[00:00:01]
HEY, MAYOR. OKAY. GOOD EVENING. COUNCIL STAFF AND MEMBERS OF THE AUDIENCE.
WELCOME TO THE COUNCIL MEETING FOR MONDAY, SEPTEMBER 15TH.
TIME IS 705. AT THIS TIME, LET ME INVITE ALL OF YOU TO STAND UP AND JOIN ME FOR THE INVOCATION WILL BE GIVEN BY MAYOR PRO TEM CLARK. PLEASE BOW YOUR HEADS.
DEAR HEAVENLY FATHER, WE THANK YOU FOR YOUR MANY BLESSINGS IN OUR LIVES.
WE THANK YOU THAT WE ARE ALL CITIZENS, RESIDENTS OF THIS AMAZING TOWN OF SUNNYVALE.
WE ASK THAT AS WE JOIN TOGETHER IN THIS TOWN COUNCIL MEETING, WE ASK FOR YOUR WISDOM AND GUIDANCE AND LET US THINK ABOUT ALL OF OUR DECISIONS WE MAKE AND HOW THEY'RE GOING TO IMPACT OUR TOWN MOVING FORWARD.
THANK YOU AGAIN FOR ALL YOUR LOVE. AMEN. AMEN.
PLEASE JOIN ME STANDING FOR THE PLEDGE OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
I'M NOT SURE IF THAT WAS A TRICK. MAYBE THAT WAS OKAY.
THAT WAS EMBARRASSING. ALL RIGHT. GOOD EVENING.
[ C. Call Meeting to Order]
SEPTEMBER 15TH. FOR THE RECORD, WE HAVE ALL COUNCIL MEMBERS PRESENT WITH THE 7%.WE HAVE QUORUM ANNOUNCEMENT PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551 .0415.
MAYOR AND COUNCIL MAY MAKE AND STAFF MAY MAKE ANNOUNCEMENTS ON VARIOUS ITEMS LISTED ON THE AGENDA.
COUNCIL. DO YOU HAVE ANY ANNOUNCEMENTS TO MAKE? STAFF DO YOU HAVE AN ANNOUNCEMENT TO MAKE? OKAY, I'M GOING TO CLOSE ANNOUNCEMENT. PUBLIC COMMENT. THIS IS THE TIME MEMBERS OF THE AUDIENCE MAY COME FORWARD AND SPEAK TO THE COUNCIL ON ANY ITEMS OTHER THAN PERSONAL LEGAL MATTERS OR ITEMS ON THE AGENDA. IF YOU WOULD LIKE TO COME FORWARD AND SPEAK TO THE COUNCIL AT THIS TIME, YOU MAY DO SO. NOW HE'S COMING FORWARD.
[F. Discussion and Action Items]
TEXAS. COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION SERIES 2025, INCLUDING THE ADOPTION OF ORDINANCE 20 2517 AUTHORIZING THE ISSUANCE OF SUCH CERTIFICATES OF OBLIGATION.WE HAD VERY, VERY FAVORABLE RATES, AND WE WE REALLY WE WE ENDED UP WITH AN ALL IN TRUE INTEREST COST OF AROUND 4.4%, WHICH IS WAY UNDER WHAT WE PROJECTED.
AND SO I'LL LET ERIC TELL YOU A LITTLE BIT MORE ABOUT OUR SUCCESSFUL BOND SALE.
OKAY. FOR THE BENEFIT OF THE COUNCIL OUR CHIEF INTERIM TOWN MANAGER, MR. VEGAS WILL NOT BE HERE TONIGHT. HE'S NOT FEELING WELL.
SO MISS MICHAELA WILL BE LEADING THE BUDGET DISCUSSIONS.
MR.. MR.. MAHER. GOOD EVENING. MAYOR. COUNCIL.
AS MENTIONED, ERIC MAHER WITH HILLTOP. AND I BELIEVE EACH OF YOU NOW HAVE A PACKET OF QUINTE PASS TIME AROUND, AND WE HAVE SOME HERE. SOME OF THE NUMBERS FROM TODAY'S BOND PRICING OR CERTIFICATE PRICING.
AND THIS GOES BACK TO BACK IN JULY WHEN COUNCIL APPROVED THE NOTICE OF INTENT TONIGHT, BEFORE YOU, AS AN ORDINANCE TO APPROVE SALE OF THE CERTIFICATES.
THE GOAL WAS TO RAISE 36 MILLION IN PROCEEDS TO THE TOWN.
AND WE HAVE A SUMMARY OF THAT INFORMATION. THIS IS THE PRICING OCCURRED THIS MORNING.
AND SO WE WANTED TO UPDATE THE COUNCIL ON THE NUMBERS HERE.
QUICKLY ON THE COVER PAGE. THE CERTIFICATES SOLD AT A PREMIUM THIS MORNING.
SO WE'RE ABLE TO LOWER THE PAR SIZE OR THE PRINCIPAL AMOUNT THAT THE TOWN WILL REPAY.
SO YOU'LL NOTICE ON THE COVER THE PRINCIPAL AMOUNT IS 33,810,000.
SO? SO THE TOWN WILL RECEIVE THE FULL AMOUNT INTO THE PROJECT FUND.
THE UNDERWRITING FIRMS THIS MORNING WERE FROST BANK.
THEY LED THE UNDERWRITING. AND THEN WE HAD BOC FINANCIAL AND RAYMOND JAMES.
THE FIRST PAYMENT WILL BE FEBRUARY OF 2026. THIS IS IN LINE WITH THE.
THE TOWN'S BUDGET. THAT'S BEEN DISCUSSED, AND I KNOW.
MR. REEVE HAS ALLOWED FOR THAT PAYMENT AMOUNT IN THE TAX RATE.
THIS COMING FEBRUARY. SO. THE FINAL PAYMENT WILL BE 2050.
[00:05:05]
THAT'S WITHIN THIS CERTIFICATE. MAXIMUM THERE.AS MISS REEVE MENTIONED, THE TRUE INTEREST COST CAME IN AT A 4.36%.
SO UNDER 4.4%. WE'RE VERY PLEASED TO SEE THAT WE HAVE A CHART IN A LITTLE BIT HERE.
I'LL SHOW YOU IN TERMS OF INTEREST RATES, BUT MUCH LOWER THAN ANTICIPATED A FEW MONTHS BACK.
WE HAVE SOME OF THE FUNDS DEDICATED FOR UTILITY PROJECTS.
THE INTENT IS TO REPAY THOSE FUNDS FROM UTILITY REVENUES.
AND THEN WE HAVE SOME OF THE FUNDS FOR PARKS AND SOME FOR FACILITIES.
SO PAGE FIVE A FEW MORE NUMBERS HERE. AS MENTIONED THE RATES RANGED FROM 2.29% UP TO 4.49 UNDER THE YIELD COLUMN. AND THEN AGAIN THAT EFFECTIVE RATE ARE ALL IN INTEREST RATE.
WE CALCULATED AT THE 4.36%. THE TOWN AS MENTIONED, WOULD HAVE THE ABILITY TO REFINANCE IF YOU CHOOSE TO, STARTING IN 2035 OR RETIRE THE CERTIFICATES EARLY AT THAT TIME.
PAGE SIX IS A SNAPSHOT OF THE ANNUAL PAYMENTS FIRST PAYMENT STARTING IN 2026 AS MENTIONED.
AND THEN GOING FORWARD EACH YEAR, PAGE SEVEN, WE INCLUDED A INTEREST RATE GRAPH GOING BACK TWO YEARS OR BACK TO, I GUESS LAST SUMMER AROUND THIS TIME. SO A YEAR AND YOU CAN NOTICE ON THE FAR RIGHT HAND SIDE, WE ZOOMED IN OVER THE LAST 3 OR 4 WEEKS, WE'VE SEEN A PRETTY GOOD DECREASE IN TERMS OF INTEREST RATES.
SO ACCESSING MARKET AT A GOOD TIME TODAY WAS WAS PART OF THAT.
WE TOOK BENEFIT OF THAT DECREASE THAT WE'VE SEEN IN THE LAST COUPLE OF WEEKS.
AND THEN PAGE EIGHT, JUST SO ERIC, ON THAT THE THE PORTION THAT'S A 912 4.234022 90 CAN YOU WHAT IS THE THREE DIFFERENT LINES OVER THERE. YES, SIR. SO THE BOTTOM LINE IT'S IN BLUE.
IT MAY BE HARD TO SEE, BUT THE BOTTOM LINE WOULD BE THE TEN YEAR RATES THAT WE FOLLOW IN THE MUNICIPAL BOND MARKET, IT'S AN INDEX RATE THAT WOULD BE FOR A TEN YEAR BOND.
SAME ON PAGE EIGHT. JUST ANOTHER INDICES, ONE OF THE INDEXES WE FOLLOW IN OUR MARKET.
AND THEN PAGE NINE WE THOUGHT THIS WOULD BE INTERESTING TO COUNCIL TO SHOW THIS.
AND TOWARDS THE MIDDLE OR BOTTOM OF PAGE NINE, YOU'LL NOTICE THE NUMBER 106 300.
THAT MEANS THAT THE TOWN RECEIVED 106 MILLION IN ORDERS FROM INVESTORS THIS MORNING FOR 36 MILLION IN CERTIFICATES, WHICH IS VERY GOOD. SO ANYTIME YOU HAVE MORE INVESTORS THAN BONDS, WE'RE ABLE TO LOWER THEIR INTEREST RATE.
SO VERY GOOD DEMAND TODAY. FOR, FOR THE TOWN THE RED NUMBERS.
YOU'LL NOTICE THESE ARE THE BONDS IN EACH YEAR.
THE BLACK LINE REPRESENTS HOW MANY WERE AVAILABLE. SO ANYTIME THE THE BLUE AND THE RED IS ABOVE THE BLACK, THAT MEANS WE HAD MORE ORDERS THAN BONDS AVAILABLE.
AND THEN ON THE BOTTOM RIGHT. IT MIGHT BE A LITTLE HARD TO READ, BUT THOSE ARE THE SOME OF THE TOP INVESTORS WHO PLACED ORDERS THIS MORNING. EATON VANCE, 11 MILLION AND A COUPLE OF THE BOND FUNDS, 1111 MILLION OR SO.
SO A GOOD DIVERSE MIX OF INVESTORS PARTICIPATED THIS MORNING.
AND THEN LASTLY, WE HAVE A COPY OF THE BOND RATING REPORT.
ALWAYS DOES A GREAT PRESENTATION TO THE RATING AGENCIES.
AND SO THE TOWN'S RATING WAS AFFIRMED AT AA+.
THAT'S NOT THE HIGHEST, BUT IT'S THE NEXT LEVEL DOWN.
SO, SO THAT'S A COPY OF THE RATING REPORT FROM STANDARD AND POOR'S.
AND THAT'S THE SUMMARY OF THE NUMBERS. AND IT LOOKS LIKE MISS KRISTEN SAVANT, THE TOWN'S BOND ATTORNEY, HE ARRIVED IN THE THE NUMBERS PRESENTED HERE TO TOWN, TO THE TOWN THIS EVENING HAVE BEEN INCORPORATED INTO THE ORDINANCE.
AND THEN WE'LL BE ABLE TO CLOSE ON THE 15TH, AND THE FUNDS WILL BE RECEIVED AT THAT TIME.
[00:10:02]
SO. OKAY. ANY QUESTIONS FOR MR. MAHER? MR. MAHER, I HAVE ONE QUESTION.REFERENCE THE DOUBLE A. WEREN'T WE A TRIPLE A RATED AT ONE TIME.
ACTUALLY THE TOWN WAS DOUBLE A I THINK LAST SUMMER.
DOUBLE A MINUS. AND SO YOU ALL ACTUALLY RECEIVED UPGRADES.
SO IS OKAY. THANK YOU. THE NEXT STEP WOULD BE TRIPLE A.
YEAH I DON'T KNOW WHY I THOUGHT WE HAD HAD GOTTEN THAT RATING, BUT SO IT'S DOUBLE A AND TRIPLE A.
THAT'S CORRECT. YES, SIR. OKAY. THANK YOU. YOU ALL WERE BUMPED UP TO DOUBLE A PLUS.
OKAY. ADDITIONAL QUESTIONS. OKAY. THANK YOU SIR.
YOU MAY COME FORWARD. NO ONE IS COMING FORWARD.
WE'RE GOING TO CLOSE THE PUBLIC COMMENTS. MR. CLARK, DID YOU HAVE A QUESTION OR DID I MISUNDERSTAND YOU? NOT A COMMENT. I WANT TO THANK THANK EVERYBODY FOR ALL THEIR HARD WORK AND THEIR GREAT, GREAT JOB ON THIS FOR HILLTOP AND NORTON ROSE AND FOR EVERYBODY INVOLVED.
THANK YOU. OTHER ADDITIONAL COMMENTS OR DISCUSSIONS ON THIS TOPIC.
SO RACHEL THIS IS ONLY ONE READING CORRECT. OKAY.
OKAY. THERE ARE NO OTHER ANY COMMENTS YOU HAVE FROM YOUR SIDE? NO, SIR. OKAY. IF THERE ARE NO OTHER COMMENTS FROM THE COUNCIL OR THE STAFF, LET ME CALL FOR A MOTION ON ITEM NUMBER F1.
MOTION TO APPROVE F1 AS PRESENTED. SECOND MOTION MADE BY MR. SECOND BY MR. CLARK TO APPROVE ITEM F1 AS PRESENTED.
EVERYONE HEARD THE MOTION. ARE THERE ADDITIONAL DISCUSSION? IF NOT, ALL IN FAVOR, SIGNIFY ALL OPPOSED. MOTION PASSES SEVEN ZERO.
MOVING ON TO ITEM NUMBER F2. DISCUSS CONSENT ACT UPON THE SECOND READING OF ORDINANCE 2025 DASH 14, AN ORDINANCE OF THE TOWN OF SUNNYVALE, TEXAS, AMENDING THE APPENDIX A FEE SCHEDULE.
ARTICLE A5 000 UTILITY RELATED FEE. SECTION 5004 WASTE WATER RATES AND SECTION 5005 WASTEWATER RATES. OKAY. THANK YOU. MAYOR. WE GOT AN INCREASE FROM THE TEXAS WATER DEVELOPMENT BOARD.
BUT AFTER WE HAVE GONE THROUGH AND AND RELOOKED AT EVERYTHING.
AND A LOT OF THAT HAS TO DO WITH TEXAS WATER DEVELOPMENT BOARD AND THEIR INCREASES.
OKAY. COUNCIL. THIS IS THE SECOND READING. DO YOU HAVE ANY QUESTIONS OR COMMENTS ON ITEM NUMBER F2? NO, THE ONLY COMMENT I HAVE IS JUST TO REITERATE THAT THIS IS NOT AN INCREASE THAT THE TOWN IS IMPOSING.
CORRECT. THAT IS CORRECT. THANK YOU. AND ALSO, IT SOUNDS LIKE WE'LL HAVE TO RAISE IT AGAIN NEXT YEAR, BUT THE FOLLOWING YEAR WE CAN ACTUALLY REDUCE IT SOMEWHAT.
YES, SIR. BASED ON THEIR FIVE YEAR PROJECTIONS THAT THEY GAVE US.
OKAY. THANK YOU. ARE THERE ADDITIONAL COMMENTS OR QUESTIONS ON THIS ONE.
YOU MAY DO SO AT THIS TIME. NO ONE IS COMING FORWARD.
SO I'M GOING TO CLOSE THE PUBLIC COMMENTS COUNCIL OR THE ADDITIONAL DISCUSSIONS OR COMMENTS ON THIS ONE. IF NOT, I CALL FOR A MOTION RIGHT NUMBER F2. MOTION TO APPROVE ITEM F2 AS PRESENTED.
SECOND. MOTION MADE BY MR.. SECONDED BY MISS DENNY TO APPROVE ITEM F2 AS PRESENTED.
EVERYONE HEARD THE MOTION. ARE THERE ADDITIONAL DISCUSSIONS? IF NOT, ALL IN FAVOR SIGNIFY ALL OPPOSED. MOTION PASSES SEVEN ZERO.
MOVING ON TO ITEM F3. DISCUSS, CONSIDER AND ACT UPON THE SECOND READING OF ORDINANCE 20 2511 OF THE TOWN COUNCIL OF THE TOWN OF SUNNYVALE, TEXAS, MAKING APPROPRIATION FOR THE SUPPORT OF THE TOWN OF SUNNYVALE.
FISCAL YEAR BEGINNING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026, AND ADOPTING THE ANNUAL BUDGET OF THE TOWN OF SUNNYVALE FOR THE 20 2526 FISCAL YEAR. MISS. MISS. MICHAELA. RACHEL, CAN YOU PULL UP OUR POWERPOINT? THANK YOU.
[00:15:08]
SO WE HAVE OUR EXISTING BUDGET. THE TAX RATE IS 4530.WE JUST THIS BUDGET ALSO FUNDS THE NEW DEBT OF 36 MILLION.
THE BUDGET IS BALANCED. THERE IS A 3.5% INCREASE FOR ALL EMPLOYEES, INCLUDING POLICE AND FIRE.
AGAIN, THESE ARE ALL THE THINGS THAT ARE IN OUR EXISTING BUDGET.
THERE HAS BEEN REALLY NO CHANGE TO THE OVERALL BUDGET.
73 MILLION. POINT NINE IN REVENUE WITH 87.2 IN EXPENSE.
AND THE DRAWDOWN OF FUND BALANCE. IS BOND PROCEEDS THAT WILL BE CARRIED OVER IN THE BOND CONSTRUCTION FUND AS WELL AS THE ADDITIONAL FUND BALANCE THAT WE'LL BE USING IN THE FOUR B FUNDS.
THE BUDGET AGAIN IS AT FOUR FIVE, THREE ZERO.
3.5%. THE MARKET MINIMUM FOR ALL EMPLOYEES IS NOW $20.
WE DO HAVE THE POLICE INCENTIVE PACKAGE. THE HEALTH BENEFITS ADDITIONAL FTES INCLUDING A COURT BAILIFF AND ANIMAL CONTROL PERSONNEL, WHICH IS REPLACE REPLACES WHAT WE'VE BEEN PAYING IN AN EXISTING CONTRACT.
WE STILL HAVE THE THIS THE CAD SOLUTIONS AT $18,000.
THE RING PHONE SYSTEM, POLICE SOFTWARE, ANIMAL CONTROL SOFTWARE, THE G TECH CAMERA SYSTEMS, THE VECTOR SOLUTIONS. WE HAD A 10% INCREASE IN THE JAIL AND DISPATCH COST.
CONTRACT PERSONAL PROTECTIVE EQUIPMENT, UNIFORMS AND TRAINING, AS WELL AS THE RADIO 3D PRINTER FOR THE LIBRARY, AS WELL AS AN EBOOK SUBSCRIPTION FOR THE FIRE PAY SCALE.
TO MAKE SURE THAT EVERY SINGLE PERSON, EVEN A TOP OUT PERSON, RECEIVES A 3.5%.
WE'VE EXTENDED THE PAY SCALE TO TEN STEPS. THAT MATCHES WITH WHAT THE POLICE PAY SCALE IS CURRENTLY.
WE DID HAVE SEVERAL EMPLOYEES THAT WERE TOPPED OUT IN THE FIRE THAT WOULD NOT HAVE RECEIVED A RAISE OTHERWISE, BUT WITH THIS NEW TENSE, WITH THIS NEW TEN STEP, THEN ALL FIRE EMPLOYEES WILL RECEIVE A 3.5% INCREASE AGAIN.
IT ALSO MATCHES OUR TEN STEP FOR THE POLICE. THERE IS NO PAGE PAY SCALE CHANGE THERE.
ALL POLICE WILL RECEIVE A 3.5% INCREASE, AND WE DON'T HAVE ANYONE TOPPED OUT IN POLICE AS OF YET.
THE VOTER APPROVAL RATE AGAIN IS THE .504715 DE MINIMIS RATE WAS 0.506441.
AND THEN OUR NO NEW REVENUE RATE IS 0.4495 FOR THE UTILITY FUND.
WE HAVE STILL THE 3% THE MARKET MINIMUM INCREASE.
WE REALLOCATED SOME EXPENSES FROM THE GENERAL FUND INCLUDING THE SCADA SYSTEM UPGRADE FOR THE COMPUTERS, AN EMERGENCY GENERATOR, SEWER CAMERAS, SMOKE TESTER, WATER PUMP, VALVE DRAINAGE FEE STUDY, A SKID STEER, AND A BACKHOE BUCKET. SO THAT'S BASICALLY THE BUDGET AS A WHOLE.
THERE'S NOT REALLY MUCH CHANGE IN IT FROM WHAT YOU'VE SEEN BEFORE.
THANK YOU, MISS MCCULLOCH. COUNCIL ADDITIONAL QUESTIONS OR DISCUSSIONS? YES, SIR. MAYOR. DOCTOR BOUDREAUX, I HAVE A QUESTION.
OKAY. SO THE FIRE DEPARTMENT LAST WEEK, IT WAS MENTIONED THEY NEED A TWO BY TWO, A CERTAIN NUMBER OF OF FIRE FIGHTERS TO ENSURE THAT EVERYONE IS SAFE WHEN THEY AN ATTEMPT TO EXTINGUISH A FIRE.
SO ARE WE ABLE TO FUND THE TWO BY TWO? WHAT THE.
WHAT THE FIRE CHIEF REQUESTED. CHIEF, YOU WANT TO ANSWER THE QUESTION? NO, SIR. WE DID NOT INCLUDE THE 2 IN 2 OUT IN OUR EXISTING BUDGET.
CHIEF, THAT'S ENOUGH FROM YOU. THAT'S AN ASK, RIGHT? YOU NEED THAT STAFFING, CORRECT? TO SAY YES.
IT BECOMES AN ISSUE IF IT'S JUST AN ENGINE ON SCENE IS IF OUR AMBULANCE IS THERE.
[00:20:04]
WE HAVE FIVE AND WE HAVE OUR TWO AND TWO OUT.THE ISSUE IS IF THE AMBULANCE IS ON A CALL AND WE ONLY HAVE THREE ON THE ENGINE, THEN IT DOES IT CAN DELAY OUR ABILITY TO GO INSIDE TO FOR FIRE ATTACK. NOW, WE'LL STILL GO IN FOR A RESCUE, OBVIOUSLY.
SO. SO BASICALLY, YOU'RE SAYING THAT YOU NEED TWO PEOPLE? JUST. I'M LOOKING FOR A SIMPLE ANSWER. YES OR NO? IT WAS THREE PEOPLE. YOU NEED THREE PEOPLE. OKAY.
SO WHAT WOULD IT TAKE TO INCLUDE THOSE THREE POSITIONS IN IN THE CURRENT BUDGET? HOW WOULD THAT IMPACT WHAT WE'RE DOING RIGHT NOW? SO IN ORDER TO INCLUDE THE THREE FIREFIGHTERS IN THE CURRENT BUDGET, WE WOULD HAVE TO INCREASE THE TAX RATE TO RAISE AT LEAST $220,000. IN ORDER TO DO THAT, IT WOULD BE THE RATE OF THE 4.719.
IT IS NOT RECOMMENDED TO PAY ONGOING EXPENSES OUT OF FUND BALANCE.
SO GENERALLY WHAT WE PAY OUT OF FUND BALANCE SHOULD JUST BE ONE TIME EXPENSES.
SO IT'S NOT RECOMMENDED TO FUND THESE THREE FIREFIGHTERS FROM FUND BALANCE.
OKAY. OUR FUND BALANCE HAS HOW MANY MONTHS IN IT RIGHT NOW.
97 DAYS. 97 DAYS. OKAY. SO ARE THERE OTHER OPTIONS OTHER THAN RAISING THE TAX RATE TO FUND THESE THREE POSITIONS? WE CAN WAIT UNTIL MID-YEAR AND SEE WHERE THE SALES TAX REVENUE IS.
WE DO HAVE SEVERAL NEW BUSINESSES, INCLUDING THE TOM THUMB THAT WILL BE OPENING AND A NEW STARBUCKS.
AND SO WE WILL HAVE SOME ADDITIONAL REVENUE THAT WE HAVE NOT FORECASTED IN HERE.
IN IN WITH OUR REVENUE. BECAUSE I WANTED TO KEEP THE, THE REVENUE NUMBERS VERY CONSERVATIVE SO WE COULD WAIT UNTIL MID-YEAR AND LOOK AT IF WHERE OUR REVENUES ARE COMING IN AND THEN MAKE A RECOMMENDATION TO FUND THEM AT THAT TIME.
I WOULD LIKE TO FIND A WAY TO FUND THOSE THREE POSITIONS TONIGHT.
MR. FINCH, MR. FINCH. MICHAELA, YOU TALKED ABOUT.
I'M SORRY. OH, THERE WE GO. YOU TALKED ABOUT NOT WANTING TO FUND POSITIONS.
LET'S JUST SAY OUT OF THE GENERAL FUND. AND SO I'M LOOKING AT THIS DEPARTMENT REQUEST AND TRYING TO SEE, DO YOU KNOW, THE TOTAL THAT WE REQUESTED THAT'S BEEN REQUESTED IN THIS BUDGET? THAT IS NOT ONGOING EXPENSES.
SO IT WOULD BE THE G TECH CAMERA SYSTEMS, THE RING THE VECTOR SOLUTIONS, THE PERSONAL PROTECTIVE EQUIPMENT THE UNIFORMS. THAT WAS A ONE TIME THE 3D PRINTER WAS A ONE TIME THE PHONE SYSTEM WOULD BE A ONE TIME, AND THEN THE POLICE AND ANIMAL CONTROL SOFTWARE, THOSE WOULD ALL BE ONE TIME EXPENSES AS WELL.
SO I'D HAVE TO ADD IT UP TO SEE BASICALLY ALL THOSE EXPENSES THAT ARE LISTED, EVEN TECHNOLOGY, THOSE SEEM LIKE ONE TIME EXPENSES. I DON'T KNOW IF WE HAVE ONGOING.
YES. I'M NOT SURE ABOUT THE THE CAD SOLUTIONS.
I'M NOT SURE IF THAT'S AN ONGOING EXPENSE OR NOT.
PLEASE. ANYTHING THAT SAYS SOFTWARE IS CONSIDERED, IT'S GOING TO BE ONGOING COSTS.
I'M JUST TRYING TO FIGURE OUT IF WE CAN GET A NUMBER THAT SAYS THESE ARE ONE TIME EXPENSES.
TO OUR BUDGET THIS YEAR. OKAY, JUST GIVE ME JUST A SECOND.
SURE. THANK YOU. CHIEF, LET ME ASK A CLARIFYING QUESTION FOR YOU.
THREE. IS IT THREE PEOPLE PER SHIFT? HOW DOES THAT ONE PERSON PER SHIFT.
OKAY, BUT YOU SAID YOU NEED TWO ADDITIONAL PEOPLE TO BE ON THE SITE ONE TIME.
DO YOU NEED SIX PEOPLE OR YOU NEED THREE PEOPLE? YOU NEED ONE ADDITIONAL PERSON PER SHIFT TO HAVE TWO IN, TWO OUT.
SHE SAID SHE WANT TWO AND TWO, RIGHT. SO CAN YOU ELABORATE ON THE TWO AND TWO YOU TALKED ABOUT?
[00:25:01]
SO ON ON A FIRE ENGINE YOU'VE GOT TO HAVE FOUR PEOPLE RIGHT NOW BECAUSE OF OUR STAFFING.IF ONE PERSON IS OFF WE ONLY HAVE THREE ON THE ENGINE.
AND SO BY ADDING SOMEONE ELSE, WE WOULD BE ABLE TO MANDATE THAT MINIMUM STAFFING IS FOUR AND STILL BE ABLE TO HAVE THE ONE PERSON OFF, BUT KEEP OUR FOUR PERSON SO THAT WE ALWAYS ABLE TO HAVE TWO IN AND TWO OUT ON A CALL.
SO THAT'S THE CASE WE HAVE CURRENTLY STOPPED, BUT IF ONE PERSON IS OFF, THEN THIS PERSON WILL HELP.
THIS IS IN THE SITUATION WHERE SOMEBODY IS OFF HE'S WHEN YOU NEED THIS ONE TODAY YOU'RE STAFFED.
BUT WHEN SOMEBODY IS OFF AND THE FIRE HAPPENS, YOU NEED ONE EXTRA PERSON.
SO ANYTIME SOMEONE WHETHER IT'S VACATION SICK, HOLIDAY INJURED I'VE GOT LIKE RIGHT NOW I'VE HAD ONE PERSON OFF FOR SEVERAL MONTHS ON INJURED. AND SO THAT SHIFT IS ALWAYS ONLY WITH THREE PEOPLE ON THE ENGINE.
SO HAVING THAT ADDITIONAL PERSON ALLOWS US TO STILL PROVIDE FOR VACATION AND HOLIDAYS AND LEAVE, BUT STILL MAINTAIN THE FOUR PEOPLE THAT WE NEED ON THE APPARATUS.
SO, MICHAELA, THE TAX RATE YOU NEED, THAT IS 0.4719.
WE HAVE APPROXIMATELY $179,000 IN ONE TIME EXPENSES ON HERE ON THIS GENERAL FUND.
AND SO IF WE PAID FOR THOSE ONE TIME EXPENSES OUT OF FUND BALANCE THEN WE COULD GO WITH THE 4630 RATE AND FUND THE ADDITIONAL FIREFIGHTERS FROM THAT.
SO TO CLARIFY BACK FOR MY QUESTION, YOU HAVE $179,000 IN ONE TIME EXPENSES THAT ARE NOT ONGOING.
AND WE COULD RAISE THE TAX RATE TO THE $0.01, WHICH IS 0.4630, AND FULLY FUND EVERYTHING THAT'S ONGOING. BASICALLY, WE'RE NOT ASKING TO GO INTO FUND BALANCE TO FUND THINGS THAT ARE ONGOING.
THAT'S CORRECT. OKAY. THANK YOU. ARE THERE ADDITIONAL QUESTIONS OR DISCUSSION, MR. CLARK? SO, MICHAELA, YOU HAD MENTIONED .47 19A FEW MINUTES AGO.
WHAT TYPE OF INCREASE IS THAT? THAT'S THE $94 INCREASE TO A RESIDENT.
IS THE 471 ROUGHLY $0.02? YES. OKAY.
MR.. ADAM, DO YOU HAVE ANY COMMENTS? THANK YOU SIR. I DO.
I HAD A QUESTION IN THIS DISCUSSION ON MONDAY NIGHT, WHICH WAS A MARATHON DISCUSSION.
AND BY THE WAY, I APPRECIATE EVERYBODY UP HERE IN YOUR OPINIONS AND WE'RE GOING TO GET THERE.
BUT THE CHIEF SAID THAT BECAUSE OF THE BALANCED BUDGET THAT HE WAS TRYING TO OBTAIN, THE POLICE CHIEF, BILL VEGA. HE MENTIONED THAT HE REMOVED ONE OF THE POLICEMEN AND DID NOT PUT THAT ONE POLICEMAN BACK IN.
AND SO I JUST WANT TO SEE IF THAT CHANGED HERE OR WE'RE STILL MINUS THAT ONE POLICE STAFF.
MAYBE THE POLICE CAN ANSWER THAT FOR US. MICHAEL, DO YOU HAVE ANYTHING? I KNOW YOU'VE HAD A LITTLE BIT FURTHER CONVERSATION WITH CHIEF ON SOME OF THAT. HE HAS CURRENTLY HE HAD THREE VACANT POSITIONS, AND THEN HE REQUESTED A POSITION, AND WE DID NOT FUND THE REQUESTED POSITION THAT HE HAD.
SO THE ANSWER IS WE STILL DON'T HAVE THAT EXTRA POSITION IN THE BUDGET.
THAT'S CORRECT. SO WHAT IS THE COST FOR THAT ADDITION TO THE BUDGET? IT WOULD BE 70,000 PLUS BENEFITS. SO RIGHT AROUND 82,000 AND WE COULD STILL FUND THAT WITHIN THE THE $0.01 THAT MR. FINCH JUST SPOKE ABOUT. IS THAT RIGHT? IF WE WERE NOT FUNDING THE FIREFIGHTERS, THEN.
YES. NO, WE WANT TO FUND THEM ALL. WE DON'T WANT TO NOT FUND THEM.
OKAY. OKAY. I HAVE ANOTHER QUESTION FOR YOU. CAN CAN YOU FINISH THAT ANSWER? SO THREE FIREFIGHTERS PLUS THE POLICE. THAT'S WHAT YOU'RE ASKING, MR. ALLEN, RIGHT? RIGHT. YES, YES. WHAT WILL BE THE TAX RATE? WE WOULD HAVE TO GO TO THE 4719 IN ORDER TO FUND THOSE.
OKAY. MR. ALLEN, I JUST WANT TO FINISH THAT DISCUSSION.
I DID HEAR THAT I DO HAVE. THANK YOU. SIR. I DO HAVE A QUESTION.
COULD YOU GO BACK TO THE PAY SCALES THAT ARE THAT YOU SHOWED?
[00:30:02]
THANK YOU. MY QUESTION IS THESE BOTH SAY 2425.SO WHAT IS THE 2526 PAY SCALE? IT WOULD BE. IT'S THE ONE AT THE BOTTOM THAT EXTENDS IT OUT.
STEP NINE AND TEN. BASICALLY, WE JUST TOOK THE 2425 PAY SCALE, EXTENDED IT OUT BY TWO STEPS.
IF IT'S APPROVED, THEN IT WILL BECOME THE 2526 PAY SCALE.
SO THIS IS A LITTLE BIT CONFUSING TO ME BECAUSE IT LOOKS LIKE WE DID NOT ADJUST THE STEPS.
WE DID NOT ADJUST THE STEPS. THE STEPS ARE STILL 3.5%.
SO DOES THE STARTING PAY FROM 24 TO 25 INCREASE? NO, IT STAYS THE SAME AT 66. 718 YEAH, THAT THAT REALLY CONCERNS ME THAT OUR FIRE AND POLICE, WE ALREADY KNOW THEY'RE BEHIND IN PAY. AND THE CHIEF TOWN MANAGER MENTIONED THAT.
AND THAT CONCERNS ME THAT WE'RE GETTING FURTHER BEHIND THAT.
WE'RE NOT. WE'RE NOT FUNDING THOSE STEPS APPROPRIATELY.
AND JUST TO BE REALLY HONEST, I UNDERSTAND THAT THIS IS DIFFERENT THAN OTHER DEPARTMENTS IN OUR TOWN, BUT IT'S ALSO VERY CONSISTENT ACROSS THE METROPLEX.
I DID CALL AND TALK TO DIFFERENT DEPARTMENTS AND THEY THEY ALL THEY ALL MOVE AT THE SAME TIME.
AND THAT CONCERNS ME, THAT CONCERNS ME FOR THE WAY THE OTHER SYSTEMS WORK.
SO WHAT AM I MISSING? SO THEY WILL GET THEIR STEP.
EVERYBODY IN THE POLICE AND FIRE WILL GET ONE STEP.
THAT STEP IS THE EQUIVALENT OF 3.5%. HISTORICALLY, IN THE PAST, THE TOWN'S DONE A MARKET ADJUSTMENT TO THE STEP WHICH BASICALLY RAISES THE STARTING PAY IN EACH ONE.
AND WITH THAT INCREASE TO THE STARTING PAY, IT RAISES ALL THE STEPS FURTHER DOWN.
SO IF YOU DID A 1% OR 2% OR THREE OR WHATEVER IT WOULD RAISE WE WOULD RAISE THE ALL THE STEPS BY WHATEVER THAT PERCENTAGE IS. AND IT'S A MARKET ADJUSTMENT TO KIND OF KEEP OUR STEPS IN LINE WITH THE MARKET.
SO BUT HISTORICALLY WE'VE DONE THAT FOR ALL EMPLOYEES.
WE'VE, WE'VE DONE A 3.5% OR 3% TYPICALLY IS WHAT WE DO 3% MARKET.
THE PAST TWO YEARS WE'VE DONE THAT FOR ALL EMPLOYEES.
MR.. FINCH. OKAY. AND AND JUST DUE TO BUDGET CONSTRAINTS THIS YEAR, WE'RE RECOMMENDING JUST THE 3.5% STEP SO THAT WE CAN STAY WITHIN THE SAME TAX RATE. RIGHT. AND I MEAN, FROM A FROM OUR PERSPECTIVE, FROM STAFF'S PERSPECTIVE, WE HAVE EVERYTHING THAT WE NEED TO RUN THE TOWN. AND SO THIS IS DUE TO BUDGET CONSTRAINTS, I THINK IS WHAT YOU SAID.
RIGHT. WE DID NOT PROPOSE THOSE DUE TO BUDGET CONSTRAINTS.
THAT'S CORRECT. BECAUSE WE COULD NOT GET THAT ADDITIONAL AMOUNT IN UNDER THE TAX RATE.
SO BUT WE CAN WE CAN RUN THE CITY, WE CAN OPERATE THE CITY ON THIS EXISTING BUDGET.
BUT OTHER THAN THAT, WE HAVE TRIED TO CREATE A REALISTIC BUDGET THAT WE CAN MOVE FORWARD WITH.
I APPRECIATE YOUR RESPONSE. I JUST IT CONCERNS ME THAT WE'RE GETTING FURTHER BEHIND IN OUR POLICE AND FIRE, AND THAT'S ESSENTIALLY WHAT OUR RESPONSIBILITY IS TO DO, IS FUND THE POLICE AND FIRE OUR SAFETY FIRST AND FOREMOST.
BECAUSE I REMEMBER IN OUR LAST BUDGET WORKSHOP THAT WE HAD TALKED ABOUT, THERE WAS THERE WERE THESE INCREASES IN THERE AND THAT, AGAIN, I DON'T WANT TO PUT WORDS IN YOUR MOUTH ABOUT US DOING A FURTHER STUDY.
CAN YOU CAN YOU TALK A LITTLE BIT ABOUT KIND OF WHAT YOU'RE DOING AND WHAT YOU'RE LOOKING AT FROM A HR SIDE OF TRYING TO LOOK AT SOME OF THAT STUFF? WELL, HISTORICALLY, IS THIS OPEN, IS THIS ON FOR FROM MY PERSPECTIVE? WE'VE BEEN HAVEN'T BEEN INVOLVED AS MUCH WITH THE BUDGET.
AND SO OUR FINANCE TEAM HAS BEEN DRIVING THE DISCUSSIONS WITH OUR TOWN MANAGER.
[00:35:04]
LIKE A MID-YEAR TO DO A FULL COMPENSATION STUDY TO, TO ALSO REVIEW THE THE OTHER CITIES THAT ARE COMPARABLE TO, TO THE TOWN OF SUNNYVALE. AND SO IF I CAN CLARIFY WHAT YOU'RE SAYING.BASED ON YOUR COMPREHENSIVE STUDY, IS THAT RIGHT? THAT'S CORRECT. AND THEN BACK TO FINANCE. FROM HER MID-YEAR REVIEW.
IF SHE DOES A MID-YEAR REVIEW AND WE SEE THAT WE NEED TO ADJUST OUR PAY SCALES FROM MID-YEAR, THE OPTION WE HAVE IS WE GO BACK INTO FUND BALANCE TO FUND SOME ADDITIONAL CHANGES IF NEEDED TO THESE STEPS.
IF WE WANTED TO DO A, YOU CALL IT MARKET ADJUSTMENT.
SO EVERY YEAR AT MIDYEAR, WE WE TYPICALLY TRY AND DO A MID-YEAR BUDGET AMENDMENT.
WE LOOK AT WHERE OUR REVENUES ARE WHERE WE PROJECT THEM TO BE AT THE END OF THE YEAR.
WE ALWAYS BUDGET VERY CONSERVATIVELY, AND GENERALLY WE HAVE ADDITIONAL REVENUE THAT WE CAN BRING IN EITHER SOME ONE TIME REVENUES THAT WE DIDN'T FORESEE THAT CAME IN OR GRANT OR ANYTHING LIKE THAT.
AGAIN, I, I'M VERY CONFIDENT THAT OUR SALES TAX IS PROBABLY GOING TO COME IN HIGHER THAN WHAT WE'VE PROJECTED BASED ON THE FREDDY'S THE TOM THUMB AND THE STARBUCKS AS WELL AS THE CAR WASH THAT'S COMING IN.
THOSE NUMBERS HAVE NOT BEEN BAKED INTO OUR OUR ESTIMATES.
SO WE CAN LOOK AT THIS AGAIN AT MID-YEAR, LOOK AT WHAT ADDITIONAL REVENUE WE HAVE.
AND THEN AT THAT POINT, LOOK AT HOW MUCH WE CAN FUND AN INCREASE.
SO WE MAY NOT BE ABLE TO DO THE FULL THREE AND A HALF, BUT WE MAY BE ABLE TO DO SOMETHING 1 OR 2%.
SO THANK YOU FOR THAT. DETAILED EXPLANATION. BUT WE COULD ALSO GO INTO FUND BALANCE IF WE WANTED TO.
IS THAT AN OPTION? YOU COULD, BUT IT'S NOT RECOMMENDED.
BECAUSE THE FUND BALANCE IS SORT OF LIKE YOUR SAVINGS ACCOUNT.
I KNOW, BUT WHAT I'M SAYING IS, IS THAT WE CAN'T AFFECT A TAX RATE MID-YEAR.
THAT IS CORRECT. YOU CANNOT IF WE SEE THAT WE NEED TO MAKE ADJUSTMENTS, WHETHER IT BE IN THE BUDGET WHETHER WE HAVE THE MONEY, LET'S SAY LET'S ASSUME THAT WE'RE GOING TO HAVE I THINK WE WILL.
BUT IF WE DON'T, WE COULD GO MID-YEAR INTO THE TO THE FUND BALANCE AND THEN READDRESS THAT NEXT YEAR WITH A POTENTIAL RATE INCREASE. IF WE HAD TO, YOU COULD BUT AGAIN, IT WOULD BE JUST FUNDING IT FOR ONE YEAR.
YEAH, I UNDERSTAND, I UNDERSTAND AND SO I JUST WANT TO SAY WE COULD ADJUST MID-YEAR.
WE CAN MAKE A, WE HAVE THE ROOM TO MAKE ADJUSTMENTS BECAUSE WE HAVE WHAT, 98 DAYS IN OUR FUND BALANCE, 97, 97 DAYS IN OUR FUND BALANCE. AND WE'RE REQUIRED TO HAVE, WHAT, 90, 90 BASED ON OUR FUND BALANCE POLICY, 60 OR 60. WE WHEN WE REDID THE FUND BALANCE POLICY THREE YEARS AGO, WE RAISED IT TO 90 DAYS AFTER THE LAST TIME WE SAID 60 DAYS.
THAT'S SO THE UTILITY FUND, WE HAVE A 60 DAY RESERVE ON THE UTILITY FOR EMERGENCIES.
AND THEN WE HAVE SOMETHING CALLED A 60 DAY REVENUE STABILIZATION.
SO WE HAVE 120 DAYS POLICY FOR UTILITY. AND WE HAVE A 90 DAY POLICY FOR GENERAL FUND OKAY, SO MY POINT IS WE STILL HAVE 90. WE'RE 97 DAYS AT THIS POINT.
IF WE DID, IF WE ALLOW HR TO DO THEIR JOB AND THEY GO OUT AND THEY COME BACK AND TELL US THAT WE NEED TO MAKE A MARKET ADJUSTMENT MID-YEAR, THERE ARE A COUPLE OF OPTIONS. WE HAVE POTENTIAL FUND POTENTIAL FUNDING THAT WE HAVE AVAILABLE AND FUND BALANCE THAT CAN THEN BE ADDRESSED.
I UNDERSTAND THAT, BUT I'M LOOKING FOR OPTIONS, RIGHT? I'M TRYING TO FIND SOME MIDDLE GROUND HERE ON RAISING TAXES BECAUSE WE DON'T WANT TO RAISE TAXES.
WE DON'T HAVE TO. AND BEING SMART WITH OUR DOLLARS.
AND I AGREE WITH MR. ALLEN, I'M WORRIED THAT WE ARE GETTING BEHIND IN SOME OF THIS STUFF.
AND SO YOU'VE GIVEN US THOSE OPTIONS. SO THANK YOU FOR THAT, MAYOR GEORGE.
DOCTOR. WOODROW. ALSO, WE DON'T KNOW EXACTLY WHAT THE COST OF DEVELOPING THE PARK'S DEVELOPING IT OUT. OUT WILL BE. FOR EXAMPLE, I THINK IN OUR LAST MEETING, IT WAS MENTIONED.
WE HAVEN'T PUT IT OUT FOR BID YET. IT COULD COME IN OR IT COULD COME IN LESS.
[00:40:07]
ALSO, I CONTACTED THE PARKS DIRECTOR TODAY, AND THEY HAVE A LOT OF PARKS. THEY'RE THREE TIMES OUR SIZE, BUT THEY DO NOT HAVE ONE FIELD THAT HAS ARTIFICIAL TURF.AND HE SAID HE RECOMMENDS NATURAL TURF. SO THAT'S JUST ONE PERSON, ONE MUNICIPALITY.
MAYBE OTHERS HAVE ALL ARTIFICIAL TURF. AND SO I TALKED TO SOME OF OUR COACHES TODAY.
I WENT TO JOBSON AND AND THEY SAID THEIR CONCERN WAS MAINTAINING NATURAL TURF.
BUT BASED ON THEIR EXPERIENCE, THEY FEEL THAT IF IT'S NOT ARTIFICIAL TURF THEN THEY MAY NOT BE ABLE TO UTILIZE IT TO ITS FULL, FULL EFFECT.
SO THAT LONG EXPLANATION IS JUST TO ASK YOU IF SOME OF THE PROJECTS COME IN LESS THAN WE PROJECT, IS THAT ANOTHER POSSIBILITY THAT MIGHT HELP OUR BUDGET? SO THE WAY THAT WE ISSUED THIS BOND, THIS 36 MILLION WE WE DIDN'T SAY WE'RE ONLY GOING TO USE 5 MILLION FOR THE ANIMAL SHELTER OR 3 MILLION. I MEAN, WE BROKE IT OUT FOR OUR BUDGET PURPOSES.
BUT IF WE BID THE ANIMAL SHELTER, FOR EXAMPLE, WHEN IT COMES IN AT 4 MILLION, THEN WE COULD AT THAT POINT TAKE THAT EXTRA MILLION AND MOVE IT OVER TO THE PARKS. IF WE DECIDED NOT TO PURCHASE LAND FOR THE POLICE DEPARTMENT BUILDING AND BUILD IT ON OUR EXISTING, THERE'S ANOTHER MILLION DOLLARS THERE. SO THE THE WAY THAT WE STRUCTURED THIS BOND WAS TO GIVE US FLEXIBILITY SO THAT IF THESE PROJECTS CAME IN AT LESS THAN WHAT THEIR ACTUAL ESTIMATED OPINION OF PROBABLE CAUSE WAS, THEN WE COULD MOVE SOME OF THIS BOND MONEY AROUND.
WE DON'T KNOW WHAT THE PARK IS GOING TO COST RIGHT NOW.
AND UNTIL WE BID IT, WE DON'T HAVE A GOOD IDEA.
IT'S GOING TO BE AT LEAST 12 MONTHS BEFORE WE GET TO A POINT TO WHERE WE KNOW WHERE THAT IS, AND BUT WE HAVE ENOUGH MONEY, THE 8 MILLION FOR THAT WE HAVE IN THIS BOND FOR JOBS AND WILL GET US GOING.
I MEAN, IT WILL FINISH THE DESIGN AND IT WILL ACTUALLY GET US GOING ON THE CONSTRUCTION.
UNTIL WE CAN COME BACK AND REVISIT THIS AFTER IT'S AFTER IT'S BEEN BID.
WE KNOW WHAT THE COST OF EACH OF THE OPTIONS ARE THAT ARE BID.
AND THEN AT THAT POINT WE WOULD BRING IT BACK AND SAY, OKAY, YOU KNOW, IF YOU WANT TO DO ARTIFICIAL TURF, IT COST YOU, YOU KNOW, 14 MILLION. IF YOU WANT TO DO GRASS TURF, IT COST YOU EIGHT AT THAT POINT.
THEN YOU WOULD DECIDE HOW YOU WOULD WANT TO MOVE FORWARD.
IF WE NEEDED BY THAT POINT, WE SHOULD HAVE THE ANIMAL CONTROL CENTER FINISHED.
WE SHOULD HAVE SOME OF THESE OTHER PROJECTS BID OUT, AND WE'LL KNOW WHAT THOSE DOLLAR AMOUNTS ARE.
AND WE WE MAY HAVE MONEY THAT WE CAN MOVE AROUND TO COVER SOME OF THOSE ADDITIONAL PROJECTS.
BUT AT THIS POINT IT'S REALLY TOO EARLY IN THAT PROCESS.
TO KNOW FOR SURE. SABLAN. YEAH, I HATE TO BRING THIS UP, BUT SINCE YOU OPENED THE DOOR, WHAT DO WE KNOW ABOUT THE COST OF THE ANIMAL SHELTER? WE DON'T HAVE ANY BID COST. PROPOSED BID COSTS WHERE WE'RE GOING TO PUT IT.
DESIGN. WE JUST ALLOCATED $5 MILLION. SO WE HAVE SPOKEN WITH THE DESIGN CONSULTANT.
THE COUNCIL ACTUALLY DID AN RFP ABOUT FOUR YEARS AGO AND AWARDED IT TO KSA.
WE'VE MET WITH KSA SEVERAL TIMES HERE RECENTLY AND HAD THEM BEGIN WORK ON THAT AGAIN.
WE HAVE A LOCATION FOR THE ANIMAL CONTROL CENTER AND THEY ARE WORKING ON GETTING US THE SQUARE FOOTAGE AND DESIGN. ORIGINALLY THEY WERE SAYING IT WAS GOING TO BE $5 MILLION.
BASED ON THE FACT THAT WE'VE LOWERED THE SQUARE FOOTAGE A LITTLE BIT ON THE BUILDING, IT MAY COME IN LESS, BUT I DON'T KNOW UNTIL WE BID IT, UNTIL WE GET A FINAL DESIGN.
AND THE PLAN IS THAT ONCE WE GET A FINAL DESIGN, WE'LL BRING THAT BACK TO Y'ALL AND LET Y'ALL LOOK AT IT AND SAY, YES, WE LIKE THIS DESIGN. BID IT. NO, WE DON'T LIKE THIS DESIGN.
WE WANT IT BIGGER OR SMALLER, WHATEVER THAT IS.
[00:45:02]
BUT WE WANT IT TO HAVE THE $5 MILLION SO THAT WE COULD HAVE THE NICEST ANIMAL SHELTER OUT THERE FOR SUNNYVALE.BUT WE WANTED TO HAVE THE OPTION TO HAVE A VERY NICE ANIMAL SHELTER.
YEAH. APPRECIATE THAT FEEDBACK. BUT WE'RE CRUNCHING NUMBERS AND TRYING TO FIGURE OUT THE DATA FOR EVERYTHING. IT JUST SEEMS LIKE WE WE NOT YOU, MIKHAIL, BUT WE AS A WE, AS A COUNCIL AND AS A AS A STAFF DID NOT DO A VERY GOOD JOB PUTTING THINGS TOGETHER BEFORE WE MOVED FORWARD WITH SOME DECISIONS. AND THAT'S NOT YOUR FAULT AT ALL.
BUT WE WE WE JUST WE GOT $5 MILLION ON A PIECE OF PAPER TO FUND.
AND THAT'S NOT THAT WAS A PREVIOUS MANAGER THAT WALKED US THROUGH THAT PROCESS OR WALKED YOU THROUGH IT. NO PROBLEMS WITH THE DESIGN, NO PROBLEMS WITH THE ANIMAL SHELTER. BUT WE WE CAN CONTAIN 40 ANIMALS RIGHT NOW, ROUGHLY, I THINK TEN CATS, TEN DOGS, ROUGHLY ABOUT 40.
WHAT ARE WE PLANNING ON BUILDING? DO YOU HAVE ANY IDEA? IF YOU DON'T, THAT'S OKAY.
IT'S JUST A QUESTION. I'M GOING TO TAKE THIS OVER TO BJ.
HE'S BEEN MOSTLY IN THAT ANIMAL SHELTER GUY, RIGHT? YES. HE IS. HE'S THE ANIMAL SHELTER GUY. OKAY, SO.
YES, SIR. CURRENTLY, RIGHT NOW, THE DOG SHELTER ITSELF, WE HAVE NINE RUNS.
IN THE WORST CASE SCENARIO, WE CAN HOLD 18 DOGS IN THAT FACILITY AT THE WORST CASE SCENARIO.
IT'S ABSOLUTELY 100% NOT IDEAL. NOT ONLY FOR THE WELFARE OF THE ANIMAL ITSELF, BUT ALSO FOR THE MAINTENANCE OF THE BUILDING AND EVERYTHING ELSE. IF MY UNDERSTANDING IS CORRECT, WE HAVE, I BELIEVE, EIGHT CAT ENCLOSURES THAT WE CAN HAVE. SO WE'RE NOWHERE NEAR THAT 40 MARK RIGHT NOW.
THAT WHAT WE'RE ABLE TO. YES, WE DO HAVE POP UP KENNELS, THINGS OF THAT NATURE.
BUT AGAIN, YOU'RE GETTING INTO SPACING ISSUES, WELFARE ISSUES, MAINTENANCE ISSUES, HEALTH ISSUES, THINGS OF THAT NATURE. WITH THE TALKS WITH KSA I DO BELIEVE THAT THE LOCATION WE'RE LOOKING AT IS GOING TO BE A VERY IDEAL LOCATION FOR THAT.
THE PLANS THAT WERE DONE BACK IN 2021 ARE NOT FOR A FACILITY THAT'S GOING TO HOUSE 40 TO 50 ANIMALS. IT'S GOING TO BE RELATIVELY CLOSE TO THE SAME THAT WE HAVE RIGHT NOW BY THE DESIGNS THAT WERE DONE IN 2021.
NOW, THERE ARE SOME THINGS WITH THAT DESIGN THAT NEED TO BE ADJUSTED AS FAR AS MECHANICAL SPACING, STORAGE SPACING KENNEL SPACING, THINGS LIKE THAT, THAT THEY ARE GOING KSA IS GOING BACK AND REVAMPING THAT A LITTLE BIT TO MAKE SURE THAT WE HAVE EVERYTHING THAT THAT IS NEEDED IN THAT. AND THEN THAT'S WHAT MICHAEL IS TALKING ABOUT THAT THEY'RE GOING TO BRING BACK TO US.
OKAY. THANK YOU. MR. CLARK, DO YOU HAVE ANY COMMENTS? ARE YOU GOING TO SAY SOMETHING? OKAY. ANYBODY ELSE? MISS DANNY? SO HOW MANY STAFF DO WE HAVE IN THE FIRE DEPARTMENT? HOW MANY EMPLOYEES? TOTAL EMPLOYEES. WE HAVE 23 FULL TIME, ONE PART TIME.
AS FAR AS ON IN OPERATIONS, ON SHIFTS, WE HAVE 18.
OKAY. DO YOU CALL THAT FULLY STAFFED OR KIND OF FULLY STAFFED OR.
SO IN THAT WAY, YES, WE'RE FULLY STAFFED. ALL OF OUR FUNDED POSITIONS ARE FILLED.
OKAY. HOW MUCH TURNOVER DO WE HAVE IN OUR FIRE DEPARTMENT? SINCE I'VE BEEN HERE, WE HAD ONE PERSON RETIRE AND ONE PERSON WHO LEFT TO GO TO ANOTHER DEPARTMENT.
OKAY, SO TWO IN THE LAST YEAR AND A HALF, TWO LAST YEAR, IN THE LAST YEAR AND A HALF, WE'VE HAD TWO.
OKAY. THE LAST YEAR AND A HALF, THERE'S ONLY TWO TURNOVER. OKAY.
GOOD TO KNOW. MY COMMENT IS CHIEF SAID WE'RE FULLY STAFFED AND THE TURNOVER IS TWO IN THE LAST ONE AND A HALF YEAR. LOOKS REALLY GOOD TO ME. THANK YOU.
OTHER ADDITIONAL QUESTIONS OR DISCUSSIONS? OH, YEAH.
WELL, MR. ELDRIDGE, GOOD TO SEE YOU GUYS. I MISSED ALL YOUR FACES.
[00:50:01]
I DID NOT MISS THIS TIME COMMITMENT OR THESE LATE NIGHTS, BUT IT'S GOOD TO BE HERE.FIRST THING, TALKING ABOUT OUR KIND OF PROJECTION OF REVENUE, HAVE WE LOOKED INTO HOW PROP 14 ON NOVEMBER'S ELECTION IS GOING TO AFFECT OUR REVENUE AND OUR TAX BASE? ARE YOU TALKING ABOUT THE ADDITIONAL $40,000 DOLLAR EXEMPTION OR SO.
THAT PIECE, THAT'S ALL SCHOOL. I MEAN, MOST OF IT'S GOING TO BE SCHOOL. PART THAT WORRIES ME IS GOING TO BE THE BUSINESS PERSONAL PROPERTY TAX. THEY'RE RAISING IT FROM $2,500 EXEMPTION TO POTENTIALLY $125,000. I HAVE NOT RUN THAT CALCULATION.
IT WOULD BE SOMETHING THAT WOULD AFFECT NEXT YEAR'S TAX RATE.
THEY'RE SAYING BY MAKING IT PROACTIVE SO IT AFFECTS THIS YEAR.
SO THESE GUYS UP TO SPEED. SO BASICALLY OUR TOWN COLLECTS TAXES IN NUMEROUS DIFFERENT WAYS RIGHT.
SALES TAX BEING A BIG ONE AND THEN PROPERTY TAX BEING THE OTHER ONE. RIGHT. AND THEN OF COURSE YOU HAVE FEES AND EVERYTHING ELSE. RIGHT. THIS IS MORE FOR THEM, NOT YOU GUYS BECAUSE I KNOW YOU GUYS KNOW IT. WE HAVE BASICALLY INCREASED OUR SALES TAX VERY WELL, RIGHT.
THE REASON WHY THIS TOWN HAS DONE SO WELL, WE'VE AFFORDED SO MANY NICE THINGS, AND WE'VE BEEN ABLE TO GO OUT AND ACCOMPLISH FANTASTIC PROJECTS AS OUR SALES TAX HAS GONE UP FROM ABOUT, I THINK IT WAS ABOUT $3 MILLION TO LIKE FOUR POINT SOMETHING NOW, OR IS IT AT $3 MILLION WE COLLECTED IN SALES TAX IN 2021 AND 2025, WE'RE PROJECTED TO COLLECT ABOUT 5 MILLION, RIGHT? SO THAT'S BEEN A BIG PART OF OUR CAPTURE FOR NEW REVENUE.
WHEN IT COMES TO PROPERTY TAX, THAT'S GONE UP ABOUT $2 MILLION.
WE'VE CAPTURED NEW IN THE LAST FOUR YEARS. SO THE BIG PIECE OF THAT HAS BEEN BUSINESSES.
SO OUR HOMES HAVE GONE UP ABOUT 20% IN VALUE.
BUT WITH THAT ALSO WE'VE HAD ABOUT 28% INCREASE IN THE COST OF LIVING MEANS INFLATION, RIGHT.
SO IT'S ABOUT A WASH, RIGHT. SO EVERY DOLLAR WE'VE COLLECTED BECAUSE THE HOUSES HAVE GONE UP, WE'VE HAD TO SPEND THAT MUCH EQUALLY TO MAINTAIN THEM, DEAL WITH THEM, DO WHAT THE TOWN DOES. BIG THINGS HAVE GONE UP SINCE THEN THOUGH THAT HELPED US OUT HAS BEEN OUR COMMERCIAL TAXABLE PROPERTY.
OUR TAXABLE PROPERTY HAS GONE UP ALMOST DOUBLE IN THAT TIME.
SO IN 2021 WE HAD ABOUT 240 MILLION IN BUSINESS PERSONAL PROPERTY TAX.
RIGHT NOW WE HAVE ABOUT 520 MILLION. SO THAT IS NEARLY DOUBLED ACTUALLY MORE THAN DOUBLED.
IT'LL GO DOWN IN OUR, OUR OUR VOTING IN NOVEMBER AS PROP 14, PROP 14.
MOST OF IT'S GOING TO COVER THINGS LIKE MANDATORY SCHOOL DISTRICT HOMESTEAD EXEMPTION INCREASE FROM 100,000 TO 240,000 SENIORS, AN ADDITIONAL 50,000 ON THEIR SCHOOL TAX, WHICH MEANS THAT SENIORS WILL BE ELIGIBLE UP TO $200,000 IN HOMESTEAD EXEMPTION ON SCHOOL TAXES.
FOR THE BUSINESSES. THIS IS THE BIG PIECE THAT HITS US.
THIS IS THE ONLY PIECE OF THE WHOLE BILL THAT HITS US IS THE BUSINESS PERSONAL PROPERTY TAX.
CURRENTLY, THEY'RE ALLOWED TO BE EXEMPT ON THE FIRST $2,500 OF REVENUE THEY MAKE.
RIGHT. AND THIS IS NOT THE PHYSICAL LOCATION ITSELF.
IT'S THE PROPERTY INSIDE OF IT. RIGHT. SO YOU THINK ABOUT A LOT OF BUSINESSES WE HAVE HERE.
THEY HAVE A TON OF INVENTORY. RIGHT. THE WAREHOUSE IS SOUTH OF 80.
RIGHT. THE ONES EVEN MORE DOWN ON LONG CREEK.
RIGHT. THE PROPERTY VALUE IS GREAT, BUT WHAT'S INSIDE OF THEM IS WORTH MILLIONS, TENS OF MILLIONS, RIGHT. AND TURNOVER AND REVENUE. SO THAT IS HUGE TO US.
THAT IS MASSIVE. AND IF THEY GIVE THEM AND THIS IS NOT A $125,000 EXEMPTION ON EVERYTHING WE COLLECT, IT IS PER EACH BUSINESS ENTITY ACROSS EVERY ENTITY INSIDE YOUR CITY.
SO I RAN THE TAX ROLLS. THERE'S 450 BUSINESSES IN SUNNYVALE.
GRANTED, I'M SURE A LOT OF THEM ARE VERY SMALL AND THEY'LL PROBABLY NEVER HIT THAT 125 THRESHOLD, WHICH MEANS THEY'LL NEVER PAY BUSINESS PERSONAL PROPERTY TAX TO US.
THEY GO FROM PAYING US WHATEVER THEY'RE PAYING US NOW TO MAYBE ZERO, RIGHT? FOR THE BIG BOYS, IT'S A SMALLER. THEY GET A CUT OUT OF IT.
WE'LL BE ABLE TO GET IN TAXES AND THAT IS RETROACTIVE IN 2025.
SO I BRING THIS UP TO BE BACKGROUND THAT I KNOW THE STAFF DOES A PHENOMENAL JOB OF, YOU KNOW, BEING VERY CONSERVATIVE, BUT THIS IS THIS THING THAT WE WE KNOW WHAT'S COMING UP.
AND WE MAY HAVE TO BE DIPPING INTO A FUND BALANCE THAT WE ONLY HAVE SEVEN EXTRA DAYS ON.
[00:55:03]
THAT'S NOT A LOT. SO A LITTLE EDUCATION SESSION.THIS IS WHAT I'VE DONE FOR THE LAST, YOU KNOW, TWO MONTHS I'VE BEEN EDUCATING MYSELF ON TAXES. OKAY.
THANK YOU, MR. ELDRIDGE. ARE THERE ANY COMMENTS OR QUESTIONS ON THIS ONE? I'M GOING TO GO INTO ADDITIONAL COMMENTS. OKAY.
I'M GOING TO OPEN UP FOR PUBLIC COMMENTS. IS THERE ANYONE FROM THE MEMBERS OF THE AUDIENCE WOULD LIKE TO COME FORWARD AND SPEAK TO THE COUNCIL ON ITEM NUMBER? F THREE. THANK YOU. IS IT FF3I THINK. YEAH F THREE.
WOULD YOU COME FORWARD? GOOD EVENING MA'AM, WOULD YOU STATE YOUR NAME AND ADDRESS FOR THE RECORD, PLEASE? MY NAME IS ANGIE WEBB. AND WORK ADDRESS, 364 LONG CREEK.
I WORKED HAND IN HAND WITH CHIEF VEGAS. WHENEVER WE PUT THE BUDGET TOGETHER.
HE DID WITHDRAW THE REQUEST. AS FAR AS FOR THE POLICE OFFICER FUNDING DUE TO THE CURRENT STAFFING THAT WE HAVE NOW, AND IT WOULD BE REVISITED IN THE 2627 BUDGET DUE TO THE FUTURE BUSINESS THAT IS PROJECTED FOR THE TOWN.
SO FOR THE 2526, HE DID ASK TO REMOVE THAT POSITION FROM CURRENT BUDGET.
SPEAKING AS FAR AS TECHNOLOGY FOR THE POLICE DEPARTMENT, THE BODY CAMERAS, THE $46,000, THE TECHNOLOGY THAT WE HAVE NOW THAT WE PURCHASED FIVE YEARS AGO, IT IS OUTDATED. WE HAVE FAILING DEVICES.
I HAVE FOUR SITTING ON MY DESK AND THAT IS THE REASON WHY WE'VE ASKED FOR THAT FUNDING FOR THAT SOFTWARE, BECAUSE IT IS A MANDATE BY THE STATE THAT WE HAVE BODY CAMERAS THAT WORK AND CAPTURE WHEN WE'RE DEALING WITH INDIVIDUALS WITHIN THE TOWN AS FAR AS OFFENSES, WHETHER CRIMINAL OR NON CRIMINAL.
THANK YOU. THANK YOU, MISS. MISS WEBB, ARE THERE ADDITIONAL COMMENTS OR QUESTIONS FROM THE AUDIENCE.
OKAY. NO ONE IS COMING FORWARD. SO I'M GOING TO CLOSE THE PUBLIC COMMENTS.
COUNCIL ARE THERE ADDITIONAL DISCUSSIONS OR COMMENTS ON LIGHT NUMBER F3? YES, MR. CLARK. OKAY. IT SEEMS TO ME THAT WE'RE FIGHTING REALLY HARD TO KEEP THE TAX RATE THE SAME.
WE'RE A GROWING TOWN. I THINK WE'VE KEPT THE TAX RATES.
HOW LONG HAS IT BEEN FLAT? FIVE YEARS. SO FIVE YEARS.
WE'VE KEPT THE TAX RATE THE SAME. AND BUT WE'VE BEEN GROWING.
WE'VE ALSO HAD INFLATION. WE'VE HAD, I THINK SOME PRETTY HIGH INFLATION OVER THE LAST FIVE YEARS. SO I'D LIKE TO TAKE A MOMENT TO SHARE MY PERSPECTIVE ON WHY I BELIEVE A SLIGHT TAX INCREASE IS THE RESPONSIBLE AND FORWARD LOOKING STEP FOR SUNNYVALE.
FIRST, I WORRY THAT WE'RE BEING SHORTSIGHTED, SHORT SIGHTED.
WE ALREADY HAVE A NUMBER OF PROJECTS UNDERWAY, AND WE KNOW THAT THERE ARE MORE TO COME.
THERE'S MORE ON THE HORIZON THAT WILL DEMAND OUR ATTENTION AND OUR RESOURCES.
THERE'S GOING TO BE HIDDEN COSTS. THERE'S GOING TO BE UNKNOWNS.
I THINK COUNCIL MEMBER WOODROW STATED A QUOTE BY RUMSFELD ABOUT THE UNKNOWN UNKNOWNS. THOSE ARE DANGERS. SO WE DON'T REALLY KNOW WHAT THE FUTURE'S GOING TO HOLD.
I THINK RIGHT NOW OUR INSTINCT HAS BEEN TO DIP INTO THE FUND BALANCE TO COVER SHORTFALLS.
TODAY, WE DO HAVE A HIGHER FUND BALANCE THAN WHAT IS OUR OUR STANDARD.
AGAIN, WE ONLY HAVE SEVEN DAYS OF COVERAGE IN THE GENERAL FUND RIGHT NOW.
WE DO HAVE A LARGER OVERHEAD IN THE UTILITY FUND.
[01:00:03]
IT LOOKS LIKE REWORKING THE BUDGET. IT LOOKS LIKE WE DON'T NEED TO GO INTO THE FUND RIGHT NOW, WHICH IS A POSITIVE. BUT NOW WE'RE TALKING ABOUT MAYBE GOING TO THE FUND IN SIX MONTHS.SO THIS IS A CONCERN. AGAIN, I THINK THAT'S FOR EMERGENCIES.
WE'VE ALREADY SEEN THIS WITH SCHOOLS, AND WE'VE ALREADY SEEN IT WITH OUR MUNICIPALITIES.
ALSO, THE LOCAL THE STATE GOVERNMENT IS LIMITING OUR POWERS TO RAISE MONEY TO TAX LITTLE BY LITTLE, WE'RE WE'RE GETTING OUR, OUR POWERS TAKEN AWAY.
SO A SMALL INCREASE TODAY GIVES US FLEXIBILITY AND RESILIENCE FOR TOMORROW.
AND I'M NOT IN FAVOR OF RAISING TAXES GENERALLY I THINK THIS IS A VERY BIG DEAL.
WHAT WE'RE TALKING ABOUT IS A SMALL AMOUNT. I THINK THIS IS A STEP IN THE RIGHT DIRECTION.
I THINK THAT WE WILL NEED TO RAISE TAXES NEXT YEAR.
SO I SAY LET'S LET'S START NOW WITH TAKING CARE OF OUR TOWN FINANCIALLY AND DO OUR DUTY.
SO I ASK YOU TO JOIN ME IN SUPPORTING THIS MODEST, PRUDENT INCREASE.
I THINK IT'S AN INVESTMENT IN SUNNYVALE'S STABILITY, SECURITY AND FUTURE.
THANK YOU, MR. CLARK. DOCTOR WOODROW. I'D LIKE TO ASK MY QUESTION AGAIN.
WHATEVER WE DO. ARE WE FUNDING FULLY FUNDING THE POLICE AND THE FIRE DEPARTMENT? WE ARE FULLY FUNDING THE POLICE AND FIRE WITH A 3.5% STEP INCREASE.
WE ARE NOT CURRENTLY FUNDING THE THREE EXTRA POSITIONS THAT WERE REQUESTED FOR FIRE.
AND THE POLICE DEPARTMENT WITHDREW THEIR REQUEST FOR ONE ADDITIONAL PERSON.
BUT RIGHT NOW, ALL OF THE OTHER APPROVED POSITIONS ARE FUNDED 100%.
THE REASON I'M ASKING, WE JUST HAD A FIRE AT 297 TALBOT. AND I'M CONCERNED ABOUT THAT FIRE. I DON'T KNOW ALL ALL THE FACTS, BUT WHAT I DON'T WANT TO HAPPEN IS FOR SOMEONE TO LOSE HIS HOME OR HER HOME AND BE TOLD THAT THE FIRE DEPARTMENT WAS NOT FULLY FUNDED.
SO THIS QUESTION IS TO THE FIRE CHIEF. ARE YOUR IS YOUR DEPARTMENT BEING FULLY FUNDED IN WHAT WE'RE ABOUT TO DO HERE? I THINK THE THREE POSITIONS ARE AN IMPORTANT ADDITION FOR US TO INSURE.
EXCUSE ME. I'M NOT ASKING ABOUT ADDITIONS. I WOULD LIKE TO KNOW, IS, IS YOUR DEPARTMENT FULLY FUNDED BASED ON THE BUDGET THAT WE'RE ABOUT TO APPROVE, WHETHER IT'S WITH OR WITHOUT A TAX INCREASE? IS IT FULLY FUNDED? NOT EXACTLY.
WHAT'S NEED TO KEEP THE TAXPAYERS OF SUNNYVALE SAFE IF THERE'S A FIRE? ARE WE FULLY FUNDED? YES. THANK YOU.
AND THE ADDITIONAL DISCUSSIONS OR COMMENTS? MR. ALLEN? I DO THIS IS FOR THE POLICE CHIEF. PROBABLY.
[01:05:06]
LOST. LET ME COUNT THEM VERY FAST. I BELIEVE IF MY MATH IS DOING ME CORRECTLY, I DID GO TO GREENVILLE, SO FORGIVE ME FOR THAT.I BELIEVE WE LOST FOUR OFFICERS OVER THIS PAST YEAR.
NOW THOSE OFFICERS, IT WAS DUE TO A NUMBER OF THINGS EITHER CHASING A DREAM TO GO TO ANOTHER AGENCY OR MOVING CLOSER TO FAMILY, OR MOVING TO ANOTHER AGENCY FOR MORE MONEY.
CALL IT WHAT IT IS. SO WE HAVE HAD SOME TURNOVER IN THE IN THE POLICE DEPARTMENT ITSELF.
HOWEVER, WE STILL HAVE TWO UNFILLED POSITIONS AT THIS TIME.
SO THE TURNOVER RATE AGAIN IN THE PAST FEW YEARS HAS BEEN VERY MINIMAL.
BUT IT DID HIT US PRETTY GOOD THIS YEAR. THANK YOU.
ARE THERE ADDITIONAL COMMENTS OR QUESTIONS ON THIS ONE? I GOT A COUPLE OF COMMENTS. FIRST OF ALL, I WANT TO SAY THANK YOU TO MICHAELA AND THE ENTIRE STAFF.
THIS WAS A VERY UNFAIR SITUATION TO THE STAFF.
TYPICALLY, WE DO THE STRATEGIC PLANNING IN MAY.
IF YOU KNOW WHAT WE NEED, HOW MUCH MONEY WE NEED, WE TALK ABOUT THE TAX RATE.
NOT NOT GOING TO. BUT REALITIES DIDN'T HAPPEN AND LEADERSHIP CHANGE. AND WE GOT BEGINNING OF APRIL, BEGINNING OF JULY FOR STAFF TO PUT TOGETHER THE BUDGET.
AND I GOT TO GIVE NOTHING BUT GREAT THINGS TO TALK ABOUT EVERY ONE OF YOU FOR DOING WHAT YOU DID.
THIS WAS NOT AN EASY TASK. WE MET ON JULY 28TH.
HERE IN THIS ROOM THERE ARE SOME HARD TRUTHS.
SOME HONEST CONVERSATION HAPPENED. WE TALKED THROUGH IT AND WHAT WE THOUGHT WE HAD, MONEY AND WHAT WE DON'T HAVE, AND LOTS OF UNCERTAINTIES. AND, YOU KNOW, MICHAELA AND RACHEL, I'LL GIVE YOU CREDIT.
FURTHER DISCUSSIONS, MULTIPLE DISCUSSIONS SINCE THEN.
SO A LOT OF CREDIT TO THE STAFF. SEEMS LIKE STILL THERE ARE THINGS POPPED UP THE LAST MEETING. NEED FOR THREE FIREMEN. MAYBE IT WAS SET IN THE PREVIOUS BUDGET.
I DIDN'T REGISTER IN MY HEAD, AN EXTRA POLICE OFFICER THEN EVERYTHING ELSE.
IT DIDN'T REGISTER IN MY HEAD. SO AT LEAST THOSE NUMBERS ARE NOT BAKED INTO THE MATH.
SO THEN THERE WAS DISCUSSION ABOUT IS THIS ALREADY GOOD ENOUGH? OR THE BOOM BOOM BOOM? THERE'S LOTS OF CHURN, RIGHT? IT'S A IT'S THE ANIMAL SHELTER. PRICING IS 5 MILLION IS GOOD ENOUGH.
IT'S A PARK IS RIGHT. LOTS OF VARIABLES. RIGHT.
SO MY HEART IS THAT WE GOT TO ALLOW THE THINGS TO SETTLE.
WE GOT TO LET IT SETTLE. WE GOTTA GET STUFF TO WORK THROUGH THE ISSUES.
WE GOT A MAJOR CHANGE. WE GOTTA WORK THROUGH IT.
STAFF'S RECOMMENDATION TONIGHT IS TO KEEP THE TAX RATE FLAT.
AND STAFF SAID THEY CAN MAINTAIN EVERYTHING THEY DO AT A 0.435 TAX RATE.
EXCEPT THE THREE FIREMEN CHIEF MENTIONED. MY UNDERSTANDING IS THOSE POSITIONS ARE OPEN LAST YEAR AND DIDN'T GET FILLED FOR OTHER REASONS. AND I HEARD IT AGAIN, CHIEF SAID.
WE ARE CURRENTLY FULLY STAFFED, BUT IN CASE SOMEBODY CALLS IN SICK, THIS EXTRA PERSON WILL HELP.
MAKES SENSE. WE ALL, WE ALL HAVE WORK. WE ALL GO TO WORK.
WHEN SOMEBODY DOESN'T SHOW UP, IT'S A STRUGGLE, RIGHT? AGAIN, I THOUGHT FIRE DEPARTMENT HOUSES OVERLAPPING, OVERLAPPING SHIFTS.
24 HOURS TO HELP WITH THAT. BUT I DON'T KNOW.
BUT YOU ARE THE EXPERT, SO I LEAN ON YOU. FROM A FINANCIAL PERSPECTIVE.
AGAIN, MICHAELA SAID THIS. RACHEL SAID VERY CONSERVATIVE ESTIMATE THEY TRY TO DO.
[01:10:04]
THEY DIDN'T THINK THE BUDGETS WERE CONSERVATIVE ENOUGH PREVIOUS YEARS, SO THEY TRIED VERY HARD.SO I'M GOING TO READ SOME THINGS I READ OR UNDERSTOOD PROPERTY VALUES.
IF YOU LOOK AT THE CHART, PROPERTY VALUES HAVE INCREASED BY 5% AND THEY ARE PROJECTION UP TO 2030 AND EXPECTED TO RISE AT THAT LEVEL FOR FIVE YEARS. AND I WAS TOLD THAT'S A CONSERVATIVE ESTIMATE.
SALES TAX REVENUE FOR 2025. WHEN WE MET ON AUGUST 5TH, THE BUDGET VERSUS THE ACTUAL BY AUGUST 5TH, WE ARE ALREADY EXCEEDED THE SALES TAX REVENUE.
AND I THINK BY THE TIME SEPTEMBER COMES, IT'S GOING TO HIGHER, BE HIGHER.
SO AT LEAST GIVES ME THE CONFIDENCE THAT 2026 WILL BE EVEN STRONGER.
AGAIN, SHE TALKED ABOUT FREDDY. SHE TALKED ABOUT TOM, SHE TALKED ABOUT STARBUCKS.
OTHERS, RIGHT. ALSO OUR FINANCE DEPARTMENT VERY CAREFULLY.
AND LIKE THE FINANCE DEPARTMENT DOES BUDGET THEIR EXPENSES CONSERVATIVELY.
EVEN WITH THE PLANNED PAY INCREASE AND ADDED POSITIONS.
OUR FUND BALANCE REMAIN MORE THAN 90 DAYS. THERE ARE A LOT OF EMAILS AND CONVERSATIONS ABOUT ARE WE PAYING OUR EMPLOYEES SUFFICIENTLY? SO I JUST GOT A COUPLE OF THINGS RIGHT.
IN THE LAST TWO BUDGET CYCLES. THE PREVIOUS TOWN MANAGER RIGHT.
COUNCIL APPROVED MARKET ADJUSTMENTS ACROSS THE BOARD AT THE REQUEST OF THE FORMER TOWN MANAGER.
AGAIN, THE THE THE THE RATIONALE WAS TO ENSURE SALARIES ALIGNED WITH APPROPRIATE MARKER RANGES.
SO IT WAS 3.5% PLUS MARKET ADJUSTMENT. BUILDING ON THAT THIS YEAR.
BY THE WAY, I DON'T WANT ANYONE TO GET EXCITED.
THIS IS VERY STANDARD FOR MOST OF THE TOWNS AND CITIES IN TEXAS.
THIS IS NOT UNIQUE TO SUNNYVALE. WE USED TO BE 12% TO THE MRS. WE MADE THAT 14 PERCENTAGE BECAUSE WE ARE THE ODD ONE OUT.
WHEN WE TALK ABOUT OUR EMPLOYEES ARE NOT COMPENSATED.
THAT VERY WELL. COULD BE THE TRUTH. I'M NOT DISAGREEING WITH THEM.
LILY WILL COME BACK AND TELL US SOMETIME, RIGHT? BUT AT LEAST FROM A MATHEMATICAL PERSPECTIVE, CONSIDERING THE TOTAL EMPLOYEE COMPENSATION, NOT JUST THE SALARY, RIGHT, BUT INCLUDING THE SALARY AND THE BENEFITS, I BELIEVE SUNNYVALE REMAINS COMPETITIVE.
I KNOW WE LOST SOME STUFF FOR OTHER REASONS. I KNOW SOME OTHER STAFF WHO WE LOST.
THE TWO YEARS ARE WANTING TO COME BACK SUNNYVALE BECAUSE THEY LIKED IT HERE.
PARKS PUBLIC WORKS CLERK STILL OUR SALARIES BELOW THE MARKET.
I WANT EVERYONE TO KNOW I'M COMMITTED TO SUPPORTING OUR EMPLOYEES AND ENSURING THEY ARE FAIRLY COMPENSATED, AND LILY IS GOING TO HELP WITH THAT. WHILE THERE'S ALWAYS ROOM FOR IMPROVEMENT, THE NOTION THAT OUR EMPLOYEES ARE INADEQUATELY COMPENSATED IS, MY OPINION ENTIRELY NOT. NOT ENTIRELY ACCURATE.
THEN THERE WAS DISCUSSION ABOUT IF WE INCREASE THE TAX RATE, CAN WE BORROW MORE MONEY.
RIGHT. THAT WAS THE DISCUSSION HAPPENED AT THESE MULTIPLE MEETINGS.
AND THEN MICHAELA CLARIFIED THAT ALSO AGAIN WE JUST APPROVED $36 MILLION BOND PACKAGE.
$5 MILLION ANNUAL STUDIES ARE ENOUGH. WE DON'T KNOW.
3.1 FOR PLANNING. NEW TOWN HALL. POLICE STATION, LIBRARY.
EVEN I JUST WANT SOMEBODY. ONE OF THE RESIDENTS ASKED ME TO CLARIFY THIS IN THIS MEETING.
[01:15:09]
WOULD REMAIN CAPPED AT $36 MILLION. WE CAN'T BORROW MORE TO PUT MORE MONEY INTO ANY OF THE CAPITAL IMPROVEMENT, BECAUSE THAT WAS SET AT SOME TIME IN AUGUST. BUT RAISING TAXES WOULD PRIMARILY INCREASE OUR FUND BALANCE DAYS, BUT WOULD NOT INCREASE THE BORROWING CAPACITY. I JUST WANT TO BE VERY CLEAR ABOUT IT.I THINK WE UNDERSTAND IT. SOME OF THE RESIDENTS WERE NOT CLEAR.
SO WE CAN WE CAN TAX MORE IF THAT'S THE DECISION MAJORITY OF THE DECISION.
THE QUESTION IS THAT OUR GOAL WE WISH TO ACHIEVE AGAIN, I WANT TO KNOW.
I RESPECT OF EVERY ONE OF YOU. YOU ALL HAVE VOLUNTEERS.
I TRUST AT THE SAME TIME, I TRUST THE CONSERVATIVE PROJECTIONS PRESENTED BY THE STAFF.
FOR THESE REASONS, I WILL BE SUPPORTING A FLAT RATE OF 0.435.
ADDITIONAL COMMENTS. OKAY, I THINK I TOOK THE PUBLIC COMMENTS.
AM I RIGHT? OKAY, I TOOK THE COUNCIL COMMENTS, SO I'M GOING TO CALL AT THIS TIME FOR A MOTION WITH RESPECT TO ITEM NUMBER. F3. IS THERE A MOTION WITH RESPECT TO NUMBER F3? I'LL MAKE A MOTION. I MOVE THAT THE PROPERTY TAX BE INCREASED BY THE ADOPTION OF RATES OF TAX RATE POINT. THIS IS JUST TO APPROVE THE BUDGET.
THE NEXT ONE IS YOUR TAX RATE. THIS IS JUST THE BUDGET.
ADDITIONAL TO OUR CURRENT BUDGET. MOTION MADE BY MR. FINCH. DO I HAVE A SECOND? SECOND? SECOND BY MISS DANNY.
TWO. WITH THE MOTION MADE BY MR. FINCH. EVERYONE HEARD THE MOTION.
I THINK THIS IS A ROLL CALL. RIGHT, SIR? OKAY.
I'M GOING TO CALL THE DOCTOR. BOUDREAU. YES. MR. ALLEN. NO. MR. FINCH. YES. MR. CLARK. NO. MISS.
DANNY. YES. MR. ELDRIDGE. YES. MR.. GEORGE. YES.
MOTION PASSED. FIVE TWO. VOTING IN FAVOR. DOCTOR.
BOUDREAU, MR.. FINCH, MR.. GEORGE, MR. CLARK AND MR. ELDRIDGE. VOTING OPPOSED. MISS. DANNY AND MISS.
I'M SORRY. VOTING AGAINST MR. CLARK AND MR. ALLEN.
OKAY, MOVING ON TO ITEM NUMBER FOUR. DISCUSS, CONSIDER AND ACT UPON THE SECOND READING OF ORDINANCE 20 2412, AN ORDINANCE OF THE TOWN OF SUNNYVALE, TEXAS, ADOPTING A TAX RATE AND LEVYING PROPERTY TAXES FOR TAX YEAR 2025.
ENACTING PROVISIONS RELATING TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE.
INCORPORATION OF PREMISES, PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR AN EFFECTIVE RATE.
EFFECTIVE DATE. I'M SORRY. MICHAELA, WOULD YOU HAVE ANYTHING ELSE TO ADD? NO, SIR. YOU HAVE THE MOTIONS IN FRONT OF YOU.
YOU HAVE THE TAX RATES IN FRONT OF YOU AS WELL, AND I'LL ANSWER ANY QUESTIONS YOU MAY HAVE.
I'M GOING TO OPEN UP FOR PUBLIC COMMENTS. IF THERE'S ANYONE FROM THE MEMBERS AUDIENCE WOULD LIKE TO COME FORWARD AND SPEAK TO THE COUNCIL ON ITEM NUMBER FOUR, YOU MAY DO SO AT THIS TIME. NO ONE IS COMING FORWARD, SO I'M GOING TO CLOSE THE PUBLIC COMMENTS.
COUNCIL, DO YOU HAVE ANY. YEAH. RACHEL SAID SOMETHING TO ME.
GO AHEAD AND FINISH AND THEN I WILL. COUNCIL DO YOU HAVE ANY COMMENTS OR ANSWER QUESTIONS. I DO HAVE A COMMENT, SIR. MR. ALLEN, THANK YOU. THERE WAS DISCUSSION THIS PAST WEEK ABOUT TAX RATE FOR SENIORS.
THERE WAS AN EMAIL BACK AND FORTH ABOUT THE TAX RATE FOR SENIORS.
I WANT TO BE CLEAR THAT IF YOU'RE 65 OR OLDER, ANY PERSON IN THAT HOUSE, MAN OF THE OWNER, THEN YOUR TAX CEILING IS CAPPED FOR THIS TOWN, FOR THE SCHOOL AND FOR THE COUNTY.
[01:20:03]
AND I HAVE VERIFIED THAT WITH OUR FINANCE OFFICER AS WELL. THANK YOU. ARE THERE ADDITIONAL COMMENTS OR DISCUSSIONS? OKAY. IF NOT, CAN I HAVE A MOTION WITH RESPECT TO NUMBER F FOR MAYOR? I JUST WANT TO REMIND YOU THIS TAKES FIVE AND IT IS A ROLL CALL VOTE.OKAY. THANK YOU MISS. MISS RAMSAY I'LL MAKE A MOTION.
I MOVE THAT THE PROPERTY TAX RATE BE INCREASED BY THE ADOPTION OF THE TAX RATE OF 0.4630, WHICH IS EFFECTIVELY A 2.99% INCREASE IN THE TAX RATE, WITH THE MAINTENANCE AND OPERATION RATE OF 0.31382 AND A DEBT RATE OF 0.41918 PER 100 OF ASSESSED VALUATION. THIS YEAR'S RATE WILL EXCEED THE NO NEW REVENUE RATE MOTION MADE BY MR. FINCH. DO YOU HAVE A SECOND? SECOND. SECOND BY MR. CLERK. EVERYONE HEARD THE MOTION. ARE THERE ADDITIONAL DISCUSSIONS? I'M GOING TO CALL FOR MOTION. SECOND ROLL CALL.
DOCTOR. WOODROW? YES. YES. YES. YES. MR. FINCH? YES. MR. CLERK. YES. MISS DANNY. NO. MR. ELDRIDGE.
YES. MR.. GEORGE. NO. VOTING IN FAVOR, EVER, DOCTOR WOODROW, MR. ALLEN, MR. FINCH, MR. CLARK AND MR. ELDRIDGE AND VOTING ARE OPPOSED.
MISS DANNY AND MR. GEORGE. MOVING TO ITEM NUMBER FIVE.
DISCUSS, CONSIDER AND ACT UPON THE SECOND READING OF ORDINANCE 20 2413 OF THE TOWN OF SUNNYVALE, TEXAS, RATIFYING THE PROPERTY TAX INCREASE REFLECTED IN THE TOWN'S FISCAL YEAR 2025 2026 BUDGET, PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
BUT MISS MISS MICHAELA. SO THE MOTION THAT YOU'LL NEED TO MAKE FOR THE RATIFICATION IF YOU WOULD BE THE FOR THE TAX RATE OF 4.630. IF YOU TURN YOUR YOUR PAPER THAT I GAVE YOU OVER, IT'LL IT'LL BE THERE.
OKAY. THANK YOU. MICHELLE, LET ME OPEN UP FOR PUBLIC COMMENTS. IF THERE'S ANYONE FROM THE MEMBERS AUDIENCE WOULD LIKE TO COME FORWARD AND SPEAK TO THE COUNCIL ON ITEM NUMBER F FIVE. YOU MAY DO SO AT THIS TIME. NO ONE IS COMING FORWARD.
SO I'M GOING TO CLOSE THE PUBLIC COMMENTS. COUNCIL ARE THERE ADDITIONAL DISCUSSIONS OR QUESTIONS.
RIGHT. NUMBER F FIVE. YEAH I THINK WE PASSED F FOUR ALREADY. OKAY. THERE ARE NO ADDITIONAL DISCUSSIONS.
CAN I HAVE A MOTION WITH RESPECT TO ITEM NUMBER FIVE PLEASE.
OKAY I MOVE THAT A BUDGET WHICH WILL REQUIRE RAISING MORE REVENUE THAN PROPERTY TAXES THAN LAST YEAR'S BUDGET BY AN AMOUNT OF $363,620. $20. SORRY. $362,254, WHICH IS A 3.87% INCREASE FROM LAST YEAR'S BUDGET. THE PROPERTY TAX REVENUE TO BE RAISED FROM THE NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR IS $433,476. MOTION. MOTION MADE BY MR. CLARK. DO I HAVE A SECOND? SECOND. MOTION MADE BY MR. CLARK, SECONDED BY MR. ALLEN. EVERYONE HEARD THE MOTION. ARE THERE ADDITIONAL DISCUSSION? ROLL CALL. I'M GOING TO START WITH DOCTOR BOUDREAUX.
I'M SORRY. THIS IS THIS TAX RATE DIFFERENT FROM THE ONE WE JUST APPROVED? NO, SIR. BASED ON THE TRUTH AND TAXATION CODE.
YOU HAVE TO ADOPT THE BUDGET BEFORE YOU ADOPT THE TAX RATE.
YES. MR. ALLEN. YES, MR. FINCH? YES, MR. CLARK? YES, MISS. DANNY? NO. MR.. ELDRIDGE. YES. MR..
GEORGE? NO. SO, VOTING IN FAVOR, DOCTOR BOUDREAU, MR..
ALLEN, MR. FINCH, MR.. CLARK, MR. ELDRIDGE, AND VOTING AGAINST MISS DANNY AND MR.
[01:25:07]
GEORGE. MOTION PASSED FIVE TWO. MOVING ON TO ITEM NUMBER G.[G. Mayor and Council Request]
MAYOR AND COUNCIL REQUEST UNDER THE. COUNCIL REQUESTS OR.YES, I JUST HAVE A COUPLE OF THINGS I'D LIKE TO SAY.
FIRST, I'D LIKE TO ADDRESS OUR STAFF. IS THAT.
I'M SORRY. IT'S AN AGENDA REQUEST. IT'S NOT A COMMENT SECTION.
IT'S AN AGENDA REQUEST. IT IS A REQUEST. I'LL CHANGE MY.
I'LL CHANGE MY OPENING WORDS TO THE REQUEST. OKAY.
I WOULD, I WOULD LIKE TO TOWN TO DEVISE A SYSTEM BY WHICH WE CAN PUT THE PLANS IN PLACE, OR AT LEAST EXPLORE A COMMITTEE TO PUT THESE PLANS IN PLACE.
SUCH AS THE PARK, MAYBE THE ANIMAL SHELTER AND SOME OF THE OTHER ITEMS WITH THE COMMITTEE IN OUR TOWN THAT WILL HELP US UNIFY THESE DIFFERENT COMMITTEES AND COLLECT THE DATA TOGETHER FOR PRESENTATION TO THE TOWN. DOES THAT MAKE ANY SENSE? SO YOU WANT. I'LL SAY IT AGAIN. YOU WANT A COMMUNITY.
YOU WANT A COMMITTEE OF COMMUNITY LEADERS TO WORK WITH STAFF TO COME UP WITH A RECOMMENDATION FOR THE PARKS, THE ANIMAL CONTROL AND THE FUTURE PROJECTS. YEAH, I KNOW, LET ME SAY IT.
SO I WOULD JUST BASICALLY YOU WANT A CIP COMMITTEE OR EVEN SORT OF TO HELP US GET JUST TO INVESTIGATE FOR US TO TALK THROUGH THAT PROCESS. THAT'S ALL. I'D ASK IT FOR AN AGENDA ITEM, JUST TO PUT IT ON THE PROCESS SO WE CAN TALK ABOUT HOW WE'RE GOING TO DO THAT.
GOT IT. THAT'S ALL. PUT IT ON A WORK SESSION TO TALK ABOUT HOW WE MOVE FORWARD.
I'LL PUT IT ON FUTURE WORK SESSIONS. AND BY THE WAY, THANK YOU ALL.
OTHER ADDITIONAL AGENDA REQUEST. OKAY. IF NOT CAN I HAVE A MOTION TO ADJOURN, PLEASE? MOTION TO ADJOURN. SECOND. MOTION MADE BY MR. CLOSE. SECOND BY FINCH TO ADJOURN. ALL IN FAVOR, SIGNIFY ALL OPPOSED.
MOTION PASSES SEVEN ZERO. TIME. HE SAID 32. MEETING FOR TONIGHT IS ADJOURNED.
THANK YOU. COUNCIL. THANK YOU, STAFF, FOR BEING HERE TONIGHT.
AND ALSO THE AUDIENCE. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.