, TO LOOK FOR FREE MONEY. BUT EVEN WHEN WE APPROACH WIFA, AS WE HAVE DONE IN THE PAST, WE ASK FOR THOSE GRANTS AND FOR THAT MONEY THAT MIGHT BE FORGIVABLE IN NATURE. WE HAVE BEEN VERY LUCKY. WE HAVE BEEN VERY FORTUNATE IN THE PAST. RIGHT AFTER COVID, THE FEDERAL GOVERNMENT ALLOTTED A GOOD AMOUNT OF FUNDING FOR CLEAN WATER. AND I BELIEVE WIFA WAS ABLE TO ALLOCATE A LOT MORE MONEY AND UTILIZE FORGIVABLE LOANS AS PART OF THAT PROCESS. ONE EXAMPLE I CAN GIVE YOU, WE HAVE A COUPLE OF WATER PROJECTS WHERE WE DO WATER QUALITY INTERCONNECT. WHEN WE GOT THE LOAN FROM WIFA, WE GOT $4.5 MILLION. THE PAYBACK FOR THAT LOAN, IN PRINCIPLE, WAS JUST OVER $1 MILLION, WITH INTEREST BRINGING IT UP TO ABOUT $1.5 MILLION. SO WE BASICALLY, IF YOU LOOK AT IT JUST FROM A NOMINAL AMOUNT, WE ONLY HAVE TO PAY BACK A THIRD OF THE MONEY. GOOD, GOOD. BUT UNFORTUNATELY, WE ARE STARTING TO HEAR THAT THOSE FORGIVABLE PERCENTAGES AND AMOUNTS MIGHT NOT BE WHAT THEY USED TO BE. SO WE WILL CONTINUE, THOUGH, TO HAVE THOSE CONVERSATIONS, AND WE WILL ACTIVELY CONTINUE [01:05:02] TO LOOK FOR FUNDING. FOR WATER, FOR WASTEWATER, BUT ALSO FOR TRANSPORTATION AND OTHER PROJECTS. THANK YOU. THANK YOU. VERY CLEAR. APPRECIATE IT. VICE MAYOR? THANK YOU, MS. MAYOR. SO WHAT IS OUR PAYMENT THIS YEAR TO THE STATE LAND FOR THE TORRALITO PRESERVE? IT'S A SECRET. MR. MAYOR WEISS, MAYOR ZIEGLER, OUR PAYMENT IS ANTICIPATED TO BE JUST UNDER $820,000. SO IS THIS THE THIRD YEAR? IS THIS AN ESCALATION YEAR? THIS IS THE FIFTH YEAR. THIS IS THE ESCALATION. FIVE OR THREE? IT'S EVERY FIVE YEARS THAT THE ESCALATION HAPPENS. SO THIS IS THE FIRST YEAR OF THE NEW AMOUNT. SO WE HAVE FOUR MORE YEARS OF THIS AMOUNT REPEATING BEFORE IT ESCALATES AGAIN. WELL, TERRY, REMEMBER WE WERE TALKING ABOUT... THINGS WE'VE BEEN DOING FOR A LONG TIME, EARLIER. SO WHAT, YOU KNOW, THAT'S, WE'RE ALMOST UP TO A MILLION DOLLARS ON TOTALLY RESERVE. IT'S RIDICULOUS. I KNOW YOU'RE GOING TO TELL ME THE SAME THING, AND I'M NOT BEING RUDE NOW. I MEAN, IT'S WHAT IT IS. BUT, YOU KNOW, IT STARTED OUT AT $500,000, I THINK, SEVERAL YEARS AGO, AND NOW WE'RE ON THE UNDERBELLY SIDE OF A MILLION DOLLARS. SO ANYTHING NEW WITH STATE LAND OVER THESE LAST 20 YEARS? SURE. MAYOR, VICE MAYOR, APPRECIATE THE QUESTION. I THINK IT'S A GREAT QUESTION AND ONE THAT THE MAYOR AND THE REST OF YOU HAVE GIVEN US DIRECTION TO SEE WHAT WE CAN DO TO PURCHASE THE PRESERVE. AND SO WE HAVE BEEN IN TALKS. WE HAD WHAT I THOUGHT WAS AN EXCELLENT CONVERSATION WITH STATE LAND UP IN THEIR OFFICE MONTHS AGO OR SO, ROUGHLY. SO WE HAVE CONTINUED TO WORK IN EARNEST ON DUSTING OFF THE PLANS FROM A NUMBER OF YEARS AGO. SO THE SAME COMPANY, THE SAME ENGINEER THAT WAS INVOLVED PREVIOUSLY IS IN THAT PROCESS RIGHT NOW. THEY PRESENTED TO US A DRAFT. WE PROVIDED COMMENTS TO THEM, SO THEY'RE REWORKING THE DRAFT TO BRING TO US. SO THAT WE CAN PRESENT SOMETHING TO STATE LAND THAT WOULD MAKE THIS APPEALING TO THEM TO WORK OUT A SITUATION WHERE SOME OF THAT STATE LAND GETS RELEASED FOR SALE AND THEN WE IN THE PROCESS END UP PURCHASING THE PRESERVE. I WISH IT WAS THAT SIMPLE, BUT THAT WAS A GREAT ANSWER. THAT WAS FANTASTIC. IT IS BECAUSE IT'S COMPLICATED BECAUSE OF WORKING WITH STATE LAND. I MEAN, THERE'S NO WAY OF GETTING AROUND THAT. IT'S LIKE WHEN YOU'RE WORKING WITH THE FAA, WHEN YOU'RE WORKING WITH THE RAILROAD, WHEN YOU'RE WORKING WITH STATE LAND, AND NOT SAYING THAT THEY'RE BAD AT WHAT THEY DO. THEY'RE NOT. THEY'RE VERY GOOD AT WHAT THEY DO, BUT IT'S A TIME-CONSUMING PROCESS, AND THEY HAVE MANY OTHER... PIECES OF LAND THAT WANT TO GO OUT FOR SALE AS WELL. SO TRYING TO WORK THROUGH THIS WITH THEM. THEY'RE VERY OPEN TO IT. I THINK THEY SEE THE VALUE IN IT. AND I THINK THEY GENUINELY WANT THIS TO HAPPEN. SO IT'S SIMPLY A MATTER OF TIME. AND I KNOW THAT THAT'S NOT THE ANSWER THAT WE WANT. BUT I DO THINK THAT WE'RE... WE'RE GETTING CLOSER. YOU KNOW, I THINK A FEW YEARS AGO WE WERE RIGHT ON THE VERGE OF DOING THAT AND THEN THAT ALL FELL APART, RIGHT? I THINK WE'RE GETTING TO THAT POINT AGAIN WHERE WE'RE GOING TO BE RIGHT ON THE VERGE. THIS TIME, I THINK, HOWEVER, WE UNDERSTAND WHY IT FELL APART THE LAST TIME AND WE'RE MAKING SURE THAT WE'RE PUTTING THINGS IN PLACE SO THAT THAT DOESN'T HAPPEN AGAIN, SO THAT THE COMMUNITY IS WELL INFORMED OF WHAT'S GOING TO BE DONE, HOW IT'S GOING TO BE DONE. WHAT THE VALUE IS TO THE COMMUNITY OF HAVING THIS 3,500 ACRE PIECE OF LAND IN PERPETUITY OWNED BY THE TOWN FOR PRESERVE. THAT OPEN SPACE IS SOMETHING THAT'S VERY IMPORTANT TO THIS COUNCIL AND TO THE COMMUNITY. SO I DO BELIEVE THAT WE'RE INCHING CLOSER, BUT IT IS INCHING. THERE'S TWO ISSUES. NUMBER ONE IS IT'S THE LEASE THAT WE HAVE. HAS A GREAT DEAL OF VALUE TO SOMEBODY ELSE TO COME IN AND BID ON IT. AND SO IT WOULD BE OPEN TO THE HIGHEST BIDDER. IF WE WERE TO LOSE THAT BID, WE WOULD JUST CONTINUE TO LEASE IT FROM WHOEVER WON THE BID. AND SO THAT'S VERY RISKY. [01:10:02] WE'RE TRYING TO FIGURE OUT... HOW TO WORK THROUGH THAT. SECOND THING IS, IS THAT THEY WILL WANT SOMETHING. THEY WILL WANT SOMETHING OTHER THAN A PURCHASE. AND WE AS A COMMUNITY ARE GOING TO NEED TO DECIDE IF THAT'S SOMETHING THAT WE'RE WILLING TO DO. AND I THINK THAT'S ONE OF THE THINGS THAT FELL APART A FEW YEARS AGO WAS, YOU KNOW, NOT, WAS NOT SOMETHING THAT EVERYBODY WAS WILLING TO DO AND IT FELL APART. AND SO. I THINK TERRY IS RIGHT ON THAT APPROACHING THIS DIFFERENTLY IN ALL THE ASPECTS, STATE, WHAT WE'RE DOING WITH THEM, AND HOW WE'RE GOING TO ADDRESS IT WITH THE COMMUNITY, I THINK WE HAVE A REALLY GOOD CHANCE OF ACQUIRING THAT PIECE OF PROPERTY FOR OUR TOWN. YOU SAID THAT MUCH BETTER THAN I DID, MAYOR. I'VE GOT FOUR YEARS TO DO IT. IT'S STILL, YEAH. AND, YOU KNOW, I'M NOT EVEN, HOW DO I SAY THIS? YOU KNOW, I'M NOT THAT EXCITED ABOUT PURCHASING IT MYSELF FOR THE TOWN. WE'VE GOT A LOT OF OTHER THINGS WE NEED TO DO. I MEAN, AS WE JUST SAW, MILLIONS AND MILLIONS OF DOLLARS FOR A NEW WASTEWATER FACILITY. BUT, YOU KNOW, THAT'S, OF COURSE, A COUNCIL VOTE. MAYOR, VICE MAYOR? I'VE JUST, YOU KNOW, WE'LL HAVE TO TALK ABOUT IT, BUT IT'S JUST SOMETHING THAT WE'VE BEEN DEALING WITH. WHEN WAS THE OWL? 2001. IT WAS DELISTED IN 2004. HAVEN'T SEEN ONE SINCE 2004. NEVER SAW ONE IN 2001. DIDN'T SEE ONE IN 1999. YOU KNOW, AND THAT'S WHAT WE HAVE TO REMEMBER, WHY WE DID IT, TO MITIGATE FOR THE OWL. YOU'RE NOT GOING TO SEE ANOTHER ONE. BUT I'M JUST GOING TO SAY, I DON'T KNOW WHY THE TOWN WANTS TO BUY IT. I REALLY DON'T. I'M JUST GOING TO PUT IT THERE. WE'VE BEEN GOOD STEWARDS. WE'VE DONE THINGS TO IT. WE'VE IMPROVED IT. IT'S A GREAT, BEAUTIFUL PIECE OF PROPERTY. BUT IN THE FINANCIAL CONDITION THAT WE'RE IN RIGHT NOW, AND WHEN I SAY THAT, I'M BEING POSITIVE. WE'VE GOT WASTEWATER AND WATER IS RIGHT NOW REALLY IS WHAT WE HAVE TO WORK THROUGH. SO I'M JUST NOT IN A BIG RUSH TO, BUT I GUESS I DON'T HAVE TO WORRY ABOUT IT BECAUSE IT'S BEEN 20 SOME YEARS. SO, YOU KNOW, AND WE, YOU KNOW, FOR ME, IF WE CONTINUE TO JUST CONTINUE TO DO IMPROVEMENTS TO IT, MAYBE TWITTER LEGAL ALLIANCE WANTS TO. GET THEIR HAT OUT AND TAKE IT AROUND AND UM THEY CAN YOU KNOW TORTOISE LEAD ALLIANCE CAN BUY IT BUT UM YEAH IT'S AGAIN TO KEEP IT UP AND BECAUSE PEOPLE LOVE THE 3,400 ACRES OR WHATEVER BUT IT'S JUST 80 I MEAN EIGHT HUNDRED AND TWENTY THOUSAND DOLLARS IS THAT'S JUST A LOT OF MONEY AND I KNOW WE PAY IT THROUGH OUR IT'S OUR BED TAX BED TAX BUT AGAIN, YOU'RE STILL, YEAH, THAT'S THE THING. I KNOW WE'VE HAD DISCUSSIONS, YOU KNOW, WELL, IT'S MONEY FROM PEOPLE FROM OUTSIDE OF MARANA THAT PAY FOR THIS. YEAH, BUT IT'S STILL MONEY WE HAVE TO PAY, THAT WE COULD BE USING THAT FOR SOMETHING ELSE. SO I DON'T BUY THAT. THAT'S AN ARGUMENT I DON'T REALLY LIKE TO GET INTO BECAUSE WE COULD BE USING THAT SOMEWHERE ELSE. YOU KNOW, MAY I, VICE MAYOR? MAY I RESPOND? WELL YOU'RE THE MAYOR WELL I'M JUST WANTING TO MAKE SURE YOU'RE DONE YOU KNOW UM SO I I WILL DISAGREE WITH YOU I THINK AS WE GROW AS A TOWN AS A COMMUNITY AS WE DEVELOP I THINK THERE ARE THINGS IN OUR COMMUNITY THAT ARE EXTREMELY IMPORTANT TO SAVE I THINK THAT THERE ARE AMENITIES THAT MEAN A LOT TO OUR RESIDENTS THAT YOU KNOW WHILE I CAN'T SAY AT ANY COST I THINK WE NEED TO DO WHAT WE CAN TO MAKE SURE THAT WE RETAIN THESE BEAUTIFUL AMENITIES FOR OUR RESIDENTS. BECAUSE AS WE GROW, ANOTHER ONE THAT COMES TO MIND THAT WE'VE WORKED ON IS THE IRONWOOD MONUMENT. I'VE SPENT TIME WITH, IN FACT I JUST HAD A MEETING WITH SENATOR GALLEGO'S OFFICE ON MANY ISSUES, BUT THAT CAME UP. I PERSONALLY THINK THAT THERE ARE THINGS THAT ARE... COMMUNITY THAT ARE VITALLY IMPORTANT THAT WE WE TRY TO [01:15:02] SAVE AND SO YOU KNOW NOT NOT ARGUMENT WITH WHAT YOU'RE SAYING. I KNOW THAT IT'S A GREAT DOLLAR AMOUNT TO THE TOWN OF MARANA, BUT I THINK THERE ARE THINGS THAT ARE WORTH TRYING VERY HARD TO SAVE. NO, I DON'T DISAGREE. I UNDERSTAND WHAT YOU GUYS ARE JUST SAYING, BUT TO SAVE IT, WHEN YOU SAY TO SAVE IT, WE'RE NOT SAVING IT. MAYBE THAT'S NOT THE RIGHT WORD, IS THERE WAS A REASON WE DID IT, GOOD OR BAD, WE DID DO IT. AND THERE'S ONLY ONE OR TWO PEOPLE ON THIS COUNCIL RIGHT NOW THAT WERE HERE WHEN WE DID IT. AND NOW IT'S JUST CONTINUED ON AND AND IT IS A BEAUTIFUL PIECE OF LAND. BUT AGAIN, IT'S NOT CENTRALLY LOCATED. IT'S UP IN DOVE MOUNTAIN. WE DID IT FOR A REASON, AT THAT TIME FOR MANY REASONS, TO KEEP GROWTH. WELL, IT WASN'T EVEN FOR GROWTH. IT WAS FOR THE HOTEL. BUT, YOU KNOW, I'M JUST NOT IN FAVOR OF BUYING IT RIGHT NOW, JUST NOT. AND I DON'T THINK THAT'S GOING TO HAPPEN ANYTIME SOON ANYWAY. I WOULD RATHER TRY TO DO SOMETHING DIFFERENT WITH IT, BUT WHATEVER STATE LAND WANTS TO DO. BUT WE'RE STILL SITTING HERE WITH AN $820,000 BILL THAT COULD BE USED, YOU KNOW, WHEN WE TALK ABOUT, LIKE AT THE RETREAT, WHERE CAN WE GET OTHER MONEY FROM? AGAIN, I KNOW IT'S NOT FROM, YOU KNOW, OUR TAXES, PEOPLE FROM OUTSIDE, BUT STILL, IT COULD BE USED SOMEWHERE ELSE. SO I'M JUST GOING TO DISAGREE WITH YOU A LITTLE BIT. NOT THAT I DON'T WANT TO SAVE IT. IT'S JUST... WELL, IT'S ALMOST, IT'S NOT ALMOST, IT IS A MUTE POINT BECAUSE WE DO HAVE A LEASE, A STATE LAND DEPARTMENT THAT WE CANNOT BREAK UNLESS WE DO SOME KIND OF A MUTUAL BENEFICIAL ARRANGEMENT WITH THEM. WE ARE STUCK WITH THAT FOR THE NEXT 80 YEARS. NOT STUCK, BECAUSE I LOVE IT, BUT WE HAVE THAT LEASE FOR THE NEXT 80 YEARS. AND WE WERE GOING TO TRY TO FIGURE OUT, YOU KNOW, WE'RE GOING TO ULTIMATELY... WHAT WE DO IS GOING TO BENEFIT THE TOWN. I MEAN, AND WE REALIZE THAT THAT ESCALATES, AND AT SOME POINT IN TIME, THERE IS GOING TO COME A TIME WHERE WE CAN PURCHASE IT TO THE BENEFIT FINANCIALLY OF THE TOWN, AND I THINK THAT THAT NEEDS TO HAPPEN. I AGREE WITH THE STAFF. MR. MAYOR, COUNCILMEMBER MCKAY, THAT'S EXACTLY WHERE WE'RE AT RIGHT NOW, IS TRYING TO FIGURE OUT WHAT'S MUTUALLY BENEFICIAL. ARE WE GOING TO CONTINUE PAYING A LEASE FOR THE NEXT 80 YEARS, UP TO $75-80 MILLION, OR ARE WE GOING TO WORK SOMETHING OUT THAT IS MORE FINANCIALLY ADVANTAGEOUS TO US? THAT ALSO HELPS OUT STATE LAND SO THAT THEY CAN DEVELOP ON THE NORTH SIDE AND THE SOUTH SIDE OF TANGERINE. THE OTHER QUESTION I HAD IS, AND I DON'T WANT TO LOSE SIGHT OF SAGUARO BLOOM PARK PHASE 1 AND 2. BRETT, YEAH, THERE'S ANOTHER ISSUE WE REALLY NEED TO TAKE CARE OF. SO DO YOU KNOW IF WE, ARE WE OUT OF PHASE 1 NOW? DID THE PARK COME IN? HAVE THEY GONE THROUGH THE LIST? ARE WE MOVING INTO... NOW, I DIDN'T THINK WE COULD START DESIGN OF PHASE 2 UNTIL WE GOT EVERYTHING DONE IN PHASE 1. AND THEN I SAW A NOTE THE OTHER DAY, I'M NOT EVEN SURE WHO IT WAS FROM, THAT WE WERE GOING TO GO AHEAD... OH, I'M SORRY. I'M SORRY, BRETT. I'M SORRY, WAYNE. I SHOULD BE TALKING TO WAYNE. CURRY, GET OUT OF THE WAY. I'M SORRY, WAYNE. SO ARE WE IN DESIGN ON PHASE 2 IS MY QUESTION, BECAUSE I THOUGHT WE HAD TO WAIT UNTIL WE HAD ALL THE PUNCH LISTS AND EVERYTHING. MY APOLOGIES, GETTING THE WRONG DIRECTOR INVOLVED HERE. VICE MAYOR, MEMBERS OF THE COUNCIL, PHASE 2 IS DESIGNED. WE HAVEN'T HAD TO WAIT FOR PHASE 1 TO DO THE DESIGN. WE'LL PUT IT OUT TO BID. OH, I'M SORRY, PUT IT OUT TO BID. [01:20:01] RIGHT. I'M SORRY. WE'RE ON SCHEDULE TO PUT IT OUT TO BID IN THE NEXT. MONTH OR TWO. WE DON'T HAVE TO WAIT FOR PHASE ONE TO FINISH. BUT THAT'S WHAT I WAS TOLD, THOUGH, THAT WE HAD TO HAVE PHASE ONE DONE AND THE PUNCH LIST AND ALL THOSE THINGS DONE BECAUSE BEFORE WE COULD PUT IT OUT TO BID. NO, WE'LL PUT IT OUT TO BID. I'M SORRY. THAT'S GOOD NEWS. YEAH. OK, SO I MISUNDERSTOOD. MAYOR, VICE MAYOR, MEMBERS OF THE COUNCIL, THEIR PROJECTS ARE WORKING IN TANDEM. PHASE ONE DESIGN IS COMPLETE. PARK IS NEARLY SUBSTANTIALLY COMPLETE. THERE ARE A COUPLE OF PUNCH LIST ITEMS THAT WE'RE WORKING THROUGH. PHASE TWO, AGAIN, THE DESIGN IS COMPLETE. SO ONCE WE FEEL THAT WE'RE ON TRACK ENOUGH WITH PHASE ONE, THEN WE'LL BE ABLE TO PUT PHASE TWO OUT TO DESIGN, OR EXCUSE ME, OUT TO BID BEFORE THAT FIRST ONE COMPLETES. AND IS THAT AN 18-MONTH CONSTRUCTION, OR WHAT ARE WE LOOKING AT FOR THE CONSTRUCTION OF IT? WE'RE NOT LOOKING AT 18 MONTHS. WE'D PROBABLY BE LOOKING AT CLOSER TO 9 TO 10 MONTHS. OH, OKAY. CONSTRUCTION ON THAT. BECAUSE THAT'S ANOTHER ONE THAT'S JUST, WELL, IT'S NOT CLOSE TO, I SHOULDN'T COMPARE IT TO TOTALLY RESERVED, BUT THEY'VE BEEN WAITING FOREVER. AND YOU KNOW, FOREVER DOWN THERE. AND NOW WITH ALL THE KIDS WANTING TO PLAY BALL AND THERE'S NO PLACE, WELL, IT'S GETTING VERY HARD TO FIND A FIELD FOR THESE KIDS TO PLAY ON. THAT'LL HELP US IN THAT AREA. THAT PARK WILL SATISFY A LOT OF NEEDS FOR THE COMMUNITY. AND THAT'S IT. OKAY. THE ONLY LAST QUESTION I HAVE, AND I'M DONE WITH PARKS, I'M SO SORRY, IS DO WE HAVE ENOUGH MONEY IN THE BUDGET TO RAISE THAT DAMN MICROPHONE RIGHT THERE? I COULD HEAR WAYNE PRETTY DANG GOOD, REALLY. NO, I COULD HEAR WAYNE. IT PROJECTS VERY WELL. I'M GETTING OLD. MY EARS ARE GETTING OLD. YEAH, AND THEN EVERYBODY THAT COMES UP THERE, THEY HAVE TO CONTINUE TO BEND OVER. ACTUALLY, THAT'S IN THE BUDGET. MAYOR, VICE MAYOR, THAT IS ACTUALLY PART OF THE BUDGET. WELL, SOMEBODY TOLD ME IT WAS GOING TO BE IN THE BUDGET. MAKE THE IMPROVEMENTS TO THE COUNCIL CHAMBERS RELATIVE TO AUDIOVISUAL. OKAY, SO THAT GUY IS GOING TO GO HIGHER. YEP, A BETTER MIC. THAT'S ALL. I KNOW THAT'S... NOT A WHOLE LOT OF MONEY, BUT... I HAVE ONE DROPPED DOWN FROM THE CEILING THAT YOU... OKAY. OTHER THAN THAT, THANK YOU. THAT'S IT. THANK YOU VERY MUCH. YOU'RE WELCOME. DO WE HAVE ANY OTHER QUESTIONS? MR. MAYOR, I HAVE A FEW. COUNCIL MEMBER CAVANAUGH? YEAH, THIS MAY BE FOR YOU, MR. ROSEMAR OR YANNI. ON PAGE 13, WE'RE TALKING ABOUT SALES TAX, GENERAL FUND. I JUST NEED SOME HELP UNDERSTANDING IT, OKAY? I THINK IT'S GREAT THAT THE SALES TAX IS... SALES TAX IS SLOWLY, YOU KNOW, IT'S SOLID. IT'S INCREASING, YOU KNOW, DESPITE THE HEADWINDS. HELP ME UNDERSTAND THE UTILITIES AND ALSO THE CONTRACTING. YES, SIR. MR. MAYOR, VICE MAYOR, COUNCIL MEMBER KAVANAUGH. THE UTILITIES IS US CORRECTING BEING OVER-OPTIMISTIC IN FISCAL YEAR 2026. WE FORECASTED TOO HIGH IN 2026. AND WHEN WE LOOKED AT WHERE THE NUMBERS WERE TRENDING IN THE CURRENT YEAR AND WHAT WE WERE LOOKING AT FOR INCREASES IN THE NEXT YEAR, WE REALIZED THAT WE BASICALLY OVERSHOT THE GOAL IN THIS YEAR, SO WE ADJUSTED IN FISCAL YEAR 2027. SO THAT'S A UTILITY TAX, RIGHT? IT'S A UTILITY TAX. OKAY, GOTCHA. IT'S WHAT'S ON OUR BILL WHEN WE GET OUR UTILITIES. YEAH, I GOTCHA. THE CONTRACTING IS PURELY A FUNCTION OF US ESTIMATING AND LOOKING AT WHAT WE ANTICIPATE WE WILL COLLECT AS PART OF OUR CONSTRUCTION SALES TAX. SO WHEN THE NEW HOMES ARE BEING BUILT, WHEN COMMERCIAL ACTIVITY HAPPENS AND NEW BUSINESSES ARE BEING BUILT, THIS IS WHERE I MENTIONED THAT WE WORK CLOSELY WITH DEVELOPMENT SERVICES THIS YEAR, AND I THINK AND I HOPE THEY DID A GREAT JOB. THEY LOOKED AT OUR SFR PERMITS, WHICH NEIGHBORHOODS ARE BEING ISSUED, WHAT THE VALUATION OF EACH OF THOSE NEIGHBORHOODS IS LIKELY TO BE ON WHAT IT'S GOING TO COST. AND BASED ON THOSE NUMBERS, WE ESTIMATED WHAT WE THOUGHT THE COLLECTIONS WOULD BE. AND IN A SIMILAR FASHION, THEY ALSO LOOKED AT WHAT COMMERCIAL ACTIVITY WE ANTICIPATED TO START CONSTRUCTION OR FINISH CONSTRUCTION DURING THE YEAR, AND WHAT THE POTENTIAL VALUATION WOULD BE FOR THOSE, AND THEN TRIED TO ESTIMATE WHAT THE CONSTRUCTION SALES TAX WOULD BE FROM THOSE. AND THAT'S WHAT TRANSLATES INTO THIS NUMBER. NOW, YOU KNOW THAT FOR THE LAST SEVERAL YEARS, WE'VE HAD VERY, VERY HEALTHY CONSTRUCTION ACTIVITY IN THE TOWN. AND WE STILL CONTINUE TO DO SO, WE'RE GOING TO HAVE IN EXCESS, WHEN WE LOOKED AT THE CONSTRUCTION SALES TAX, IT'S GOING TO BE ABOUT $12.7 [01:25:02] MILLION IN THE TRANSPORTATION FUND AND ABOUT $4.3 MILLION IN THE GENERAL FUND. SO GOING FROM, I REMEMBER WHEN I STARTED IN 2018-19, WE WERE COLLECTING ABOUT... FIVE TO FIVE AND A HALF MILLION DOLLARS IN THE TRANSPORTATION FUND FOR CONSTRUCTION SALES TAX TO SAYING THAT WE ARE DOWN 16 PERCENT FROM THE PREVIOUS YEAR AND WE'RE STILL COLLECTING 12.7 MILLION I THINK WE ARE REALLY STILL EXPERIENCING A PRETTY HEALTHY MARKET AS FAR AS CONSTRUCTION IS CONCERNED YES BUT I'M NOT GOING TO COMPLAIN SINCE WE STILL HAVE YES, SIR. ANYONE ELSE? WELL, I THINK THIS IS WHERE MAYOR HONEY WOULD TELL US ABOUT THE FIRST BUDGET OF $46,000. IS THAT THE NUMBER? I THINK IT WAS SOMETHING LIKE THAT. YEAH, AND NOW WE'RE $502 MILLION. THAT'S INCREDIBLE. IN 50 YEARS. AND THAT IS NOTABLE ABOVE HALF A BILLION. YEAH. DO WE NEED A MOTION FOR ANY OF THIS? NO? OKAY, THANK YOU VERY MUCH. THAT WAS A VERY GOOD PRESENTATION. I APPRECIATE IT. AND THANKS TO THE STAFF AND ALL THE HARD WORK YOU PUT INTO THAT. I MEAN, IT IS APPRECIATED. I CAN'T IMAGINE, I CAN'T EVEN UNDERESTIMATE IT, HOW YOU COULD POSSIBLY DO IT. OR OVERESTIMATE IT. I COULDN'T OVERESTIMATE IT. IT'S PROBABLY THE BETTER WAY TO SAY IT. THANK YOU. THANK YOU. FUTURE AGENDA ITEMS? HEARING NONE, DO I HEAR A MOTION TO ADJOURN? SO MOVED. DO WE HAVE A SECOND? ALL THOSE IN FAVOR? AYE. WE ARE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.