LET'S GO AHEAD AND GET STARTED. Y'ALL READY? ALL RIGHT. AT THIS TIME, THE MAYOR WILL CALL TO
[1. CALL TO ORDER]
[00:00:12]
ORDER THE REGULAR CITY COUNCIL MEETING FOR 6 P.M. TUESDAY, JANUARY 20TH OF 2026 AND THE CITY COUNCIL CHAMBERS OF 2201 EAST NASH STREET, TERRELL, TEXAS. HAVE WITH US ON THE DAIS OUR DISTRICT TWO, DONNA RENEE ANDERSON, OUR DEPUTY MAYOR PRO TEM. WE HAVE DISTRICT THREE, MARONEY VELASQUEZ, AND WE HAVE DISTRICT FIVE, PHIL ROBERTSON, OUR MAYOR PRO TEM. NOT WITH US, BUT ON HER WAY IS DISTRICT FOUR, STEPHANIE HOLMES. THOMAS, I UNDERSTAND THAT SHE'S GOING TO BE RUNNING A LITTLE LATE, BUT WE ALSO HAVE OUR CITY MANAGER, MARK MILLS, WITH US AND STAFF AND ATTORNEYS. SO WE ARE GOING TO CONTINUE WITH OUR MEETING QUORUM. WE DO HAVE A QUORUM AT THIS TIME. I'D ASK FOR PASTOR RUSTY HATHCOCK FROM LIFEPOINT CHURCH TO COME FORWARD, LEAD US IN INVOCATION. AND IF YOU WOULD PLEASE STAND AND REMAIN STANDING FOR PLEDGES. JUST WANT TO CHECK THE ORDER. MAY I SHARE SOMETHING? JUST JUST A BIBLE VERSE BEFORE I PRAY. ABSOLUTELY.THOUGHT ABOUT THIS AS A BIBLE SPEAKS TO US IN ISAIAH ABOUT THE BIRTH OF JESUS CHRIST. FOR UNTO US A CHILD IS BORN, UNTO US A SON IS GIVEN, AND THE GOVERNMENT SHALL BE UPON HIS SHOULDER, AND HIS NAME SHALL BE CALLED WONDERFUL COUNSELOR, THE MIGHTY GOD, THE EVERLASTING FATHER, THE PRINCE OF PEACE, OF THE INCREASE OF HIS GOVERNMENT AND PEACE, THERE SHALL BE NO END. AND UPON THE THRONE OF DAVID, AND UPON HIS KINGDOM, TO ORDER IT, AND TO ESTABLISH IT WITH JUDGMENT AND WITH JUSTICE, FROM HENCEFORTH EVEN FOREVER. THE ZEAL OF THE LORD OF HOSTS WILL PERFORM THIS. I JUST WANT TO SAY TO ALL THE LEADERS OF THE CITY, AND IT'S MY GREAT HONOR TO BE HERE, MY HOMETOWN. THE GOVERNMENT IS ON HIS SHOULDER. YOU'RE PART OF OUR GOVERNMENT. YOU'RE ON GOOD FOOTING. KEEP YOUR HEAD UP. DO RIGHT. I'M PRAYING FOR YOU. THE LORD IS FOR YOU. AMEN. I WANT TO PRAY WITH YOU. LORD, WE LOVE YOU. WE THANK YOU FOR YOUR GOODNESS. WE THANK YOU FOR YOUR MERCY. WE THANK YOU FOR THE LEADERSHIP OF THIS GREAT CITY.
WE THANK YOU, LORD, FOR THE THINGS THAT ARE COMING OUR WAY. SOME WILL BE CHALLENGING, SOME WILL BE WONDERFUL. BUT LORD, WE JUST ASK YOU TO LEAD US AND GUIDE US IN ALL THINGS. LORD, NOT OUR WISDOM, BUT YOUR WISDOM. JUST ASK YOU TO HAVE YOUR WAY. HAVE YOUR WAY IN THIS MEETING AND EVERYTHING THAT GOES FORTH IN THIS PLACE. LET IT BE DONE ACCORDING TO YOUR WILL AND NOT JUST OUR DESIRE. WE'LL GIVE YOU THE PRAISE AND ALL THE HONOR. THINGS BE DONE RIGHT AND IN ORDER. IN JESUS NAME WE PRAY. AMEN. AMEN. 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. HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. PASTOR, IF YOU WOULD JUST ONE MOMENT, PLEASE. OKAY. YES, MA'AM. YES. RUSTY AND I GO WAY BACK TO SCHOOL, AND WE'VE KNOWN THE FAMILY FOR A LONG TIME. BUT, PASTOR, THANK YOU FOR ALL YOU DO. I THINK PEOPLE UNDERSTAND NOW THE IMPORTANCE THAT I PUT ON FAITH BASED AND THAT THE COUNCIL PUTS ON OUR FAITH BASED COMMUNITY. I UNDERSTAND YOU GOT A GREAT CONGREGATION. YOU'RE CHANGING LIVES. WE WE ARE GOING TO CHALLENGE YOU TO CONTINUE TO DO THAT THIS YEAR. AND PLEASE PRAY FOR OUR CITY. PRAY FOR US AS LEADERS THAT WE CONTINUE TO DO AND PROSPER WITHIN THE COMMUNITY. SO THANK YOU FOR ALL YOU DO. THANK YOU, THANK YOU. AMEN. THANK YOU, THANK YOU, THANK YOU, THANK YOU. THANK YOU, THANK YOU. ALL RIGHT. NEXT ON THE AGENDA IS MAYOR, COUNCIL AND COMMUNITY RECOGNITION AND
[2. MAYOR AND COUNCIL COMMUNITY RECOGNITION AND EVENTS]
EVENTS COUNCIL. AS YOU ALL KNOW, BECAUSE Y'ALL WERE THERE, TSD HAD A CELEBRATION MLK CELEBRATION FOR THE COMMUNITY. THEY HAD COMMUNITY LEADERS, PASTORS. THEY HAD KIDS PERFORMING. I THINK IT WAS A WONDERFUL TIME HAD BY ALL TO HONOR MARTIN LUTHER KING. I WANT TO THANK EACH ONE OF THE COUNCIL MEMBERS, BECAUSE WE HAD 100% PARTICIPATION AS SHOWING[00:05:03]
UP, AND THAT REALLY DOES SPEAK WELL FOR THE COMMUNITY. AND AS I SAID LAST NIGHT, IT'S UP TO US AS LEADERS TO LEAD BY EXAMPLE AND TO USE THE POWER WE HAVE TO CONTINUE TO MAKE THIS COMMUNITY GREAT AND TREAT EVERYBODY EQUALLY. SO WITH THAT, DOES ANYBODY ELSE HAVE ANY? MAYOR I DO WANT TO ADD AND AND I HATE THAT STEPHANIE HOLMES THOMAS IS NOT HERE YET. COUNCIL MEMBER HOLMES THOMAS SHE DOESN'T OFTEN TOOT HER HORN, BUT SHE DID AN OUTSTANDING JOB YESTERDAY WITH HER SPEECH. SHE WAS ON THE THE PROGRAM. AND ALTHOUGH SHE SAID MORE THAN THAN THESE NEXT WORDS, SOMETHING THAT STAYED WITH ME WAS HER HER ACRONYM FOR YOU, MARTIN LUTHER KING KING. SO HIS LAST NAME AND AND HOW SHE WHAT IT MEANS FOR FOR HER AND WHAT SHE WANTS TO, YOU KNOW, CONTINUE TO SEE FROM THE COMMUNITY IS IS THE K STANDS FOR KIND, THE I FOR INSPIRATION, THE N FOR NONVIOLENT AND THE G FOR FOR GOD. AND THAT REALLY STUCK WITH ME DURING HER SPEECH YESTERDAY. BUT I ALSO REALLY APPRECIATED HER, HER GENUINE AND SPEAKING ON BEHALF OF THE COUNCIL. AND IT WAS REALLY, REALLY NICE TO SEE THE ENTIRE COUNCIL THERE. I THINK THIS IS THE FIRST TIME, MAYBE IN THE LAST COUPLE OF YEARS SINCE WE'VE HAD THE ENTIRE COUNCIL. I COULD BE WRONG, BUT IT WAS REALLY NICE TO SEE EVERYBODY THERE. PLUS HENRY AGREED. AGREED. ANYONE ELSE? IT WAS JUST GOOD FOR ALL OF US TO BE THERE. I APPRECIATED THE FACT THAT YOUR COMMENTS, AND ALSO NOT JUST STEPHANIE, BUT MORONEY'S COMMENTS ABOUT WHO WE ARE, WHO WE REPRESENT AS COUNCIL MEMBERS FOR OUR CITY, THAT WE ARE THE EXAMPLE FOR THE CITY AND HOW WE TREAT EACH OTHER AND HOW WE COMMUNICATE WITH EACH OTHER AND BE FOR EACH OTHER. SO THAT WAS IT WAS A GOOD EVENING OF REMEMBERING WHAT DOCTOR MARTIN LUTHER KING NOT JUST SPOKE, BUT ACTUALLY LIVED. HE WAS A PREACHER FIRST, A THEOLOGIAN, A PEACEMAKER, AND HE SAW EVERYBODY AND I. THAT LAST NIGHT WAS A REFLECTION OF THAT. AGREED, AGREED NOT TO PONTIFICATE OR ANYTHING, BUT I IT WAS A REALLY MOVING EXPERIENCE FOR ME BECAUSE SHARING THAT WITH MY SON HENRY AND ALLOWING HIM TO KIND OF SEE VARIOUS PERSPECTIVES AND SORT OF THE IMPACT THAT DOCTOR KING HAD ON OUR CULTURE, IT WAS VERY IMPORTANT, I THINK, AND I IT MADE ME THINK ABOUT THE FACT THAT THERE'S THERE WERE SO MANY YOUNG PEOPLE THERE SORT OF BEING EXPOSED TO THESE AMAZING IDEAS AND PEOPLE OF, OF ALL RACES, PEOPLE WHO, YOU KNOW, ALL SHARED IN THAT SAME VISION. I KEEP COMING BACK TO THAT, YOU KNOW, NOT THE COLOR OF THEIR SKIN, BUT THE CONTENT OF THEIR CHARACTER. THAT, TO ME IS IS THE MOST RESONANT PART OF DOCTOR KING'S MESSAGE THAT WHAT REALLY DOES MATTER, IT'S NOT HOW WE APPEAR, IT'S OUR CHARACTER. AND I THINK THAT DOING THIS KIND OF THING IN OUR COMMUNITY IS SO IMPORTANT TO KIND OF BUILD THAT CHARACTER FOR OUR FUTURE. AND I JUST WANT TO THANK EVERYONE WHO WAS THERE WHO PUT THAT THAT EVENT ON. IT WAS VERY MEANINGFUL FOR ME AND[4. CONSENT AGENDA]
MY MY OWN FAMILY. THANK YOU. ALL RIGHT. NEXT ITEM ON THE AGENDA IS THE CONSENT AGENDA COUNCIL. WE MAY TAKE ALL OF THESE AT ONCE OR PULL ONE IF YOU WISH. IS THERE A MOTION ON THE CONSENT AGENDA? I MAKE A MOTION. WE APPROVE THE CONSENT AGENDA AS WRITTEN. I HAVE A MOTION. IS THERE A SECOND? SECOND? WE HAVE A MOTION FROM DONNA RENEE ANDERSON, OUR DEPUTY MAYOR PRO TEM DISTRICT TWO, SECOND FROM MAYOR RONNIE VELASQUEZ, DISTRICT THREE, TO APPROVE THE CONSENT AGENDA AS PRESENTED. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. I ANY OPPOSED. MOTION CARRIES UNANIMOUS VOTE[5. BOARDS AND COMMISSIONS]
OF THOSE PRESENT. OUR NEXT ITEM ON THE AGENDA IS BOARDS AND COMMISSIONS 5.1 DISCUSS AND CONSIDER APPOINTMENT TO THE INTERIM BOARD MEMBER TO THE PLANNING AND ZONING COMMISSION.DON. MAYOR AND COUNCIL. IN YOUR PACKET IS THE PLANNING AND ZONING BOARD ROSTER. LORI LINDSEY IS ASKING FOR A IS SEEKING TO SUSPEND HER SERVICE FOR A PERIOD OF FIVE MONTHS, AND SHE DOES PLAN ON RETURNING ON THE APRIL 21ST, 2026 MEETING. THE ATTENDANCE POLICY FOR THE PLANNING AND ZONING COMMISSION STATES THAT MEMBERS WITH EXTENUATING CIRCUMSTANCES MAY REQUEST CITY COUNCIL ACT TO SUSPEND THEIR SERVICE FOR A DESIGNATED PERIOD OF TIME WITH
[00:10:03]
A TEMPORARY REPLACEMENT, AND THIS BOARD FALLS UNDER THE OVERSIGHT OF RONNIE VELASQUEZ.OKAY, COUNCILWOMAN, AT THIS TIME, I'M GOING TO MAKE A MOTION TO APPOINT DANNY STEVENS TO SERVE TEMPORARILY THROUGH THE END OF. TO SERVE TEMPORARILY ON THE PLANNING AND ZONING COMMISSION. OKAY. IS THAT YOUR MOTION? YES. OKAY. IS THERE A SECOND? SECOND? WE HAVE A MOTION FROM RONNIE VELASQUEZ, DISTRICT THREE. SECOND FROM PHIL ROBERTSON, OUR MAYOR PRO TEM FROM DISTRICT FIVE, TO TEMPORARILY APPOINT DANNY STEVENS TO THE PLANNING AND ZONING COMMISSION. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. MY ONLY POINT OF CLARITY IS IF I UNDERSTAND THE PROCESS CORRECTLY, HE WILL HE WILL NOT BE SWORN IN FOR THE JANUARY COUNCIL MEETING, BUT IT WILL BE AT THE FEBRUARY COUNCIL MEETING. IS THAT CORRECT? I SWEAR, I MEAN, AT THAT TIME IN FEBRUARY. OKAY, JUST WANT TO MAKE SURE I TOLD HIM CORRECTLY. OKAY, GOOD.
AND WHO MAY I ASK, WHO IS DANNY STEVENS? HE'S THE FORMER CHAIR OF THE PLANNING AND ZONING COMMISSION. IS THAT DIRECTED TO MAY RONNIE COUNCIL? YES, YES. OKAY. DANNY STEVENS IS A FORMER PLANNING AND ZONING COMMISSIONER, AND HE ALSO CHAIRED PLANNING AND ZONING, AND HE HAS SINCE SINCE HIS HIS SERVING, HIS TERM, HE HAD REACHED OUT HOPING TO SERVE AGAIN. AND SO THIS IS AN OPPORTUNITY TO GET HIS GET GET AN EXPERIENCE PLANNING AND ZONING COMMISSIONER, FORMER PLANNING AND ZONING COMMISSIONER TO SERVE TEMPORARILY. OKAY. THANK YOU. YOU'RE WELCOME. ALL RIGHT. SO WE HAD A MOTION. WE HAD A SECOND. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR? LET IT BE KNOWN BY STATING I, I ANY OPPOSED MOTION CARRIES AN END TO VOTE OF THOSE PRESENT FOR THE RECORD, WE HAVE WITH US STEPHANIE HOLMES THOMAS, DISTRICT FOUR. OUR NEXT ITEM ON THE AGENDA IS 5.2. DISCUSS AND CONSIDER REAPPOINTMENTS TO THE PARK IN DOWNTOWN IMPROVEMENT CORPORATION, THE PADDOCK BOARD, DON MAYOR AND COUNCIL, TORI LUCAS AND MARY MCCOY'S TERMS ON THE PADDOCK BOARD EXPIRED IN DECEMBER OF 25. BOTH MEMBERS WOULD LIKE TO BE REAPPOINTED TO THIS BOARD, AND IT FALLS UNDER THE OVERSIGHT OF THE COUNCIL AS A WHOLE. OKAY, COUNCIL, WHAT I DO KNOW IS THAT TORI HAS DONE AN OUTSTANDING JOB, I THINK, IN LEADING OUR PADDOCK BOARD, AS HAS MARY, I BELIEVE. WE'VE GOT A LOT OF THINGS THAT ARE CONTINUING TO COME BEFORE THE PADDOCK BOARD THAT I THINK YOU WANT SOMEONE WHO'S KNOWLEDGEABLE ABOUT WHERE WE'VE BEEN AND WHAT WE'RE WHAT WE'RE TRYING TO GET TO. SO I WOULD MAKE A MOTION THAT WE REAPPOINT TORI LUCAS AND WELL, YEAH, THIS IS A COUNCIL, SO I'D LIKE TO SEE US APPOINT TORI LUCAS AND MARY MCCOY TO NEW TERMS FOR THE PADDOCK BOARD. THAT'D BE MY MOTION. IS THERE A SECOND? SECOND? WE HAVE A MOTION. WE HAVE A WE HAVE A MOTION FROM THE MAYOR. SECOND FROM PHIL ROBINSON, OUR MAYOR PRO TEM DISTRICT FIVE, TO REAPPOINT BOTH TORI LUCAS AND MARY MCCOY TO OUR PADDOCK BOARD. IS THERE ANY FURTHER DISCUSSION? YES, I DO HAVE A YES. GO AHEAD.
COUNCILWOMAN, I SPOKE FIRST LAST TIME. OKAY, OKAY. I JUST WANTED TO NOTE TO THE COUNCIL THAT I WAS LOOKING AT THE AS THIS IS A, A COUNCIL APPOINTED GROUP, WE DO HAVE THREE OTHER MEMBERS WHO ARE JUST ABOUT TO COMPLETELY TERM OUT FROM THE BOARD. SO WE MIGHT WANT TO BEGIN THINKING THROUGH OTHER FOLKS WHO MIGHT WANT TO COME ABOARD THIS PARTICULAR BOARD.
BUT I DID WANT TO MENTION THAT TORI AND TORI LUCAS AND MARY MCCOY HAVE BEEN VERY VALUABLE MEMBERS OF THIS BOARD. I'VE DONE A GREAT JOB, SO I'M HAPPY TO SUPPORT THEIR RENOMINATION TO THE BOARD. ALL RIGHT. MY ONLY CONCERN IS. I HAVE A A CONCERN THAT. MAY NOT BE A CONCERN. AND THAT IS. OUR. AFFILIATE. I WANT TO MAKE SURE THAT THE THAT THERE IS NO CONFLICT OF INTEREST WITH OUR SELECTEES WITH ANYTHING THAT THEY OR THAT THEY MAY BE INVOLVED WITH. THAT IS THE ONLY CONCERN I HAVE. BUT I DO AGREE THAT BOTH PERSONS ARE. OF VALUE TO THE BOARD I. MY ONLY CONCERN IS CONFLICT OF INTEREST. THAT'S VALID. I THINK LEGAL NEEDS TO
[00:15:07]
WEIGH IN ON THIS ONE. TURN YOUR TURN ON YOUR MIC, PLEASE. IN MATTERS THAT INVOLVE HER EMPLOYMENT, WHICH IS. SHE IS THE BRANCH MANAGER OF THE AMERICAN NATIONAL BANK HERE IN TAROT, WHICH IS, OF COURSE, OUR CITY DEPOSITORY. ANY MATTERS THAT WOULD INVOLVE THE BANK OR THE CITY FINANCES AS THE SAME RELATES TO THE BANK. SHE WOULD THEN BE REQUIRED TO RECUSE HERSELF FROM ANY PARTICIPATION OR VOTING ON THAT ONE MATTER. OKAY. THANK YOU. AND I THINK FOR CLARITY, FOR ALL OF US AS SHE EVER HAD TO RECUSE HERSELF. NOT TO MY KNOWLEDGE. I DON'T THINK SO. BUT OH, ONCE, ONCE YOU DO. OKAY. SHE DID RECUSE HERSELF WHENEVER THERE WAS AN APPLICANT WHO LISTED THAT BANK AS A REFERENCE. AND SO WE WE CONSTANTLY MONITOR THOSE. OKAY.GREAT. THANK YOU. OKAY. ANYONE ELSE? ALL RIGHT I DO AGREE I'M ON THIS BOARD. AND I DO THINK THE BOARD IS VERY PROGRESSIVE AND DOING A LOT OF GOOD THINGS FOR THE COMMUNITY. BUT. AS WE CONTINUE TO FILL IN THESE SPOTS, I THINK WE DO NEED TO CIRCULATE A LOT OF THESE BOARDS WITH NEW PEOPLE THAT ARE WANTING TO GET INVOLVED WITH THE COMMUNITY. OKAY, I AGREE, SO I WOULD SAY THIS AS WE AS WE LOOK TO OUR BOARDS MOVING FORWARD, IF YOU HAVE SOMEONE THAT IS INTERESTED IN A BOARD, MAKE SURE THAT WE HAVE THEM APPLY ONE AND THAT YOU LET THE MAYOR AND THE REST OF THE COUNCIL KNOW OF THOSE FOLKS THAT ARE INTERESTED, AND WE CAN KIND OF DO A LITTLE BIT OF BACKGROUND ON THEM AS WELL, BECAUSE SOMETIMES YOU JUST SEE PEOPLE MOVING FROM BOARD TO BOARD. YOU KNOW, I WAS ON A PLANNING ZONING. THAT WAS THE ONLY ONE I WAS ON WHEN I GOT ELECTED. I HAD TO, YOU KNOW, YES, RESIGN AND DO THIS. BUT JUST IT'S KIND OF THE SAME SCENARIO. BUT WE JUST NEED TO LOOK AT THAT. AND I KNOW WE'VE HAD A COUPLE OF OTHER PEOPLE I COULDN'T APPOINT TO THE LIBRARY BOARD, AND I JUST MIGHT NEED TO LOOK AND SEE HOW THEY ORDERED THEIR DESIRE TO WORK ON DIFFERENT BOARDS BECAUSE EVERYBODY DIDN'T HAVE THE SAME, YOU KNOW. BUT THANK YOU FOR CONSIDERING THAT. YES. OKAY. I WANT TO CLARIFY THAT THE, THE THE TERMS THAT ARE EXPIRING NEXT ARE, ARE NOT ON JANUARY OR FEBRUARY, THE 28TH OF, OF THIS MONTH OR NEXT MONTH, BUT THEY'RE JANUARY 2028 AND FEBRUARY 2028. SO THAT SHOULD GIVE ABOUT TWO YEARS TO TO FIND SOME FOLKS. OKAY. THAT'S GOOD. ALL RIGHT. SO YOU HAVE WE HAVE A MOTION AND A SECOND ANY FURTHER DISCUSSION HEARING NONE. ALL THOSE IN FAVOR LET IT BE KNOWN BY STATING I. AYE. ANY OPPOSED? MOTION CARRIED. NONE OF THOSE PRESENT. OUR NEXT ITEM
[6. DISCUSSION ITEMS]
ON THE AGENDA DISCUSS ITEMS, WHICH IS? THIS IS. SHOULDN'T IT BE GREAT NEWS REPORTS THAT A GOOD NEWS REPORT. YES. CORRECT. OKAY. IT'S NEWS. ALL RIGHT. SO WE'RE GOING TO GO ALL THE WAY BACK QUICKLY TO NOVEMBER THROUGH JANUARY BECAUSE I HAVEN'T BEEN BEFORE Y'ALL IN A WHILE. AND JUST KIND OF WRAP UP SOME OF THE THINGS THAT HAPPENED AT THE END OF 2025 AND THEN LOOK TOWARDS WHAT'S GOING TO HAPPEN IN 2026. OH WRONG WAY. ALL RIGHT. SO THIS IS JUST A TRIBUTE TO OUR WEEKEND, OUR BRITISH WEEKEND ONTARIO. WE HAD THE BRITISH BASH ON NOVEMBER 10TH DOWNTOWN. WE HAD A GREAT TURNOUT THAT DAY. AND WE HAD SEVERAL OFFICIALS HERE FROM THE CONSULATE IN HOUSTON. AND THEN ON NOVEMBER 11TH, THEY RETURNED FOR THE REMEMBRANCE DAY CEREMONY AT OAKLAND MEMORIAL PARK. AND THAT WAS A GREAT TURNOUT AS WELL, IN SPITE OF THE COLD, BECAUSE IT WAS VERY COLD. ALLISON, BEFORE YOU MOVE FORWARD, CAN I JUST FOR THE RECORD, I DON'T HAVE SUNGLASSES ON. I HAVE REGULAR GLASSES THAT ADJUST THE SUNLIGHT. RIGHT. I HAD SOMEBODY MENTION THAT TO ME. I'M NOT TRYING TO BE COOL OR ANYTHING. I JUST THE THE GLASSES WILL AUTOMATICALLY TURN DARK IN SUNLIGHT. SO GO AHEAD. OKAY. ALL RIGHT. AND THEN THE WINGS CAREER AND TESTING CENTER VOLUNTEERED TO BE ONE OF THE STOPS ON THE SOCIAL SCIENCE CLUB HOME TOUR THIS YEAR. AND YOU CAN SEE UP THERE THE STAFF AND ONE OF THE VOLUNTEERS THAT VOLUNTEERED THAT EVENING. AND WE HAD A GREAT TURNOUT OVER THERE THAT THEY GOT TO SHOW OFF THEIR TESTING CENTER. SO THAT WAS A LOT OF FUN. OKAY. AND THEN AS A TRIBUTE TO OFFICER JACOB KANDYDOZA, THE POLICE DEPARTMENT ORGANIZED A MEMORIAL TOY DRIVE. AND WHEN I ASKED THEM HOW MUCH THEY GOT, THEY SAID IT WAS THREE MID-SIZE SUVS FULL OF TOYS. SO THAT WAS THOSE[00:20:05]
WERE ALL DELIVERED TO THE KAUFMAN COUNTY ADVOCACY CENTER FOR CHILDREN. AND THEN YOU'LL SEE ON THE LEFT OUR CHIEF, ALONG WITH A BIG CROWD FOR THE CANDLELIGHT VIGIL IN HONOR OF JACOB KANDYDOZA. HERE'S SOME PICTURES FROM THE TREE LIGHTING AND CANDY CRAWL. THANKFULLY, WE HAD A MUCH BETTER WEATHER THAN WE DID THE YEAR BEFORE. IT WAS A LOT OF FUN, AND FOR THE FIRST TIME, AND I DON'T REMEMBER HOW LONG THE CITY ACTUALLY HAD A PARADE FLOAT. AND MY UNDERSTANDING IS THAT THERE'S ALREADY TALKS OF WHAT WE'RE GOING TO DO BIGGER AND BETTER NEXT YEAR. BUT ANYWAY, IT WAS IT WAS A GOOD IT WAS A GOOD DAY AND ANOTHER COLD DAY. AND THE EMPLOYEE CHRISTMAS BREAKFAST. WE WANT TO THANK SUE AND THE HR TEAM AND ALL OF THE COUNCIL AND THE EMPLOYEE VOLUNTEERS WHO WORKED ON THIS EVENT. I THINK EVERYBODY ENJOYED IT BETTER THAN LAST YEAR'S EVENT TOO, AND WE WON'T GO BACK THERE ANYMORE. CENTERED AROUND TOWN WAS BACK AGAIN THIS YEAR. I DON'T EVEN KNOW HOW MANY YEARS WE'RE ON NOW, BUT SEVERAL. SO. EVERY YEAR I THINK THIS EVENT IMPROVES A LITTLE BIT MORE. AND AS CAROL GROWS, IT'S DIFFICULT TO MAKE IT TO ALL OF THE STREETS. BUT THEY DO A REALLY GOOD JOB WITH, ESPECIALLY WITH THE SANTA TRACKER WE HAVE NOW. SO AND WE ALSO WANT TO THANK THE PROFESSIONAL FIREFIGHTERS BECAUSE THEY'RE THE ONES THAT SUPPLIED THE GIFTS FOR THE VIP PARTY FOR THE KIDS. OKAY. AND THEN ON NATIONAL LAW ENFORCEMENT APPRECIATION DAY, AGAIN, WE WANTED TO RECOGNIZE OUR OFFICERS. WE DID SOCIAL MEDIA POSTS TO RECOGNIZE THEM FOR EVERYTHING THAT THEY DO TO KEEP OUR COMMUNITY SAFE. AND THEN THE CHIEF JUST SENT ME THEIR AUDIT LETTER FROM TEXAS COMMISSION ON LAW ENFORCEMENT. AND AGAIN, WE HAD NO DEFICIENCIES WITHIN THE DEPARTMENT. SO GOOD NEWS, GOOD NEWS. HERE'S ANOTHER UPDATE FROM THE POLICE DEPARTMENT. YOU CAN SEE ON THE RIGHT. THAT'S KIND OF WHERE WE ARE ON THE OFFICERS THAT ARE IN SOME SORT OF PROCESS OF BEING HIRED. SOME ARE IN FIELD TRAINING AND SOME ARE ACTUALLY IN THE BACKGROUND PROCESS. BUT THERE'S SEVERAL OFFICERS THAT ARE GOING TO JOIN THE FORCE IN THE NEXT FEW MONTHS. AND THEN ON THE LEFT YOU'LL SEE CHIEF SANSOM. HE WAS THE SPEAKER AT THE POLICE ACADEMY GRADUATION CLASS NUMBER 310 ON JANUARY THE 8TH. AND THEN THESE ARE ALL NEW EMPLOYEES. SO YOU CAN SEE POLICE AND FIRE. ALL OF HAVE A LOT. BUT THERE'S THAT'S A LOT OF FIREFIGHTERS. SO WE'RE ALREADY LOOKING FORWARD TO STATION THREE. AND YOU CAN SEE THAT WE'RE WELL ON OUR WAY TO STAFFING. THAT STATION IS AMY THOMPSON. IS SHE THE FIRST FEMALE FIREFIGHTER FOR THE CITY OF TRURO? NO, WE'VE HAD ONE. WE'VE HAD WE HAD HAD ONE BEFORE.OKAY. CINDY MAIN I THINK SHE'S THE SECOND ONE THOUGH. RIGHT. SECOND ONE. OKAY. OKAY. AND THEN ANOTHER COLD DAY. I THINK WE'RE JUST GOING TO START PLANNING OUR EVENTS AROUND THE COLD DAYS. THAT'S RIGHT. OKAY. SO THIS WAS A GREAT EVENT. IN SPITE OF THE COLD. I COULD NOT BELIEVE HOW MANY PEOPLE TURNED OUT, BUT I THINK SHERRY SAID THERE WERE OVER 100. BUT YOU CAN SEE PICTURES DOWN THERE OF ALL THE KIDS AND THEIR PARENTS. AND SO THAT WAS A LOT OF FUN.
AND WE'RE ALREADY LOOKING TO HOW THAT CAN BE IMPROVED NEXT YEAR WITH VENDORS AND SOME OTHER ACTIVITIES FOR THE KIDS. SO. AND HERE'S THE PET ADOPTION CENTER. GROUNDBREAKING. I THINK THAT WENT REALLY WELL AS WELL. I THINK ALL OF THE VOLUNTEERS PARTICULARLY AND THE STAFF ARE VERY EXCITED ABOUT THIS. SO WE'RE LOOKING FORWARD TO HAVING THE OPEN HOUSE AND RIBBON CUTTING FOR THIS PROPERTY REALLY SOON. NOT REALLY SOON, BUT HOPEFULLY IT'LL IT'LL BE IN THE FALL. OKAY. AND NOW HERE'S THE TRIBUTE TO Y'ALL AND YOUR PARTICIPATION IN NATIONAL LEAGUE OF CITIES. I JUST GOT THE EMAIL TODAY ABOUT THE MAYOR BEING APPOINTED TO THIS SECOND BOARD, THE NATIONAL LEAGUE OF CITIES LEGISLATIVE ACTION COMMITTEE. SO I GUESS YOU'RE SERVING ON TWO SEPARATE COMMITTEES. YAY, YAY. SO THAT'S THAT'S PRETTY IMPRESSIVE TO
[00:25:07]
HAVE THREE OF OUR COUNCIL MEMBERS ON DIFFERENT STATE AND LEADERSHIP, STATE AND NATIONAL COMMITTEES. AND THEN HERE Y'ALL ARE AGAIN. Y'ALL GOING TO HAVE TO QUIT YOUR DAY JOBS. SO.AGAIN, THE MLK CELEBRATION ON THE RIGHT AND ON THE LEFT, KAUFMAN COUNTY UNITED, THEY'RE BILINGUAL CHATS I DIDN'T EVEN KNOW THEY HAD. SO THAT'S EXCITING. HEY, CAN I SAY SOMETHING? SURE. ABOUT THE MARTIN LUTHER KING THAT I FAILED TO ANNOUNCE? THE LITTLE GIRL THAT SPOKE BEFORE ME, WHAT WAS HER NAME? KENNEDY. KENNEDY. KENNEDY. VERY IMPRESSIVE.
LITTLE YOUNG. I GUESS SHE'S IN BRUCE. NO, SHE'S AT GILBERT. WILLIE. YEAH. VERY IMPRESSED WITH HER. OH, SHE WAS SHE WAS GOOD. OKAY. GO AHEAD. OKAY. AND THEN TOMORROW WE WILL HAVE THE GRAND OPENING AND RIBBON CUTTING FOR THE PAGES IN PLAY PROGRAMING CENTER AT THE SHOPS AT TERRELL. SO WE ENCOURAGE ANYBODY THAT CAN TO BE THERE. IT STARTS AT NINE. IT'S KIND OF AN ODD TIME, BUT WE'RE TRYING TO WORK AROUND WHEN THEIR BIGGEST CROWD IS THERE. AND SO THAT'S THE REASON FOR THE EARLY MORNING TIME. SO THAT IS ALL ALL. THANK YOU ALL SO MUCH.
THANK YOU. WONDERFUL. THANK YOU ALLISON. ALLISON, THANK YOU SO MUCH FOR THAT. YOU DID A GREAT JOB WITH THOSE REPORTS. THANK YOU. SOMETHING LIKE THAT SHOULD GO FOR THE AMERICAN CIVICS LEAGUE. YOU CAN CHOOSE ONE. YEAH. MAYOR, IF I COULD. YES. REAL QUICKLY ABOUT THAT ON THE THE PAGE WHERE WE, YOU KNOW, WE ALLISON WAS SHOWING US THE THE NEW HIRE FOR THE POLICE AND FIRE. I JUST WANT TO COMMEND COUNCIL BECAUSE IT REALLY IS LARGELY THESE PAY RAISES THAT WE APPROVED THAT ALLOWED THAT TO HAPPEN. I KNOW THAT OUR POLICE AND FIRE WERE HAVING REAL TROUBLE RECRUITING IN THE FIRE DEPARTMENT, GOING TO HAVE TROUBLE EVEN STAFFING PARTITION THREE. AND IT REALLY IS A RESULT OF US TAKING THAT FORWARD THINKING INITIATIVE OF RAISING THE PAY THAT ALLOWED US TO RECRUIT THOSE FIREFIGHTERS. SO I JUST COMMEND YOU ALL ON COUNCIL AND COMMEND STAFF FOR HELPING THIS TO HAPPEN. SO GREAT POINT. ABSOLUTELY. NEXT
[7. BUSINESS ITEMS]
ITEM ON THE AGENDA, DISCUSS AND CONSIDER ACCEPTANCE OF THE 2023 2024 AUDIT. MARK. THIS EVENING I'M GOING TO INTRODUCE CLAYTON ROGERS. HE IS THE LEAD ON OUR AUDIT. AND HE'S GOING TO COME UP AND TALK A LITTLE BIT ABOUT THE 2324 AUDIT. AS YOU ALL ARE AWARE, WE'RE A LITTLE LATE THIS YEAR, A LITTLE LATER THAN WE NORMALLY ARE, AND WE'RE ALREADY IN THE PROCESS OF WORKING ON THE 25 AUDIT. SO WE ARE HOPING THAT THAT IS DELIVERED TO YOU IN A MUCH MORE TIMELY MANNER.BUT BECAUSE SOME OF THE CHALLENGES WE HAD THIS YEAR, IT TOOK US A LITTLE LONGER TO GET IT DONE. BUT I'M GOING TO INVITE CLAYTON UP TO SPEAK AGAIN. CLAYTON ROGERS WITH BROWN AND HILL, WHO IS OUR AUDIT FIRM, TALKING ABOUT THE FY 24 AUDIT, THE SINGLE AUDIT AND THE REQUIRED COMMUNICATION LETTER THAT THEY PROVIDE. CLAYTON SAY THAT FIVE TIMES FAST. YES, SIR. YEAH. THANK YOU MARK. THANK YOU, MAYOR AND COUNCIL FOR HAVING ME. AS MARK SAID, I'M HERE HOT OFF THE PRESSES WITH YOUR FISCAL YEAR 2024 ANNUAL FINANCIAL REPORT AND THE INTEREST OF TIME, ME BEING A CPA, I WOULD LOVE TO SIT HERE FOR THE NEXT 2.5 HOURS AND EXPLAIN EVERY PAGE OF THIS DOCUMENT TO YOU, BUT IN THE INTEREST OF TIME, I'M GOING TO HIT JUST A FEW OF THE HIGHLIGHTS AND REALLY FOCUS IN ABOUT THE AUDIT PROCESS AND THE RESULTS OF THE AUDIT. THAT BEING SAID, I AM MORE THAN HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE. WE CAN STOP DURING THE MIDDLE OF THIS. IF ANYONE HAS ANY QUESTIONS AND WOULD LIKE TO STOP AND HIGHLIGHT SOMETHING, PLEASE FEEL FREE TO DO SO. SO FIRST WE'LL BE GOING THROUGH THE CITY'S ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH, 2024. SO IF YOU'LL OPEN WITH ME TO PAGE ONE, PAGE ONE ALWAYS SEEMS LIKE A GOOD PLACE TO START. PAGE ONE IS THE INDEPENDENT AUDITOR'S REPORT. AND REALLY THIS IS THIS LETTER IS WHY WE ARE HERE OR WHY I'M HERE. WHAT THIS LETTER SAYS IS THAT MANAGEMENT OF THE CITY IS RESPONSIBLE FOR THIS DOCUMENT AND EVERYTHING THAT'S IN IT. MY RESPONSIBILITY, MY FIRM'S RESPONSIBILITY IS TO RENDER AN AUDIT OPINION. AND I AM HAPPY TO REPORT THAT IN THE SECOND PARAGRAPH, WE'RE RENDERING WHAT'S KNOWN AS AN UNMODIFIED OPINION OR A CLEAN AUDIT OPINION. SO THAT MEANS THAT BASED OFF OF OUR AUDIT, THERE ARE NO MATERIAL MISSTATEMENTS. IN OTHER WORDS, THERE'S NOTHING INCORRECT OR OMITTED THAT WOULD AFFECT
[00:30:01]
DECISION MAKING. SO THAT DOESN'T MEAN PERFECT. WE DON'T LOOK AT EVERY DOLLAR. WE DON'T LOOK AT EVERY TRANSACTION. THAT WOULD BE TIME AND COST PROHIBITIVE. THERE ARE INHERENT LIMITATIONS TO AN AUDIT. EVEN IF WE DID GO TO THAT LEVEL AND WE DON'T, WE DON'T. WE'RE LOOKING AGAIN AT WHAT WOULD AFFECT DECISION MAKING. SO THERE IS THERE ARE CERTAIN THRESHOLDS THAT ARE APPLIED THERE FOR WHAT'S CONSIDERED MATERIAL AND WHAT'S NOT. BUT ULTIMATELY WE DID RENDER AN UNMODIFIED OPINION OVER THESE FINANCIALS. AND AS I MENTIONED, THERE'S A THERE'S A WHOLE LOT OF INFORMATION IN THIS DOCUMENT AND A LOT OF INFORMATION THAT REALLY YOU WOULD ONLY SEE HERE ONCE A YEAR. JUST TO GIVE YOU AN EXAMPLE, THE TEAMSTERS PENSION PLAN THAT THE CITY PARTICIPATES IN, THERE'S ABOUT 5 OR 6 VERY SLEEP INDUCING PAGES OF FOOTNOTES THAT DESCRIBE THE CITY'S POSITION IN THE PLAN IN GREAT DETAIL. SO BY THAT I MEAN THAT THERE IS A LOT OF DETAIL IN THIS DOCUMENT. THERE'S A LOT OF INFORMATION ABOUT VARIOUS ASPECTS OF THE CITY'S FINANCES. THAT'S SOMETHING THAT'S NOT JUST THE ENDING POINT OF THE AUDIT, BUT CAN BE THE STARTING POINT OF THE NEXT FISCAL YEAR, THE BUDGET PROCESS, AND CAN BE SOMETHING THAT'S REFERRED BACK TO IN THE FUTURE. NOW, AS FAR AS FINANCIAL HIGHLIGHTS, AGAIN, AS MARK SAID, WE ARE A LITTLE BEHIND THIS YEAR IN TERMS OF WHEN WE WOULD NORMALLY BE GETTING THIS TO YOU. SO I DON'T WANT TO GO OVER THE NUMBERS IN EXHAUSTIVE DETAIL, BUT I DID WANT TO POINT A COUPLE OF THINGS OUT THAT MIGHT BE OF INTEREST TO YOU, AND WILL BE SOMETHING THAT I WILL TOUCH ON AGAIN HERE IN A FEW MINUTES. IF YOU WILL TURN WITH ME TO PAGE 17, 17 AND 18. WE HAVE HERE ON PAGES 17 AND 18 WHAT WHAT WE COULD CALL THE INCOME STATEMENT FOR THE CITY'S GOVERNMENTAL FUNDS. SO NOT WATER, SEWER, NOT AIRPORT. AND YOU CAN SEE THE PUBLIC PRIVATE PARTNERSHIP, THE GENERAL FUND, EDC, SECTION EIGHT FUNDS, PLUS SEVERAL OTHERS ARE ALL PRESENTED SEPARATELY. AND THEN MOST OF THE CITY'S OTHER FUNDS ARE AGGREGATED INTO ONE COLUMN. THERE IS A BREAKOUT OF THOSE OTHER FUNDS FURTHER BACK IN THE REPORT. AGAIN, WE COULD HAVE LOTS OF LENGTHY DISCUSSIONS ABOUT WHERE FUND BALANCE WOUND UP AND SOME OF THOSE TYPES OF THINGS. THE THING I WANTED TO POINT OUT, MOST PARTICULARLY THAT I'M GOING TO DRILL DOWN ON HERE IN A FEW MINUTES, IS IF YOU LOOK TOWARD THE BOTTOM OF THE PAGE ON PAGE 17, THERE WILL BE A COUPLE OF WHAT WE CALL ADJUSTMENTS AND RESTATEMENTS TO BEGINNING FUND BALANCE. I KNOW THAT'S THAT'S A THAT'S A VERY WHAT AM I TRYING TO SAY THAT IT'S A REALLY EXCITING SOUNDING TERM ISN'T IT. IT'S ACTUALLY NEW ACCOUNTING TERMINOLOGY THAT THEY JUST GAVE US THIS YEAR. AND SO YOU'LL SEE THERE'S TWO COMPONENTS OF THAT THAT I WANTED TO MENTION. THE FIRST THE ERROR CORRECTIONS. YOU'LL SEE ONE IN THE GENERAL FUND AND ONE IN THE EDC. IF YOU CAN KIND OF MENTALLY STICK A PEN IN THOSE, I'M GOING TO DISCUSS THOSE A LITTLE BIT FURTHER BACK IN OUR AUDITOR'S REPORT. AND THEN THE CHANGE WITHIN THE FINANCIAL REPORTING ENTITY IS THAT VERY SIMPLY, THAT'S A BIG NUMBER THERE, $4.5 MILLION. VERY, VERY SIMPLY, WHAT HAPPENED THERE IS THAT WHEN THE CITY TRANSITIONED ITS FINANCIAL ACCOUNTING SOFTWARE, THAT'S A REALLY GOOD TIME TO PULL UP AND TAKE A GOOD LONG LOOK AT WHAT FUNDS THE CITY ACCOUNTS FOR AND REPORTS, AND THAT SOMETIMES, OVER TIME, MANAGEMENT MAY FIGURE OUT THAT THERE ARE FUNDS THAT IT MADE SENSE TO ACCOUNT OR REPORT FOR THOSE SEPARATELY IN THE PAST. BUT FOR VARIOUS REASONS, IT DOESN'T REALLY MAKE SENSE TO CONTINUE DOING THAT. AND SO WHAT THAT INCREASE OF $4.5 MILLION REPRESENTS IS SOME VARIOUS FUNDS OF THE CITY THAT USED TO BE REPORTED ELSEWHERE IN THIS DOCUMENT, BUT ARE NOW BEING INCLUDED AS PART OF THE GENERAL FUND, THE BULK OF THAT BEING CITY INSURANCE FUNDS. BUT I JUST WANTED TO POINT THAT OUT, BECAUSE THAT IS SOMETHING THAT IF I WERE IN YOUR SHOES AND LOOKING THROUGH THIS, IT'S A PRETTY BIG, PRETTY BIG SWING IN TERMS OF HOW FUND BALANCE IS REPORTED THERE. SO IF WE'LL SKIP ON TO THE SMALLER BOUND DOCUMENT, IT'S GOING TO BE IMMEDIATELY IN THE PDF. FOLLOWING THIS ONE, THE CITY'S SINGLE AUDIT REPORT. SO SINGLE AUDIT. I'VE ALWAYS BEEN A LITTLE AMUSED THAT IT'S KIND OF A MISNOMER, BECAUSE SINGLE AUDIT MEANS THAT YOU GET A SECOND AUDIT. SO IF YOU MAY RECALL FROM WHEN I WAS HERE THIS TIME LAST YEAR, IT'S SOMETHING THAT IS NOT NEW TO THE CITY BECAUSE OF THE AMOUNT OF FEDERAL AND STATE DOLLARS THAT THE CITY EXPENDS, THERE ARE CERTAIN COMPLIANCE[00:35:02]
REQUIREMENTS THAT ARE ATTACHED TO THOSE FUNDS. AND SO BASED ON THE AMOUNT THAT THE CITY SPENDS, IT TRIGGERS A FEDERAL AND STATE COMPLIANCE AUDIT. SO JUST LIKE WITH THE OUR OPINION OVER THE FINANCIAL STATEMENTS, WE'RE RENDERING AN OPINION OVER COMPLIANCE. THERE ARE LIMITATIONS TO THAT OPINION. WE DON'T LOOK AT ALL COMPLIANCE REQUIREMENTS FOR EVERY PROGRAM.WE SELECT CERTAIN PROGRAMS OF THE CITY. THIS YEAR IT WAS SOME OF THE SOIL AND WATER CONSERVATION BOARD FUNDS. IT WAS THE CITY'S ARPA FUNDS, AS WELL AS HOUSING CHOICE VOUCHER FUNDS, WHERE THE THREE PROGRAMS THAT WE LOOKED AT AND WE KIND OF DO A DEEP DIVE ON THE CITY'S COMPLIANCE, NOT WITH EVERY STRING THAT'S ATTACHED TO THOSE FUNDS, BUT WHAT ARE THE REALLY BIG, IMPORTANT COMPLIANCE REQUIREMENTS THAT IF THE CITY WERE TO RUN AFOUL OF THOSE, THAT THE GRANTING AGENCY WOULD HAVE AN ISSUE WITH? I AM HAPPY TO REPORT GETTING A LITTLE AHEAD OF MYSELF, THAT WE WERE ABLE TO RENDER UNMODIFIED OPINIONS ON ALL THREE OF THOSE PROGRAMS, WHICH MEANS THAT BASED ON OUR AUDIT, WE DO BELIEVE THAT THE CITY DID COMPLY WITH ALL OF THOSE BIG IMPORTANT COMPLIANCE REQUIREMENTS. SO WE ARE BATTING A THOUSAND AT THIS POINT. TWO AUDITS, TWO AUDIT OPINIONS, TWO UNMODIFIED OPINIONS. HOWEVER, IF YOU'LL OPEN TO PAGE ONE WITH ME. NOW FOR THE THE LITTLE BIT LESS GOOD NEWS ON PAGE ONE, WE HAVE THE GOVERNMENT AUDITING STANDARDS REPORT. VERY SIMPLY, SINCE WE ARE DEALING WITH TAXPAYER FUNDS, ME AND MY FIRM, WE OPERATE UNDER GOVERNMENT AUDITING STANDARDS, WHICH IS PUT OUT BY THE FEDERAL GOVERNMENT, AND IT ADDS SOME EXTRA REQUIREMENTS ONTO OTHER AUDITING STANDARDS. AND REALLY, THE WAY I LIKE TO EXPLAIN IT IS THAT WE DON'T WANT GOOD THINGS TO HAPPEN WITH TAXPAYER FUNDS BY ACCIDENT. AND WHAT I MEAN BY THAT IS THAT WE'D BE REQUIRED TO REPORT TO YOU IF DURING THE COURSE OF THE AUDIT, NOT JUST THAT WE HAD ARRIVED AT A CLEAN OPINION, BUT IF WE HAD SEEN CERTAIN SIGNIFICANT ISSUES WITH THE CITY'S PROCESSES AND CONTROLS THAT GET US TO THAT POINT. SO WE DID HAVE YOU'LL SEE THE SECOND TO THE LAST PARAGRAPH. WE HAVE TWO ITEMS THAT QUALIFIED AS FINDINGS UNDER OUR AUDIT. SO I WANTED TO GO OVER THOSE WITH YOU. I'LL TAKE A QUICK DETOUR IF WE'LL STOP AT PAGE NINE. PAGE NINE AND BEGINS THE SCHEDULE OF FINDINGS AND QUESTIONED COSTS, WHICH IS A NICE LITTLE SUMMARY OF WHAT I JUST DISCUSSED. IT DOES SHOW THOSE TWO UNMODIFIED OPINIONS. FURTHER DOWN THE PAGE.
IT SHOWS. IT LISTS OUT THE NAMES OF THOSE FEDERAL AND STATE PROGRAMS THAT WE AUDITED UNDER OUR COMPLIANCE AUDIT. AND IT DOES LIST THOSE TWO WHAT WE CALL MATERIAL WEAKNESSES UNDER GOVERNMENT AUDITING STANDARDS THAT RELATE TO THE FINANCIAL STATEMENTS. THOSE ARE IN DETAIL ON THE NEXT PAGE, TEN AND 11. SO IF YOU'LL RECALL BACK TO THE THING I MENTIONED IN THE FINANCIAL STATEMENTS EARLIER, THOSE TWO, THERE WERE TWO NUMBERS THAT WERE SHOWN AS RESTATEMENTS OF THE PRIOR YEAR THAT WERE REFERRED TO IN THE FINANCIALS AS ERROR CORRECTIONS.
PRETTY MUCH UNDER OUR STANDARDS. A GOOD WAY OF THINKING ABOUT IT IS IF WE HAVE AN ERROR CORRECTION THERE THAT'S OF ANY SIGNIFICANT AMOUNT, IT PRETTY MUCH HAS TO BE ACCOMPANIED BY A FINDING. THE IDEA IS THAT IF WE ARE SIGNIFICANTLY RESTATING BALANCES FROM A PRIOR YEAR, IN THEORY, WELL FUNCTIONING PROCESSES WOULD HAVE DETECTED THOSE ERRORS AT THE TIME. NOW, I'M HERE TO TELL YOU THAT THERE ARE LOTS OF EXTENUATING CIRCUMSTANCES THAT COMPLICATE THAT THEORY IN PRACTICE. BUT THAT BEING SAID, I DID WANT TO MENTION THESE TO YOU AND PUT THEM IN A LITTLE BIT OF CONTEXT TO HELP UNDERSTAND WHAT THEY REALLY MEAN FOR THE CITY GOING FORWARD. SO ON PAGE TEN, THE FIRST OF OUR TWO FINDINGS. A LOT OF THESE ELEMENTS OF THE FINDING ARE WORDED SOMEWHAT QUITE FORMALLY. SO IN VERY PLAIN ENGLISH, WHAT THIS FINDING IS SAYING IS THAT THROUGHOUT THIS PAST YEAR, AS THE CITY WAS TRANSITIONING ITS FINANCE AND ACCOUNTING SOFTWARE. THERE HAVE BEEN THERE WERE A NUMBER OF THINGS THAT WERE UNCOVERED IN THE BANK RECONCILIATION PROCESS THAT A REALLY GOOD WAY OF TO REALLY KIND OF SIMPLIFY IT. IT'S THAT AS CITY PERSONNEL WERE RECONCILING CASH ACCOUNTS IN THE NEW SYSTEM, IT BECAME EVIDENT THAT THERE WERE, FOR VARIOUS REASONS, THINGS THAT WERE CAUSING THE GENERAL LEDGER TO NOT LINE UP WITH BANK RECONCILIATIONS THAT WERE NOT
[00:40:06]
RELATED TO SOMETHING THAT WAS IN THE CURRENT YEAR. AND SO WE IF WE HAVE BANK RECONCILIATIONS THAT WE KNOW THAT THIS DOCUMENT IS ACCURATE AND THAT THIS IS REALLY WHAT THE GENERAL LEDGER SHOULD BE, AND THE GENERAL LEDGER IS NOT THAT, AND IT'S NOT BECAUSE OF ANYTHING RELATED TO FISCAL YEAR 24. IT THEN BY EXTENSION IS RELATED TO A PRIOR YEAR, WHICH IS WHERE THAT COMES FROM. IT'S NOT ANY ONE THING. IF YOU MAY RECALL, THERE WAS SOME WORK DONE IN THE PAST BY SOMEONE WORKING WITH THE TEXAS MUNICIPAL LEAGUE, AND IF MEMORY SERVES, ONE OF THEIR COMMENTS WAS THAT THE CITY DOES CARRY A FAIRLY LARGE NUMBER OF DEPOSITS, ACCOUNTS, AND THAT'S NOT NECESSARILY A BAD THING, BUT WHAT IT IS IS A MORE COMPLICATED THING. AND SO WHEN THERE ARE LOTS OF DIFFERENT FUNDS IN A CITY THAT IS GROWING AND THAT THERE'S LOTS OF DIFFERENT ACTIVITY, NOT JUST IN AND OUT OF THE CITY, BUT THEN ALSO BETWEEN CITY FUNDS FOR VARIOUS REASONS. THERE ARE THERE'S A LOT OF SURFACE AREA, SO TO SPEAK, FOR THINGS TO GET A LITTLE CROSS WIRED. AND SO ULTIMATELY, I THINK REALLY THAT WAS IT WAS THE PROCESS OF TRANSITIONING INTO THIS NEW SOFTWARE, WHICH HAS MUCH MORE ROBUST REPORTING FEATURES THAT REALLY CITY STAFF WAS ABLE TO IDENTIFY AND GET THE BANK RECONCILIATIONS TO A PLACE THAT THEY WERE MUCH MORE COMFORTABLE WITH. ANY QUESTIONS ON THAT SO FAR? I THINK I SHOULD HOLD MY QUESTIONS TO THE LAST, BUT YES, I WILL LET HIM FINISH. THANK YOU. OKAY, SO MOVING ON TO THE SECOND FINDING ON PAGE 11. THIS IS THE ONE, THE PROBABLY THE BEST TYPE OF FINDING I CAN BRING TO YOU. IT'S THE FINDING THAT I HAVE TO ISSUE, BUT THAT IT'S REALLY ONE THAT WE BECAME AWARE OF WHEN MANAGEMENT BROUGHT IT TO OUR ATTENTION WITH A WITH A CORRECTION. SO THIS RELATES TO THE EDC. AS YOU MAY BE FAMILIAR, THE EDC OWNS VARIOUS LAND THAT IT IN ACCOUNTING TERMS THE TERM WE USE IS HELD FOR SALE, HELD FOR ECONOMIC DEVELOPMENT PURPOSES.AND THAT NUMBER IS REPORTED BACK IN THE FINANCIAL STATEMENTS ON THE BALANCE SHEET.
AND WHEN YOU HAVE LOTS OF DIFFERENT PARCELS THAT ARE PURCHASED, OFTENTIMES SOME OF IT WAS PURCHASED VERY FAR IN THE PAST, WHERE OFTENTIMES RECORDS AREN'T EVEN AVAILABLE ANYMORE. OFTENTIMES THOSE CAN BE SPLIT UP, SUBDIVIDED, SOLD IN VARIOUS PIECES. THERE IS AGAIN A LOT OF SURFACE AREA THERE. IT CAN BE A LITTLE TRICKY TO KEEP TRACK OF.
EXACTLY WHAT'S THE DOLLAR VALUE OF THE LAND THAT IS HELD BY THE EDC AT ANY GIVEN TIME. AND IN THE PAST, THE PROCESS HAS REALLY FOCUSED MOSTLY ON THE CURRENT YEAR CHANGES. WHAT LAND HAS BEEN SOLD DURING THE YEAR, WHAT LAND HAS BEEN PURCHASED DURING THE YEAR? AND THAT INFORMATION CAN GIVE US A PRETTY GOOD PICTURE OF WHAT THE NUMBER REALLY IS AT ANY GIVEN POINT IN TIME. BUT THIS PAST YEAR, THE EDC MANAGEMENT REALLY DID A DEEP DIVE ON THAT NUMBER AND WENT BACK INTO PROPERTY RECORDS. AND A LOT OF REALLY LET'S LOOK AT HOW WERE THESE PARCELS DIVIDED UP, WHAT WAS SOLD, WHICH PIECE, WHAT WAS THE PRO RATA VALUE OF THAT. AND SO ULTIMATELY WHAT THEY DETERMINED WAS THAT THE NUMBER, THE AMOUNT, THE BOOK VALUE OF THAT LAND ASSET THAT'S ON THE BOOKS NEEDED TO BE REDUCED FROM WHAT IT WAS. AND SO ULTIMATELY, THAT WAS WHAT LED TO, AGAIN, THAT NEW ACCOUNTING TERM. WE HAVE TO USE THE TERM ERROR CORRECTION, BECAUSE IN THEORY, THAT INFORMATION COULD HAVE BEEN DONE IN THE PAST, BUT THAT IT HAS BEEN DONE. AND ULTIMATELY IT WAS THEM WHO WERE BRINGING THE RESULTS OF THAT DEEP DIVE TO US. AND THEN FROM WHAT WE WERE LOOKING AT, IT REALLY SEEMS LIKE THE EDC HAS A VERY, VERY GOOD SET OF RECORDS THAT THEY CAN CARRY INTO THE FUTURE. SO THERE ARE SOME THINGS TO CONSIDER OUT OF THAT. BUT ULTIMATELY, AFTER TALKING ABOUT SOME OF THE NOT SO GOOD THINGS, I WOULD LIKE TO THANK MARK AND THE NEW FINANCE DIRECTOR, MATTHEW AND THEIR STAFF THROUGHOUT THIS ENTIRE PROCESS. IT WAS A VERY LONG AND CHALLENGING PROCESS FOR THE CITY. I'M HERE TO TELL YOU, I HAVE NEVER HAD SOMEONE AT A GOVERNMENT TELL ME THAT CHANGING THEIR ACCOUNTING SOFTWARE WAS PAINLESS. MOST OF THEM HAVE TOLD ME IT WAS SOME VARIATION OF INCREDIBLY PAINFUL AND DIFFICULT. SO WE REALLY APPRECIATE THE CITY STAFF CONTINUALLY BEING FORTHCOMING WITH US, COMMUNICATIVE AND TRYING TO GET US EVERYTHING WE NEEDED, AND WORKING VERY DILIGENTLY TO GET THESE RECORDS RECONCILED SO THAT WE CAN ISSUE
[00:45:04]
A CLEAN OPINION THAT WE HAVE HERE TODAY. SO THANK YOU, MARK AND I WILL TURN IT OVER TO YOU ALL FOR QUESTIONS. YEAH. SO WE'LL ON THE DEFICIENCIES THAT WERE IDENTIFIED BY THE AUDIT.DO YOU THINK THAT THAT THE CITY IS TAKING APPROPRIATE. ADDRESSING THE THE PROBLEMS THAT THAT YOU'VE IDENTIFIED MARK. AND FINDING SOLUTIONS THAT WERE MORE EFFICIENT? ONE AND THEN SECONDLY, DO YOU THINK THERE WAS ANY INTENT ON ANYONE'S PART OR IS IT JUST CIRCUMSTANCE THAT WE FIND OURSELVES IN THIS POSITION? SO WE STARTED MAKING SOME STRIDES IN IN 25. WE'RE STILL NOT THERE. WE ARE IN THE PROCESS OF REDOING HOW WE DO OUR BANK RECONCILIATIONS. WE ACTUALLY HAVE A PRIVATE CPA THAT IS HELPING US GET CAUGHT UP WITH OUR BANK RECONCILIATIONS. WE HAVE A PROGRAM THAT WE'RE GOING TO BE UTILIZING TO DO OUR BANK RECONCILIATIONS THAT HE ACTUALLY HAS BUILT. HE'S BUILT 3 OR 4 OF THEM IN THE PAST AND FOR VERY, VERY INEXPENSIVE AMOUNT. WE'RE TALKING LESS THAN LIKE $1,200 A YEAR. WE'RE ACTUALLY GOING TO HAVE A SOFTWARE THAT WE CAN USE TO DO BANK RECONCILIATIONS, SO THAT WE'RE NOT TRYING TO DO IT IN EXCEL SPREADSHEETS. WE WENT FROM 50 SOME ODD BANK ACCOUNTS I BELIEVE WERE UNDER 15 AT THIS POINT. SO THE AMOUNT OF BANK ACCOUNTS THAT ARE HAVING TO BE RECONCILED HAS BEEN CUT DRAMATICALLY BETWEEN THE INTERIM FINANCE DIRECTOR, MARTY COURSEY, THAT WE HAD AND WITH MATT COMING ON BOARD, I THINK WE'RE GOING TO BE IN MUCH, MUCH BETTER SHAPE AT THE END OF 26 THAN WE ARE GOING INTO 25 THAN WE WERE GOING INTO 25. SO YOU SAID WE WENT FROM 55 TO HOW MANY? WE WENT OVER 50. AND WE'RE DOWN. WE'RE UNDER 20.
WE'RE PROBABLY I THINK I WANT TO SAY WE'RE AT 11, BUT I THINK IT'S CLOSER TO 15. SO WHAT IS OUR GOAL? WHAT WHAT ARE WE TRYING TO GET TO. THERE'S NO RIGHT NUMBER. IT'S JUST A MATTER OF WHAT WE NEED TO OPERATE. 55 ACCOUNTS WAS WAY OVER. WAY OVER WHAT WE NEEDED.
IT JUST IT OVERLY COMPLICATED THINGS. AGREED. SO BUT THE CHANGE THAT WE'VE HAD IN THE FINANCE DEPARTMENT, WE'VE HAD A CHANGE IN LEADERSHIP IN THE FINANCE DEPARTMENT, WE'VE HAD A CHANGE IN IN APPROACH. AND I THINK WE'RE GOING TO BE IN MUCH BETTER SHAPE GOING FORWARD, JUST IN THE SHORT PERIOD OF TIME THAT HE THAT HE'S BEEN HERE, MATT, WHO IS OUT OF TOWN AND COULDN'T BE HERE THIS EVENING, HAS MADE SUBSTANTIAL STRIDES ALREADY. GREAT. NOW, ON THE EDC PORTION, IT'S NOT A IT'S NOT CASH THAT WE'RE TALKING ABOUT, BUT IT'S VALUE OF PROPERTY. LAND. THAT'S CORRECT. RIGHT. THAT'S THAT WAS UNDERVALUED OR OVERVALUED.
OVERVALUED IN THEORY. AND SO WE'RE BRINGING IT BACK DOWN TO WHAT WE FEEL COMFORTABLE REPORTING. THAT'S RIGHT. SO THERE'S NO MONEY. IT'S NOT DOLLARS OKAY OKAY I JUST WANT TO BE CLEAR ON THAT. ALL RIGHT. SO PROBABLY A LOT OF QUESTIONS FROM THE DYESS. LET'S START WITH OUR MAYOR PRO TEM. A COUPLE THINGS THAT VALUE OF LAND US REDUCING THE VALUE OF IT OR GETTING IT RECONCILED PROPERLY. DOES THAT WERE WE COUNTING ON THE VALUE OF THAT LAND FOR ANY PARTICULAR FINANCIAL PURPOSE, OR DOES THAT IMPACT ANY SORT OF, YOU KNOW, VALUATIONS OR ANY, ANY MONEY THAT WE'RE COUNTING ON FROM A CITY PERSPECTIVE OVERALL? ANY IDEA, MARK, IT IS NOTHING THAT WE WOULD BE COUNTING ON. IT'S ALL EDC, EDC OKAY. SO LOWERING THAT VALUATION DOESN'T PUT US IN ANY KIND OF A FINANCIAL BIND. NO SIR. IT SHOULD NOT. OKAY.
AND FOR CLARITY ALSO ALL OF THOSE ASSETS ARE VALUED STRICTLY AT HISTORICAL COST.
THERE'S NO ADJUSTING IT TO MARKET VALUE OR ANYTHING OF THAT NATURE. OKAY. WHICH IS PART OF WHAT MAKES IT KIND OF TRICKY TO ACCOUNT FOR WHEN SOME OF THOSE PARCELS WERE PURCHASED QUITE PRETTY FAR IN THE PAST. OKAY. DO WE HAVE ANY IDEA AT THIS POINT WHY PRIOR FINANCIAL LEADERSHIP WOULD HAVE SEEN FIT TO HAVE SO MANY BANK ACCOUNTS? WHAT WAS THE THINKING THERE? AND AND HOW DID WE GET THERE? I HAVE AN ANSWER. I'M TRYING TO FIGURE OUT THE NICE WAY TO SAY IT, IF I MAY. MARK, I THINK I'M NOT SPEAKING FOR PREVIOUS LEADERSHIP BECAUSE I'VE NEVER WORKED AT THE CITY, BUT IN GENERAL, WHAT THE GOVERNMENT FINANCE OFFICERS ASSOCIATION OF AMERICA OR GFOA, WHAT THEY REALLY RECOMMEND IS THAT FOR THINGS LIKE FUNDS OR BANK ACCOUNTS, THEY USE THE MINIMUM NUMBER PRINCIPLE THAT YOU TRY AND HAVE AS FEW AS YOU POSSIBLY NEED THAT IF AND SO THAT YOU START WITH THE IDEA THAT YOU WANT FEW, AND THAT IF YOU'RE GOING TO ADD ANOTHER ACCOUNT, THAT THAT IS SOMETHING THAT IS JUSTIFIED, WHAT CAN REALLY HAPPEN REALLY WHERE IT CAN BALLOON IS RESTRICTED REVENUE SOURCES AND BOND ISSUANCES.
[00:50:02]
THOSE ARE BOTH. EVERY TIME A NEW FEE IS LEVIED OR EVERY TIME A NEW BOND IS ISSUED, THOSE ARE OPPORTUNITIES WHERE THERE CAN BE SEEN AS JUSTIFICATION FOR OPENING A NEW ACCOUNT, AND THAT IF THAT VERY MEASURED PRACTICE IS NOT TAKEN, THEN IT'S WITH A CITY THAT'S GROWING, THAT'S ISSUING LOTS OF DEBT, THOSE TYPES OF THINGS THAT CAN REALLY EXPAND OVER TIME. BUT THERE'S NO APPEARANCE NECESSARILY, THAT THERE WAS ANY ATTEMPT AT SORT OF CONFUSION OR OBFUSCATION. NO, NO, IT WAS AN EXPERIENCE. OKAY. IT WAS A A LACK OF KNOWLEDGE, A LACK OF EXPERIENCE. AND THIS I'M SAYING THE QUIET PART OUT LOUD. UP UNTIL NOW, UP UNTIL RECENTLY, I WOULDN'T SAY THAT WE HAD A PROFESSIONAL FINANCE DEPARTMENT. YOUR FINANCE DIRECTOR WAS YOUR CITY SECRETARY AND YOUR IT DIRECTOR IN JOHN ROUNSEVELL. NOTHING THAT HE DID WAS NEFARIOUS, OR IT WAS THE WAY THAT HE WAS TRACKING TRACKING MONEY. IT WAS EASIER FOR HIM TO HAVE MORE ACCOUNTS. I EXPECT THE SAME WAS WITH WITH JAY AYERS AND AND SHELLEY WALLACE. I THINK IT WAS JUST AN INEXPERIENCE. I KNOW THAT SHELLEY HAD SOME CHALLENGES WITH POOLED CASH WHEN WE WERE SETTING UP THE SYSTEM, BUT I DON'T THINK THERE WAS ANY MALFEASANCE OR, OR, YOU KNOW, ANY, ANY ATTEMPT TO OBFUSCATE. IT WAS A MATTER OF INEXPERIENCE AND USING IT AS A TRACKING TRACKING MECHANISM. GOTCHA. MY LAST QUESTION. I'M TRYING TO FIND THE PERFECT WAY TO WORD THIS. LET'S SEE. SO. IN OUR IN OUR PREVIOUS ITERATION OF OUR FINANCE DEPARTMENT. YOU KNOW I'M GOING TO I'LL HOLD THIS QUESTION I'LL ASK IT TO YOU PRIVATELY. MARK JUST KIND OF DISCUSS YOU KNOW IT'S MORE GRANULAR OKAY. THANK YOU. YEAH. AND I'M NOT TRYING TO BE CRITICAL OF THE PREVIOUS FINANCE DEPARTMENTS. IT'S IT'S JUST THE WAY THEY OPERATED.JUST LET ME JUST ASK IT THIS WAY. SO IN PREVIOUS AUDITS THEY CAME BACK, YOU KNOW, GENERALLY CLEAN WITH NO ISSUES, NOTHING PRESENTED THAT WAS HAD ANY SORT OF NEGATIVE CONNOTATION. BUT NOW OBVIOUSLY WE'RE RECOGNIZING THERE WERE ISSUES BECAUSE WE'RE GOING BACK AND DOING 2004 AUDIT.
NOW WE'RE NOT CUT UP TO GET CAUGHT UP ON 0405. SO WE DID HAVE ISSUES THAT WEREN'T DISCOVERED IN PREVIOUS AUDITS. SO HOW HOW CAN WE LOOK AT THIS AUDIT AND SAY WE'RE ON TRACK NOW? THINGS ARE THINGS ARE MOVING IN THE RIGHT DIRECTION. IS THAT A THAT MAKE SENSE. YEAH THAT'S A GREAT QUESTION. SO A COUPLE OF THINGS WITH THAT. A LOT OF IT IS THE FACT THAT AGAIN, SOME OF THOSE ISSUES WERE IT WAS NOT ONE THING. IT WAS A NUMBER OF THINGS THAT WERE, I HATE TO USE THE TERM PERVASIVE, BUT THAT THERE WERE, AGAIN, WHEN YOU HAVE LOTS AND LOTS OF DIFFERENT ACCOUNTS AND LOTS AND LOTS OF DIFFERENT FUNDS, AND THEN YOU TAKE ALL OF THAT INFORMATION, PULL IT OUT OF ONE SOMEWHAT OUTDATED ACCOUNTING SOFTWARE THAT ARGUABLY THE CITY HAD OUTGROWN, AND THEN TRANSITIONED ALL OF THAT DATA ON THE FLY WHILE THE CITY IS STILL CUTTING CHECKS, CUTTING PAYROLL, RECEIVING UTILITY PAYMENTS, DOING ALL OF THAT AT THE SAME TIME, AND GETTING ALL THAT INFORMATION INTO A NEW SYSTEM, THAT IS REALLY WHERE A LOT I THINK A LOT OF THAT STUFF FELL OUT. AND SO I THINK IT WHAT TO ME, IT REALLY SPEAKS TO IS HAVING A MORE ROBUST ERP SYSTEM THAT IS ABLE TO RECONCILE A LOT MORE OF THAT INFORMATION ON THE FLY AND GET TO GET TO THAT POINT MORE TIMELY, WHERE, OKAY, THIS IS WHERE REALLY THE GENERAL LEDGER IS AT. THE THIS IS WHERE OUR BANK ACCOUNTS ARE. WE KNOW WHAT THE DIFFERENCES ARE, THE TIMING DIFFERENCES BETWEEN THE TWO. AND I THINK THAT'S GOING TO REALLY SERVE THE FINANCE TEAM WELL GOING FORWARD. SO SOME CONCERNS MIGHT HAVE BEEN MISSED DUE TO POTENTIALLY OUTDATED SOFTWARE AND THE TRANSITIONAL PERIOD GOING FROM THE OLD SOFTWARE TO THE NEW, GENERALLY SPEAKING. YES. OKAY. YEAH. COUNCILMAN, I WOULD SAY THAT, YOU KNOW, WE WERE BEHIND IN IT. WE WERE BEHIND IN SOFTWARE. WE WERE BEHIND IN HOW. WE KEPT UP WITH THE WHOLE CITY. AND UNTIL A LOT OF US GOT ON BOARD AND WE MADE THAT A PRIORITY FOR US MOVING FORWARD TO CATCH UP TO TODAY'S TIME. WE WERE DOING THINGS THE OLD WAY. SAID IT BEFORE, YOU KNOW, WE WERE DOING MANUAL ENTRIES AND IT JUST SHOULDN'T HAVE BEEN THAT WAY.
BUT BUT YEAH, I HEAR THE CONCERN OVER HERE. SO WE AND MARK HAS TO. SO WE'RE GOING TO DO OUR BEST MOVING FORWARD TO TO MAKE SURE THAT MOVING FORWARD WE INVEST IN THOSE
[00:55:01]
AREAS THAT WE WERE DEFICIENT IN PRIOR TO US BEING HERE. AND THANK YOU. AND THE AUDIT'S NOT SUGGESTING THAT WE'RE PERFECT. THAT'S NOT THE PURPOSE OF IT. THERE COULD VERY WELL BE THINGS, BUT WE'RE CONTINUING TO LOOK AND EVALUATE. AND AGAIN, WITH THE CHANGE THAT WE HAVE IN THE FINANCE DEPARTMENT, I HAVE A GREAT DEAL OF CONFIDENCE THAT WE'RE GOING TO BE ABLE TO GET YOU GOOD INFORMATION. ONE OF THE THINGS THAT WE NEED TO DO IS WHEN WE COME ACROSS THINGS, MAKE SURE THAT WE'RE COMMUNICATING THOSE TO YOU. SO IT'S NOT THAT HERE'S THE AUDIT BECAUSE THE AUDIT AND CLAYTON, CORRECT ME IF I'M MISSPEAKING, BUT THE AUDIT IS GOOD FOR ONE DAY. THIS IS WHAT IT LOOKED LIKE ON 930 OF 2024. THAT'S IT. AS SOON AS AS SOON AS THE CLOCK TURNS OVER TO THE TO OCTOBER 1ST, THE INFORMATION ISN'T GOOD ANYMORE. IT CHANGES. IT'S A IT'S A ONE DAY SNAPSHOT. BUT WE NEED TO DO IS IS WE'RE GOING THROUGH AND WE'RE CONTINUING TO CLEAN THINGS UP AND TRYING TO DO THINGS IN A MORE EFFECTIVE AND EFFICIENT WAY IS WHEN WE DO FIND THINGS THAT WE'RE BRINGING THEM TO YOU AND DISCUSSING THEM. SO THAT WAY YOU'RE NOT CAUGHT OFF GUARD BY THEM. YEP. THANK YOU MARK. WE'VE GOT OUR OKAY DEPUTY MAYOR PRO TEM, SO TELL ME YOUR NAME AGAIN. MY NAME IS CLAYTON ROGERS, MISTER ROGERS. I'M THE PERSON THAT I DON'T DO FLUFF VERY WELL. I JUST WANT TO HEAR IT. WHAT IS IT? IN PLAIN ENGLISH? OKAY, SO WHEN I READ PAGE THREE OF YOUR LITTLE PRETTY THING RIGHT HERE, IT SAYS WE ENCOUNTERED NO SIGNIFICANT DIFFICULTIES ON ANY OTHER DAY. IF I HAD NOT GONE TO THAT BOOTS FOR TRAINING, MEANING A CITY FINANCIAL TRAINING, WHICH WAS A WATER HOSE EXPERIENCE, I THINK I WOULD BE UPSET ABOUT A DEFINITION OF WHAT IS A SIGNIFICANT DIFFICULTY. AND I HAVE NOT READ THE REPORT, SO I'M NOT REALLY UNDERSTANDING A LOT. YOU'VE MENTIONED AT LEAST THREE TIMES WE WENT FROM THIS SYSTEM TO THAT SYSTEM. AND ALL I WANT TO KNOW IS WHEN YOU FIND.TOTAL ADJUSTMENT RESTATEMENTS OF $5 MILLION, THAT MEANS SOMETHING WENT FROM ONE ACCOUNT BACK TO THE GENERAL FUND. IS THAT CORRECT? SO SEVERAL ACCOUNTS, A LOT OF MONEY WENT FROM SEVERAL ACCOUNTS. AND WE HAVE IT NOW IN THE GENERAL FUND. AND THAT'S WHAT I'M LOOKING AT.
SO THAT TOTAL ADJUSTMENT AND RESTATEMENT WAS COMPOSED OF BOTH WHAT WE CALLED THE ERROR CORRECTIONS, WHICH WE JUST DISCUSSED. AND THEN THE SECOND LINE THAT CHANGED WITHIN THE FINANCIAL REPORTING ENTITY. THAT WAS THE AMOUNT THAT WAS SIMPLY BETWEEN ALL OF THE CITY'S FUNDS. THAT WAS THE BULK OF THE $5 MILLION THAT YOU WERE REFERRING TO. OKAY, OKAY. SO. I KNOW THAT THIS IS A A FLUID DOCUMENT. I'M GOING TO SAY THANK YOU FOR DOING THIS, BUT I WANT EVERYONE TO KNOW THAT OUR FINANCIAL DEPARTMENT IS OUR BACKBONE OF THIS CITY. WE CAN'T DO ANYTHING WITHOUT THEM. IT IS THROUGH THEM THAT WE GET TO HAVE BRYN STREET DONE, THAT WE GET TO HAVE A NEW FIREHOUSE, THAT WE GET TO DO THINGS. SO THANK YOU, TRACY, I SEE YOU SITTING OVER THERE. THANK YOU. MARK. MY CONCERN IS. CAN YOU SAY, ARE YOU SAYING THAT WHEN WE HAVE. WHAT'S THE PHRASE THAT YOU USED? WHEN THERE'S NO PROBLEMS, NO SIGNIFICANT ISSUES? DOES THAT MEAN WE WHAT IS SIGNIFICANT. SO ARE WE OKAY, I JUST WANT TO KNOW. AND YOU DON'T HAVE TO SUGARCOAT IT. I THINK THAT'S THE POSITION THAT THE CITY IS GETTING INTO. WE'RE GETTING IN. SO TO TO BACK UP A LITTLE BIT I THINK AND THIS IS AN OVERSIMPLIFICATION, BUT TO PUT IT IN PLAIN TERMS, I THINK REALLY WHAT THE LARGEST DRIVING FACTOR OF WHY THE AUDIT IS AT THE POINT THAT IT IS IN TERMS OF TIMING IS THAT WHEN THERE'S A LOT OF ISSUES TRYING TO GET CASH RECONCILED, FOR EXAMPLE, THAT CAN BE INCREDIBLY TIME CONSUMING TO DETECT AND CORRECT, ESPECIALLY IN THAT OLD SYSTEM. I DON'T RECALL WHAT IT WAS, BUT JUST AS AN AUDITOR, THE REPORTS THAT THAT SYSTEM GENERATED WERE SOMETIMES VERY HARD TO FOLLOW. AND SO IT'S A PROBABLY AN
[01:00:10]
OVERSIMPLIFICATION TO SAY THAT CITY FINANCE STAFF, WHEN FACED WITH AN ISSUE LIKE THAT, THEY CAN WORK ON AUDIT OR THEY CAN DO THEIR DAY JOBS AND YOU IT SOMETIMES IT IS FOR STAFF A DECISION OF DOING ONE VERSUS THE OTHER, OR ATTEMPTING TO JUGGLE THEM. THE BEST THAT THEY CAN IS REALLY WHAT HAPPENS. AND SO WITH THAT, I DON'T REMEMBER EXACTLY THE TIMING OF EVERYTHING, BUT THAT IN GENERALLY SPEAKING, IN THE SUMMER OF LAST YEAR, THE FOCUS WAS HEAVILY ON GETTING THE FISCAL YEAR 23 AUDIT OUT. AND SO I THINK WHAT REALLY HAPPENED WAS THAT DURING THAT PROCESS, THERE WERE SOME OF THE THE BANK RECONCILIATIONS THAT WERE GETTING A LITTLE BEHIND. AND WHEN YOU HAVE AN OPERATION OF THE COMPLEXITY OF THE CITY OF TERRELL, YOU REALLY CAN'T JUST FAST FORWARD TO SEPTEMBER, THE YEAR THAT OR THE MONTH THAT WE'RE GOING TO AUDIT FOR THE SNAPSHOT IN TIME, YOU REALLY HAVE TO DO EACH ONE IN SUCCESSION. AND SO IF THOSE ARE NOT CURRENT, AS IN EVERY BANK IS BANK ACCOUNT IS BEING RECONCILED EVERY MONTH. IF THAT PROCESS GETS A LITTLE BEHIND, IT'S VERY TIME CONSUMING TO CATCH UP. SO TO ANSWER YOUR QUESTION ABOUT SIGNIFICANT DIFFICULTIES IN THAT LETTER, THAT'S A BIT OF A TERM OF ART THAT OUR AUDIT STANDARDS PRESCRIBE. AND AS AN EASY WAY I WOULD THINK ABOUT LOOKING AT IT IS DIFFICULTIES WOULD BE DIFFICULTY DEALING WITH MARK OR HIS STAFF. PARDON, DIFFICULTY DEALING WITH MANAGEMENT OR WITH CITY STAFF, OR THAT WE WERE ASKING FOR DOCUMENTATION AND WE WERE BEING TOLD, OH, WE DON'T HAVE THAT. THOSE ARE THE TYPES OF DIFFICULTIES THAT WE WOULD REALLY BE DISCLOSING THEIR. BUT I DEFINITELY RECOGNIZE HOW THAT COULD LEAD TO SOME CONFUSION IN LIGHT OF WHAT WAS PRESENTED HERE. OKAY. THANK YOU. RONNIE, I WANT TO MAKE SURE I UNDERSTOOD CLAYTON, WHAT YOU SHARED THE LAND SALE. I, I THAT I FEEL LIKE I HAVE A BETTER UNDERSTANDING OF FOR THE THE RECONCILIATION OF CASH AND INTERNAL BALANCES, WHICH WAS THE ALMOST $6 MILLION. IF I HEARD YOU CORRECTLY, IT WASN'T.IT WASN'T ONE SPECIFIC. ENTRY, BUT IT WAS A MULTIPLE ENTRIES THAT IT'S THAT IT. AND I GUESS I'M TRYING TO UNDERSTAND WHAT WERE THE DIFFERENT ENTRIES THAT MAKE UP THE $6 MILLION AND THEN TWO. IT SOUNDS LIKE FROM WHAT I'M HEARING THAT IT WAS, DID WE HAVE THE RIGHT STAFF WHILE THAT CHANGE, WHILE THE THE NEW FINANCIAL SYSTEM CHANGE WAS OCCURRING? OR IS THERE ANYTHING ELSE? AND I'M THINKING FROM THE LENS OF WHETHER IT'S THIS SYSTEM OR DIFFERENT SYSTEM IN THE FUTURE, IS THERE A DIFFERENT QUESTION THAT I COULD HAVE ASKED US TO HELP MAKE SURE THAT WE WERE CHOOSING THE CORRECT SYSTEM FOR OUR CITY, AND THAT WE WERE AT A POINT IN TIME WHERE WHERE IT MADE SENSE, WHERE WE WERE GOING TO BE MOST EFFICIENT, TO BE ABLE TO ROLL INTO THAT SYSTEM. AND WHAT I KEEP FEEL LIKE I'M HEARING IS WE DID NOT HAVE THE STAFF WITH THE CORRECT CREDENTIALS OR EXPERIENCE OR MANAGEMENT STYLE TO LEAD US IN THE BEST DIRECTION. IS IS THAT A GOOD SYNOPSIS OR IS THERE ANYTHING I'M I'M MISSING? NO, THAT'S A GREAT QUESTION. AND THERE'S THERE'S A COUPLE OF THINGS TO THAT. NUMBER ONE, GENERALLY SPEAKING, I DON'T THINK IT'S TOTALLY APPROPRIATE FOR ME TO COMMENT ON SPECIFIC MEMBERS OF CITY STAFF IN THIS PARTICULAR FORUM. THAT BEING SAID, REALLY INDEPENDENT OF ANY INDIVIDUAL MEMBER OF STAFF, THE THE THING THAT HURTS THE MOST IS TURNOVER. EVEN IF YOU DON'T HAVE THE MOST QUALIFIED PEOPLE OR THE MOST KNOWLEDGEABLE PERSONNEL, WHEN YOU'RE CONSTANTLY HAVING TO TRAIN NEW PEOPLE AND BRING NEW PEOPLE IN, YOU'RE ALMOST STARTING FROM SCRATCH EVERY TIME. NOT TO SAY THAT THE CITY BROUGHT IN EVERY TIME PEOPLE WHO DIDN'T KNOW WHAT THEY WERE DOING, BUT THAT THEY ARE NOT FAMILIAR WITH THE CITY'S ACCOUNTS. THE CITY'S OPERATIONS, AND THAT EVERY TIME THERE'S TURNOVER, ANY INSTITUTIONAL KNOWLEDGE THAT WAS HAD WAS LOST.
AND SO THAT WAS ONE OF THE THINGS THAT YOU MENTIONED, JOHN ROUNSEVELL, HE DID WORK WITH THE CITY FOR MANY, MANY YEARS. AND SO INSTITUTIONAL KNOWLEDGE EITHER HAS TO BE DOCUMENTED OR
[01:05:07]
REPLACED IN SOME WAY OR BUILT UP OVER TIME. AND SO THE REALLY TO ME, WHAT IT HAS BEEN IS ONE, THE LAST FEW YEARS IN MY MIND HAVE BEEN MARKED WITH TURNOVER. AND THEN THE OTHER THING IS THAT I CAN SAY THAT BASED ON MY EXPERIENCE WORKING WITH LOCAL GOVERNMENTS THROUGHOUT THE STATE, THERE'S NO GOOD TIME EVER TO TO CHANGE ACCOUNTING SOFTWARE. THERE CAN BE WORSE TIMES, BUT THERE'S NEVER A GOOD TIME. AND SO IT REALLY IS GOING TO BE A CHALLENGE NO MATTER WHEN IT'S ENGAGED IN. AND YOU CAN'T PLAN ON PEOPLE LEAVING YOUR EMPLOYMENT AFTER THE ERP HAS ALREADY BEEN DONE, AND YOU'VE SIGNED THE CONTRACT AND GOTTEN THE BALL ROLLING. TO ANSWER YOUR QUESTION ABOUT KIND OF THE GETTING AN UNDERSTANDING OF THE HOW, FOR EXAMPLE, SALES TAX REVENUE COMES FROM THE TEXAS COMPTROLLER. AND DON'T ASK ME WHAT IT IS OFF THE TOP OF MY HEAD, BUT THE CITY HAS ONE BANK ACCOUNT THAT'S ON FILE WITH THE STATE OF TEXAS, SO THAT SUBSTANTIALLY EVERY PIECE OF MONEY THAT ANY STATE AGENCY SENDS YOU GOES TO THAT BANK ACCOUNT, NO MATTER WHERE IT HAS TO END UP. SO, FOR EXAMPLE, THE CITY'S SALES TAX REVENUE IS DIVIDED FOUR WAYS, SOME OF WHICH GOES TO SEVERAL DIFFERENT CITY FUNDS. AND THEN SOME OF SOME OF IT ALSO GOES TO THE EDC, WHICH IS NOT JUST A SEPARATE BANK ACCOUNT, BUT A SEPARATE SET OF BOOKS THAT'S BEING MAINTAINED OFF SITE. SO FROM RIGHT THERE, WHEN THAT CASH RECEIPT COMES IN IMMEDIATELY, THAT IS FOR ACCOUNTING INJURIES THAT HAVE TO BE MADE TO DISPERSE THAT TO THOSE OTHER FUNDS, WHICH ALSO BECAUSE THOSE BANK OR THOSE FUNDS ARE NOT POOLED, THOSE ARE IT IS NOT JUST A GENERAL LEDGER ENTRY THAT HAS TO GO TO FOUR PLACES.IT'S FOUR CHECKS THAT HAVE TO BE CUT OR FOUR CALL THE BANK AND TRANSFER THIS MONEY BETWEEN YOUR ACCOUNTS. THAT HAS TO BE DONE. AND THAT. BEING COMPOUNDED OVER ALL THE DIFFERENT THINGS THAT THE CITY DOES, VARIOUS FUNDS THAT ARE PROVIDING SUPPORT TO THE GENERAL FUND, VARIOUS TRANSFERS, THE GENERAL FUNDS SUPPORTING OTHER FUNDS, ADMINISTRATIVE COSTS, REIMBURSEMENTS, A LOT OF THE SEED MONEY, SO TO SPEAK, THAT THE PUBLIC PRIVATE PARTNERSHIP ENGAGES IN ALL OF THOSE THINGS THAT RESULT IN NOT JUST AN ACCOUNTING ENTRY, BUT IT HAS TO BE DONE ACTUALLY TRANSFERRING BETWEEN BANK ACCOUNTS. AND WHEN YOU ADD LOTS OF VOLUME AND THEN TURNOVER IN THE MIDDLE OF IT, IT THERE'S A LOT OF, AGAIN, SURFACE AREA TO WHERE THOSE THINGS CAN GET OUT OF WHACK. BUT THE THING I WOULD EMPHASIZE IS THAT AT NO POINT, THE TERM I HEAR A LOT IN THE PUBLIC IS MONEY MISSING. AND I THINK AT LEAST IN THIS CASE, MONEY MISSING IS NOT WOULD NOT BE A CORRECT TERM TO APPLY, BECAUSE AT NO POINT DURING THIS AUDIT OR ANY PREVIOUS AUDIT DID WE NOT KNOW WHAT THE CITY HAD IN ITS BANK ACCOUNTS. WE KNEW EXACTLY WHAT ACCOUNTS THE CITY HAD. WE KNEW WHAT DOLLAR AMOUNTS WERE IN THOSE ACCOUNTS.
WE COULD SEE WHAT WAS COMING IN AND OUT OF THEM. WHAT WE'RE SEEING HERE IS AN ISSUE WITH GETTING IT ALL RECONCILED ONTO THE GENERAL LEDGER, AND I REALLY DO BELIEVE IT'S MY PROFESSIONAL OPINION THAT EVEN THOUGH WE DON'T KNOW WHERE THOSE VARIOUS THINGS ACCUMULATED OVER TIME, WE DON'T BELIEVE IT WAS ANY SORT OF MALFEASANCE AND THAT IT WAS SIMPLY RECONCILING LARGELY INTERFUND ACTIVITY OF THOSE TYPES OF THINGS LIKE I JUST MENTIONED. OKAY. THANK YOU. THAT THAT HELPS ME. BETTER UNDERSTAND. IT SEEMS LIKE THAT THE FUNDS WERE THERE. IT'S A MATTER OF EXACTLY HOW THEY WERE BEING ENTERED ON THE REVENUE SIDE OR, OR MAYBE ON THE, THE EXPENSE SIDE, AND THEN WHERE THEY WERE FOUND TO BE RECONCILED. OKAY. COUNCILWOMAN, YOU'RE SO KIND. YOU HAVE YOUR. I JUST WANT TO TELL YOU THAT YOU'RE VERY KIND. THE NAME IS FAMILIAR. YOUR YOUR COMPANY'S NAME. HOW LONG HAVE YOU GUYS BEEN DOING WORKING WITH THE CITY AND DOING THIS TYPE OF WORK FOR US 18 YEARS. THIS IS THIS IS THEIR 18TH AUDIT. OKAY. CAN YOU. WHEN WE LOOK AT THE 50 PLUS ACCOUNTS WE HAD. WERE THOSE ALL DONE BACK DURING ROOSEVELT'S TIME? WERE THERE ANY ADDED WITHIN THE LAST FEW YEARS? ABSOLUTELY. LIKE IF YOU HAD TO TELL ME A PERCENTAGE, 5%, 2%, 40%, YOU DON'T HAVE TO BE EXACT, BUT IT JUST GIVES ME AN IDEA OF KIND OF WHAT WE'RE WORKING THROUGH AND WHAT WE HAVE TO DEAL WITH AFTER THE AFTERMATH OF PLEASE DON'T HOLD ME TO THIS BECAUSE I'M I'M GOING OFF, OFF TOTALLY OFF MEMORY HERE. BUT IF THE NUMBER APOLOGIES IF THE NUMBER WAS 50,
[01:10:05]
THEN I WOULD SAY IT'S GOT TO BE AT LEAST 10%, BECAUSE THE ONE THAT JUST POPS INTO MY MIND IS THE THE DEBT ISSUANCES WITH THE TEXAS WATER DEVELOPMENT BOARD, BECAUSE THEY MAKE YOU CREATE A NEW BANK ACCOUNT BECAUSE THEY DON'T LET YOU WRITE CHECKS OUT OF IT. SO IF MEMORY SERVES, THE CITY HAS ENTERED INTO ABOUT 5 OR 6 OF THOSE IN THE LAST FIVE ISH YEARS, AND EACH ONE OF THOSE WAS A NEW BANK ACCOUNT. OKAY, THAT'S JUST THOSE WATER DEVELOPMENT BOARD LOANS, TO SAY NOTHING OF THE OTHER BONDS THAT THE CITY HAS ISSUED, WHICH IN MOST CASES HAVE ALSO HAD AT LEAST ONE NEW BANK ACCOUNT THAT'S BEEN ASSOCIATED WITH THEM. SO THAT IF I'M THINKING SOMEWHERE BETWEEN 5 AND 10 JUST FROM BOND ISSUANCES, THEN WE'RE LOOKING AT GOING FROM 55 TO 45 AT LEAST. SO POTENTIALLY 20% PERHAPS. AND IT'S PRETTY STANDARD TO DO THAT FOR THOSE TYPES OF ISSUANCE BONDS AND DEBT WITH OTHER MUNICIPALITIES. IT DEFINITELY IS IN TERMS OF THE THE WATER DEVELOPMENT BOARD, THEY PRETTY MUCH DON'T GIVE YOU AN OPTION WITH THOSE. I WILL SAY THAT CITIES OFTENTIMES DO SEGREGATE THOSE BOND FUNDS IN THEIR OWN ACCOUNT. THERE'S A FEW DIFFERENT WAYS OF DOING THAT THAT DON'T HAVE TO INVOLVE EVERY SINGLE ONE OF THEM HAVING THEIR OWN ACCOUNT, BUT THAT THAT'S NOT SOMETHING THAT'S UNCOMMON TO BE DONE. WHEN WE'RE TALKING ABOUT 55 BANK ACCOUNTS. WE WERE JUST TALKING ABOUT THE NUMBER OF ACCOUNTS THAT AMERICAN NATIONAL BANK, WE WEREN'T EVEN INCLUDING THE NUMBER OF FUNDS THAT WE HAD IN OUR INVESTMENT POOLS AND, FOR EXAMPLE, THE WATER DEVELOPMENT BOARD MONEY. THERE'S THOSE ARE COUNTED AT A DIFFERENT BANK. WE HAVE MONEY IN LOCAL GOVERNMENT INVESTMENT POOLS, WHERE WE'VE PROBABLY GOT HALF A DOZEN OR MORE ACCOUNTS IN EACH ONE OF THOSE, AND ALL OF THOSE HAVE TO BE RECONCILED. NOW, THOSE ARE FAIRLY EASY TO DO. IT'S WHEN YOU GET INTO THE THE GENERAL FUND AND THOSE TYPES OF THINGS. THAT'S WHEN IT BECOMES VERY DIFFICULT. THAT'S WHY I ASKED THE QUESTION ABOUT THE LONGEVITY. WE'VE USED YOUR COMPANY. I JUST SOMETIMES HINDSIGHT IS ALWAYS 20, 20. I MEAN, I'M GLAD WE'RE FINDING OUT NOW AND MAKING THE CORRECTIONS, BUT IT WOULD HAVE BEEN NICE TO KIND OF STREAMLINE SOME OF THIS EARLIER IF IT WAS A CONCERN OR ISSUE. I HEARD YOU TALK ABOUT THAT. THERE WERE A LOT OF TRANSFERS FROM FUNDS TO FUNDS. DID YOU DISCOVER OR IDENTIFY ANYTHING THAT MIGHT HAVE BEEN AN IMPROPRIETY OR SOMETHING LIKE THAT WITH THOSE TRANSFERS, WITH THE MULTIPLE, YOU SAID, REFERRED TO A LOT OF TRANSFERS FROM FUNDS TO FUNDS. WAS IT WHAT WE USUALLY DO? IT'S KIND OF WHAT HAS TO BE DONE TO KEEP BUSINESS GOING FOR THE CITY. I WOULD SAY THAT SOME OF WHAT WE WERE SEEING IS NOT REALLY WHAT WHAT I WOULD CONSIDER TO BE A BEST PRACTICE, JUST THINGS WHERE MAYBE STAFFS AND I'M KIND OF COMING UP WITH AN EXAMPLE SCENARIO HERE, BUT MAYBE THAT STAFF, THE ORIGINAL ENTRY, THAT MONEY CAME INTO A BANK ACCOUNT, IT GOT BOOKED INTO A DIFFERENT FUND AND THAT THERE WERE SEVERAL INJURIES THAT WERE KIND OF LIKE, OKAY, I NEED TO CORRECT THIS. AND THEY REALIZED THAT THAT THERE WAS AN ISSUE WITH HOW IT WAS CORRECTED. AND SO THEN ANOTHER CORRECTION WAS POSTED. THERE WOULD SOMETIMES BE SEVERAL ITERATIONS OF THAT, WHICH IS CERTAINLY NOT SOMETHING THAT ACCOUNTANTS STRIVE FOR. WE WANT TO POST ONE ENTRY, GET IT RIGHT AND MOVE ON RIGHT. SO IN THAT WAY I WOULD SAY THAT'S NOT REALLY WHAT WE WOULD CONSIDER STANDARD. BUT THAT BEING SAID, ABSOLUTELY NOTHING WE SAW DURING THIS AUDIT WE BELIEVE WAS INDICATIVE OF IMPROPRIETY OF ANY KIND. THANK YOU SO MUCH. SO TO SOME OF THE ISSUES THAT Y'ALL IDENTIFIED, IS IT POSSIBLE THAT IT WAS THE FINANCE DEPARTMENT AND THEIR LACK OF UNDERSTANDING MUNICIPAL GOVERNMENT PRACTICES AND POLICIES THAT CREATED SOME OF THIS ISSUE? IN OTHER WORDS, WE DIDN'T HAVE THE PEOPLE THERE THAT REALLY UNDERSTOOD WHAT WAS GOING ON TO SAVE CLAYTON FROM HAVING TO ANSWER THAT QUESTION, I WILL ANSWER THE QUESTION. AND THAT IS, I DO NOT BELIEVE THAT YOU HAD THE RIGHT KNOWLEDGE, SKILLS AND LEADERSHIP IN THE DEPARTMENT FOR WHAT WE WERE DOING AT THE TIME. OKAY. THANK YOU. AND THEN. SINCE WE'VE IDENTIFIED THE PROBLEMS AND THEY'RE MOSTLY FINANCE AND SOME OF THE SOFTWARE, WHAT STEPS ARE WE TAKING TO ENSURE THAT THIS COUNCIL, AS WE MOVE FORWARD, WILL HAVE THE FINANCIALS THAT IT NEEDS IN A TIMELY MANNER? AND REALLY, WHAT I WANT TO KNOW, IS THERE A TIMELINE, MARK, THAT YOU'VE GOT IDENTIFIED, WHERE YOU THINK THAT THE COUNCIL WILL HAVE CURRENT FINANCIALS AND THAT WE'VE GOT THE RIGHT SOFTWARE IN PLACE? SO THAT YOU TALKED ABOUT TRYING TO GET THERE. AND AND WE WANT TO[01:15:03]
SUPPORT YOU TO GET THERE. I THINK IT'S IMPORTANT THAT IF THERE'S INVESTMENTS THAT HAVE TO BE MADE TO GET YOU THERE, THAT WE MOVE THAT UP ON THE PRIORITY LIST. SO DO YOU HAVE A TIMELINE THAT YOU'RE COMFORTABLE WITH SHARING WITH THE COUNCIL SO THAT WE KNOW WHERE WE'RE GOING TO BE IN THE FUTURE. SO IN TERMS OF THE RIGHT SYSTEM, WE'RE MARRIED TO THE SYSTEM WITH THE WITH THE AMOUNT THAT WE HAVE INVESTED IN IT, BOTH IN TIME OF IN TERMS OF TIME, MONEY AND RESOURCES. WE'RE MARRIED TO IT FOR A WHILE. IT'S, IT'S A IT'S A DECENT SYSTEM. I'VE USED IT BEFORE. IT'S PROBABLY A LITTLE MORE ROBUST THAN THE CITY OF TERRELL NEEDED TODAY, BUT I THINK IT POSITIONS US WELL FOR WHERE WE'RE GOING TO BE TEN YEARS FROM NOW. IN TERMS OF TIMELINE, WE REALLY NEED TO FOCUS ON GETTING THE 25 AUDIT OUT IN A TIMELY MANNER. AND WHAT THAT ENTAILS IS MY INSTRUCTIONS HAVE BEEN, WE NEED TO DO WHATEVER IT IS WE NEED TO DO TO GET THE AUDIT OUT. 180 DAYS AFTER THE END OF THE FISCAL YEAR, AND WE'VE STARTED WITH OUR NEW AUDITOR. WE'RE SWITCHING AUDIT FIRMS THIS YEAR. WE'RE NOW GOING TO BE WORKING WITH WHITLEY PENN. I'VE WORKED WITH THEM AS WELL IN THE PAST IN ANOTHER AGENCY. AND THEY'RE THEY'RE A FINE FIRM. WE'VE ALREADY STARTED FUNNELING THEM INFORMATION. WE'RE ALREADY WELL INTO THE BANK RECONCILIATIONS. AGAIN, AS CLAYTON MENTIONED, THAT'S AN ISSUE THAT WE HAVE. IT'S AN ISSUE WE'RE CONTINUING TO HAVE BECAUSE THEY GOT FAR BEHIND AND WE ARE IN THE PROCESS OF CATCHING UP. MY GOAL IS TO GET THE AUDIT OUT BY THE END OF MARCH AND THEN SHORTLY THEREAFTER, WITHIN 60 DAYS, 45 TO 60 DAYS. I WANT TO GET START GETTING YOU MONTHLY FINANCIALS STARTING WITH MARCH, SO THAT YOU HAVE A SIX MONTH VIEW OF WHERE WE ARE, AND THEN YOU SHOULD BE GETTING THOSE ON A MONTHLY BASIS THEREAFTER, ROUGHLY 45 TO 60 DAYS AFTER THE END OF THE OF THE OF THE MONTH. WONDERFUL. PERFECT. THAT'S WHAT I WANTED TO HEAR. GREAT. ALL RIGHT. THANK YOU FOR YOUR PRESENTATION. COUNSEL. THANK YOU. THIS IS A DISCUSSION. CONSIDER WE NEED TO ACCEPT THE 2023 AND 2024 AUDIT AS PRESENTED. IS THERE A MOTION MOTION TO ACCEPT THE AUDIT AS PRESENTED. HAVE A MOTION. IS THERE A SECOND? SECOND? WE HAVE A MOTION FROM PHIL ROBERTSON OUR MAYOR PRO TEM DISTRICT FIVE A SECOND FROM STEPHANIE HOLMES THOMAS, DISTRICT FOUR TO ACCEPT THE AUDIT OF THE 2023 AND 2024 YEAR. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. I ANY OPPOSED. MOTION CARRIES. NOW TO VOTE PRESENT. THANK YOU CLAYTON THANK YOU. NEXT ITEM ON THE AGENDA DISCUSS AND CONSIDER PADDOCK BOARD RECOMMENDATION TO APPROVE INCREASE IN FUNDING FOR THE APPROVED IRRIGATION SYSTEM PROJECT AT BEN GILL PARK RAILROAD. GOOD EVENING. MAYOR. CITY COUNCIL. BACK IN SEPTEMBER, YOU APPROVED THE PADDOCK BUDGET, WHICH INCLUDED PHASE ONE OF THE SOCCER FIELD IRRIGATION. WE ARE ABOUT 90% COMPLETE. WE HAVE THE STORM FENCE THAT'S GOING UP TO HELP PROTECT THE AREA. THE PREVIOUS AMOUNT THAT WAS PROPOSED TO PADDOCK DID NOT INCLUDE AN ADDITIONAL 100,000 FOR THE HYDRO MULCH NECESSARY TO REPLACE THE SOD. SO WE MADE A PRESENTATION TO PADDOCK LAST FRIDAY, EXPLAINED TO THEM THAT ALL OF THE PROJECTS COMING FORWARD WILL BE TURNKEY, ALL INCLUSIVE, BUT WITHIN YOUR PACKET, I JUST WANT TO POINT OUT THE BUDGET WITH THE ADDITIONAL 102,129 FOR THE SOCCER FIELD IRRIGATION, WE ARE STILL UNDER BUDGET FOR THAT LINE ITEM FOR THE PADDOCK FUND.SO THIS IS JUST TO APPROVE THE INCREASE IN THE BUDGET FOR THE SOCCER FIELD IRRIGATION. SO WE'RE APPROVING HOW MUCH MONEY DID YOU SAY 102 129 129 AND THAT'S A NOT TO EXCEED NUMBER.
YES, SIR. OKAY. AND ARE THEY THEY'RE CURRENTLY PUTTING IN THE. SO THE IRRIGATION IS ALMOST COMPLETE AND JUST IN TIME FOR IT TO FREEZE. YES. EXACTLY. SO WE WILL BE MONITORING CLOSELY THIS WEEKEND. AND AS SOON AS THE WEATHER CLEARS UP, WE'LL BE ABLE TO GO BACK AND DO THE SORTING. BUT WE WILL HAVE THE PROTECTIVE FENCE PUT UP TO TRY TO KEEP PEOPLE OFF OF THOSE FIELDS. AND THAT IS GREAT NEWS. I'M I'M EXCITED TO SEE IF IT MAKES A DIFFERENCE IN THE TURF AND THE WAY THE FIELDS LOOK. THERE'S NOTHING MORE EXCITING AS A PLAYER TO BE ON REAL GRASS AND FRESH GRASS. YES, YES. VERY EXCITING. FRESH CUT. YEAH. LOOKING FORWARD TO
[01:20:05]
IT. ANYBODY HAVE ANY QUESTIONS FOR RAYLAN? RAYLAN. DID YOU IS IT GOING TO BE A COUPLE OF DAYS WHERE THERE'S A PROTECTIVE GATE OR FENCE? AND THE REASON I'M ASKING IS BECAUSE I WANT TO MAKE SURE WE'RE BEING PROACTIVE WITH, LIKE, SIGNAGE OR COMMUNICATION ABOUT WHAT'S HAPPENING VERSUS THIS TURNING INTO NOW THEY'VE CLOSED OFF. YEAH. NO. SO THE PROTECTIVE FENCE WILL GO UP AND IT WILL STAY UP. DURING THE GROWING PROCESS FOR THE HYDRO MULCH. WE HAVE ALREADY TALKED TO THE TERRELL INDEPENDENT SCHOOL DISTRICT, ALTHOUGH THEY WILL BE HAVING OUTDOOR PRACTICES IN THE SPRING. THE GAMES WILL BE HELD IN LAWN OR INSIDE. SO UNTIL THE GRASS TAKES ROOT THERE, WE WILL NOT HAVE ANYONE ON THOSE FIELDS. SO I'M THINKING HERE. SO THEN THE REMINDER THE IRRIGATION, IS IT ALL THE FIELDS OR JUST THE ONES THAT HISD IS USING AT THIS TIME, THE ONES CLOSEST TO THE EXCEL JUST FOR THE SOCCER PROGRAM? YES, BUT GOOD POINT, COUNCILWOMAN. I THINK WE SHOULD BE PROACTIVE AND PUT SOMETHING ON SOCIAL MEDIA EXACTLY WHAT'S HAPPENING SO THAT WE DON'T GET ANY PUSHBACK. RIGHT. OKAY. IS AND REMIND ME, DID WE THAT THE THE PADDOCK BOARD. HAVE THEY DISCUSSED ADDING IRRIGATION TO THE REMAINING IT. IT'S IN DISCUSSION FOR NEXT YEAR'S BUDGET. YEAH. IT'S STILL ON THE LIST FOR 27 AND 28 WITHIN THEIR PROGRAM OF WORK. SO IT'S IT'S ON THE LIST FOR DISCUSSION JUST NOT PRIORITIZED AT THIS TIME.OKAY. OKAY. ANYONE ELSE. ALL RIGHT. SO WE ARE GOING TO CONSIDER THE PADDOCK BOARD RECOMMENDATION TO INCREASE FUNDING FOR THE APPROVED IRRIGATION SYSTEM SYSTEM IN AN AMOUNT NOT TO EXCEED $102,129, 129. IS THAT CORRECT? YES, SIR. ALL RIGHT. IS THERE A MOTION? I'LL MAKE A MOTION TO APPROVE ITEM 7.2, WHICH INCREASES THE FUNDING FOR THE APPROVED IRRIGATION SYSTEM PROJECT AT BENGAL PARK, NOT TO EXCEED $102,129. AND A MOTION. IS THERE A SECOND? SECOND? WE HAVE A MOTION FROM STEPHANIE HOLMES THOMAS, DISTRICT FOUR, SECOND FROM PHIL ROBERTSON, OUR MAYOR PRO TEM, DISTRICT FIVE, TO APPROVE THE PADDOCK BOARD RECOMMENDATION TO INCREASE THE FUNDING FOR THE APPROVED IRRIGATION SYSTEM AT BENDIGO PARK, AN AMOUNT NOT TO EXCEED $102,129. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR? LET IT BE KNOWN BY STATING I. AYE. ANY OPPOSED MOTION CARRIES UNANIMOUSLY THOSE PRESENT. NEXT ITEM ON THE AGENDA IS 7.3. DISCUSS AND CONSIDER RESOLUTION NUMBER 2283, AUTHORIZING THE CITY MANAGER TO NEGOTIATE CONTRACTS RELATED TO RFQ 2601. SALE AND REDEVELOPMENT OF CITY OWNED PROPERTY AND ACCEPTANCE OF SINGLE RESPONSE. SUBMITTED BY NEFF REAL ESTATE, LLC FOR THE PURPOSE OF NEGOTIATION. ARENA. SO, AS YOU'RE AWARE, BACK IN OCTOBER, THE CITY OF TAYLOR RELEASED RFQ 2601. AND BASICALLY THIS WAS TO PUT OUT AN RFQ FOR THE REDEVELOPMENT OF THE CITY OWNED PROPERTY AT 113 WEST MOORE, MORE COMMONLY KNOWN AS OUR VERY FAVORITE CHAPMAN BUILDING DOWNTOWN, THIS RFQ WAS OPEN FOR MORE THAN 60 DAYS. WE RECEIVED NUMEROUS QUESTIONS. WE HAD QUITE A LIST OF DEVELOPERS THAT WE SENT THIS INFORMATION TO. HOWEVER, WE ONLY RECEIVED ONLY RECEIVED ONE QUALIFIED SUBMISSION. WE PUT TOGETHER AN EVALUATION TEAM WHICH INCLUDED THREE PADDOCK BOARD MEMBERS, THE CHIEF BUILDING, OFFICIAL FIRE MARSHAL'S OFFICE, CITY ENGINEER AND I WAS ALSO A PART OF THE MEETING TO HELP GO THROUGH THE SCOPE. AFTER REVIEW OF THE SUBMISSION, IT WAS DETERMINED THAT THE RESPONSE DOES MEET THE QUALIFICATIONS OF THE RFQ. SO I HAVE GIVEN TO YOU WITHIN YOUR PACKET THE INFORMATION THAT WAS SUBMITTED BY THE DEVELOPER. THERE'S A LOT OF OPTIONS. THE SCOPE OF SERVICES WAS WE REALLY WANTED A DEVELOPER TO USE THEIR IMAGINATION AND TO LET US KNOW WHAT THEY COULD DO WITH THAT BUILDING AND WHAT THEIR PLAN WOULD BE. SO YOU'LL SEE IN YOUR PACKET THAT THERE ARE SOME NUMBERS THAT ARE THROWN ABOUT WHAT WE ARE REQUESTING THE EVALUATION TEAM TO TOOK TO THE PADDOCK ON JANUARY THE 9TH WAS JUST PERMISSION TO NEGOTIATE.
THERE'S A LOT OF QUESTIONS THAT WE HAVE ABOUT THEIR RESPONSE, ESPECIALLY WHEN IT COMES TO THE AMOUNT OF FUNDING AND WHAT ALL THAT THAT WOULD INCLUDE. SO I'VE DRAFTED THE RESOLUTION, WHICH WOULD JUST GRANT THE CITY MANAGER PERMISSION TO START NEGOTIATIONS SO THAT WE CAN, AS A TEAM, START HAVING THOSE CONVERSATIONS WITH THE DEVELOPER. CLEARLY, THE TEAM
[01:25:05]
WOULD COME TOGETHER AND MAKE RECOMMENDATIONS FOR PADDOCK THERE. THERE IS SOME FUNDING THIS FISCAL YEAR THAT WAS PUT ASIDE FOR THIS REDEVELOPMENT, AND IT WAS ALSO PUT IN THE PROGRAM OF WORK FOR THE NEXT TWO YEARS. SO THIS IS REALLY JUST PERMISSION TO TAKE THE NEXT STEP SO THAT WE CAN START HAVING MEETINGS WITH THE DEVELOPER. SO THE NEGOTIATIONS ARE PRIMARILY TO SEE IF THERE'S A DEAL THAT COULD BE WORKED OUT. YES. WE'RE NOT AUTHORIZING ANY DEAL YET. NO OKAY. THERE'S NO FUNDING. NO. THAT'S IT OKAY. AGAIN COUNCIL. ANYBODY HAVE ANY QUESTIONS FOR RAYMOND. THIS IS YES. LET'S SEE. THIS IS PAGE 195. PAGE 195. SO THIS IS MY CONCERN THAT WE'VE HAD WITH OTHER THINGS GOING ON DOWNTOWN. I KNOW THIS KIND OF WORK IS SUPER EXPENSIVE. YOU GOT TO REALLY DIG IN IF YOU WANT TO HAVE A GOOD PRODUCT AT THE END.BUT I'VE JUST I JUST KNOW WITH SOME PROJECTS GOING ON SOMETIME, THE WORK IS SO NOT TO SAY IT'S SO ELABORATE, BUT UNDERSTAND WHEN I LOOK AT THESE INVESTORS AND WHEN THEY RENT THE SPACE OR WHATEVER. I'M JUST SOMETIMES CONCERNED WITH SOME OF THESE THINGS BECAUSE I DON'T WANT IT TO BE SO ASTRONOMICAL THAT OUR LOCAL BUSINESS PEOPLE, OR SOME PERSON THAT'S THINKING ABOUT THIS GREAT IDEA IS JUST OUT, RUN OUT AND JUST CAN'T AFFORD IT. AND IT'S NOT REALISTIC TO ALWAYS HAVE PEOPLE HELPING YOU WITH YOUR RENT. I MEAN, I GOT TO GET IT. WHATEVER FEELS I GOT, I GOT TO TAKE CARE OF THAT. I CAN'T DEPEND ON THIS OUTSIDE FUNDING SOURCE. SO THAT'S REALLY MY CONCERN. WHEN I PART OF THE NEGOTIATIONS WITH THE DEVELOPER WILL BE, FOR LACK OF A BETTER TERM, ONE AND DONE WHEN IT COMES TO PADDOCK. SO PADDOCK'S GOAL IS TO MAKE SURE THAT THIS BUILDING MEETS ALL CURRENT CODES AND REGULATIONS. WE WANT THIS BUILDING TO BE THE POSTER CHILD FOR ANY OTHER RENOVATION THAT HAPPENS WITH DOWNTOWN. HOWEVER, THAT'S WHY WE ASK ABOUT SO MUCH OF THE FINANCIALS AND THE RETURN ON INVESTMENT, BECAUSE WE DON'T WANT THEM MAKING THEIR MONEY OFF OF RENTALS. SO THERE NEEDS TO BE A LONG TERM PLAN OF HOW THEY PLAN ON THIS INVESTMENT HOLDING STRONG SO THAT THEY'RE NOT HAVING TO GET IT FROM FUTURE TENANTS. AND SO A LOT OF THIS IS GOING TO HAVE TO BE DISCUSSIONS ABOUT THE BUSINESS PLAN AND WHAT SPACES ARE GOING TO BE AVAILABLE AFTER IT'S TURNED OVER. YEAH. OKAY. AS WE DO OUR NEGOTIATIONS, YOU KNOW, ONE OF THE THINGS THAT WE HAVE DOWNTOWN IS WE'VE GOT OWNERSHIP OF PEOPLE OUTSIDE WHO WON'T TAKE CARE OF OR KEEP UP. IS THERE A WAY IN THE NEGOTIATIONS THAT WE CAN ASK FOR FIRST RIGHT OF REFUSAL, IF THEY ARE UNABLE TO PERFORM? I WOULD LIKE TO SEE THAT IN THERE, THAT SO THAT THE CITY OR THE EDC, WHOMEVER OR THE PADDOCK BOARD COULD TAKE OWNERSHIP OF THE BUILDING AND IT STAYS WITH US AND NOT SOLD TO SOMEBODY. WE DON'T KNOW WHO THEY ARE. YEAH. SO THERE WILL BE A LIEN SITUATION BASED ON ALL OF THE FUNDING. THE WE WOULD NOT TRANSFER OWNERSHIP UNTIL ALL OF THAT. SO WE WOULD MAINTAIN OWNERSHIP UNTIL THE RENOVATIONS WERE COMPLETE. AND WE KNEW THAT THE DEVELOPER WAS GOING TO COMPLETE OUT THEIR CONTRACT. BUT YES, SIR, WE'LL MAKE SURE. I MEAN, EVEN IF THEY IF THEY DO AFTERWARDS, IF WE COULD GET A FIRST RIGHT OF REFUSAL, IF WE'RE GOING TO BE INVESTING IN IT, I THINK THAT WOULD BE SOMETHING THAT WE WOULD WANT TO NEGOTIATE TO HAVE FIRST DIBS. OF COURSE, YOU'RE GOING TO PLAY MARKET VALUE, BUT THAT'S OKAY AS LONG AS WE KEEP CONTROL. ABSOLUTELY OKAY. ALL RIGHT. WHAT IS THE SQUARE FOOTAGE OF THIS BUILDING? I HAVE THREE FLOORS. YOU'RE APPROXIMATELY 6000 PER FLOOR. 18,000 ORIGINALLY, I THINK THAT THERE WAS A FIVE STOREY NEW BUILD THAT WAS PROPOSED THERE. I THINK THEY'RE LOOKING AT PROVIDING A FOUR STOREY. OKAY.
THANK YOU. THAT'S GREAT. DO YOU WANT ANYONE ELSE? YEAH. I JUST WANT TO REITERATE WHAT I'VE KIND OF MENTIONED TO COUNCIL BEFORE, THIS IDEA THAT, YOU KNOW, WHEN PADDOCK IS, WHEN PADDOCK PROVIDING FUNDING TO IMPROVE A BUILDING. I DON'T THINK IT BEHOOVES OUR COUNCIL TO OR OUR CITY TO, TO FUND IMPROVEMENTS THAT THEN BECOME BUILDINGS THAT ARE RENTED OUT FOR A PRICE THAT NO ONE CAN AFFORD TO PAY. RIGHT. SO THEN BUILDING SIT VACANT DOWNTOWN BECAUSE THE RENT IS TOO HIGH. SO AGAIN, I MISSED IT BEFORE, BUT MY THOUGHT IS AND WE SHOULD PROBABLY THIS FROM A LEGAL STANDPOINT A LITTLE MORE DEEPLY, BUT THE IDEA WOULD BE HAVING STRINGS ATTACHED WHEN PADDOCK FUNDS A BUILDING REPAIR TO SAY, WE'RE UPDATING, WE'RE HELPING YOU UPDATE THIS BUILDING. BUT IN DOING SO, WE'RE SAYING WE NEED TO HAVE EITHER LIKE A
[01:30:04]
RENTAL CAP OR SOMETHING WHERE WE WE KEEP RENTALS FROM BECOMING TOO HIGH SO THAT WE CAN ACTUALLY MAKE THE BUILDING, YOU KNOW, SOMEWHAT A TENANT CAN AFFORD TO RENT IT. AND IT'S NOT SITTING THERE, THIS BEAUTIFUL BUILDING SITTING EMPTY. ALL RIGHT. OKAY. IS THERE ANYTHING OR I GUESS IF, IF YOU HAD THE PERFECT DEAL FROM A DEVELOPER FOR THIS BUILDING, WHAT IS MISSING FROM FROM THIS PROPOSAL THAT WOULD HAVE MADE IT THE PERFECT DEAL. I THINK THIS PROPOSAL, BASED ON THE SCOPE THEY HIT, ALL OF THE HIGHLIGHTS, THEY PUT TOGETHER A FINANCIAL PLAN. THEY KNEW EXACTLY HOW MUCH THEY WERE ASKING FOR, THE DETAILS OF THE NEGOTIATION WILL BE TO MAKE SURE THAT WE'RE NOT PAYING FOR FLUFF OR TOO MUCH FLUFF, BECAUSE OUR GOAL IS TO MAKE SURE THAT THE BUILDING MEETS ALL STANDARDS. AND JUST LIKE YOU SAID, IT'S AFFORDABILITY TO THE TENANTS. AND SO THEY THEY ADDRESS THAT WHENEVER IN WITHIN THEIR FINANCIAL PLAN, THEY'RE ALREADY STARTING TO PROPOSE OUT WHAT THEY THINK THEY COULD GET FOR THAT LEASE. AND SO I THINK IT'S JUST A MATTER OF MAKING SURE THAT WE'RE BALANCING THE PUBLIC FUND INVESTMENT AND HOW MUCH OF A RETURN THEN YOU WOULD GET ON PROPERTY VALUES FOR CITY AND ALSO TOURS NUMBER ONE. AND THEN WHAT ARE THE TYPES OF BUSINESSES THAT ARE GOING IN? BECAUSE THAT IS HOW PADDOCK WOULD THEN BE REFUNDED. SO, YOU KNOW, THERE'S DEFINITE BENEFITS FOR RESIDENTIAL ON THE TOP FLOOR BECAUSE THAT IMPACTS YOUR PROPERTY VALUE MORE THAN ANYTHING ELSE. AND IT ALSO GIVES YOU FOOT TRAFFIC. SO I THINK BEING ABLE TO GET INTO THE DETAILS OF THE THE DEVELOPER, WHAT I ENVISION IS A VERY SPECIFIC TERM SHEET THAT WOULD COME BACK TO PADDOCK IN CITY COUNCIL, AND WE WOULD HAVE BEEN ABLE TO GO IN AND REALLY DEFINE WHAT THOSE BUSINESS GOALS ARE FOR THIS BUILDING. THE RFP. WHAT IS DIFFERENT FROM, I GUESS I'M THINKING BACK TO SOME OF OUR OTHER RFP, WHERE ESPECIALLY LIKE THE PROJECTS WITH MAYBE MAYBE IT WAS UTILITIES OR. AND WE'VE DONE AN RFP AND THEN WE EITHER GET NO APPLICANTS OR WE GET ONE APPLICANT, AND THEN SO WE THEN REOPEN IT AGAIN TO SEE IF WE HAVE, YOU KNOW, ADDITIONAL APPLICANTS TO CONSIDER FROM. IS THAT SOMETHING WE CONSIDERED WITH THIS RFP? I WILL TELL YOU THERE THERE WAS A HUGE LIST OF DEVELOPERS THAT THIS WAS SHARED TO. THIS IS A VERY DIFFICULT PROJECT TO TRY TO CONVINCE A DEVELOPER TO TAKE, BECAUSE ESSENTIALLY YOU'RE ASKING THEM TO TAKE A BUILDING, YOU'RE ASKING THEM TO TAKE A SUBSTANDARD STRUCTURE, AND YOU'RE ASKING THEM TO LOOK INTO THE FUTURE AND ESTIMATE NOW WHAT THEY THINK IT WOULD TAKE TO TURN THAT BUILDING INTO SOMETHING THAT WOULD BE PROFITABLE FOR THEM. ONE OF THE MAIN WHAT BENEFITS THE CITY IS NOW WE WILL TAKE A PIECE OF PROPERTY THAT IS NOT CURRENTLY ON YOUR TAX ROLLS, AND YOU WILL NOW HAVE A PRIVATE OWNER, AND YOU WILL HAVE THE INITIAL INVESTMENT IN THERE, AND THAT WILL BE YOUR NEW VALUATION FOR PROPERTY TAXES THAT ARE PAID. SO IT'S A LOT TO ASK OF A DEVELOPER TO MOVE INTO A HISTORIC DOWNTOWN THAT IS IN THE GROWING PROCESS WHERE WE HAVE OTHER VACANT BUILDINGS IN SEVERAL BUILDINGS THAT ARE NOT GOING THROUGH THIS RENOVATION PROCESS. SO WE'VE HAD 2 OR 3 LARGE BUILDINGS THAT HAVE BEEN RENOVATED. THEY ARE THE ONES SITTING EMPTY. SO YOU'RE ASKING SOMEONE ELSE TO TAKE THE SAME GAMBLE AND POSSIBLY IT SIT EMPTY WHILE WE'RE WAITING FOR THE OTHER PROPERTIES TO CATCH UP. SO WHAT PADDOCK WAS DOING AND WHAT WE WERE TRYING TO DO WITH THE RFQ WAS ELIMINATE SOME OF THE RISK IN HAVING SOMEONE OWN THIS BUILDING AND GET IT TURNED AROUND AND GIVE THEM ENOUGH TIME AND ENOUGH FUNDING TO WHERE WE CAN GET THE RIGHT TENANTS IN THE SPACE, BECAUSE WE'RE STILL 3 OR 4 YEARS AWAY FROM, YOU KNOW, THE LARGER ITEMS HAPPENING DOWNTOWN AND I. THESE ARE SERIOUS CONVERSATIONS TO TO HAVE. AND SO IT'S IT'S, YOU KNOW, I HAVE EXCITEMENT WHEN I THINK ABOUT DOWNTOWN AND THE POSSIBILITIES OF OUR DOWNTOWN. AND SO I DON'T FEEL I DON'T FEEL LIKE I'M PROJECTING THAT IN, IN THAT MOMENT BECAUSE[01:35:02]
I, I WANT TO SEE MORE TRAFFIC IN DOWNTOWN. I WANT TO SEE WHETHER IT'S AN EXISTING BUILDING THAT'S A ONE STORY THAT'S VACANT, NO LONGER BE BE VACANT. I WANT TO SEE OUR TWO STORY BUILDING THAT WAS RECENTLY REMODELED, NOT BE VACANT. I WANT TO SEE OUR FOUR STORIES. FIVE STORIES, FOUR STORIES. BUILDING COMPLETELY FINISHED AND AND NOT VACANT, YOU KNOW, AND I RECENTLY ASKED A QUESTION OF LIKE TO ANOTHER BOARD OF OF, YOU KNOW, WHEN IS THE RIGHT TIME FOR THESE TYPE OF OF TRANSACTIONS AND IS RIGHT NOW THE RIGHT TIME TO DO THIS TYPE OF PROJECT, OR IS IT NOT THE RIGHT TIME? AND I THINK ABOUT THAT, ESPECIALLY WHEN I THINK OF OF THE PROJECTS THAT WE HAVE HAD. I'M NOT SAYING THEY'RE NOT ALL OF THEM ARE ARE SUCCESSFUL AND DON'T HAVE TENANTS. BUT I AM THINKING OF OF THE MONEY THAT'S GOING INTO TO THESE PROJECTS COMPARED TO OTHER PROJECTS THAT THE BOARD OR THE CITY COULD TAKE ON. AND I JUST DON'T WANT TO CONTINUE TO SEE, LIKE, I WOULD LOVE TO SEE THESE BUILDINGS FILLED WITH WITH TENANTS. SO I HEAR COUNCIL MEMBERS HOME. THOMAS QUESTION ABOUT LIKE, WELL, WE'RE GOING TO REHAB THE BUILDING, BUT THEN ALSO PAY PART OF THE THE. THE RENT. AND THEN WHAT HAPPENS WHEN WE DON'T DO THAT ANYMORE? SO IT'S NOT A MATTER OF OF NOT WANTING TO SEE DOWNTOWN FLOURISH OR HAVE TENANTS AND, AND SHOPPERS IN, IN THOSE VENUES. BUT A MATTER OF, OF, YOU KNOW, IS THIS THE RIGHT TIME? THE ONE THING THAT THAT I WOULD SAY TO THAT AND THIS IS SPEAKING FROM MUNICIPAL DEVELOPMENT, WHEN I'M LOOKING AT BUILDING INSPECTIONS, WHEN I'M LOOKING AT PEOPLE WHO CALL AND THEY DO WANT TO RENT SPACES DOWNTOWN, SOME OF THE SPACES THAT WE HAVE DOWNTOWN REQUIRE TOO MANY RENOVATIONS, AND YOU HAVE PROPERTY OWNERS WHO ARE NOT GOING TO UPDATE. IT IS VERY DIFFICULT TO WORK WITH EXISTING PROPERTY OWNERS WHEN THE CITY ITSELF OWNS ONE OF THE LARGEST BUILDINGS DOWNTOWN, AND IT'S NOT BEEN RENOVATED, SO THAT THAT CONTINUES TO BE A CONVERSATION. ANYTIME WE'VE GONE TO A PROPERTY OWNER, EVEN ON BEHALF OF A TENANT, LIKE IF TENANTS HAVE CONCERNS WITHIN A BUILDING AND IT IT'S VERY HARD ON THE CITY THAT EVERYONE KNOWS THAT, THAT WE ARE THE ONES THAT OWN THAT BUILDING IN THE MIDDLE OF DOWNTOWN. SO I THINK PADDOCK THEY'VE TALKED ABOUT THE TIMING, THEY'VE TALKED ABOUT, YOU KNOW, WHEN IS DOWNTOWN REALLY GOING TO TAKE OFF? WE DON'T KNOW. BUT WHAT WE DO KNOW IS IT'S PROBABLY NOT GOING TO HAPPEN UNTIL YOUR ENTITIES THAT CAN DO THIS TAKE THAT FIRST STEP AND SAY, WE'RE REINVESTING. NOW WE'RE ASKING OTHER PROPERTY OWNERS TO REINVEST. AND SO THAT I'M JUST LETTING YOU KNOW THAT THAT WAS PART OF THE CONVERSATION WITH PADDOCK. THE TIMING MAY NOT BE PERFECT, BUT IT IT WAS A STEP THAT WE NEEDED TO CONSIDER AS WE'RE ASKING OTHER PROPERTY OWNERS TO DO THE SAME. I JUST I GOT IT'S HARD. WELL, LET ME LET ME JUST SAY THIS REAL QUICK THAT I BET IF YOU WENT AND VISITED WITH OR TALKED TO OTHER MUNICIPALITIES WHO'VE DONE. DOWNTOWN PROJECTS, THAT AT SOME POINT THERE WERE INCENTIVES OFFERED, AND THAT'S JUST A KICKSTARTER, WE DID IT WITH OUR. MOUNT CRONIN BUSINESS PARK. YOU KNOW, YOU GOTTA GET YOU GOTTA GET THE MOMENTUM GOING, AND THEN YOU CAN STEP BACK AND AND IT'LL GET A LIFE OF ITS OWN AND GET ITS OWN MOMENTUM AND CONTINUE. BUT RAYLAND HIT A ON A GREAT POINT.IF THE CITY OWNS A BUILDING AND IT'S NOT IN COMPLIANCE, WHO ARE WE TO TELL OTHERS THAT THEY NEED TO GET THEIR BUILDINGS IN COMPLIANCE? SO I SEE BOTH SIDES. THERE'S HEARTBURN. IF THERE'S MONEY AVAILABLE IN THE PADDOCK BOARD. THE PADDOCK BOARD WAS CREATED SO THAT WE COULD USE DOLLARS DOWNTOWN FOR THIS EXACT PURPOSE. AND SO. I SAY BEFORE WE GET INTO ALL THE DETAILS AND OVERREACT, LET MARK AND AND RAYLAN DO THEIR THING, TRY TO NEGOTIATE SOMETHING, COME BACK TO THE COUNCIL AND SAY, HERE IT IS. DO YOU WANT IT? DO YOU NOT? WE WILL BE ABLE TO DESCRIBE IN
[01:40:06]
DETAIL. THE SCOPE WAS VERY BROAD. WE HAVE A GREAT BIT OF DETAIL TO REVIEW AND THIS IS A GREAT PLACE TO START. YEAH. RIGHT. SO WE STILL AFTER THIS POINT CAN SAY YAY OR NAY AFTER.OH ABSOLUTELY. I'M JUST LIKE, NO, THIS IS JUST SO WE CAN CALL THE DEVELOPER TO THE TABLE. WE WE CAN'T EVEN HAVE A TELEPHONE CALL UNTIL Y'ALL SAY IT'S OKAY TO NEGOTIATE. BUT LET ME MAKE SURE I UNDERSTAND WHAT'S PROPOSED HERE. SO THE TOTAL PROJECT WOULD BE 3.3 MILLION.
WILL BE INVESTED IN THE MILLION, OR IS IT A 1.1? IT'S 1.1. OKAY. AND THEN THERE IS A SECONDARY OPTION OF A KITCHEN FOR 600,000. BUT THEY'RE SAYING OVERALL IT'S A $3 MILLION INVESTMENT. AND SO ESSENTIALLY THEY'RE ASKING FOR THE 1.1 OR 1.7. THE 3.3 IS IS THAT INCLUDED THE SECONDARY OPTION OR. NO. NO, THAT WOULD BE THEIR INVESTMENT. BECAUSE THE ONLY THING THAT WE'RE AGREEING TO DO IS COMPLIANCE WITH THE EXTERIOR. WE MAINLY WANTED IT KIND OF LIKE ANDERSON FROM HIGHWAY 80. LOOKS LIKE A GREAT BUILDING, BRAND NEW WINDOWS. IT'S STANDING TALL AND THEN THEY WOULD BE RESPONSIBLE FOR THE INTERIOR. SO THAT'S WHY THEY OFFERED THE SECONDARY OPTION BECAUSE OF THE INFORMATION THAT THEY HAVE FOR A POTENTIAL RESTAURANT. I'M INTERESTED IN THIS TOO. I WANT TO KNOW WHAT THE CURRENT MARKET IS. IF YOU WOULD GET THAT INFORMATION BACK TO ME FOR COMMERCIAL, I WENT RIGHT NOW DOWNTOWN, IS IT 10,000? IS IT 5000? IS IT 25,000? I WILL GET YOU COMPS THEN. JUST LOOKING AT THOSE SUITES, IF THEY'RE ABOUT 6000 A FOOT, I MEAN 6000FT■!S ON ONE FLOOR, THEY'RE GETTING LIKE 300FT FOR $1,500. SO, I MEAN, IT'S JUST I JUST GOT TO SEE WHAT WE'RE DOING NOW AND KIND OF JUST WHERE WE ARE. BUT I KNOW IT IS. THIS IS THIS IS A COSTLY WORK. SO HOW DOES THIS WORK AFTER ALL THIS IS NEGOTIATED? AND LET'S SAY IF WE MOVE FORWARD, IT'S THEY'RE BUILDING AFTER THEY COMPLETE EVERYTHING IT'S THEY'RE BUILDING, THEY CAN SELL IT. THEY CAN DO WHATEVER THEY WANT BECAUSE IT'S THEIRS. AND IT'S THIS UPDATED, MORE VALUABLE BUILDING. YES. WELL, UNLESS WE HAVE FIRST RIGHT OF FIRST RIDER. YES. THEN THAT COMES BACK TO THE CITY. THEY HAVE WE HAVE FIRST RIGHT OF REFUSAL. OKAY. IF THEY'RE TRYING TO SELL IT. OKAY. WHICH I THINK WE'D HAVE TO BUY IT BACK THEN AT MARKET VALUE. BUT WITH ALL THE IMPROVEMENTS IT'S WORTH, IT WOULD BE WORTH MORE IMPROVEMENTS THAT WE PAID FOR. WELL, YOU WOULD HOPE BY THEN THE INTERIOR WOULD BE DONE. YEAH. SO SOMETHING TO THINK ABOUT. YEAH. FOR SURE. OKAY. I JUST I GOT AN EMAIL THIS WEEK ABOUT JUST SOME OF THE STUFF I KNOW WE CAN DO STUFF IN THE PARKS AND DOWNTOWN ON THE PADDOCK BOARD ABOUT PEOPLE WITH PHYSICAL LIMITATIONS. I SENT YOU THAT. BUT IT'S JUST LIKE I KIND OF HAVE TO WRAP MY HEAD AROUND IT BASED ON KNOWING THAT WE HAVE PEOPLE IN OUR COMMUNITY WHEN THEY GO TO OUR PARKS, THEY'RE NOT ACCESSIBLE FOR THEM, YOU KNOW, TO PLAY. AND SO THAT'S ON MY HEART. NOW, JUST BASED ON THAT EMAIL I GOT A FEW DAYS AGO. OKAY. AND THEN I'M LOOKING AT THIS. SO IT'S JUST A YEAH, AS LONG AS WE CAN KIND OF STILL NEGOTIATE AND WORK ON IT, THIS IS JUST TO ALLOW US TO TALK TO THE DEVELOPER. OKAY.
WE'RE STILL MONTHS AWAY FROM. OKAY. THANK YOU. ALRIGHT. THANK YOU. RAYLAN. SO THIS IS RESOLUTION NUMBER 2283 AUTHORIZING CITY MANAGER TO NEGOTIATE CONTRACTS RELATED TO THE RFQ. IS THERE A MOTION ON 7.3? SO MOVE. WE HAVE A MOTION. IS THERE A SECOND A SECOND. WE HAVE A MOTION FROM DONNA RENEE ANDERSON, OUR DEPUTY MAYOR PRO TEM DISTRICT TWO SECOND FROM STEPHANIE HOLMES THOMAS, DISTRICT FOUR, TO APPROVE RESOLUTION NUMBER 2283 AS PRESENTED. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR? LET IT BE KNOWN BY STATING I ANY OPPOSED? MOTION CARRIED. NONE OF THOSE PRESENT. NEXT ITEM ON THE AGENDA IS 7.4. DISCUSS AND CONSIDER RECOMMENDATION FROM THE BOARD TO APPROVE AN INCREASE IN FUNDING FOR THE FY 2026 PROGRAM OF WORK. PROJECT NUMBER ONE BREEZY HILL PARK. SO THIS IS A REALLY FUN ONE. WE'VE BEEN TALKING ABOUT A SPLASH PAD AT BREEZY HILL PARK FOR WHAT, ALMOST A YEAR AND A HALF NOW. AND I AM TELLING YOU THAT THE ENGINEERS CAME BACK AND WE HAVE MET WITH THE BY BOARD VENDOR. SO WE WILL BE USING BY BOARD. BUT THE COST WE ARE ASKING FOR AN INCREASE OF $100,000. WE ORIGINALLY BUDGETED 150. THERE IS KIND OF A MAP OR A LAYOUT
[01:45:03]
THERE IN YOUR PACKET. WE'RE FINALIZING THE ACTUAL PIECES THAT WOULD GO IN THERE AND THE SEATING. WE'RE LOOKING AT ADDING MORE TREES SO THAT THERE'S SOME ADDITIONAL SHADING RATHER THAN SHADE STRUCTURES BEING ADDED. BUT WITH THE APPROVAL OF THE INCREASE OF THE 100,000, WE ARE IN LINE TO HAVE THIS SPLASH PAD COMPLETED BY THE JUNETEENTH WEEKEND. SO THAT IS OUR GOAL, AND THAT IS WHAT WE ARE REALLY, REALLY STRIVING FOR. COOL. AND SO THESE ARE JUST SOME FUN PICTURES. BUT THEN I ALSO AGAIN PICTURE OF THE BUDGET, WHICH YOU JUST SAW IN A PREVIOUS ITEM. EVEN WITH THAT CHANGE, WE'RE STILL UNDER BUDGET WITHIN THIS LINE ITEM.THIS IS JUST TO GET PERMISSION TO SPEND THE ADDITIONAL FUNDS. IS THERE A AGE LIMIT FOR THE PARK? THE PAD? I'VE GOT A FEELING. COUNCILMAN, HOW OLD ARE YOU? I'M THINKING ABOUT TO GET PHIL OVER THERE. YEAH, WE'RE WE'RE ADDING THE SIDEWALKS. THE WALKWAYS. THIS INCLUDES ALL OF THE CONCRETE WORK AND LANDSCAPE. SO WE ARE VERY EXCITED ABOUT THIS PROJECT.
IS THERE A NOT TO EXCEED NUMBER ON THIS ONE? IT WILL BE A TOTAL OF $250,000 HUNDRED AND $50,000.
OKAY. ALL RIGHT. THANK YOU. ANYBODY ELSE HAVE ANY QUESTIONS. AGAIN THIS IS ITEM 7.4. IT'S TO APPROVE THE RECOMMENDATION FROM THE BOARD TO INCREASE IN FUNDING OF THE FY 2026 PROGRAM OF WORK. PROJECT NUMBER ONE, BREEZY HILL PARK NOT TO EXCEED $250,000. IS THERE A MOTION? SO MOVED. HAVE A MOTION. IS THERE A SECOND? SECOND? WE HAVE A MOTION FROM DONNA RENEE ANDERSON, OUR DEPUTY MAYOR PRO TEM DISTRICT TWO, SECOND FROM PHIL ROBERTSON, OUR MAYOR PRO TEM DISTRICT FIVE, TO APPROVE THE RECOMMENDATION FROM THE BOARD TO TO INCREASE THE FUNDING FOR THE FY 2026 PROGRAM OF WORK. PROJECT NUMBER ONE, BREEZY HILL PARK, AN AMOUNT NOT TO EXCEED $250,000. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. ANY OPPOSED. MOTION CARRIED. ALL THOSE PRESENT. NEXT ITEM ON THE AGENDA IS 7.5. YEAH. MR. MAYOR, MEMBERS OF THE COUNCIL WE BRING TO YOU TONIGHT RESOLUTION NUMBER 2285, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TERRELL, TEXAS, APPROVING AN EQUIPMENT LEASE AGREEMENT WITH THE CITY OF TERRELL, TEXAS, AND CADENCE EQUIPMENT FINANCE, A DIVISION OF CADENCE BANK, FOR THE LEASE OF TWO 2026 MACK GR 64 F TRACTOR TRUCK WITH OX DUMP BED, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO NEGOTIATE AND EXECUTE ALL DOCUMENTS NECESSARY TO FINALIZE THE EQUIPMENT LEASE AGREEMENT WITH CADENCE EQUIPMENT FINANCE AND ESTABLISHING AN EFFECTIVE DATE. ALL RIGHT, O'MARA, GOOD EVENING, MAYOR COUNCIL, I HAVE AN ITEM JUST AS FUN AS A SPLASH PAD BEFORE YOU. ALMOST. I'M SORRY. ALMOST AS FUN AS THE SPLASH PAD. BEFORE YOU, I BRING RESOLUTION 21, 22, 22, 85. I'M SORRY, 2285, WHICH IS THE APPROVAL FOR THE CITY MANAGER TO GET INTO NEGOTIATIONS WITH EAST TEXAS MACK TRUCKS FOR TWO 2026 MACK TRACTOR TRUCKS WITH A DUMP BODY. WE HAVE BEEN THIS IS THE SAME PROCESS THAT WE'VE DONE FOR A COUPLE OF YEARS NOW. FROM MY RESEARCH. MR. CALDWELL DID THIS ITEM A COUPLE YEARS AGO. WE HAVE BEEN IN THE PROCESS SINCE 2021, IN THE SAME PROGRAM, LEASING A BRAND NEW TRUCK. THIS YEAR IT WOULD BE TWO BRAND NEW TRUCKS 2026 MODEL. WE WOULD LEASE IT FOR 13 MONTHS, AND THEN AT THE END OF THAT, WE WOULD HAVE A NET PAYMENT OF THIS YEAR WOULD BE 50,005, 66.
WE WOULD BE RESPONSIBLE FOR THAT AMOUNT AT THE END OF IT, EAST TEXAS MACK WOULD COME BY AND PURCHASE THAT. AND THEN IF WE DECIDE TO MOVE FORWARD, THAT PROCESS WOULD CONTINUE JUST AS IT HAS SINCE THEN. THE PROCESS OF THIS IS TO SIGN THAT AGREEMENT. LIKE I MENTIONED WITH EAST TEXAS MACK, THE CITY PAYMENT IS DUE BACK 13 MONTHS AFTER THE FACT. THESE ARE HEAVILY USED DUMP TRUCKS THAT WE DO USE, AND THE CITY IS BUILT AT THE END OF FY 26 FOR THIS. IF YOU DO DECIDE TO ACCEPT THIS PROPOSAL, WE'LL MOVE FORWARD WITH THE RESOLUTION GETTING THE DOCUMENT SIGNED, THIS MONEY COMING OUT OF WHICH FUND DO WE KNOW MARK SHOULD BE THE FLEET FUND. OKAY. ALL RIGHT. AND THE MONEY'S THERE. YES, YES, WE CAN AFFORD IT. YES. THIS IS A PROGRAM THAT WE'VE BEEN DOING FOR QUITE SOME TIME. IT'S AN OPPORTUNITY TO LEASE THE VEHICLES FOR A YEAR. WE RETURN, WE GET A BREAK ON THE LEASE PAYMENT BECAUSE WE'RE TURNING THEM AROUND, AND THEY'RE ABLE TO SELL THEM AS BASICALLY NEW EQUIPMENT BECAUSE THE THE AMOUNT OF WORK THAT WE PUT THEM THROUGH ISN'T QUITE WHAT YOU'RE GOING TO GET FROM A PRIVATE CONSTRUCTION COMPANY. THEY'RE TYPICALLY WELL MAINTAINED AND RETURNED IN GOOD
[01:50:02]
CONDITION. AND AGAIN, THIS IS A CONTINUATION OF THE PROGRAM. WE BROUGHT THIS ITEM TO YOU LAST YEAR. AND IT'S JUST A IT'S A ESSENTIALLY A ONE YEAR LEASE OF THE EQUIPMENT. WE TURN IT BACK AND THEN GET TWO ADDITIONAL BRAND NEW TRUCKS AT THE END. AFTER 13 MONTHS AND MAINTENANCE INCLUDED. ALL RIGHT. GOOD. IS THERE ANY QUESTIONS. AGAIN THIS IS CONSIDER ITEM RESOLUTION NUMBER 2285. YEAH I TALKED TO IS THIS TIME WHERE WE CAN DISCUSS THIS LATER. YES. YOU HAVE A QUESTION FOR. YES. I KNOW I HAD SOME CONCERNS ABOUT JUST LEASING AND I MEAN I JUST DON'T KNOW. I GUESS WHEN I LOOK AT HOW HEAVY THE WORK, THE TRUCKS WILL BE WORKED AND WHEN WE'VE HOW MUCH WILL WE HAVE PAID IN A YEAR? IS IT 50 GRAND OUR NET THAT THE CITY WILL BE SPENDING ON THE TWO TRUCKS FOR FY 26 WOULD BE 50,005 66. YES, MA'AM, FOR TWO DUMP TRUCKS.HURT SO BAD. OKAY. JUST TRYING TO PUT IT TOGETHER. JUST GOING. HEY, WHEN YOU'RE IN IT FOR. I WAS THINKING 50,000. YES, MA'AM. THE NEXT LEVEL, GET ANOTHER YEAR. IT'S YOURS. AND THEN. BUT IT'S 25 A YEAR. WHAT I GIVE IS, BASED ON MY RESEARCH THAT I DID IN FY 25, WE DID A SPENDING OF NOT TO EXCEED 51,166. AND THE YEAR BEFORE THAT WAS 51,975. SO IT'S PRETTY CONTINUOUS AROUND THAT 50,000 RANGE. OKAY. THANK YOU. OKAY. THIS IS RESOLUTION NUMBER 2285. IS THERE A MOTION.
SO MOVED. WE HAVE A MOTION. IS THERE A SECOND. SECOND. WE HAVE A MOTION FOR MAYOR RONNY VELASQUEZ. DISTRICT THREE SECOND FROM STEPHANIE HOLMES THOMAS. DISTRICT FOUR TO APPROVE RESOLUTION 2285 AS PRESENTED. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR? LET IT BE KNOWN BY STATING I. I ANY OPPOSED. MOTION CARRIED. NONE OF THOSE
[8. INFORMATION REPORTS]
PRESENT. OUR NEXT ITEM ON THE AGENDA IS RECEIVED STAR TRANSIT MONTHLY REPORTS COUNCIL. IF YOU WOULD PLEASE REACH OUT TO MARK OR STAFF TO REVIEW THOSE REPORTS. IF YOU HAVE ANY[9. ADJOURN INTO EXECUTIVE SESSION IN ACCORDANCE WITH SECTION 551 OF THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING]
QUESTION AT THIS TIME, WE'RE GOING TO ADJOURN INTO EXECUTIVE SESSION IN ACCORDANCE WITH SECTION FIVE FIVE, ONE OF THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING. SECTION 551.074 PERSONNEL MATTERS. SECTION 551.087 DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT* This transcript was compiled from uncorrected Closed Captioning.