[00:00:08] >> WELCOME TO THE MONDAY, AUGUSE UTILITY AND RULES COMMITTEE [Items 1.a - 1.b.] MEETING. WE HAVE THREE ITEMS ON OUR AGENDA THREE THE FIRST ITEM IS ORDINANCE D. -- 2834-26 FOR THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF CERTAIN IMPROVEMENTS FOR THE WATERWORKS SYSTEM. THE ISSUANCE OF REVENUE BONDS TO PROVIDE THE CAST THEREOF COLLECTION SEGREGATION AND DISTRIBUTION OF THE REVENUES. OF SUCH SYSTEM. THE SAFEGUARDING OF THE INTERESTS OF THE OWNERS OF SUCH REVENUE BONDS AND OTHER MATTERS CONNECTED THEREWTH, INCLUDING THE ISSUANCE OF NOTES IN ANTICIPATION OF SUCH BONDS AND REPEALING ORDINANCES INCONSISTENT HEREWITH. SPONSORS COUNSELOR TAYLOR AND WORRELL AND WE HAVE THE UTILITIES DIRECTOR TO DISCUSS IT. >> GOOD AFTERNOON, CHAIRMAN TAYLOR. MEMBERS, GOOD TO BE WITH YOU. WE'VE HAD A GOOD SUMMER SINCE WE LAST MET SO I'M GOING TO KIND OF WALK US THROUGH WHAT I JUST SORT OF TALKED AT A HIGH LEVEL, I'VE GOT SOME SLIDES TO TAKE US THROUGH, ASSUMING THAT THEY POP UP. DO YOU GUYS SEE IT? I AM SITTING UP HERE. YEAH, THE DISC IS PLUGGED IN. THERE WE GO. JUST GOT TO BE SMARTER THAN THE TECHNOLOGY THAT YOU'RE OPERATING PRAYED I DO HAVE PEOPLE WITH ME COME ON MY TEAM THAT'S HELPED US PUT THIS TOGETHER PUT A BOND COUNCIL. MUNICIPAL ADVISOR. AND WHO IS GOING TO HELP US TAKE IT OUT TO THE MARKET. EACH OF THEM WILL HAVE A LITTLE BIT OF THIS PRESENTATION. TO KICK US OFF MUCH LIKE I DID A FEW WEEKS AGO WITH THE NEED FOR THESE PROJECTS AND WHAT WE ARE TRYING TO ADDRESS AND THEN I WILL TURN IT OVER FOR THE FINANCIAL PICTURE. AS I MENTIONED, MOST OF THESE PROJECTS IN THESE -- THEY ARE DIFFERENT BECAUSE ONE IS WATER UTILITY. ONE IS WASTEWATER UTILITY. THEY STAY. >> FOR THE RECORD, THAT'S THE SECOND ITEM ON OUR AGENDA. D-2835-26. RELATED TO THE SEWER IMPROVEMENTS. >> THANK YOU. I WILL DO IT IN THAT ORDER OF ORDINANCE BUT KIND OF HIGH LEVEL AS WE DISCUSSED THE WORK BEING DONE IN MERCHANT SQUARE IS A REAL DRIVER ON BOTH OF THESE ISSUANCES AND THAT WORK IS BEING DONE PRIMARILY TO ADDRESS OUR CAPACITY. I WILL TOUCH A LITTLE BIT ON THE FACT THAT NORTH OF CARMEL DRIVE ON THIS PROJECT THERE IS A DEVELOPMENT THAT'S BEEN UNDERWAY AND CONTINUES TO GROW. GRAMERCY. WELL WE HAVE MADE SOME ADJUSTMENTS AND SOME IMPROVEMENTS THAT WILL HELP THEM, THAT'S NOT THE DRIVER FOR THIS. THE REAL DRIVER IS US LOOKING AT OUR SYSTEM. WE FOUND THAT THESE WERE SOME CAPACITY ISSUES. THESE WERE ISSUES KNOWN WELL BEFORE I CAME UP. MY PREDECESSOR HAD IDENTIFIED THESE PROJECTS. I'M CARRYING THEM ACROSS THE FINISH LINE. THE FIRST ONE, I DO WANT TO ASK THIS QUESTION. MAYBE A PROCEDURAL ONE FOR EVERYBODY IN THE ROOM. WHEN I CAME TO YOU ALL BACK IN JULY ON THE WATER SIDE I BELIEVE THAT THE ORDINANCE WAS A CERTAIN DOLLAR AMOUNT. $8 MILLION. SUBSEQUENT TO THAT TIME I HAVE FOUND TWO OTHER PROJECTS THAT SHOULD HAVE BEEN PART OF THAT AND WE'VE INCREASED THE ASK TO ABOUT 9.5 MILLION. I DO BELIEVE THOSE ORDINANCES WERE AMENDED BUT I'M NOT REALLY SURE THAT I WASN'T HERE TO KNOW, WERE THEY AMENDED AT THE PREVIOUS COUNCIL MEETING OR DO I NEED TO INTRODUCE THOSE AND MAKE SURE WE ARE ALL WORKING ON THE SAME? OKAY. BUT THEY HAVE BEEN PROPERLY AMENDED? I DON'T NEED TO INTRODUCE THEM A CERTAIN WAY? >> YOU MIGHT WANT TO TOUCH ON IT BECAUSE WE DID INTRODUCE THE ORDINANCES. ANY ADDITIONAL ACTIONS WE NEED TO TAKE? SORRY. IT KEEPS CUTTING OUT. AS AMENDED. [00:05:03] OKAY. I DON'T HAVE THE COUNCIL AGENDA. IS IT LISTED AS FIRST READING OR SECOND READING? THIRD READING ON THE COUNCIL AGENDA TONIGHT. SO THIS WILL BE THE FIRST MEETING THAT THEY'LL BE HEARD, TONIGHT'S COUNCIL MEETING COME AS AMENDED. DOES THAT REQUIRE A SECOND READING? OR IF THEY ARE AS AMENDED ON THE COUNCIL AGENDA TONIGHT WE CAN MOVE FORWARD WITH IT? OKAY. AND THE FINANCE COMMITTEE. WE DON'T NEED TO MAKE ANY MOTION TO AMEND AT ALL? THANK YOU. LEGAL COUNCIL. JUST CONFIRMED. SINCE HE WASN'T SPEAKING ON THE MICROPHONE. IT IS THE THIRD READING THIS EVENING THE COUNCIL CAN AMEND AS NEEDED TONIGHT TO ACT ON THIS EVENING AND THEY HAVE BEEN PROPERLY NOTICED AND READY TO GO. THANKS. >> THE REASON I MENTIONED THAT IS THIS VERY FIRST PROJECT THAT I AM SHOWING YOU HERE, YOU'LL SEE A SIMILAR SLIDE. A LITTLE BIT LATER ON THE WASTEWATER SIDE. I'M NOT SURE WHY THIS WASN'T INCLUDED ORIGINALLY WHEN THESE PROJECTS WERE FIRST LOOKED AT CAPACITY WISE. MAYBE IT'S LARGELY BECAUSE THE CAPACITY WAS THERE. IT WASN'T AN ISSUE. BUT IF WE ARE GOING TO HAVE THAT ROAD COMPLETELY OPENED UP AND PUT A 25-FOOT SEWER, DEEP SEWER IN THERE. TO ME IT MADE SENSE TO REPLACE THE 1999 INSTALLED WATER MAIN AT THE SAME TIME. I FELT LIKE MAYBE IF WE WOULDN'T HAVE DONE THAT AND TWO YEARS LATER I'D COME BACK TO YOU IT MIGHT NOT BE AS WELCOMING AS I HOPED IT WOULD BE TODAY. WE ARE PUTTING A 2 MILLION DOLLAR PLACEHOLDER ON THAT BECAUSE IT HAS NOT REALLY HIT A DESIGN BECAUSE WE HAVE BEEN WORKING FEVERISHLY TO GET THE DESIGN. THAT'S OUR PLACEHOLDER. THAT'S PROBABLY THE BIGGEST CHUNK OF WHAT I'M ASKING FOR WHY WE AMENDED THEM HOW MANY DOLLAR AMOUNT ON THE BOND ISSUANCE. THAT WILL BE REPLACING AS YOU CAN SEE 10-INCH DUCTILE IRON THAT WAS PUT IN IN 1969 WITH DUCTILE IRON IN REPLACEMENT. NEXT. THE SECOND PHASE OF THIS PROJECT IS NORTH UP ALONG CARMEL DRIVE. YOU SEE CARMEL DRIVE, THE LIGHT BLUE TEAL, AQUA, WHATEVER COLOR. I AM TOLD I'M COLOR-BLIND. DON'T GO OFF OF ME. IT'S NOT THE DARK ONE. THERE'S A RED LINE GOING NORTH ALONG WHAT WOULD BE THE NEW KINZER ROAD THAT WILL BE PUT IN AS PART OF THAT GRAMERCY DEVELOPMENT. WE WILL BE REPLACING 10-INCH WATER MAIN AND 1972 WATER MAIN. 12-INCH DUCTILE -- 10-INCH CAST IRON WITH IT 12-INCH DUCTILE. WHILE WE ARE IN THERE. BOTH OF THESE ARE TIED INTO SEWER WORK HAPPENING AT THE SAME PLACE. WHILE WE ARE IN THERE BELOW THE ROAD, WE ARE GOING TO GET IN AND GET OUR INFRASTRUCTURE. >> GREEN. >> A SIMPLE QUESTION FOR ME, THE PUBLIC. WHAT'S THE DIFFERENCE BETWEEN CAST IRON AND DUCTILE? >> WITHOUT GETTING INTO TOO MUCH TECHNICAL DETAIL WAY OVER MY SKI TIPS COME I THINK THE CAST IRON IS JUST AN OLD MATERIAL THAT WE DON'T USE ANY LONGER. DUCTILE I THINK HAS BEEN PROVEN TO BE STRONGER AND IT'S WHAT THE NEWER TYPE MATERIAL IS. YEAH. IT BECOMES MORE BRITTLE AND BREAKS OVER TIME. THE DUCTAL IS A BETTER PRODUCT. INDUSTRY STANDARDS. GREAT QUESTION. THOSE TWO ARE THE MAIN WATER%-ÚG MERCHANT SQUARE. NORTH CARMEL, KINZLER WAY. WE WANTED TO GET IN THERE AND GET OUR INFRASTRUCTURE REPAIRED AS OFTEN HAPPENS TO US, WE HAVE TO DO WATER PROJECTS NOT TIED TO OUR ASSETS BECAUSE THEY ARE NECESSARILY OLD OR POOR PERFORMING BUT SOMEBODY HAS THE RIGHT OF WAY AND WANTS TO PUT ROADS IN, ROUNDABOUTS AND VARIOUS THINGS LIKE THAT. THE UTILITY THEN HAS TO MOVE OUR INFRASTRUCTURE TO ACCOUNT FOR THAT. [00:10:01] MOST OF OUR INFRASTRUCTURE IS IN PUBLIC RIGHT OF WAY. THERE ARE TIMES WHEN WE WILL HAVE PURCHASED AN EASEMENT. WHENEVER WE HAVE INFRASTRUCTURE IN AN EASEMENT, THEN WE ARE AWARE WE ARE ALLOWED TO BE IN IF SOMEBODY WANTS TO MOVE US, IT'S ON THEIR DIME AS PART OF THEIR PROJECT RIGHT IF WE ARE IN PUBLIC RIGHT AWAY THEN WE HAVE TO MOVE SUBJECT TO THEIR PROJECT. IN THIS CASE IT'S A COUNTY PROJECT, A ROUNDABOUT THAT'S GOING TO BE GOING IN. AND SO WE WILL HAVE ASSETS THAT NEED TO BE RELOCATED DURING THAT PROJECT. THAT'S WHAT THIS PROJECT IS. THIS RIGHT HERE IS ONE THAT WE CHOSE AS WE LOOK AT OUR WESTERN CORRIDOR, MICHIGAN ROAD, IF YOU LOOK AT THE MAP, MICHIGAN ROAD IS KIND OF ANGLED OFF ON THE VERY FAR LEFT EDGE OF THE PICTURE UP THERE UP HERE THAT'S MICHIGAN ROAD. AND WE ARE GOING TO BE ADDING A MAIN THAT WILL BE CONNECTING INFRASTRUCTURE NORTH, NORTH OF WHERE WE CURRENTLY FEED. RIGHT NOW WE FEED EVERYTHING ON THE MICHIGAN ROAD CORRIDOR FROM THE SOUTH, WATER THAT COMES IN FROM THE SOUTH END IT MOVES UP MICHIGAN ROAD. THIS WILL GIVE US ANOTHER FEED AND A LOOP INTO THAT IMPORTANT AREA TO GIVE MORE REDUNDANCY, RESILIENCY, TO GET BETTER FLOW. WE HOPE TO ADDRESS ANY LOW WATER PRESSURE AREAS IN THE NORTHWEST. WE THINK IT WILL HELP WITH THAT AS WE HAVE MORE WATER ENTERING THE SYSTEM. THAT'S A PROJECT THAT WE LOOKED AT OUR ABILITY TO SERVE THE WESTERN PART OF OUR SERVICE AREA AND SAW THAT AND IDENTIFIED IT AS A NEED. IT IS SOMETHING THAT'S BEEN LOOKED AT FOR A WHILE. RECENTLY WITH THE STORM CONCERNS AND CONCORD VILLAGE, THAT SUBDIVISION, THE CITY'S DESIRE TO ADDRESS SOME OF THOSE STORM NEEDS AND ROADS. WE WILL TAKE THE OPPORTUNITY TO GET IN THERE AND REPLACE OLD 1971 CAST IRON WATER MAINS WITH DUCTILE WHILE THAT WORK IS BEING DONE. TO TAKE ADVANTAGE OF NOT PUTTING THAT SUBDIVISION THROUGH ANY MORE OF A HEADACHE THAN THEY'VE ALREADY BEEN, IF WORK IS GOING TO BE DONE WE SHOULD BE DOING OUR WORK AS WELL. THAT PROJECT ALSO IS BEING DESIGNED BY WESSLER. WE'VE ASKED THEM TO DO THAT QUICKLY. IT'S HIGH LEVEL. WE'VE GOT ABOUT A MILLION DOLLAR PLACEHOLDER ON THAT. 1.5 MILLION. IT COULD FLUCTUATE. THERE ARE SOME OTHER PROJECTS THAT I HAD MENTIONED ON WHEN I FIRST INTRODUCED THIS. IF ALL OF THESE COME IN WHERE WE HOPE THEY DO THEN WE CAN ADD THOSE. ONE OF THOSE WAS 96 ON WESTFIELD F. PROJECT TO HELP GET SOME CUSTOMERS OFF OF THE CITIZENS WHEN WE BOUGHT THOSE CITIZENS OFF THOSE MAINS THERE IT'S A PRETTY EXPENSIVE PROJECT TO GET A SMALL NUMBER OF CUSTOMERS. WE WILL DO IT IF WE CAN. THEN THESE ARE HIGHER PRIORITY COME A BIGGER IMPACT TO OUR SYSTEM AND OUR CUSTOMER BASE THERE WE FEEL LIKE THOSE SHOULD BE PRIORITIZED. BUT SHOULD FUNDS BE AVAILABLE THAT WOULD BE A PROJECT THAT WOULD BE ADDRESSED. ANY QUESTIONS ON THE WATER SIDE? >> COUNCILOR MINNAAR. >> WHEN YOU ARE TALKING ABOUT THIS, 96 THEN WESTFIELD, WHAT'S THE PRICE TAG? DO YOU HAVE AN ESTIMATE? >> HIGH LEVEL ESTIMATE WAS 1.5 MILLION. >> COULD YOU RUN THROUGH ESTIMATES ON EACH? >> THIS ONE, THIS IS KIND OF A SWAG BECAUSE WE LOOKED AT THIS. ENGINEERS HAVE NOT PUT EYES ON THIS YET. WE ARE LOOKING AT IT AND TRYING TO ESTIMATE, I THINK 1.5 MILLION IS A NUMBER THAT WE SHOULD USE. WE WILL SEE. WITH WHAT WE ARE ASKING, I THINK THERE'S A LITTLE BIT OF ROOM IF THAT COMES IN A LITTLE BIT HIGHER THAN THAT. I THINK WE ARE OKAY IN THIS BOND ISSUANCE. >> IS THE BOND ISSUANCE GOING TO PAY FOR SOFT COST? >> YES. THIS MICHIGAN ROAD. WE HAVE IT AT ONE .2 MILLION. THIS IS PRETTY HIGH LEVEL RIGHT NOW. WE ARE PUTTING THAT AT OONE POIT FIVE MILLION. WE KNOW THIS PROJECT IS COMING. WE KNOW THEY ARE WORKING ON IT. [00:15:02] WE DON'T HAVE DESIGN WORK TO GO OFF OF YET WITH NUMBERS. >> THIS ONE? >> IT'S IN THE COUNTY'S BID. THEY WILL GET THE WORK DONE. THEY WILL DESIGN IT. THEY WILL TELL US WHAT IT COMES IN AT. 1.5 MILLION. >> WE CAN'T REALLY CONTROL THAT PROJECT OR COST? WE ARE USING THE EFFICIENCY SINCE -- DO WE NEED TO ENTER INTO AN MOU WITH THE COUNTY? >> WE WILL NEED TO WHEN THE TIME COMES. I BELIEVE WE WILL TAKE IT TO B BP W.. >> WE WANT TO MAKE SURE WE KNOW IT'S COMING AND WE ARE ABLE TO MEET THAT REQUIREMENT WITH FUNDING. THIS ONE IS 1.2 IS WHAT THE DESIGNER HWC AT 90%. THAT DOESN'T HAVE ROAD. IT DOESN'T HAVE SOME CONTINGENCIES. WE ARE HIGH LEVEL PUTTING 2 MILLION TO THAT. I THINK THAT'S HIGH. BUT BECAUSE THIS WILL BE -- THIS PROJECT HERE AND THIS ONE HERE WILL BE DONE WITH THE PROJECT. RIGHT NUMBERS. AS THOSE GNP ARE DONE I'VE GOT A FIRM NUMBER. WHATEVER IS LEFT OVER COULD BE DROPPED DOWN. >> THESE TWO WERE OPERATING FROM ENGINEERING ESTIMATES? >> THIS ONE WAS AN OVERSIGHT. WE HAVE THESE WERE SIDE OF IT THAT HAS ENGINEERING ESTIMATE BUT THE WATER DOES NOT. I LOOKED AT IT. WAIT A MINUTE. IF WE ARE GOING TO BE IN THERE COME ON LET'S DO THE WATER. THAT'S ONE THAT WESSLER IS WORKING ON. WE'RE PUTTING THE 2 MILLION ON THAT. IT SHOULD BE HIGH. >> AAA WAY ON THE OTHER SIDE. >> WATER AND WASTEWATER. >> OKAY. QUESTIONS? >> I HAD A FEW QUESTIONS. ONE IS TO GET ON RECORD WHERE WE MAY NEED ADDITIONAL CONSULTANT FEEDBACK ON THIS. CAN WE HIGH LEVEL, MR. STARKEY FOR SCOTT CAN GO OVER ONCE THESE ARE APPROVED FOR WHAT'S THE REST OF THE PROCESS TO REPLACE THE BONDS? ARE THEY GOING TO BE RATED WHAT WE EXPECT THEM TO BE RATED AT? WE HAVE TALKED ABOUT SOME OF IT BUT I WANT TO MAKE SURE IT'S ON THE RECORD AND HOW WE ARE PLACING THEM. COMPETITIVE VERSUS NEGOTIATED AND THE BENEFITS OF SUCH. >> BOTH OF THOSE ITEMS SHOULD BE ADDRESSED WHEN THEY COME UP ON THEIR WORK THROUGH THE PROJECT STAFF. >> WASTEWATER. THIS WAS ONE OF THE ONES. THE DEEP SEWER THAT WE ARE REPLACING THAT STARTS AT RANGELINE PARADE THAT'S THE VERY FAR LEFT OF THAT AND IT GOES DOWN SOUTH. RANGELINE A. LITTLE BIT. AND THEN IT WILL GO UP NORTH AND RUN ALL THE WAY DOWN MEDICAL DRIVE. DOWN MEDICAL DRIVE TO TRIPLE A. COME OVER ON KINZER -- KEYSTONE WAY. MAKE ITS WAY NORTH TIED BACK IN TO CARMEL DRIVE. THAT'S A 12-INCH CLAY SEWER. IT WAS USED MANY YEARS AGO, OFTEN USED IN MORE RESIDENTIAL THIS WAS PUT IN WHEN WE WERE A MUCH SMALLER COMMUNITY. A LOT LESS COMMERCIAL AND A LOT LESS DENSE. I THINK THIS WAS PUT IN IN 1969. WE HAVE GROWN SINCE THEN. QUITE A BIT OF IT, IT WORKS FROM THE FURTHEST WAY OUT AND IT COMES IN THE SEWER FLOW WITH GRAVITY PUT IT ALL TOWARD 96 AND HAZEL DELL, OUR LOW POINT AND WHERE THE TREATMENT PLAN IS. THIS SEWER HERE GATHERS QUITE A BIT OF FLOW GOING NORTH ALONG RANGELINE. ALL THE REDEVELOPMENT THAT'S HAPPENED IN MIDTOWN. THAT 12-INCH PIPE HAS REACHED ITS CAPACITY. WE'VE EVEN SEEN SOME SURCHARGING OF THAT PIPE. WE ARE FORTUNATE IT IS SO DEEP THAT THE MANHOLES CAN KIND OF HANDLE THAT SURCHARGING AND RAIN EVENTS AND KEEP IT FROM POPPING [00:20:04] A LID ON THE SURFACE AND US HAVING SANITARY SEWER OVERFLOW. RIGHT NOW WE ARE OKAY BUT WE RECOGNIZE THAT EVEN NOW THE FLOW THAT THAT PIPE CAN HANDLE IS AT CAPACITY. WE ARE GOING TO TAKE IT FROM A 12-INCH TO AN 18-INCH PVC PIPE. THOSE TEND TO BE, THE SEWER PIPE FROM A MATERIAL PERSPECTIVE, CLAY OVER TIME WEARS. YOU'VE GOT ROOTS AND VARIOUS THINGS THAT CAN WORK THEIR WAY INTO JOINTS SO WE ARE GOING TO REPLACE IT WITH PVC PIPE. UPSIZE IT TO A 18 TO NOT ONLY HANDLE THE CURRENT FLOW BUT ANY FUTURE DEVELOPMENT THAT WILL HAPPEN IN THE MIDTOWN CORRIDOR AND EVEN TO THIRD AVENUE IN THAT AREA THERE, CARTER GREEN. EVEN THAT FAR WEST. IS ANY FUTURE DEVELOPMENT COMES WE WANT TO MAKE SURE THAT WE HAVE THE CAPACITY TO HANDLE THAT BECAUSE IT WILL FLOW THIS WAY AS IT MAKES ITS WAY TO OUR TREATMENT. AND THEN THE OTHER PROJECTS. BOTH OF THE WASTEWATER ONES ARE ON THIS. AGAIN WHEN WE ARE DOING THE WORK UP ON CARMEL DRIVE AND UP INTO KINZER, YOU WILL SEE THE LOWER LINE. THAT'S CARMEL DRIVE RUNNING EAST-WEST AND THE PROPOSED KINZER WILL RUN NORTH-SOUTH UP INTO THE GRAMERCY DEVELOPMENT. WE ARE PUTTING IN NEW 15-INCH GOING NORTH. FROM 15-INCH, TAKING 12 ALONG CARMEL AND 15 AND 18-INCH AS WELL FOR SOME OF THAT AS IT GETS FURTHER EAST ON KEYSTONE AS THE FLOW GOES THAT WAY. THOSE ARE THE PROJECTS ON THAT. RIGHT NOW WE HAVE A $12.5 MILLION PLACEHOLDER FOR THIS PROJECT. AND A $2.5 MILLION PLACEHOLDER FOR THIS PROJECT. THIS PROJECT HERE WAS AT ABOUT 30% DESIGN WHEN WE STARTED ENTERTAINING THE DISCUSSIONS FOR THIS TO BE A BOT. OUR PARTNER HAS SINCE GOTTEN INVOLVED IN THE DESIGN ON THAT SO WE DON'T HAVE FINAL NUMBERS FROM OUR ENGINEERING FIRM. BUT I CAN TELL YOU THAT THE 30% DESIGN NUMBERS WERE QUITE A BIT LOW. THEY WERE DONE A LITTLE A WHILE AGO. SOME OF IT IS COST IN TWO OR THREE YEARS HAS GONE UP QUITE A BIT. WE WANT TO MAKE SURE WE HAVE ENOUGH MONEY FOR BOTH OF THESE AS THE TWO MAIN PROJECTS. SHOULD THEY BOTH COME IN UNDER 15 MILLION, WE HAVE SOME OTHER PROJECTS WE'D LIKE TO DO WITH THAT MONEY. WE'VE GOT LINING PROJECTS OUT IN THE REST OF OUR COLLECTION SYSTEM. WHAT LINING DOES IS LINING ALLOWS YOU TO GO IN AND REINFORCE A PIPE WITH A CERTAIN MATERIAL THAT KIND OF CLOSES IT OFF. ANY PIPES THAT ARE STARTING TO ERODE FROM SEWER GAS OR PIPES THAT HAVE PROBLEMS WITH ROOT INTRUSION OR OTHER THINGS, RATHER THAN DIG THOSE UP WHICH IS VERY EXPENSIVE, WE'RE ABLE TO LINE THOSE WHICH IS THE MOST MORE COST EFFECTIVE WAY. DEPENDING ON THE SIZE OF PIPE THAT'S THE WAY WE LOOK TO DO IT. WE LOOK TO LINE FIRST SO WE DON'T HAVE TO REPLACE THAT OTHER WAYS TO DIG AND REPLACE. SO IF WE ARE ABLE TO COME IN UNDER ON BOTH OF THESE THEN THERE IS LINING PROJECTS THAT WE WOULD DO. THERE'S ALSO. I MENTIONED THE PROCESS AT OUR TREATMENT PLANT THAT'S 20 YEARS OLD AND WE'LL NEED SOME WORK DONE ON THAT. SO IF THERE ARE FUNDS AVAILABLE WE COULD ALSO LOOK AT THAT. THESE TWO ARE THE TWO THAT I THE RIGHT AMOUNT IN THIS FUNDING. >> QUESTION FROM COUNCILOR MINNAAR. >> A LITTLE OFF TOPIC BUT NOT. WHAT DO YOU CALL IT, YOU LINE THESE PIPES? WHAT ARE THE LIFE CYCLES ON THOSE TYPES OF LININGS? >> I'M GOING TO SAY A NUMBER AND THEN SOMEBODY OVER HERE IS GOING TO COUGH AND TELL ME THAT THAT NUMBER IS CLOSE OR NOT BUT I AM GOING TO SAY 50 YEARS. CLOSE ENOUGH. I DIDN'T GET A COUGH. AROUND 50 YEARS. IT PROBABLY DEPENDS ON THE CONDITION OF THE PIPE. THE PIPE THAT YOU ARE LINING. IT IS STAYING IN PLACE. THERE ARE VARIABLES. BUT IT'S A GOOD WAY OF SOLVING A LOT OF OUR PROBLEMS WITHOUT HAVING TO DIG UP AND REPLACE PERIODS. >> I WON'T GET AHEAD OF MY SKIS EITHER. [00:25:02] BUT WITH THE BIO WHATEVER IT IS YOU ARE TALKING ABOUT, WHICH PROJECT ON THE PRIORITY LIST WOULD BE NUMBER ONE, NUMBER TWO? >> BETWEEN THIS AND THE BIO PASTEURIZATION OR THE LINING? >> THE LINING. AHEAD OF MY SKIS A LITTLE BIT. JUST WONDERING. >> WITH LINING PROJECTS DEPENDING ON WHERE THEY ARE, WE HAVE SOME PROJECTS THAT ARE OUT THERE. SHOULD A SEWER FAIL, AND A SINKHOLE GET CREATED, WHEREAS THE BIO PASTEURIZATION IS A PROCESS THAT WE DO TO HANDLE OUR SOLIDS, IT ALLOWS US TO DISPOSE OF OUR SOLIDS IN A MORE COST EFFECTIVE WAY THREE THERE ARE OTHER WAYS OF HAVING TO DEAL WITH THAT IF SOMETHING HAPPENED THEY WOULD NOT STOP OUR PROCESS THREE WE WOULD HAVE WAYS OF ADDRESSING THAT. THEY ARE BOTH EQUAL BUT IF THERE WERE, FOR EXAMPLE WE HAVE SOME LINING TO DO ON HAZEL DELL. I WOULD HATE TO SEE A SINKHOLE ON HAZEL DELL. >> THANK YOU. APPRECIATE IT. >> QUESTIONS FOR DIRECTOR YOUNG? >> MAYBE ONE THING JUST TO REMIND THE COMMITTEE. THIS ISSUANCE ON THE WASTEWATER SIDE IS A $25 MILLION ISSUANCE AND THAT IS BECAUSE THERE'S A LITTLE OVER $10 MILLION NOTE THAT WAS ISSUED IN 2023 THAT IS DUE. IT MATURES IN 2027. WE WILL BE PAYING THAT OFF. THE NET PROCEEDS WILL GO TOWARDS THESE PROJECTS. AND WITH THAT I WILL TURN IT OVER TO SCOTT MILLER. >> JUST HAD SOME QUESTIONS. >> OBVIOUSLY I AM A HUGE PROPONENT OF BUILD, OPERATE, TRANSFER. LEARNED IT FROM THE GODFATHER CARL HAAS. MANY OF US KNOW THAT MAN IN THIS ROOM. REALLY IS T THE ONE WHO IMPLEMENTED BOT FOR LOCAL GOVERNMENT. LOVE THE COST CERTAINTY. LOVE THE DESIGN BUILD APPROACH. BUT THERE ARE SOME BLIND SPOTS RELATED TO BOT TO ENSURE TRANSPARENCY IN THE BEST POSSIBLE VALUE FOR EACH SCOPE OF WORK. ARE YOU REQUIRING IN THIS PROCESS THEY PROVIDE SCOPE LEVEL BIDS COMPETITIVELY BIDDING EACH SCOPE, TRANSPARENTLY PROVIDING THAT DATA, FEES, AND COSTS? IF SOMEONE IS PERFORMING WORK ON THIS TEAM THAT THEY'RE ABLE TO INDEPENDENTLY VALIDATE THAT THEIR SELF-PERFORMING SCOPE OF WORK IS COMPETITIVE AND EITHER SHADOW BIDDING OR HAVING THEM BID THAT SCOPE TO ENSURE THAT WE'RE GETTING THE BEST COST. >> WE ARE. WHAT WE HAVE ASKED THEM TO DO ON THE CONSTRUCTION PROJECT. WE WILL PROBABLY LOOK AT THESE IN BUCKETS. WE WILL LOOK AT THE ACTUAL CONSTRUCTION FOR EACH COME UP WITH A PIPE AND EACH SEGMENT. WE WILL LOOK AT ROAD WORK AS A SEPARATE BUCKET. LINE ITEM BIDDING ON ALL OF THOSE. WE WILL LOOK AT THE MOT AS A SEPARATE BUCKET, VERY CLEAR WHAT DOLLAR IS GOING WHERE ON MOT AND WE'VE GOT A CONTINGENCY BUCKET THAT IF WE DON'T NEED IT IT COMES BACK TO THE CITY WE WILL LOOK AT WHAT IS FILLING THE CONTINGENCY BUCKET THAT WE HAVE ASKED THEM TO PROVIDE US THAT AND WHEN WE GET TO THE GMP AND THE CONTRACT WE WILL WORK WITH OUR ENGINEER PARTNERS TO LOOK AT THOSE LINE ITEMS TO VERIFY, IS THIS WHAT THEY ARE SEEING IN OTHER PROJECTS SO WE HAVE AN INDEPENDENT VERIFICATION SO WE CAN COME BACK AND GO, WE THINK THIS LINE ITEM IS INFLATED. WE WANT TO TALK ABOUT IT. SO WE'LL WORK WITH THEM AT THAT LEVEL. THEN ON THE CONTRACT SIDE, WELL WE HAVEN'T DONE A LOT OF THESE BUT SERGEI HASN'T BEEN INVOLVED WHERE WE WILL ALSO REACH OUT TO ADAM WHO HAS HELPED THE CITY ON OTHER PROJECTS INCLUDING A BOT AND HAVE HIM LOOK AT THE CONTRACT LANGUAGE TO ENSURE THAT EVERYTHING IS STRUCTURED IN THE BEST WAY FOR US. >> CARL HAAS WAS HIS MENTOR TOO WORKED FOR HIS FIRM. BACK TO THAT, RELATED TO CONTINGENCY. OBVIOUSLY ANY CONTINGENCY THAT'S INCLUDED IN THE GMPA LOT OF TIMES YOUR PAYMENT PERFORMANCE BOND PREMIUM INSURANCE AND DEVELOPMENT FEE ARE APPLIED TO THAT CONTINGENCY. IT IS SOMETIMES HELPFUL FOR AN OWNER'S CONTINGENCY BE HELD OUTSIDE OF GMP SO THOSE FEES ARE NOT APPLIED TO IT. IT HELPS REDUCE COST. AND THEN WHO IS INTENDING TO TAKE THE SITE RISK RELATED TO THESE PROJECTS? I ASSUMING WE ARE. WE WANT TO MAKE SURE ON OUR SIDE OF THE LEDGER TO HOLD AN APPROPRIATE CONTINGENCY FOR UNKNOWN SITE CONDITIONS. [00:30:02] PROBABLY DON'T WANT TO PAY A DEVELOPER TO TAKE SITE CONDITION RISK AND HAVE THOSE COSTS ESCALATED BY FEES. THEY CAN TAKE IT. BUT IT COSTS MORE MONEY THAN US TAKING A. >> I MADE NOTE OF BOTH OF THOSE. >> WE ARE READY FOR THE FINANCIAL PRESENTATION. THANK YOU, DIRECTOR YOUNG. >> GOOD EVENING EVERYONE. SCOTT MILLER WITH BAKER TILLY. I'M GOING TO GIVE YOU THE SAME FORMAT. A HIGH-LEVEL OVERVIEW OF THE FINANCES FOR THE WATER UTILITY AND THEN THE SEWER UTILITY AND THEN WE WILL TURN IT OVER TO LANDON TO TALK ABOUT THE FINANCING ITSELF AND HOW TO GO FORWARD AND WE WILL HIT ON NEXT STEPS AS WELL. BACKGROUND INFORMATION. FOR THE WATER PROJECTS, THE ISSUER WILL BE THE CITY'S TOOK MUNICIPAL WATER JUST UNDER $9.5 MILLION. WE WILL TALK ABOUT THE HALF A MILLION DOLLAR DIFFERENCE IN A SECOND. THIS WILL BE SECURED BY THE NET REVENUES OF THE WATER UTILITY. IT'S NOT A GEO BOND. IT DOESN'T IMPACT DEBT LIMIT ITS UTILITY REVENUES. THE PURPOSE, THE PROJECTS THAT LAYNE HAS DESCRIBED. AS FAR AS THE DIFFERENCE. LAYNE SAID 10 MILLION. WHAT WE ARE SHOWING IS THE LATEST ESTIMATE OF PROJECT COSTS E HAVE. 9.6 MILLION FOR ACTUAL CONSTRUCTION COSTS AND WE'VE GOT THE FINANCING COST ASSOCIATED WITH THAT, THE WAY THAT THE FINANCING IS CURRENTLY STRUCTURED AND THIS IS BASED ON INFORMATION LANDON'S TEAM SENT OVER LATE LAST WEEK. WE ARE ESTIMATING WITH THE INTEREST RATES THAT WE HAVE RIGHT NOW A PREMIUM ON THE BARNES. ABOUT A HALF A MILLION DOLLARS OF ADDITIONAL PROCEEDS RELATED TO THE PREMIUM AND LANDON CAN TALK ABOUT THE PRICING BUT THAT'S KIND OF WHERE THE DOLLARS AND CENTS ARE FROM A FINANCING PERSPECTIVE AND WHERE THE FUNDS ARE COMING FROM. AS FAR AS THE UTILITY ITSELF, THIS IS A SCHEDULE SHOWING YOU THE OUTSTANDING DEBT OF THE WATER UTILITY AND ACROSS THE VERY TOP, THE DARKER GREEN BAND WOULD BE PRINCIPAL AND INTEREST ON THE NEW FINANCING. YOU CAN SEE AND THIS IS A RESULT OF THE RESTRUCTURING THAT WE DID BACK IN 2024. RESTRUCTURED THE ENTIRE DEBT COMPONENTS FOR THE WATER UTILITY. RIGHT NOW WE HAVE DEBT SERVICE OF JUST OVER 10 MILLION THROUGH 2053. THIS WILL LAYER RIGHT ON TOP OF IT FOR SEVERAL YEARS AS WE MAKE THOSE PAYMENTS. FROM AN OPERATIONAL PERSPECTIVE YOU CAN SEE BEFORE WE DID THAT FINANCING AND HAD THE CABS LOOMING, WE HAD KIND OF AN UGLY SITUATION WITH THE RATE CHANGES THAT WERE DONE AT THE VERY END OF 2023. YOU CAN SEE WE HAVE TURNED THAT AROUND. FINANCE IS NOW LOOK BETTER THAN THEY HAVE LOOKED IN QUITE A LONG TIME FOR THE WATER UTILITY GRADE YOU CAN SEE ON THE ESTIMATED AMOUNTS FOR THE THREE YEARS GOING FORWARD THAT EVEN WITH THIS FINANCING COVERAGE STILL LOOKS REALLY GOOD. JUST KIND OF A DIFFERENT VIEW OF THAT. THIS SHOWS YOU THAT THE LINE IS YOUR NET REVENUE. OPERATING REVENUES COMING IN. LESS OPERATING EXPENSES, CASH OPERATING EXPENSES ADDING IN, INTEREST INCOME. WE HAVE HAD SOME PRETTY SIGNIFICANT INTEREST INCOME OVER THE PAST FEW YEARS HERE WE HAVE NORMALIZED IT BACK TO A REASONABLE LEVEL. ADDING THAT IN AND COMPARING IT TO THE DEBT SERVICE, YOU SEE THAT EVEN WITH THE NEW DEBT WE SEE REVENUES INCREASING LARGELY BASED ON FUTURE GROWTH IN OUR ANNUAL ADJUSTMENT THAT WE HAVE SO AGAIN LOOKING GOOD FROM THE WATER UTILITIES PERSPECTIVE. WATER BONDS RIGHT NOW, THOSE THAT ARE ON THE OPEN MARKET ARE RATED AS A TRIPLE B+. WE HOPE TO SEE THAT GO UP A NOTCH OR TWO TO AN A- OR AN A. WE'D LOVE TO SEE IT GO HIGHER BUT STANDARD AND POOR'S IS PRETTY CONSERVATIVE SO I DOUBT WE SEE MORE THAN THAT. BUT IF WE COULD GET AN A I WAS GOING THROGH THIS PROCESS I THINK THAT'S A GOOD NEXT STEP FOR THE UTILITY. WE KEEP WORKING OUR WAY UP FROM THERE. WE HAVE HAD SOME GOOD OUTCOMES HERE IN THE PAST FEW YEARS WITH THE AVAILABILITY FEES COMING IN THAT WE HAD ANTICIPATED FOR A WHILE. JUST HADN'T COME IN YET. THAT'S HELPED BUILD UP CASH [00:35:04] BALANCES PREPARED ALL OF THOSE METRICS THAT THE RATING AGENCIES LOOK AT HAVE BEEN IMPROVING AND LOOK LIKE THEY WILL CONTINUE TO IMPROVE EVEN AFTER THIS FINANCING. WATER UTILITY LOOKS TO BE IN GOOD SHAPE. >> SCOTT, WITH THOSE REALLY HIGH DEBT TO SERVICE COVERAGE RATIOS, WHAT'S THE OTHER COMPONENT HOLDING IT BACK? >> I THINK THE BIGGEST ONE RIGHT NOW IS SNP, THEY HAVEN'T COME IN TO DO SURVEILLANCE SINCE WE DID THAT TRANSACTION. THAT'S PART OF, A BIG REASON WHY WE HAVEN'T SEEN A CHANGE YET. AS FAR AS NOT GETTING ABOVE A A NOW, I THINK IT'S GOING TO TAKE THEM SOME TIME TO GET COMFORTABLE WITH WHERE THESE METRICS ARE AT. AS THEY HAVE REVISED THEIR PROCESS OVER THE YEARS, THERE ARE SOME PROFESSIONAL JUDGMENT THAT GOES INTO IT FROM THEIR PERSPECTIVE. BUT A LOT OF IT IS VERY METRIC DRIVEN. THEY WILL LOOK AT DEBT SERVICE COVERAGE. CASH ON HAND. TRENDS IN OPERATING EXPENSES AND NET REVENUES. ALL OF THOSE THINGS RIGHT NOW LEAD TO THE A RATING. IF WE CAN CONTINUE TO HAVE FUTURE REVENUE GROWTH TO SEE THAT GROWTH INCREASE FROM FUTURE CUSTOMER ADDITIONS, KEEP A HANDLE, A GOOD HANDLE ON EXPENSES WHICH WE HAVE SEEN OVER THE PAST FEW YEARS I THINK WE WILL SEE THE TREND START TO GO UP. >> IT BEING A UTILITY WITH $10 MILLION IN DEBT. WE'RE NEVER GOING TO GET TO TRIPLE A. THAT'S NOT AN OPTION. COULD WE SEE AT SOME POINT AN A PLUS OR DOUBLE A? MAYBE. THERE ARE OTHER UTILITIES IN THE STATE THAT HAVE THAT. BUT IT'S A BALANCE. MAYBE SPEAK TO THIS IN YOUR PRESENTATION. IT'S A BALANCE BETWEEN HOW HIGH DO WE NEED THE RATES TO GET THE COVERAGE LEVEL TO HIT THEIR METRIC AND BUILD UP CASH BALANCES TO HIT THEIR METRIC VERSUS CONTROLLING THOSE COSTS TO OUR CUSTOMERS AND MEASURING THAT AGAINST THE SAVINGS AND DEBT SERVICE WE'VE HAD. IT'S BALANCING THOSE THINGS. WHERE DOES THAT MAKE SENSE? TRYING TO MANAGE THAT. I THINK 15 BASIS POINTS IN SAVINGS IS REFLECTIVE ABOUT A TWO NOTCH INCREASE. WE TALKED ABOUT THIS. IF WE ARE AT TRIPLE B+ AND WE GET A TWO NOTCH INCREASE TO A A, THAT'S F5000 TO 10,000 OF DEBT SERVICE SAVINGS PER YEAR FOR EVERY 10 MILLION ISSUED. IT'S TRYING TO MEASURE THAT. WE COULD HIT DOUBLE BUT YOU'RE NOT GOING TO LIKE THE USER RATES. TO THAT POINT. BOTH BONDS ARE BEING PROPOSED WITH NO NEEDED UTILITY RATE INCREASE. >> NO ADDITIONAL RATE INCREASE. WATER OR WASTEWATER PROJECTS. THOSE COVERAGE NUMBERS. THOSE COVERAGE NUMBERS ARE INCLUSIVE OF THE ORDINANCE IN PLACE RIGHT NOW. SO ON THE WASTEWATER SIDE, A SIMILAR THING COME OUT MUCH BIGGER PROJECT. 24, ALMOST 25 MILLION. THIS WILL COME FROM SEWAGE WORKS, NOT WATER. KEEP IN MIND WE MAY THINK OF IT ALL AS CARMEL UTILITIES. FROM A RATE SETTING AND FINANCE PERSPECTIVE, ESSENTIALLY TWO DIFFERENT ENTITIES. WE'VE GOT TO KEEP ALL THOSE DOLLARS SEPARATE. THIS WILL BE NET REVENUES OF THE SEWAGE WORKS. LAYNE TALKED ABOUT THE PROJECTS. SIMILAR SITUATION HERE WITH FINANCING. WE'VE GOT 15 MILLION FOR PROJECTS BASED ON THE LATEST ESTIMATES PLUS THE PAYOFF OF THE NOTE WE DID IN 2023 AND THE ISSUANCE COST. AGAIN, LIKELY AT LEAST THE WAY THE MARKET IS RIGHT NOW. GOING TO HAVE SOME ORIGINAL ISSUE PREMIUM TO DEAL WITH. THAT GETS US TO ALMOST 24 MILLION, 25 MILLION BOND ISSUE. SAME PICTURE HERE ON THE OUTSTANDING DEBT. A LOT LESS WASTEWATER DEBT IN PLACE RIGHT NOW. THIS IS PRESENTING A WORST-CASE SCENARIO YOU SEE THE TAN COME IT'S ALWAYS INTERESTING WHEN YOU DO A PRESENTATION LIKE THIS AND PEOPLE START TALKING ABOUT THE COLORS OF THE BARS BUT I'M GOING [00:40:01] TO TELL IT -- CALL IT A TAN COLOR. THE NEW DEBT FOR THE PROPOSED 2026 BONDS THROUGH THE WAY THAT IS STRUCTURED IS STRAIGHT LEVEL DEBT SERVICE AS IF WE DIDN'T HAVE ANYTHING ELSE OUTSTANDING. WHAT WE'LL PROBABLY DO AND WE NEED TO TALK ABOUT IT BUT WHAT WE WILL PROBABLY DO IS WRAP IT A LITTLE BIT AROUND YOUR OUTSTANDING DEBT. PUSH OFF SOME OF THAT PRINCIPAL TO BRING DOWN SOME OF THOSE EARLIER PAYMENTS, REDUCE THEM A LITTLE BIT. ULTIMATELY THAT'S GOING TO COST MORE IN TOTAL INTEREST BUT IT LEAVES US MORE ROOM FOR ADDITIONAL PROJECTS DOWN THE ROAD CREATE ADDITIONAL SPACE FOR FUTURE BONDS. AS WE GET INTO THAT STAGE OF IT AND GET TO THE FINAL STRUCTURING OF THIS, WE'LL WORK WITH LANDON'S TEAM TO SEE WHAT'S HAPPENING IN THE MARKET ESPECIALLY AS IT RELATES TO INTEREST RATES ON THE LONG END VERSUS THE SHORT END. WHERE IS THE SWEET SPOT KNOWING THAT THERE'S ALWAYS GOING TO BE ADDITIONAL PROJECTS OUT THERE ON WANTING TO TRY TO PRESERVE THE ABILITY TO DO ADDITIONAL WORK DOWN THE ROAD. HOPEFULLY WITHOUT IMPACTING CHARGES. AS WE TRY TO DO THAT, SMOOTH THAT A LITTLE BIT IT MIGHT GIVE US SOME MORE ROOM FOR ANOTHER BOND ISSUE DOWN THE ROAD WITHOUT A MAJOR RATE INCREASE. >> AGAIN ON THE COVERAGE SIDE. SIMILAR THING. WASTEWATER WAS NEVER QUITE IN THE SITUATION THAT WATER WAS FINANCIALLY PAID BETTER OFF FINANCIALLY BUT YOU CAN SEE IN 2024 WE HAD THE TURNAROUND. EVEN WITH THIS ISSUANCE, STILL GOT TO BE RIGHT AROUND 150% COVERAGE AND LIKELY RISING WITH ADDITIONAL REVENUES COMING IN. FEEL GOOD ABOUT THAT AND WHERE THE WASTEWATER IS. WASTEWATER RIGHT NOW DOES NOT HAVE ANY OUTSTANDING RATE OF DEBT RIGHT NOW. ALL WE HAVE IS SRF AND PRIVATE PLACEMENT WE DON'T HAVE THAT RATING BUT WE WOULD ANTICIPATE IT'S GOING TO COME IN IN THE AAA PLUS RANGE JUST LIKE WITH WATER. >> COUNCILOR GREEN. >> HOW LOW CAN THE COVERAGE GO UNTIL THERE IS THAT UNCOMFORTABLE NEED TO ADDRESS NET REVENUES. >> IT'S A GOOD QUESTION. I WILL GIVE YOU A COUPLE DIFFERENT ANSWERS. FROM THE PERSPECTIVE OF BEING ABLE TO ISSUE NEW DEBT THE LOWEST WE CAN GO IS 125%. WE'VE GOT AN ADDITIONAL BONDS TEST IN THE OUTSTANDING BOND DOCUMENTS THAT REQUIRE WE HAVE AT MINIMUM 125% COVERAGE. THEY'D PREFER NOT TO GET DOWN TO THAT LEVEL. I START TO GET A LITTLE NERVOUS WHEN WE GET TO 135, 138% COVERAGE. WE'VE STILL GOT ROOM. LIKE I SAID, THIS IS REFLECTIVE OF THAT HIGHER LEVEL OF DEBT AND IF WE CAN PUSH SOME OF THAT PRINCIPAL OUT, WE'LL CREATE SOME MORE ROOM HERE AND MAKE THAT NUMBER LOOK A LITTLE BETTER. AND THAT LEAVES US ADDITIONAL ROOM AND IT HONESTLY HELPS OUR METRICS FROM A RATING PERSPECTIVE. >> COUNCILOR MINNAAR. >> WHAT IS THE COST SAVINGS WITH THAT REDUCTION IN PRINCIPAL, DO YOU KNOW? SPEAKER WHAT WILL HAPPEN, LET ME MAKE SURE I UNDERSTAND THE QUESTION. WHAT WE WILL END UP DOING IS THOSE TAN COLUMNS IN THE EARLY YEARS INCLUDE PRINCIPAL AND INTEREST FOR WHAT WE WILL DO IS TAKE SOME OF THOSE PRINCIPAL PAYMENTS AND WE WILL MAKE THEM LATER. WE WILL PUSH THEM TOWARDS THE BACK END OF THE FINANCING. 2040 TO 2047. THAT WILL TAKE THAT PIECE OUT OF THOSE TAN BARS UP FRONT, SHIFT IT BACK. OVERALL TOTAL INTEREST COSTS WILL GO UP BUT WE WILL DO IT IN A WAY. IT WOULD BE ENOUGH TO BRING THAT TOTAL. INSTEAD OF PAYING $4 MILLION PER YEAR IN TOTAL PRINCIPAL AND INTEREST WE'RE ONLY PAYING 3 MILLION OR 3.25 MILLION. IT IS NOT SAVING. IT IS PUSHING OFF. >> THE PRIVATE PLACEMENT. ARE THOSE INSTALLMENT PURCHASE CONTRACTS? REVENUE BONDS? OKAY. >> SAME PICTURE AS THE WATER. IS SIMILAR TREND LINES WITH THE NEW DEBT WE STILL SEE NET REVENUE INCREASING. STILL SEEING A GOOD GAP BETWEEN THOSE REQUIREMENTS THREE BEFORE I TURN IT OVER TO LANDON. AS FAR AS THE NEXT STEP AND WHERE WE GO FROM HERE, IF THE [00:45:01] COMMITTEE GIVES IT A FAVORABLE RECOMMENDATION AND IF THE COUNCIL APPROVES BOTH ORDINANCES ON A THIRD READING TONIGHT A FEW NEXT STEPS. JUMP IN IF I BUTCHER ANYTHING BUT A FEW NEXT STEPS ON THE WASTEWATER SIDE, WE'LL HAVE TO PUBLISH A NOTICE THAT WE'LL HAVE TO RUN FOR 20 DAYS BEFORE WE CAN ISSUE THE BONDS. WE ARE NOT REALLY READY FOR THAT ANYWAY. WE DIDN'T WANT TO GET OUT TOO FAR IN ADVANCE BECAUSE WE ORIGINALLY WERE GOING TO START FEEDING INFORMATION TO THE RATING AGENCIES EARLIER BUT GIVEN CALENDARS AND TIMING WE DIDN'T WANT TO DO THAT BEFORE THIS COMMITTEE HAD A CHANCE TO HEAR IT. SO IF AS I SAID EVERYTHING GETS APPROVED TONIGHT WE'LL START FEEDING INFORMATION TO THE RATING AGENCIES CAN THEY GET THEIR PROCESS STARTED. THAT WILL PROBABLY TAKE 30 TO 45 DAYS TO WEEKS -- WORK THROUGH THAT. WE ARE LOOKING AT DOING THIS FINANCING AND WHAT WOULD YOU SAY COME OUT OF SEPTEMBER COME OCTOBER. YEAH. SEPTEMBER 15. A LITTLE BIT LATER THAN WHAT WE HAD ANTICIPATED BUT STILL WELL WITHIN GETTING THIS DONE BEFORE THE END OF THE YEAR AND WE START TO SEE INTEREST RATES CLIMB. THOSE ARE KIND OF NEXT STEPS FOR ADOPTION. HOPEFULLY PUBLISHED THE NOTICE ON THE WASTEWATER SIDE AND GET INTO THE READING PROCESS AND WORK THROUGH THAT AS WE START TO GET INTO STRUCTURING AND GETTING INTO WHAT YOU'RE GOING TO TALK ABOUT NEXT, MARKETING BONDS. [INDISTINCT] >> TWO OR THREE WEEKS LATER. >> JUST FOR THE RECORD, LOOK AT PLACING THE BONDS IN OCTOBER. SEPTEMBER 15, AND THEN JUST BECAUSE IT WASN'T ON THE RECORD. CLOSING IN OCTOBER. THANK YOU. >> THANKS, SCOTT. I AM GOING TO TALK TO THE MARKET. GOOD NEWS-BAD NEWS. GOOD NEWS. WE DID 141 MILLION LAST MONTH IN THE REFUNDING AND CLICK OVER TO THE NEXT SLIDE. WHERE AM I MOVING? WE WANTED TO CALL OUT ON THE HISTORY OF RECENT MARKET MOVEMENT WHERE WE PRICED THE REFUNDING BONDS. THERE WAS A A LOT OF DISCUSSION LEADING UP TO THE COUNCIL INTRODUCTION WHERE THE MARKET HAD BEEN. YOU CAN SEE THE PEAKS THAT OCCURRED RIGHT AROUND THAT TIME THAT WE INTRODUCED AND WE WERE LOOKING BACK ON THAT, WANTING TO GET INTO MARKET AS QUICKLY AS POSSIBLE. YOU CAN SEE WE DID OKAY. AND THAT'S CONTEXT AND HINDSIGHT. THE LATEST COMBINATION OF FED GOVERNOR SPEAK, LACK OF TRANSPARENCY ALONG WITH CONTINUED STRESS FROM IRAN CONFLICTS HAS CAUSED YET ANOTHER PEAK. THAT'S WHERE WE SIT NOW. SO I DID WANT TO JUST TOUCH ON THAT BECAUSE IT'S OFTEN THAT AS A COUNCIL YOU HEAR AND APPROVE A BOND ISSUE BUT YOU DON'T NECESSARILY GET AN IN-PERSON RECAP. WE CIRCULATED A SUMMARY VIRTUALLY. HOPEFULLY THAT ADDS A LITTLE FLAVOR. AS TO THE METHOD OF SALE, I'M HERE AS A NEGOTIATED UNDER UNDERWRITER. IT IS RICH IN DIRECT ANSWER TO YOUR QUESTION, THE METHOD WE ARE GOING TO USE. TWO COMMENTS ON THAT. LOOK BACK ON THE FIRST HALF OF THE YEAR, COMPETITIVE ISSUANCE ESPECIALLY IN THE LOWER RATING RANGE COMES, CAN COME WITH A PRETTY HEFTY PREMIUM, THE UNDERWRITING RISK. WE'VE SEEN IT AS HIGH AS 2.5% ON RECENT DEALS. THE PRICING THAT WE NEGOTIATED WITH ZACH AND THE MAYOR IS 0.425% WHICH I THINK IS THE LOWEST FEE COMMITTED TO UNDERWRITING FOR THE CITY. REVENUE BONDS PAID THAT'S THE COMMITMENT WE BRING AS FAR AS THE FIXED FEE EXPENSE. ALSO, RICH, YOU ASKED THIS FROM EXPERIENCE. A NEGOTIATED RESPONSE WE WERE ABLE TO TACKLE BOTH SIDES OF THE MARKET INSTEAD OF BEING PIGEONHOLED THERE NOT ONLY CAN WE HIT THE MARKET BUT WE CAN SOLICIT PRIVATE PURCHASE BIDS AS WELL. SO WE HAVE DONE THAT WITH THESE [00:50:06] ISSUANCES. WE HAVE FIVE INTERESTED PARTIES ON THAT SIDE. AT ONE POINT WE HAD INTEREST THAT FAVORED THAT ROUTE BASED ON OUR READ LATE LAST WEEK. THE BEST PRICING WE THINK COMES FROM A RATED ISSUANCE AT THIS POINT. BUT THROUGHOUT THE REMAINDER OF THE PROCESS WE'LL STRADDLE BOTH OF THOSE MARKETS TO MAKE SURE THAT WE ARE EXECUTING THE RIGHT AND LOWEST INTEREST RATE FOR THE CITY. RECENT ANECDOTE. WE HANDLED A AROUND 48 MILLION FOR LAFAYETTE LAST MONTH AND COMPARED TO WHERE WE COULD HAVE HIT THE MARKET AND LIMITED BY THE FACT THAT WE STILL NEEDED TO GO THROUGH THE RATING PROCESS WE ACTUALLY GARNERED A PRIVATE BID IN THAT CASE. AND IN THE THREES FOR A 20 YEAR BOND ISSUANCE AND WE TOOK IT. I WAS UP THERE LAST WEEK. I GAVE CREDIT TO THE CITY. WE CAN GIVE YOU ALL THE FACTS. WE CAN GIVE YOU THE INFORMATION BUT YOU GET TO MAKE THE CALL AT THE END OF THE DAY. THAT WAS A WIN, BIG WIN. LIKE THE REFUNDING FOR THE CITY. SO JUST AS AN EXAMPLE. HOPEFULLY IT SHEDS A LITTLE MORE LIGHT ON THE FLEXIBILITY THAT WE'VE GOT AND THE AVENUES WE ARE GOING TO BE EXPLORING AS FAR AS METHOD OF SALE. AS TO THE RATING, WE HAVE PROVIDED THE RATE RANGE BASED ON FRIDAY'S MARKET. BASED ON THE RATING RANGE BECAUSE AS SCOTT MENTIONED WE'VE GOT ONLY ONE RATING OUTSTANDING FOR THE WATER WORK RIGHT NOW. TRIPLE B+. THAT HAD BEEN AS LOW AS A NEGATIVE OUTLOOK TWO YEARS AGO. WHAT I'LL SAY TO ADD TO SCOTT'S COMMENTS, THEORETICALLY CARMEL IS PROBABLY DOUBLE A. YOU HAVE SAID THAT OVER THE YEARS. AND THAT'S WHERE WE CAN GET TO. WHEN YOU LOOK BACK AT THAT COVERED SCHEDULE THAT WAS IN THE EARLIER SLIDES WE SAW THAT IN 2022 COVERAGE DIPPED TO 99%. IT IS SACROSANCT FOR THE RATING AGENCIES. IF SHANNON LENT ME A HUNDRED BUCKS THAT WOULD PROBABLY BE THE DIRECTION. I DIDN'T PAY YOU BACK BUT YOU WOULD NEVER LOOK AT ME AGAIN. THAT'S THE WAY. >> $99 OF DEBT. $100 OF DEBT PAYMENT, OF $99 TO REPAY IT. >> BUT THE FACT THAT IF YOU MISS A PAYMENT OR YOU VIOLATE A COVENANT. WITH WATER BONDS AND SEWER BONDS FROM A YOU AS A COUNCIL COVENANT TO THE MARKET AND TO THE BONDHOLDERS THAT YOU WILL MONITOR SET RATES SUFFICIENT TO COVER DEBT SERVICE BY AT LEAST 1.00 TIMES. THE BREACH INTO 99, THAT IS AN ANCHORING EFFECT AND WE SEE IT TIME AND TIME AGAIN. THE LAST BIG EXAMPLE WAS PLAINFIELD WHERE THEY MISSED SOME PRIVATE PLACEMENT BECAUSE THEY WERE NOT EASILY TRACKED AS FAR AS THE SCHEDULE OF PAYMENTS IN THOSE CASES. DIDN'T HAVE A THIRD PARTY REMINDING THE TOWN TO MAKE THOSE PAYMENTS THAT ALTHOUGH THEY WEREN'T ON OPEN MARKET DEBT OF THE TOWN, THEY WERE MISSED. THEY WERE LATE BY THE TUNE OF 11 TO 21 DAYS. >> BOT PROJECTS? >> I CAN'T REMEMBER BUT IT'S A GOOD QUESTION. ONE OF THEM MAY HAVE BEEN WHICH IS A RISK. THE FACT THAT THEY WERE MISSED AND DESPITE THE FACT THAT THEY WEREN'T ON ANY RATED DEBT BY S&P BUT THE FACT THEY WERE MISSED WAS THE CHALLENGE THAT THE RATING AGENCY HAS WHICH IS AT THE END OF THE DAY YOUR BOND SECURITY, YOUR TERMS, YOUR MONITORING CAN BE AS STOUT AS ANYBODY COULD ENVISION. YOU COULD HAVE SOMEBODY IN COUNCIL CHAMBERS 24 OVER SEVEN MONITORING EVERYTHING THE CITY DOES BUT IT DOESN'T MATTER IF YOU DON'T PAY YOUR DEBT FAIR THAT'S WHAT MATTERS. ANY TIME AN ISSUER, A BORROWER GETS CLOSE TO VIOLATING COVENANT OR PAYMENT ITSELF, THAT'S WHEN YOU TEST AND THE CRITERIA AND RATING AGENCY. >> VERIFY THAT UTILITY... [INDISTINCT] >> YEP, THAT'S IN THE RECORD. THAT'S THE ANCHORING EFFECT OF THE RATING. LIKE SCOTT SAYS, THEY TAKE THEIR TIME BRINGING YOU BACK. WE NEED TO BE VIGILANT ABOUT PUTTING GOOD NUMBERS UP, STAYING FOCUSED. FOCUSING ON THE RATE COVENANT. THE GRAPH THAT I SHOWED EARLIER DEMONSTRATES A 40 BASIS POINT [00:55:04] RISE. THE INTEREST RATE ESTIMATES REFLECT THAT. I THINK WHEN WE KICKED OFF THE PROCESS, WE WERE PRELIMINARILY LOOKING AT 4%. FOR 0.25 AS A 20 YEAR BORROWING RATE BUT THAT'S BEEN ADJUSTED BY THE MARKET MOVEMENT. WHEN WE COME INTO THE MARKET OR SOLICIT OFFERS IN SEPTEMBER, CONDITIONS WILL SET THE OPTIONS FOR THE CITY AT THAT TIME. YOU ARE ENTRUSTING US AS A TEAM AND LANE AND ZACK'S TEAM TO MAKE THAT DECISION FRED WHAT'S AN EFFECTIVE, A GOOD DEAL FOR THE CITY AT THAT POINT? WITH THAT COME I WILL TAKE QUESTIONS ON THE MARKET. >> QUESTIONS FOR SCOTT OR LANDON? THAT'S WHY WE HIRE PEOPLE LIKE BAKER TILLY. TO GET THE BEST OUT OF THESE BONDS. WE'VE GOT THE BEST TEAM WORKING ON IT. MR. STARKEY. >> IS IT POSSIBLE FOR THESE SLIDES TO BE SENT TO ALL OF US? >> I HOPE IT WENT THROUGH BUT IT'S A BIG FILE. I SENT IT THIS MORNING TO THE FOUR OF YOU. NOT THIS MORNING. LET'S SAY LUNCHTIME. IT'S A BIG FILE. LET ME KNOW. IT DIDN'T SAY ERROR ON MY SIDE SO I AM ASSUMING IT WENT THROUGH BUT HAPPY TO SEND IT AGAIN. I DID SEND IT TO YOUR CARMEL ADDRESS. IT WILL ONLY SEND IT TO YOU... >> NOT FORWARDED TO THE FULL COUNCIL RIGHT NOW. >> I THINK THAT'S IT FOR OUR PRESENTATION FRED HAPPY TO ANSWER ANY OTHER FINAL QUESTIONS. I WOULD SAY A FOLLOW UP, THE FINANCIAL ASPECT OF IT, THE RATING IS AN IMPORTANT THING. IS A COMMUNITY, WE DON'T, BASED ON OUR DEMOGRAPHICS, WE ARE NOT GOING TO EVER QUALIFY FOR SUBSIDIZED MONEY FROM THE FEDERAL GOVERNMENT THROUGH THE IFA. HAVING A STRONG BOND RATING IS REALLY GOING TO ENSURE THAT OUR FUTURE ABILITY TO BORROW MONEY AND KEEP OUR COSTS AS LOW AS POSSIBLE COME A RATING IS IMPORTANT. I SAW THAT AND HAVE MADE A COMMITMENT IN OUR BUDGET TO ENSURE THAT WE ARE PUTTING SOME MONEY AWAY INTO BASICALLY SAYING TO BUILD UP OUR CASH BALANCES SO THEY ARE ALWAYS STRONG WHENEVER WE ARE READY TO ISSUE DEBT, IT HELPS US GET THAT STRONG RATING RIGHT IT IS SOMETHING AS WE LOOK AT REVENUES AS THEY INCREASE. WE ARE DOING OUR BEST TO KEEP OUR OPERATING COSTS MANAGEABLE. IN ADDITION TO CAPITAL PROJECTS THAT WE NEED TO DO OUT OF CASH WE ARE ALSO ENSURING THAT OUR CASH BALANCES ARE WHERE THEY OUGHT TO BE TO MAINTAIN OUR RATING GRADE. >> COUNCILOR? >> MR. CHAIRMAN I HAVE SAT THROUGH A LOT OF THESE BOND PRESENTATIONS WHERE WE ARE LOOKING AT BASICALLY CAN WE AFFORD IT? WHAT ARE WE GOING TO DO WITH THE MONEY? I KNOW THAT THERE WERE SOME LEAN, TOUGH TIMES AT THE UTILITY BUT I GUESS I WANT TO JUST MAKE SURE THAT WE ARE ON THE RECORD THAT YOU HAVE A NEED. THERE IS SOME REPLACEMENT THAT NEEDS TO BE DONE AND WE HAVE THE ABILITY TO TAKE CARE OF OUR RESIDENTS THROUGH IT NOT EVERYTHING IN LIFE IS EASY. WE ARE NOT ALWAYS FLUSHED BUT I GUESS WHAT I WOULD SAY IS WE ARE IN REALLY GOOD SHAPE AND YOU'RE KEEPING US THERE DUE TO A GREAT TEAM FROM A GREAT CONSULTANT. BUT I'M JUST VERY I GUESS RELIEVED TO KNOW THAT WE CAN DO WHAT WE NEED TO DO, PAY FOR IT WITH A GREAT PLAN AND GOOD COVERAGE. SO THE BOND RATING, I APPRECIATE YOU PROTECTING IT AND DOING SO THROUGH ALL THE LEVERS THAT YOU CAN PULL AND FOR FUTURE COUNCILS UP HERE THEY WILL APPRECIATE THAT AS WELL BUT I THINK WE HAVE TO APPRECIATE THE SYSTEM WE HAVE, HOW IT'S BEEN RUN AND HOW WE ARE RUNNING IT NOW. THAT'S ALL GOOD NEWS TO ME. >> THANK YOU. >> LOVE SEEING THOSE DEBT TO SERVICE COVERAGE RATIOS. QUESTIONS? >> DO YOU WANT TO HANDLE EACH ONE OF THEM SEPARATELY COME ON MR. CHAIRMAN? >> IF YOU WOULDN'T MIND. >> I WILL KICK US OFF. I WOULD LIKE TO MAKE A MOTION [01:00:01] THAT WE SEND BACK TO FULL COUNCIL WITH A POSITIVE RECOMMENDATION ON ORDINANCE D-2834-26. >> WE HAVE A MOTION BY COUNCILOR WORRELL. SECONDED BY COUNCILOR GREEN. PLEASE VOTE. MOTION CARRIES FORWARD. D-2834-26. DO WE HAVE A MOTION ON ORDINANCE D-2835-26? >> I WOULD LIKE TO MOTION TO SEND ORDINANCE D-2835-26 BACK TO THE FULL COUNCIL WITH A POSITIVE RECOMMENDATION. >> WE HAVE A MOTION BY COUNCILOR GREE. SECOND BY COUNCILOR MINNAAR. PLEASE VOTE. MOTION CARRIES UNANIMOUSLY. THANK YOU, LANE AND TEAM. APPRECIATE THE WORK THAT YOU ARE DOING. KEEP UP THE GREAT WORK. GET A 3% INTEREST RATE FOR US. YOU GUYS, COME ON. >> PLEASE. [1.c. Presentation of 2027 Budget Timeline from Finance Department ] NEXT UP! , YOU REQUESTED OVER THE BUDGET TIMELINE OR PROPOSED BUDGET TIMELINE. ZACH. PLEASE PROCEED. >> THANK YOU COME ON MR. CHAIRMAN. ZACH JACKSON. CITY COMPTROLLER AND CFO. I HAVE BEFORE YOU AND ON THE SCREEN A PROPOSED CITY BUDGET TIMELINE. SOMETHING WE'VE BEEN WORKING ON AT THE FINANCE DEPARTMENT. THERE ARE PROBABLY 12 OR 15 OTHER INTERIM STEPS GETTING TO A BUDGET THAT I HAVE REMOVED FROM THIS. BUT TO TRY TO KIND OF WORK ON TRANSPARENCY, MAKING SURE THAT EVERYBODY HAS THE SAME INFORMATION. LAST YEAR WE HAD A NUMBER OF COUNCILORS THAT EXPRESSED INTEREST IN MEETING WITH DEPARTMENTS BUT I THINK IN THE END, ONE OR TWO OF THOSE ACTUALLY PANNED OUT. SO WHAT WE HAVE HERE IS A CHANGE TO HOW WE NORMALLY PUT OUT THE BUDGET. WE ARE PROPOSING ON SEPTEMBER 8, A TUESDAY, I WILL SEND OUT THE DRAFT BUDGET AS WELL AS SUPPORTING DOCUMENTS. IT'S KIND OF A REVENUE FORECAST. THE REPORT THAT YOU ARE USED TO SEEING WITH THE PRIOR YEAR, CURRENT YEAR AS WELL AS SURPLUS STATEMENT, FUND BALANCES. AND RATHER THAN HAVING KIND OF THE BUDGET PRESENTATIONS IN THE COUNCIL CHAMBERS OVER TWO DAYS, WE WILL PRERECORD THOSE, SEND THOSE OUT TO ALL COUNCIL MEMBERS AS WELL AS HAVE ALL OF THIS POSTED ON THE FINANCE COMMITTEE'S WEBSITE, DEPARTMENT WEBSITE FOR EVERYBODY TO SEE AND THEN THERE'S INTERNAL STUFF WE HAVE TO DO IN TERMS OF POSTING TO GATEWAY'S WEBSITE AND THEN WE ARE PROPOSING THAT THE MAYOR AND I COME BACK ON SEPTEMBER 28 WHICH IS A MONDAY TO HOLD A BUDGET Q&A MEETING TO ANSWER YOUR QUESTIONS ABOUT WHAT WE SENT OUT. IN THE MEANTIME WE WILL HAVE A SPECIAL EMAIL ADDRESS SET UP SO THAT WE CAN SOLICIT QUESTIONS FROM COUNCIL MEMBERS AND MAKE SURE THOSE ARE APPROPRIATELY ROUTED TO THE FINANCE DEPARTMENT AS WELL AS ANY OTHER APPLICABLE DEPARTMENTS. AFTER THAT WE'VE GOT THE PRESENTATION OF THE OFFICIAL BUDGET TO COUNCIL ON MONDAY COME OCTOBER 5 WITH THE PUBLIC HEARING. PRESUMABLY IN BETWEEN THERE THE NEXT MEETING AND LET BE FINANCE COMMITTEE OR THE COMMITTEE AS A WHOLE BUT BACK ON MONDAY COME OCTOBER 19, THE ADOPTION OF THE BUDGET. FROM THERE THESE ARE ALL KIND OF STATUTORY DEADLINES IN TERMS OF WHEN THAT MEANS BEING THERE WOULD HAVE TO SIGN IT THERE IN TERMS OF WHEN WE HAVE TO SUBMIT OTHER THINGS TO DLGF. RIGHT BEFORE THE END OF THE YEAR, WE GET SOME SORT OF FEEDBACK FROM DLGF AND WE LOAD ALL OF THAT TO THE ACCOUNTING [01:05:01] SYSTEM FOR JANUARY 1ST. WITH THAT I'M HAPPY TO TAKE ANY QUESTIONS. >> QUESTIONS FOR ZACH? COUNCILOR SNYDER. >> CAN YOU PLEASE KIND OF EXPLAIN THE Q&A A LITTLE MORE? IS THIS GOING TO BE OPEN TO THE PUBLIC? IS EVERYTHING GOING TO BE LOGGED? WHAT MAKES IT TRANSPARENT? >> IN TERMS OF THE Q AND A. KIND OF LIKE WE HAVE DONE THE LAST TWO YEARS OR SO WHERE AFTER THE BUDGET PRESENTATIONS THERE'S A REQUEST THAT THE MAYOR COME BACK AND ANSWER QUESTIONS. MAYBE ADDRESS SOME OF THE FEEDBACK WE'VE HEARD ALONG THE WAY. IN TERMS OF THINGS OF MAYBE MOVING AROUND. THE LAST TWO YEARS I THINK WE'VE HAD IT IN LATE SEPTEMBER. ONE MORE TOUCH POINT BEFORE THE UNVEILING OF THE BUDGET. THE FIRST MONDAY IN OCTOBER. >> COUNCILOR GREEN. >> YOU HIGHLIGHTED IN THE PAST HAVING TWO WORKSHOPS FROM EIGHT TO NOON. THE DEPARTMENT. COME SEPTEMBER 8 COME UP THE TRANSPARENCY POINT THAT YOU WERE MAKING. THE COUNCIL AS WELL AS THE PUBLIC WILL BE ABLE TO ACCESS EACH DEPARTMENT HEAD PRESENTATION ABOUT THEIR SPECIFIC BUDGET SO PEOPLE CAN KIND OF FOCUS ON DEPARTMENT BY DEPARTMENT RATHER THAN HAVING TO WAIT SEVERAL WEEKS, TUNE IN TO OUR WORKSHOP AND FAST FORWARD TO WHAT MATTERS TO THEM. >> THAT'S RIGHT. SEPTEMBER 8 WE WILL PUSH ALL OF THESE OUT. THE HIGHLIGHT WILL BE MY BUDGET OVERVIEW ALONG WITH REVENUE FORECAST AND ALL OF THAT AND IT WILL GO INTO DEPARTMENT BY DEPARTMENT. WITH THEIR POWERPOINT PRESENTATION AS WELL AS PRESENTING THE BUDGET. WE WILL PRERECORD THOSE. SEND THEM TO COUNCIL AND HAVE THEM AVAILABLE FROM THE FINANCE DEPARTMENT. TO YOUR POINT, IF YOU'RE NOT WANTING TO SIT THROUGH ALL OF STREET DEPARTMENT. IF YOU WANT TO MAYBE GO TO THE HIGHLIGHTS AND, YOU HAVE THAT ABILITY. >> NOT JUST FOR THE COUNCIL BUT THE ENTIRE PUBLIC CAN DO THAT. AND THEN SUBMITTING QUESTIONS. EACH PERSON CAN SPEND AS MUCH TIME WATCHING A SPECIFIC VIDEO. SEND QUESTIONS TO YOU FOR YOU AND THE MAYOR TO ANSWER. SEPTEMBER 28. WILL THE PUBLIC BE ABLE TO SEND QUESTIONS? >> THEY WILL. WE WILL SEND OUT THAT FOR EVERYBODY. THE IDEA MAINLY IS IF IT'S COUNCIL OR MINNAAR ASKING A SPECIFIC QUESTION I CAN MAKE SURE TO RESTATE ONE IF YOU ARE ASKING SOMETHING THAT IS PARTICULAR TO STREET DEPARTMENT, I CAN WORK WITH MATT AND MAKE SURE WE ARE ON THE SAME PAGE WITH AN ANSWER AND GET IT BACK OUT AND MAKE SURE THAT ALL COUNCIL MEMBERS AND THE PUBLIC HAS ACCESS TO THE QUESTION AND ANSWER. >> AND THIS HERE ARE WE ANTICIPATING A LOT OF CHANGES FROM PREVIOUS YEAR OR IS IT GOING TO BE PRETTY MUCH STATUS QUO WITH MINOR ADJUSTMENTS? >> MINOR ADJUSTMENTS. THE STATE HAS MADE MORE CHANGES AS TO WHERE WE CAN DEPOSIT CERTAIN REVENUES. LAST YEAR I TALKED ABOUT FOOD AND BEVERAGE TAX BEING SOMETHING THAT THEY CHANGED. WHERE IT GOES. SIMILAR CHANGES, I THINK SERGEY AT A RECENT MEETING WAS TALKING ABOUT THE NEW FUNDS. ONE FOR DOCKS AND ENGINEERING IN TERMS OF HOW THEY HAVE TO DEPOSIT THEIR BUILDING PERMITS. ALSO CHANGING IN TERMS OF AUTO AND AIR EXCISE TAXES AS WELL AS FINANCIAL INSTITUTIONS TAXES HAVE TO BE DEPOSITED. HISTORICALLY THOSE HAVE BEEN PUT IN MULTIPLE FUNDS. NEXT YEAR THAT'S GENERAL FUND. YOU WILL SEE TWEAKS LIKE THAT WHEN WE'VE HAD TO SHIFT SOME THINGS AROUND BUT THERE IS NOT MUCH TO DO WITH REVENUE FOR NEXT YEAR SO LARGELY IT'S GOING TO BE A BUDGET SIMILAR TO THE SAME TOTAL THAT WE HAD. >> THIS PROCESS IS DIFFERENT THAN WHAT COUNCILOR WORRELL AND I ARE USED TO. I AM COMPLETELY OPEN TO IT. THERE'S THINGS WITH THIS AND THIS IS PROBABLY A GOOD YEAR TO TRY OUT THIS NEW PROCESS BECAUSE THERE'S NOT A LOT OF CHANGES. I THINK THE TWO TO FOUR, THE [01:10:04] BUDGET Q&A WITH YOU AND THE MAYOR MIGHT BE TOO SHORT. AND ALSO WE MIGHT COME WITH THAT INITIAL COUNCIL MEETING ON OCTOBER 5TH IT MIGHT BE A LONG ONE. IF WE HAVE LOTS OF QUESTIONS COME A Q AND A, IT'S PROBABLY ONE WE ARE GOING TO BE HITTING THOSE QUESTIONS OR HAVING YOU RESPOND SINCE WE WON'T HAVE THOSE WORKSHOPS. >> I CAN TALK TO THE MAYOR ABOUT AVAILABILITY ON SEPTEMBER 28. BUT I KNOW IN TERMS OF TIME ON OCTOBER 5TH, I WILL BE HERE TO ANSWER. >> COUNCILOR SNYDER? >> I AM STILL NOT COMPLETELY CLEAR HOW ONE OF THE BENEFITS OF THE BUDGETS AND I AM FINE TRYING THIS OUT. BUT THE BENEFIT OF BUDGET HEARINGS IS BUT IT'S LIVE AND WE GET HUMAN RESPONSES. NOT WELL CRAFTED WORDSMITHING BASED ON ACTUAL ANSWERS. IF WE ARE DOING THE QUESTIONS, SUBMITTING THE QUESTIONS. WE GET A DRAFT BUDGET. AND YOU SAY THE PUBLIC HAS THE AVAILABILITY TO WATCH ALL THE PRESENTATIONS, SUBMIT QUESTIONS. WHATEVER THAT PORTAL IS, EVERY QUESTION SUBMITTED SHOULD BE POSTED AND EVERY ANSWER SHOULD BE POSTED. I DON'T THINK WE SHOULD BE CENSORING ANYTHING AT ALL. WE ARE NOT GOING TO BE DOING IT LIVE. EVERYTHING NEEDS TO BE DOCUMENTED. EVERYTHING NEEDS TO BE AVAILABLE TO THE PUBLIC. IT'S GOING TO CREATE A LOT OF WORK FOR YOU ALL AS FAR AS WRITING RESPONSES BUT WE OWE IT TO THE PEOPLE. IS THAT WHAT YOU ARE ANTICIPATING? >> YES. >> OKAY. >> OTHER QUESTIONS? >> I HAD A FEW. ONE IS ON, WHEN WE SUBMIT THE DRAFT BUDGET ON SEPTEMBER 8, DID A REALLY GOOD JOB LAST YEAR OF SUBMITTING ALL THE BACKUP DETAIL TO IT. TO DO THAT AGAIN. >> THANK YOU. >> DID WE GET OUR UPDATED THING FROM THE COUNTY? THEY MADE A MISTAKE AND THEY NEEDED TO RESUBMIT. >> I WANT TO SAY IT WAS WEDNESDAY OF LAST WEEK THEY PUBLISHED IT MIGHT HAVE BEEN THURSDAY. I'M NOT EXACTLY SURE WHAT THE ERRORS WERE. THEY RETRACTED IT AND THE NEXT DAY PUSHED OUT A DIFFERENT C NAV. ROUNDED TO THE NEAREST 100 MILLION. 12.4 BILLION FOR ASSESSED 25, PAID 26, ASSESSED IN 26, PAYABLE IN '27. IT GOES DOWN APPROXIMATELY 200 MILLION TO 12.2 BILLION IS THE ASSESSED VALUE. >> WHAT WAS OUR GROSS IN THE ASSESSED VALUE GROWTH? >> I WOULD HAVE TO DOUBLE-CHECK. TRADITIONALLY WE HAVE BEEN GROWING CLOSE TO 10%. EVERY YEAR FOR THE LAST FEW YEARS. >> I HEARD SOMETHING ABOUT 8%. >> 8% WAS KIND OF MY PLACEHOLDER IN ORDER TO KEEP THINGS FLAT. IN ORDER FOR THE CURRENT TAX RATE TO LEVY AS MUCH CASH AS IT DID BEFORE, YOU NEED TO BE IN THE SIX TO 8% RANGE. AND THEN AFTER THE NEW CREDITS COME OVERALL DOWN ABOUT 2%. >> WE HAVE TWO EXPERTS, CONSULTANTS WORKING ON THAT ANALYSIS. THEY COMPLETED THEIR WORK AND CAN SEND OUT THEIR REVENUE PROJECTIONS? >> I THINK WE ARE ABOUT TWO WEEKS AWAY. >> YOU WILL DO THAT BEFORE THE EIGHTH? >> WHAT WE WERE WORKING ON IS IN MY MIND WE HAD PROPERTY TAXES AND THEN EVERYTHING ELSE. I KIND OF ALREADY WORKED ON EVERYTHING ELSE. WITH SEA NAV COMING OUT BY AUGUST 1ST. ANOTHER TOUCH POINT THIS WEEK, REVENUE FORECAST. THEN WITH CERTIFIED LIT SHARES COMING OUT ON OR BEFORE 8/15, WE WILL HUDDLE AGAIN AFTER THAT. >> THAT WAS MY NEXT QUESTION. [01:15:02] COULDN'T REMEMBER WHEN THE CERTIFIED LIT SHARES GET POSTED. >> 8/15. THAT'S OUR THIRD AND FINAL REVENUE FORECASTING COMMITTEE. >> COUNCILOR MINNAAR? >> THANK YOU COME ON MR. CHAIR. I AM GOING TO GO BACK TO THE SCHEDULE FOR THE BUDGET Q&A. I AGREE WITH TONI, COUNCILOR AGREED, EXCUSE ME. THIS TIME I GOT YOUR NAME RIGHT. I THINK WE MIGHT NEED A LITTLE LONGER TIME. IS THIS GOING TO BE -- IT'S NOT GOING TO BE A PUBLIC HEARING SO YOU WON'T HAVE PUBLIC COMMENT? IT WILL JUST BE FOR US, CITY COUNCIL, YOU AND THE MAYOR. >> PROBABLY TECHNICALLY IT WOULD BE A WORKSHOP. SERGEY? PUBLICLY NOTICED WORKSHOP. >> I JUST WANTED CLARIFICATION. >> WE ARE A LITTLE SHORT ON TIME ON 2:00 TO 4:00. THE LAST DAY TO SUBMIT THE BUDGET TO THE STATE IS THE END OF OCTOBER? >> TECHNICALLY MONDAY, NOVEMBER 9, IS THE DAY. >> DECEMBER 31ST IS A THURSDAY. I WASN'T SMART ENOUGH TO CATCH THAT. SOMEBODY ELSE WAS. ANY OTHER QUESTIONS FOR ZACH? SEEING NONE, ANY OTHER ITEMS BEFORE THE FINANCE COMMITTEE? * This transcript was compiled from uncorrected Closed Captioning.