Aug 03, 2026 City Council Regular Meeting

FUEL PRICES ARE UP REALLY HIGH RIGHT NOW, UNFORTUNATELY.

MR. PHILLIP SANDERS.

SO HAS THE AGREEMENT WITH THEM, IS IT GOING TO COME BACK DOWN WHEN FUEL PRICES COME BACK DOWN? POTENTIALLY.

THE INCREASE IS CALCULATED.

SO THEY USE THE CONSUMER PRICE INDEX AND A FUEL INCREASE.

SO IT'S POSSIBLE.

IT COULD ALWAYS COME DOWN.

IT COULD ALWAYS GO UP.

DEPENDS ON WHO DECIDES THAT WHEN THE FUEL STARTS TO COME BACK DOWN, THEN DOES THIS BODY OR DO YOU YOU GO AFTER THEM AND ASK FOR IT OR DO THEY HAVE TO OFFER IT? THEY USE A NATIONAL CALCULATION IS MY UNDERSTANDING A NATIONAL RATE.

LAUREN IF I REMEMBER CORRECTLY IN THE CONTRACT THEY LOOK AT THE PREVIOUS 12 MONTHS.

THEY DO JUNE TO JUNE.

SO THEY WOULDN'T LOOK FOR CPI AGAIN UNTIL THE FOLLOWING 12 MONTHS? CORRECT.

SO THAT'S THE ONLY WAY THAT YOU CAN GET IT TO COME DOWN? AND THEY COULD ACTUALLY INCREASE IT.

IT DEPENDS.

IT'S SPELLED OUT IN THE CONTRACT.

I'M HAPPY TO SHOW YOU WHAT THAT CALCULATION CONSISTS OF.

BUT AGAIN, WITH MARKET, IT COULD COME DOWN.

IT'S ALWAYS POSSIBLE.

BUT WE'RE JUST RELYING STRICTLY ON THEM BECAUSE THEY'RE NOT GOING TO GO DOWN.

IT'S FROM JUNE TO JUNE.

AND AGAIN, THEY USE A NATIONAL STANDARD DATABASE THAT THEY REFERENCE.

I'M HAPPY TO GIVE YOU THAT AS WELL.

IT'S SPELLED OUT IN THE CONTRACT ALSO.

SO Y'ALL, I'M JUST, I'M CLARIFYING.

THE CITY OF BURLESON CANNOT REQUEST A LOWER RATE WHEN THE FUEL COMES DOWN? WE DID REQUEST A LOWER RATE THIS YEAR, AND THEY WERE WILLING TO HONOR THAT.

I MEAN, THIS IS 4.25.

AT A LATER DATE, CAN BURLESON REQUEST A LOWER RATE BECAUSE FUEL HAS COME DOWN? WE CAN ALWAYS REQUEST A LOWER RATE.

WE'RE ALWAYS HAPPY TO DO THAT.

BUT THEY DO HAVE THE AUTHORITY TO DENY THAT REQUEST AS WELL UNDER THE CONTRACT.

LAUREN, CAN YOU GO BACK TWO SLIDES? WELL, SORRY, FROM THE END SLIDE.

YEAH, THERE.

BECAUSE IT BREAKS DOWN THE COMPONENTS.

IT'S 9% OF THE WEIGHTED AVERAGE IS THE FUEL.

SO IT'S NOT MUCH.

IT'S NOT MUCH.

IT DOES MAKE A DIFFERENCE.

WE HAVE SEEN A MUCH HIGHER RATE FROM THEM AS WELL.

AND AGAIN, GIVEN THE MARKET, WE FELT THIS WAS FAIR.

YEAH, IT SEEMS FAIR.

GOOD.

ANY OTHER QUESTIONS? IS THERE A MOTION? SECOND.

I HAVE A MOTION BY VICTORIA, SECOND BY ADAM.

MOVING ON, ITEM 6B, CONSIDER AND TAKE POSSIBLE ACTION ON APPROVING A TWO-YEAR CONTRACT WITH ANDERSON ASPHALT AND CONCRETE PAVING, LLC, FOR ROADWAY MAINTENANCE AND PRESERVATION SERVICES IN THE AMOUNT OF $3,500,000.

PASSAGE UNANIMOUS.

[6.B.Consider and take possible action on approving a two-year contract with Anderson Asphalt & Concrete Paving, LLC. for roadway maintenance and preservation services in the amount of $3,500,000. (Staff Contact: Justin Scharnhorst, Deputy Director of Public Works)]

STAFF CONTACT JUSTIN SHARNHORST, DEPUTY DIRECTOR OF PUBLIC WORKS.

THANK YOU, MS. LEAL.

MAYOR, COUNCIL, GOOD EVENING.

ITEM 6B FOR YOU TONIGHT IS FOR AN ASPHALT MAINTENANCE CONTRACT IN 2024-25.

CITY COUNCIL SET UP THE DEDICATED STREET MAINTENANCE FUND AND FURTHERED THOSE EFFORTS THIS PAST YEAR BY CONTRIBUTING AN ADDITIONAL MILLION DOLLARS THAT HELPS ADVANCE OUR MAINTENANCE ACTIVITIES WITHIN THE CITY.

AND THE MILL AND OVERLAY CONTRACTOR LAST YEAR THAT WAS SELECTED

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THROUGH A FORMAL RFP PROCESS IS ANDERSON ASPHALT.

THEY COMPLETED THOSE SEGMENTS FOR US LAST YEAR.

AND THAT IS OUR RECOMMENDATION BEFORE YOU TONIGHT FOR THIS CURRENT FISCAL YEAR AND NEXT.

THEY HAVE DECADES OF EXPERIENCE IN THE DFW AREA.

THE CITY OF LINCOLN.

WE HAVE A NUMBER OF CONTRACTS.

THEY HAVE MUNICIPAL CONTRACTS FORNEY, PARKER, DUNCANVILLE, FROM A PROCUREMENT STANDPOINT, THIS IS BEING PROPOSED THROUGH THE INTERLOCAL PURCHASING SYSTEM, COMMONLY REFERRED TO AS TIPS.

THEY DID AN OPEN PROCUREMENT THAT RESULTED IN A CONTRACT THAT WAS AWARDED TO ANDERSON IN APRIL 2026.

I APOLOGIZE FOR THE TYPO IN THE FIRST BULLET THERE.

THE TIPS CONTRACT IS FOR FIVE YEARS.

WHAT'S BEFORE YOU TONIGHT WOULD JUST BE THE CITY OF BURLESON'S CONTRACT, WHICH WOULD BE A TWO-YEAR CONTRACT.

THE BUDGET.

I WILL GO TO THE NEXT QUESTION.

UNIT PRICE BASED ON RS MEANS PRICE BOOK SO THAT' S NOT A GUARANTEED SPEND THE AUTHORIZATION REQUEST BEFORE YOU DENY IS $3.5 MILLION THAT' S NOT AN INDICATION WE' RE GOING TO SPEND UP TO THAT POINT IT' S TO HAVE THE ABILITY TO USE THOSE SERVICES IN THIS FISCAL YEAR AND NEXT NOT TO EXCEED THAT AMOUNT OBVIOUSLY WITHIN THE BUDGET OF THE DEPARTMENT.

THE TOP LINE'S MILL AND OVERLAY THAT WE'RE TALKING ABOUT TODAY, KIND OF JUST A HIGH-LEVEL SUMMARY AS WELL.

PRESSURE PAVE WITH DONALDSON CONSTRUCTION WAS COMPLETED IN JUNE OF THIS YEAR.

CONCRETE WORK IS UNDERWAY ON HIDDEN CREEK AND ALLSBURY, AND WE COMPLETED CRACK SEAL THIS WINTER AS WELL.

ALL OF THOSE CONTRIBUTE TO THE STREET MAINTENANCE FUND EFFORT.

SO NEXT STEPS IF COUNCIL WERE TO APPROVE THIS WE WOULD BEGIN SCHEDULING WITH ANDERSON, PARTNER WITH DEANNA AND HER GREAT TEAM IN TERMS OF COMMUNICATION TO THE PUBLIC, DOOR HANGERS, HOA, UPDATING OUR GIS MAPS TO SHOW WHERE THE WORK IS GOING TO BE AND WHEN.

THE RECOMMENDATION BEFORE YOU TONIGHT IS TO APPROVE YOUR TWO-YEAR CONTRACT WITH ANDERSON ASPHALT IN THE AMOUNT OF $3.5 MILLION.

AND ONE OTHER THING I DID WANT TO MENTION FROM A TIMING PERSPECTIVE, WE WOULD WORK HARD TO LINE THIS UP.

THE $3,500,000 TWO-YEAR CONTRACT.

I HAVE A MOTION BY ALEXA AND A SECOND BY VICTORIA.

NEXT ITEMS IS 6C, 6D, AND 6E WILL BE PRESENTED AS ONE ITEM BUT VOTED ON SEPARATELY.

PASSES UNANIMOUSLY.

[Items 6.C. - 6.E.]

6C IS CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE AMENDING THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN.

FOR FISCAL YEAR 2026-2030, CSO 6165-06-2026.

THIS IS THE FIRST AND FINAL READING.

STAFF CONTACT, RANDY MORRISON, PE DIRECTOR OF CAPITAL ENGINEERING.

ITEM 6D IS CONSIDER AND TAKE POSSIBLE ACTION ON A RESOLUTION DECLARING INTENTION TO REIMBURSE AN AMOUNT NOT TO EXCEED $1,585,500 FOR CERTAIN CAPITAL EXPENDITURES WITH PROCEEDS FROM DEBT AND PLACING ITEM RESTRICTIONS ON THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS FOR A CAPITAL IMPROVEMENT PLAN PROJECT TO EXTEND HEWLAND STREET FROM THE INTERSECTION OF WILSHIRE BOULEVARD SH1.

74 TO JOHN JONES DRIVE FM 731 AND THE STAFF CONTACT FOR THAT ITEM IS KEVIN HENNESSY DIRECTOR OF FINANCE AND SIX ITEM 6E IS CAPITAL CONSIDER AND TAKE POSSIBLE ACTION ON A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH HALF ASSOCIATES INC FOR THE DESIGN OF THE HEWLAND STREET EXTENSION PROJECT FROM SH 174 WILSHIRE BOULEVARD TO FM 731 JOHN JONES DRIVE.

IN THE AMOUNT OF $1,294,300 WITH A CONTINGENCY OF $129,430 FOR A TOTAL DESIGN COST OF $1,423,730.

PROJECT ST-2605.

STAFF CONTACT WILL BE RANDY MORRISON, DIRECTOR OF CAPITAL ENGINEERING.

RANDY MORRISON, GOOD EVENING, MAYOR AND CITY COUNCIL.

MY NAME IS RANDY MORRISON, DIRECTOR OF CAPITAL ENGINEERING.

THIS PRESENTATION COVERS THE THREE AGENDA ITEMS THAT WERE JUST MENTIONED REGARDING THE HEWLIN STREET EXTENSION PROJECT FROM WILSHIRE BOULEVARD TO JOHN JONES.

THE ITEMS ARE GOING TO COVER THE PROPOSED CIP AMENDMENT, REIMBURSEMENT RESOLUTION,

[00:45:01]

AND APPROVAL OF THE PROFESSIONAL SERVICES AGREEMENT.

A LITTLE BACKGROUND ON THE PROJECT.

THE HEWLIN STREET EXTENSION PROJECT INCLUDES DESIGN AND CONSTRUCTION OF A NEW ARTERIAL ROADWAY THAT WILL EXTEND FROM HEWLIN AND WILSHIRE TO JOHN JONES.

THIS CORRIDOR IS IDENTIFIED AS A PRINCIPAL ARTERIAL IN THE CITY'S MASTER THOROUGHFARE PLAN, AND IT WILL SUPPORT FUTURE DEVELOPMENT OPPORTUNITIES ALONG THE CORRIDOR.

SOME ADDITIONAL BACKGROUND, THE CITY HAD CONTRACTED WITH HALF ASSOCIATES TO DESIGN MASTER PLAN SEWER AND WATER FACILITIES ALONG THIS CORRIDOR BACK IN 2017.

THAT EFFORT ALSO INCLUDED SCHEMATIC DESIGN.

THE DESIGN OF THE CORRIDOR TO LAY OUT THE ROADWAY AND THE ALIGNMENTS OF THE WATER AND SEWER FACILITIES.

THOSE PLANS REACHED ROUGHLY 90% DESIGN STAGE AND THEY WERE PUT ON HOLD.

BUT THAT'S THE REASON THAT HALF OF THE ASSOCIATES WAS SELECTED AS THE MOST QUALIFIED CONSULTANT FOR THIS PROJECT IN AN EFFORT TO UTILIZE, HAVE SOME ECONOMIES OF SCALE AND UTILIZE SOME OF THOSE PREVIOUS EFFORTS.

THIS PARTICULAR PROFESSIONAL SERVICES AGREEMENT INCLUDES ALL THE SCOPE ITEMS LISTED THERE, BUT IT'S FULL DESIGN, DEVELOPMENT OF CONSTRUCTION DOCUMENTS, BIDDING AND CONSTRUCTION SUPPORT.

ALSO, YOU CAN SEE THERE ON THIS EXHIBIT, WE ARE PLANNING TO EXTEND THE CROSS SECTION FOR THE HEWLAND WIDENING PROJECT THAT'S JUST ON THE OTHER SIDE OF WILSHIRE.

WE'RE GOING TO CONTINUE THAT THROUGH THIS NEW CORRIDOR.

IT'S A ROUGHLY 120-FOOT RIGHT-OF-WAY.

IT'S GOING TO INCLUDE TWO THROUGH LANES ON EACH SIDE, A LARGE MEDIAN THAT WOULD ACCOMMODATE A FUTURE WIDENING WHEN IT'S NEEDED TO GO TO A SIX-LANE FACILITY.

THE IMPROVEMENTS ALSO COVER SHARED USE PATHS ON BOTH SIDES AS WELL AS LANDSCAPING AND LIGHTING ALONG THE CORRIDOR.

WE ARE LOOKING AT A ROUNDABOUT AT THE FUTURE INTERSECTION OF HEWLIN AND FAIRFIELD PARKWAY.

AND THAT'S RIGHT THERE IN THE MIDDLE AS WELL AS A POTENTIAL TRAFFIC SIGNAL AT THE INTERSECTION OF HEWLIN AND JOHN JONES.

AND THAT HAS TO BE ANALYZED AND COORDINATED WITH TXDOT.

AND THEN ADDITIONAL INTERSECTION IMPROVEMENTS AT THE EXISTING THREE-LEGGED INTERSECTION OF HEWLIN AND WILSHIRE THIS NEXT SLIDE SHOWS OUR PROJECT BUDGET WE HAVE A BREAKDOWN THERE AT THE TOP THAT BREAKS DOWN THE COST OF THIS PROFESSIONAL SERVICES AGREEMENT SO THE BASE SERVICES AND THE SPECIAL SERVICES GIVE A TOTAL CONTRACT AMOUNT OF 1 MILLION 200 $194,000 THREE HUNDRED DOLLARS, AND THEN WE'RE PROPOSING A TEN PERCENT DESIGN CONTINGENCY AT A HUNDRED AND TWENTY NINE THOUSAND FOUR THIRTY FOR A TOTAL DESIGN CONTRACT COST OF ONE MILLION FOUR HUNDRED TWENTY THREE THOUSAND SEVEN HUNDRED THIRTY DOLLARS THE BREAKDOWN BELOW THAT IS THE PROPOSED PROJECT BUDGET.

SO WE HAVE OUR DESIGN COSTS, WHICH IS AT $1,510,000.

IT'S SLIGHTLY ABOVE THE BREAKDOWN ABOVE BECAUSE THERE'S OTHER DESIGN COSTS ASSOCIATED WITH THE PROJECT, POTENTIALLY PERMIT FEES, REVIEW FEES WITH TXDOT.

SO THERE'S A LITTLE BIT ADDITIONAL IN THAT DESIGN BUDGET.

AND THEN FOR CONSTRUCTION, WE HAVE A PROPOSED ESTIMATE OF $12,621,300. AND THEN OUR EDMP.

TO COVER STAFF TIME, $706,600.

SO IT'S A TOTAL PROJECT BUDGET OF $14,837,900 PROPOSED.

THE TIMELINE, ONE THING I WANTED TO NOTE ON THIS SLIDE, CONTRACT AWARD IS ACTUALLY TODAY, AUGUST 3RD, AND WE WOULD ISSUE A NOTICE TO PROCEED SHORTLY AFTER IF COUNCIL AWARDS THE CONTRACT.

AND WE ARE MOVING QUICKLY ON THIS DESIGN.

DESIGN CONTRACT WE ANTICIPATE DESIGN COMPLETION IN THE SECOND QUARTER OF 2027 AND WE WOULD BID THE PROJECT AS SOON AS DESIGN IS COMPLETE AND WE ANTICIPATE NINE NINE MONTHS MAYBE A LITTLE BIT MORE FOR CONSTRUCTION THAT WOULD PUT US IN EARLY 2028 FOR CONSTRUCTION COMPLETION THIS IS A VERY AGGRESSIVE SCHEDULE, BUT WE THINK THE GREENFIELD CONSTRUCTION WE CAN WE CAN ACCOMPLISH THIS NOW I'M GOING TO RUN THROUGH THE PROPOSED CIP AMENDMENT.

THERE IS ONE CHANGE ON THE PROPOSED CIP AMENDMENT.

IT IS THE ADDITION OF THE HEWLAND STREET EXTENSION PROJECT.

WE HAVE AN ALLOCATION OF $1,585,500 PROPOSED WITH...

WITH 4A CO BOND FUNDING IN FY26.

THAT AMOUNT INCLUDES THE 01,510,000 FOR DESIGN AS WELL AS 5% OF THAT FOR EDMP FOR THE DESIGN-RELATED COST.

SO THAT MAKES UP THE TOTAL OF THE 1,585,500 THAT YOU SEE

[00:50:01]

THERE.

THIS SLIDE SHOWS THE TABLE WHERE THAT PROJECT IS ADDED IN THE $1,585,000.

FUTURE FUNDING FOR THE CONSTRUCTION OF THE PROJECT IS GOING TO BE INCLUDED IN THE PROPOSED FY27 CIP, AND THAT WILL BE CONSIDERED THROUGH THE BUDGET PROCESS.

I ALSO WANT TO NOTE THAT THE FY26 ALLOCATION FOR THE HEWLAND STREET PROJECT THANK YOU.

IT WILL OPERATE UNDER A REIMBURSEMENT RESOLUTION, WHICH IS PART OF THIS THESE ITEMS THIS EVENING AND IT WILL BE PART OF THE FY 27 BOND ISSUANCE NOT FY 26 THIS IS A FUND SUMMARY FOR THE AMENDED CIP WITH THE HEWLAND STREET PROJECT ADDED NOW TO COVER THE REIMBURSEMENT RESOLUTION AS MENTIONED A MOMENT AGO.

SO THE REIMBURSEMENT RESOLUTION WOULD PROVIDE PROJECT FUNDING PRIOR TO ISSUING THE BONDS FOR THE AMOUNT NOT TO EXCEED $1,585,500.

WE DO ANTICIPATE ISSUING THE BONDS FOR THIS IN AUGUST OF 2027.

THIS IS A SUMMARY OF THE RECOMMENDATIONS FOR THE VARIOUS ITEMS. IN SUMMARY, REQUEST THAT COUNCIL CONSIDERS THE APPROVAL OF THE ORDINANCE AMENDING THE CIP AS WELL AS THE APPROVAL OF THE RESOLUTION FOR THE REIMBURSEMENT RESOLUTION FOR AUTHORIZING PROJECT.

FUNDING PRIOR TO ISSUING THE BONDS AND THEN LASTLY APPROVAL OF A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH HALF ASSOCIATES IN THE AMOUNT OF ONE MILLION TWO HUNDRED NINETY FOUR THOUSAND THREE HUNDRED DOLLARS WITH THE CONTINGENCY OF 129 THOUSAND FOUR THIRTY FOR A TOTAL DESIGN COST OF ONE MILLION FOUR HUNDRED TWENTY THREE THOUSAND SEVEN HUNDRED THIRTY DOLLARS I'LL BE AVAILABLE IF YOU HAVE ANY QUESTIONS.

ANYBODY GOT ANY QUESTIONS? IS THERE A MOTION ON 6C? I MAKE A MOTION TO APPROVE 6C, CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE AMENDING THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN.

I GOT A MOTION BY LARRY AND A SECOND BY ALEXA PLEASE VOTE PASSAGE UNANIMOUS DO I HAVE A MOTION ON 6D I'M MAKING A MOTION TO APPROVE THE RESOLUTION DECLARING INTENTIONS OF REIMBURSEMENT.

I HAVE A MOTION BY ALEXA AND A SECOND BY LARRY.

AND DO I HAVE A MOTION ON 6E? I MAKE A MOTION THAT WE APPROVE THE PROFESSIONAL ENGINEERING SERVICES AGREEMENT.

PASSES UNANIMOUS.

I HAVE A MOTION BY VICTORIA, SECOND BY ALEXA.

PASSES UNANIMOUS.

THANK YOU, RANDY.

[7.A. Receive a report, hold a discussion, and provide staff direction regarding the FY 2026-2027 (tax year 2026) property tax rates, and receive any additional feedback from the City Council regarding the annual budget for FY 2026-2027. (Staff Contact: Kevin Hennessey, Director of Finance)]

THAT BRINGS US TO ITEM 7, REPORTS AND PRESENTATIONS.

7A IS RECEIVE A REPORT, HOLD A DISCUSSION, AND PROVIDE STAFF DIRECTION REGARDING THE FY 2026-2027 TAX YEAR, 2026 PROPERTY TAX RATES, AND RECEIVE ANY ADDITIONAL FEEDBACK FROM THE CITY COUNCIL REGARDING THE ANNUAL BUDGET FOR FY 2026-2027.

STAFF CONTACT IS KEVIN HENNESSEY, DIRECTOR OF FINANCE.

GOOD EVENING, MAYOR AND COUNCIL.

THANK YOU, LISSANDRA.

AS MENTIONED, WE'LL BE DISCUSSING THE TRUTH IN TAXATION RATES THAT WERE CALCULATED BY THE COUNTY TAX ASSESSOR.

WE RECEIVED THOSE RATES RECENTLY.

WE BRING THEM AS OUR PRACTICE IN THE FIRST MEETING OF AUGUST TO DISCUSS WITH YOU, INTRODUCE IT, AND THEN WE HAVE A MORE DETAILED CONVERSATION WITH THE FINANCE COMMITTEE THAT WILL OCCUR ON WEDNESDAY, THE 5TH.

SO WITH THAT, ON THE 15TH, THE COUNCIL APPROVED A RESOLUTION DIRECTING THE CITY MANAGER TO PREPARE A BUDGET.

THAT ASSUMES A PROPERTY TAX RATE THAT DOES NOT EXCEED THE VOTER APPROVAL RATE.

HERE'S OUR CURRENT TAX RATE, THE TOTAL RATE 7218.

THEN WE CAN SEE THE BREAKDOWN BETWEEN M&O, OUR OPERATIONS, AND OUR DEBT RATE,

[00:55:02]

ALSO CALLED THE INS RATE.

ON THE 27TH, THE CITY DID RECEIVE THE ROLLS, THE ESTIMATED ROLLS FROM JOHNSON COUNTY.

AND ON THE 30TH, WE RECEIVED THE FIRST DRAFT OF THE T&T CALCULATIONS FROM THE TAX ASSESSOR.

AND THAT'S THE WORKSHEET THAT DOES GIVE US THE CALCULATED NO NEW REVENUE RATE, THE M&O, MAINTENANCE AND OPERATION, NO NEW REVENUE RATE, THE DEBT RATE, AS WELL AS THE VOTER APPROVAL RATE.

FOR CONTEXT, AS THE SENATE BILL 2, THAT WENT INTO EFFECT ON 2020, CHANGED THE WAY SOME OF THESE THINGS ARE DONE.

SO THE NO NEW REVENUE RATE IS THE TOTAL TAX RATE THAT WOULD GENERATE THE SAME TAX REVENUE AS THE PREVIOUS YEAR, CONSIDERING THE PREVIOUS YEAR'S TAX BASE.

THE M&O, OR MAINTENANCE AND OPERATION, NO NEW REVENUE RATE, THAT'S A RATE THAT WOULD...

GENERATE THE SAME TAX REVENUE FROM THE PREVIOUS YEAR FOR THE GENERAL FUND AND THIS IS USED TO DERIVE THE VOTER APPROVAL RATE THIS CALCULATION BECAUSE THAT'S WHAT THEY USE TO INCREASE BY THE 3.5 PERCENT FOR THE M&O RATE FOR THE VOTER APPROVAL RATE PRIOR TO THIS BILL IN 2020, THAT CAP WAS 8%.

POST THAT BILL, 3.5% IS THAT CAP.

IF THE CITY DOES EXCEED THAT, THAT'S WHEN AN ELECTION WOULD THEN BE TRIGGERED.

THERE IS AN UNUSED INCREMENT, SO IT DOES ALLOW A TAXING UNIT, IF IT DOESN'T USE A FULL 3.5, THAT THAT CAN ROLL OVER INTO FUTURE YEARS.

FOR THE 2026 CALCULATION, THE CITY OF BURLESON HAS ZERO UNUSED INCREMENT.

THEY DO ROLL OVER FOR THREE YEARS.

LAST YEAR, WE DID HAVE THAT 0.47 CENTS FROM THE 2022 TNT CALCULATION.

VOTER APPROVAL RATE, AS MENTIONED, THAT'S THE M&O, MAINTENANCE AND OPERATIONS, NO NEW REVENUE TAX RATE TIMES THE 3.5% INCREASE PLUS THE DEBT RATE AND ANY UNUSED INCREMENT THAT THE CITY ELECTS TO USE.

SO THE FINANCE COMMITTEE AS WELL AS COUNCIL HAVE DIRECTED STAFF TO UTILIZE STRATEGIES INTERNALLY TO WORK TO MAINTAIN THE DEBT RATE TO SUPPORT THE PROPOSED CIP.

SO HERE WE ARE THE CALCULATIONS FROM THE WORKSHEET THAT WE RECEIVED.

WE SEE AT THE TOP OUR CURRENT RATE AT THAT FOUR POINT OR EXCUSE ME POINT FOUR NINE THREE THREE FOR THE M&O 0.2285 FOR THE DEBT RATE, TOTALING IN OUR CURRENT RATE OF 7218.

SO BELOW THAT, WE HAVE THE 26 TAX RATES THAT WERE CALCULATED BY THE TAX ASSESSOR IN THE T&T CALCULATION THAT WE RECEIVED.

THE NO NEW REVENUE RATE, NNRR, CAME IN AT 0.7298.

WHICH IS ABOVE OUR CURRENT TAX RATE.

VOTER APPROVAL RATE, 7468.

AND SO THAT SHOWS THE BREAKDOWN OF HOW YOU GET TO THE 7468 WITH THE M&O NON-UNION RATE INCREASED BY THE 3.5% PLUS THE DEBT RATE.

AS MENTIONED BEFORE, NO UNUSED INCREMENT RATE AVAILABLE THIS YEAR, AND SO THE VOTER APPROVAL RATE IS THE SAME AS THE VOTER APPROVAL RATE BEFORE INCREMENT AT THE 0.7468 FIGURE.

FOR CONTEXT, HERE'S THE CITY OF BURLESON, OUR PROPERTY TAX RATE HISTORY UP THROUGH THE CURRENT 25 TAX YEAR, 26 FISCAL YEAR.

THIS IS HOW WE COMPARE TO OUR TRADITIONAL BENCHMARK CITIES.

THIS IS HOW WE COMPARE TO OTHER TAXING UNITS IN JOHNSON COUNTY WHO ARE EXPERIENCING THE SAME REAPPRAISAL SCHEDULE THAT WE ARE.

SAME FOR THOSE INSIDE OF TARRANT COUNTY.

AND THERE WE ARE.

THE RED.

SO HERE ARE SOME CALCULATIONS.

SO THIS SHOWS THE REVENUE TAX LEVY COLUMN DOES SHOW THE CITYWIDE REVENUE, NOT JUST THE GENERAL FUND.

SO IT SHOWS WHAT THAT WOULD BE AT THE CURRENT RATE.

[01:00:02]

WHICH IS ALSO THE PROPOSED RATE, AND THEN FOR THE NO NEW REVENUE RATE AND VOTER APPROVAL RATE.

AND WE SEE OFF TO THE RIGHT, THAT DIFFERENCE COLUMN SHOWS THE DIFFERENCE FROM ONE RATE TO THE NEXT.

CUMULATIVE IS THE TOTAL CHANGE IN WHAT THE CURRENT RATE WOULD BE ALL THE WAY TO THE VOTER APPROVAL RATE.

THIS COMPARES...

AT THE DIFFERENT RATES, WHAT THE AVERAGE HOME VALUE WOULD BE COMPARED TO WHAT IT WOULD BE LAST YEAR.

AS YOU SEE AT THE BOTTOM, THE AVERAGE HOME VALUE, AND THIS VALUE IS NET OF EXEMPTIONS, WHICH INCLUDES THE HOMESTEAD, $300,697 IS THE AVERAGE.

HOME VALUE AND IT IS A WEIGHTED VALUE INCLUDING JOHNSON COUNTY AND TARRANT COUNTY HOMES AND THEN WE HAVE THE THE AMOUNT THAT WAS LAST YEAR FOR THE 2025 TAX YEAR 302 745 SO THE TABLE HERE SHOWS WHAT THE DIFFERENT TAX LEVY WOULD BE FOR THAT AVERAGE HOUSEHOLD FOR 26 AND IT COMPARES IT TO WHAT THE CURRENT TAX RATE IS COMPARED TO THE 302 745 FOR THE 25 TAX YEAR AND THEN IT SHOWS YOU WHAT THE THE ANNUAL DIFFERENCE WOULD BE OFF TO THE RIGHT SO THE NEXT STEPS THIS EVENING, CITY MANAGERS SUBMITTING HIS PROPOSED BUDGET, WHICH HAS BEEN SUBMITTED TO CITY COUNCIL, OR EXCUSE ME, THE CITY SECRETARY'S OFFICE, AS WELL AS POSTED ON THE WEBSITE.

BY OUR COMMUNICATIONS TEAM.

ON THE 5TH, WE'LL BE DISCUSSING THE BUDGET AS WELL AS THIS PRESENTATION AGAIN WITH THE FINANCE COMMITTEE.

THE 10TH IS A SPECIAL SESSION THAT OUR CITY MANAGER WILL BE PROPOSING THE BUDGET PRESENTATION AS WELL AS COUNCIL WILL BE ESTABLISHING THE MAXIMUM TAX RATE FOR CONSIDERATION IN SEPTEMBER.

ON THE 17TH WE HAVE OUR PARAMETERS ORDINANCE FOR OUR ANNUAL DEBT ISSUANCE AND THEN ON THE 8TH WHICH IS A TUESDAY WE'LL HAVE OUR REGULAR COUNCIL MEETING, WHICH WILL CONSIST OF OUR FIRST PUBLIC HEARINGS, AS WELL AS THE FIRST READINGS OF BUDGET, TAX RATE, AND THE OTHER RELATED BUDGET ORDINANCES.

THE 14TH, THE FOLLOWING WEEK, WILL BE A SPECIAL SESSION, AND WE WILL DO OUR FINAL READING OF THOSE SAME ORDINANCES FOR CONSIDERATION.

WITH THAT, WE ARE LOOKING FOR DIRECTION REGARDING THE M&O TAX RATE AS WELL AS THE INS TAX RATE, SO THE M&O MAINTENANCE AND OPERATIONS, AND THE INS, THE INTEREST IN SINKING, WHICH IS ALSO CONSIDERED AND NAMED THE DEBT RATE, THE DEBT PORTION OF THE TAX RATE.

SO WITH THAT, I STAND FOR ANY QUESTIONS OR COMMENTS.

MAYOR? YES.

I DO HAVE A SPEAKER.

MR. SANDERS? OKAY.

THE CITY COUNCIL AND THE SCHOOL BOARDS ARE THE ONES THAT VOTED TO ADOPT THEIR OWN RATES.

THE NO NON-REVENUE TAX RATE IS THE SIMPLE TERM THIS IS THE RATE THAT ALLOWS A TAXING ENTITY TO COLLECT THE SAME AMOUNT OF PROPERTY TAX REVENUE FROM THE SAME PROPERTIES AS IS COLLECTED THE YEAR BEFORE SO I'M ASKING IS THE PROPOSED RATE ABOVE THE NEW THE KNOWN NEW REVENUE RATE HOW MUCH ADDITIONAL MONEY WILL IT COLLECT AND WHY IS THE INCREASE NECESSARY AND THEN A QUESTION, WHAT DOES...

WHAT DOES IT REQUIRE IN THE STATE LAW FOR Y'ALL TO MOVE SOME OF THIS SLUSH FUND FROM A TO B OR B TO A, WHICHEVER ONE IT IS, FOR PARKS AND EVERYTHING? THERE'S GOT TO BE A LEGAL WAY, AND NOBODY'S ANSWERED THAT QUESTION YET.

AND I'VE ASKED OVER THE PHONE, SO I'M ASKING COUNCIL, HOW DO WE MOVE SOME MONEY INSTEAD OF HITTING THE TAXPAYERS FOR MORE? I MEAN, AT SOME POINT, ARE Y'ALL ASKING PEOPLE TO START MOVING OUT? WHY DO WE HAVE TO KEEP SPENDING?

[01:05:01]

WE NEED TO STOP SPENDING.

MR. SAUNDERS, I KNOW THAT SOME OF THAT IS STRESSED TO THE ELECTED OFFICIALS, SO I CAN'T SPEAK TO THAT.

BUT, KEVIN, WILL YOU PULL UP THE SLIDE REGARDING NO NEW REVENUE RATE AND PROVIDE CLARIFICATION AS TO WHAT THE FILED BUDGET TONIGHT, THE PROPOSED BUDGET, WHAT TAX RATE IT'S UTILIZING? SIR, YES, THE CURRENT RATE WE CAN SEE AT THE TOP ROW IS THE 0.7218, WHICH IS ALSO THE PROPOSED RATE.

AND THEN RIGHT BELOW THAT, THE THIRD ROW IS THE NO NEW REVENUE RATE IN WHICH YOU'RE SPEAKING OF.

THAT IS MORE THAN WHAT THE PROPOSED RATE IS.

SO WE ARE NOT INCREASING ABOVE THE NO NEW REVENUE RATE IN THE PROPOSED BUDGET.

AND THAT 0.7218, WHEN WE SAY PROPOSED RATE, THAT IS INCLUDED IN THE ASSUMPTIONS FOR THE BUDGET THAT WAS PROPOSED.

I'M NOT A CPA, SO IT DOESN'T MAKE SENSE TO ME.

KEVIN, WILL YOU GO TO THE FOLLOWING SLIDE? JUST THE ANNUAL IMPACT.

IS THE TAXES GOING TO GO UP? NO.

THEY'RE NOT GOING TO GO UP? FOR THE AVERAGE HOMEOWNER, YOU CAN SEE IT'S GOING TO BE $15 LESS THAN LAST YEAR.

OKAY, THAT'S WHAT I WAS TRYING TO GET A CLEAR ANSWER BECAUSE IT SAYS FROM WHAT I'VE BEEN READING THAT YOU CAN ACTUALLY LOWER THE RATE.

IT'S BASED OFF OF THE NO NEW REVENUE TAX RATE.

IF THE CITY DROPS IT, YOU CAN STILL END UP WITH A HIGHER BILL.

EXPLAIN THAT TO ME.

YEAH, THERE'S TWO REAL INPUTS INTO THE CALCULATION.

IT'S THE TAX RATE AND THE ASSESSED VALUE, THE TAXABLE VALUE OF THE HOME.

SO THE AVERAGE TAX VALUE OF THE HOME IS LESS THAN LAST YEAR WHILE THE TAX RATE IS REMAINING THE SAME.

SO THIS IS JUST SAYING THAT THEIR ACTUAL TAXABLE BILL WILL GO DOWN? OR Y'ALL ARE JUST PROPOSING, I'M NOT, WHAT THE DIFFERENCE IS BETWEEN WHAT THIS IS TELLING ME.

THIS IS FROM OUR STATE REPRESENTATIVE, BY THE WAY, HELEN KERWIN.

I'M JUST READING HER NOTES.

SO I'M JUST TRYING TO MAKE HEADS OR TAILS OF IT BECAUSE I DON'T UNDERSTAND IT.

YEAH, SO THAT THE RIGHT COLUMN, THE $15 LESS, THAT'S COMPARING IF THE AVERAGE HOMEOWNER LAST YEAR VERSUS THE AVERAGE HOMEOWNER THIS YEAR VERSUS THEIR TAXABLE VALUE, THEIR TAX BILL WILL GO DOWN.

OH, SO OKAY, NOW I GET IT.

SO IF EVERYBODY'S TAXES WENT UP, I'VE ALREADY WENT AND FOUGHT MINE, AND IT'S A HORRIBLE THING.

THEY'VE GOT A LOT OF PEOPLE THAT LITERALLY HAVE DOUBLED OR MORE.

I'VE BEEN GOING TO THE CAD MEETINGS.

IT'S A HORRIBLE THING.

SO THAT'S PROBABLY NOTHING THEN IS WHAT YOU'RE SAYING.

THIS IS JUST A $15 OFF THE CITY, BUT THE ACTUAL BILL IS GOING TO BE MUCH HIGHER.

THIS IS AN OBJECTIVE CALCULATION OF THE AVERAGE VALUE OF A HOME AND WHAT THEIR TAX LEVY WOULD BE BASED ON THAT AVERAGE VALUE.

SO TAXES ARE STILL GOING TO GO UP BECAUSE THEY'RE BASED OFF OF HOW MUCH THE APPRAISAL THIS IS ESTIMATING YOUR PROPERTY TO BE WORTH WHICH IS INFLATED.

KEVIN IF I RECALL CORRECTLY AND I'M GOING FROM MEMORY HERE THE AVERAGE MEDIAN OR AVERAGE VALUE OF THE TAXABLE VALUE OF A HOME LAST YEAR'S $302,000 AND REDUCED TO $300,000 THE AVERAGE HOME THAT'S A BLENDED VALUE BETWEEN JOHNSON AND TARRANT COUNTY.

SAYS WHO? THIS IS THE VALUE.

YEAH.

WELL, WHAT ABOUT THE CARDS THAT THE TAXPAYERS RECEIVED? BECAUSE MINE WENT WAY UP.

MY MOTHER'S WENT WAY UP.

I'VE BEEN TO THE CAD MEETINGS.

EVERYBODY'S HAS GONE UP.

AND I MEAN LIKE 90%.

I CAN'T SPEAK FOR THE CAD.

WE DON'T, WE DON'T ASSESS VALUE.

I JUST DON'T KNOW WHERE YOUR INFORMATION COMING FROM BECAUSE WE ACTUALLY GO BY WHAT THEY SEND US IN THE MAIL AND IT WENT UP.

IT'S FROM THE APPRAISAL DISTRICTS.

OKAY, I DON'T UNDERSTAND BECAUSE THEY'RE ALL GOING UP.

SO YOU'RE SAYING THAT IT WENT DOWN, BUT YET THE CAD MEETINGS, THEY'RE SAYING EVERYTHING HAS GONE WAY UP.

AND THEY EVEN SAID A LOT OF IT'S BECAUSE THE NEW PROGRAM, THEY'RE NOT ACTUALLY PHYSICALLY DOING IT.

THEY'RE USING A NEW PROGRAM, AND THEY'VE ALREADY ADMITTED THEY HAVE BUGS IN IT, THAT IT'S GOING TO HAVE TO BE FIXED.

THAT'S STRAIGHT FROM THEM.

I WAS THERE.

SO I DON'T KNOW WHERE YOUR INFORMATION IS COMING FROM.

BUT ANYWAY, THANK YOU.

I THINK EVERYBODY'S GOOD WITH STAYING WHERE IT'S AT.

THANK YOU, SIR.

[7.B.Receive a report, hold a discussion, and provide staff direction regarding the proposed Fiscal Year 2026-2027 5-Year Capital Improvement Plan (CIP). (Staff Contact: Randy Morrison, Capital Engineering Director)]

NEXT IS 7B, RECEIVE A REPORT, HOLD A DISCUSSION, AND PROVIDE STAFF DIRECTION REGARDING THE PROPOSED FISCAL YEAR 2026-2027 FIVE-YEAR CAPITAL IMPROVEMENT PLAN.

CIP STAFF CONTACT RANDY MORRISON, CAPITAL ENGINEERING DIRECTOR.

[01:10:08]

RANDY MORRISON, DIRECTOR OF CAPITAL ENGINEERING, GOOD EVENING AGAIN, MAYOR AND CITY COUNCIL.

MY NAME IS RANDY MORRISON, DIRECTOR OF CAPITAL ENGINEERING.

I'M GOING TO WALK THROUGH THE PROPOSED FY27 CIP.

YOU SHOULD HAVE A PRINTED VERSION IN FRONT OF YOU.

IT MIGHT BE A LITTLE BIT EASIER TO FOLLOW ALONG WITH THAT WHEN I GET TO SPECIFIC SLIDES, BUT I'LL GO THROUGH THE PRESENTATION.

SO IN THE PRESENTATION I'M GOING TO COVER OUR CURRENT CIP.

I'M NOT GOING TO GET INTO DETAILS, BUT JUST SHOW THOSE SLIDES QUICKLY.

AND THEN WE'RE GOING TO WALK THROUGH THE PROPOSED FY27 CIP AND THE UPDATES THAT HAVE BEEN MADE SINCE THE LAST TIME IT WAS PRESENTED TO COUNCIL.

AND THEN QUICKLY COVER THE UNPROGRAMMED PROJECT LIST.

THIS WAS LAST PRESENTED ON JUNE 1ST AND WAS REALLY THE FIRST LOOK AT THE FY27 BUDGET PROCESS.

THERE HAVE BEEN SEVERAL UPDATES, WHICH I'LL COVER IN THE PRESENTATION, SINCE THAT LAST TIME IT WAS PRESENTED TO COUNCIL.

SO FIRST TO COVER THE CURRENT CIP, THESE SLIDES COVER THE CIP AS OF JUNE 15TH, 2026.

SO IT'S NOT GOING TO INCLUDE THE CIP AMENDMENT THAT WAS APPROVED THIS EVENING.

SO WE HAVE THE GENERAL GOVERNMENT CIP, WATER AND SEWER.

4A 4B THERE'S NO PROJECTS ON TIFF THEN OUR FUND SUMMARY AND LIKE I MENTIONED THIS IS NOT INCLUDING THE UPDATES THIS EVENING SO NOW TO RUN THROUGH THE PROPOSED FY27 CIP WE'RE GOING TO START BY GOING THROUGH THE CHANGES.

KEEP IN MIND THAT THE CHANGE SUMMARY RECOGNIZES THE CHANGES FROM THE LATEST ADOPTED CIP, SO BE GOING BASED OFF THE JUNE 15TH, FY26 CIP TO THE PROPOSED FY27.

THERE'S THREE SLIDES OF THIS CHANGE SUMMARY AND I'M NOT GOING TO COVER EVERY DETAIL BECAUSE A LOT OF THESE WERE ON THE CHANGE SUMMARY IN THE PREVIOUS PRESENTATION BUT I WILL HIGHLIGHT THE CHANGES THAT HAVE OCCURRED SINCE THE JUNE 1ST TILL NOW AND SOME OF THE SHIFTS THAT HAVE OCCURRED.

SO BIG PICTURE BEFORE I GET INTO THE LINES THE JUNE 15TH CIP AMENDMENT MOVED THE PROPOSED PROJECT FOR THE CAD CONSOLES WHICH WAS ROUGHLY 800,000 THAT WAS ORIGINALLY PROPOSED IN FY 27 THAT MOVED IT UP TO FY 26 AND FUNDED THAT PROJECT SO THAT'S ONE CHANGE THAT YOU WON'T SEE WITHIN THESE CIP SLIDES WE ALSO MOVED HEWLIN WIDENING SOME SIGNIFICANT FUNDING FOR THE HEWLIN WIDENING PROJECT 5.1 MILLION IN GEO BOND FUNDING AND 9.6 MILLION AND CO BOND FUNDING WERE MOVED FROM FY 26 TO FY 27 IN THAT JUNE 15TH CIP AMENDMENT IN ADDITION, THE HEWLAND EXTENSION PROJECT, WHICH WE COVERED EARLIER IN THIS MEETING, THAT WAS NOT INCLUDED IN THE PREVIOUS FY27 PROPOSED CIP, BUT IT IS INCLUDED NOW.

SO THE 4A BOND FUNDING OF $13.2 MILLION IS INCLUDED IN HERE.

THAT IS ON THIS FIRST SLIDE.

YOU CAN SEE IT THERE, ST2605.

SO THAT INCLUDES THE $13.2 MILLION.

IN ADDITION TO THAT THERE WERE SEVERAL WATER AND SEWER PROJECT ITEMS THESE RESULTED IN A TOTAL DECREASE IN THE CIP AND WE WERE TRYING TO BALANCE THE RATES, OUR WATER AND SEWER RATES, AND TRYING TO KEEP THOSE AT A CONSISTENT LEVEL AS WHAT WAS PRESENTED WHILE TRYING TO ABSORB SOME OF THE INCREASES FROM FORT WORTH ON THOSE RATES AND ALSO KEEP OUR FUND BALANCE AT AN APPROPRIATE LEVEL.

APPROPRIATE LEVEL AND SO THERE WAS SEVERAL PROJECTS WHICH I'LL HIGHLIGHT HERE SHORTLY SEVERAL PROJECTS THAT WERE MOVED OUT IN THE CIP THEY WEREN'T COMPLETELY REMOVED, BUT THEY'RE MOVED OUT TO HELP BALANCE THOSE THE RATE MODEL AND THEN LASTLY, THERE'S SEVERAL PROJECTS THAT RECEIVED ADDITIONAL ALLOCATIONS FOR VARIOUS FUND BALANCES THAT WE HAVE FOR IMPACT FEES, SOME NON-BOND FUNDING ACCOUNTS, AS WELL AS OTHERS.

AND SO WE HAVE PROGRAMMED ALL OF THOSE FUND BALANCES NOW WITHIN THESE PROJECTS.

THEY'RE ALL LISTED IN THESE.

CHANGES HERE AND I'LL TRY TO TOUCH ON SOME OF THOSE BUT WE WANTED TO PROGRAM ALL THOSE FUND BALANCES SO WE COULD PUT THEM ON ACTIVE PROJECTS AND MAKE SURE THAT THEY'RE FULLY

[01:15:01]

FUNDED OR WE WERE ABLE TO USE BOND FUNDING SOMEWHERE ELSE.

SO THERE'S A NUMBER OF CHANGES RELATED TO THOSE SO ON THIS FIRST SHEET, JUST WANT TO HIGHLIGHT THE KUHLMAN WIDENING PROJECT, ST 2306.

YOU CAN SEE THERE, THERE'S SEVERAL ADDITIONAL ALLOCATIONS LISTED THERE, NON-BOND CAPITAL FUNDING.

THE PROJECT.

WE ALSO ADDED SOME NEW ALLOCATIONS FOR THE STREET IMPACT FEES FOR AREA A AND B.

THESE ARE NEW ALLOCATIONS THAT WERE ADDED TO THIS PROJECT.

IT HELPS FUND SOME OF THE PROJECT INCREASES RELATED TO INCREASED RIGHT AWAY ACQUISITION COSTS AND CONSTRUCTION COSTS THAT WERE PRESENTED IN PREVIOUS COUNCIL MEETINGS.

WE ADDED ADDITIONAL ALLOCATIONS TO CLOSE THE GAP ON THAT PROJECT.

THE NEXT PROJECT YOU'LL SEE THERE, THE VILLAGE CREEK PARKWAY EXPANSION, THERE'S AN ADDITIONAL ALLOCATION TO PROGRAM THE IMPACT FEE FOR SERVICE AREA C ON THAT ONE.

SO THERE'S SOME ADDITIONAL FUNDING ADDED TO THAT PROJECT.

BUT THAT ONE DID NOT INCREASE THE OVERALL PROJECT, SO WE WERE ABLE TO REPURPOSE THE CO BOND FUNDING TO THE HEWLAND PROJECT, WHICH IS ABOVE IT.

SO WE KIND OF SHIFTED THOSE FUNDING SOURCES.

NEXT, I WANTED TO HIGHLIGHT THE HEWLAND STREET EXTENSION, WHICH I ALREADY MENTIONED THAT IS ON THIS LIST AND THEN POLICE HEADQUARTER EXPANSION WE ADDED AN ADDITIONAL 207,000 IN FY 27 THERE WAS A AVAILABLE FUND BALANCE IN THE PUBLIC SAFETY CO BOND FUND WHICH IS NOW PROGRAMMED NEXT, FA-2701, LIBRARY BATHROOM RENOVATION.

THAT'S A NEW PROJECT THAT WAS ADDED THROUGH THE BUDGET PROCESS.

SO WE ADDED $223,650 IN ALLOCATION FOR FY27.

WHICH IS TO BE FUNDED WITH NON-BOND INTEREST INCOME.

RIGHT.

IF YOU GIVE ME ONE MOMENT, I WANT TO INTERRUPT.

SO, MAYOR, COUNCIL, GENERALLY SPEAKING, IN JULY IS WHEN I SUBMIT MY RECOMMENDED SUPPLEMENTALS.

GENERALLY, THOSE ARE OPERATIONAL SUPPLEMENTAL.

SO, WHAT WE WANT TO DO THIS TIME IS THESE WERE ITEMS, THE LIBRARY RESTROOM AND ONE OTHER THAT WE'LL GET TO IN A MOMENT.

THEY WERE SUBMITTED THROUGH THE BUDGET PROCESS AND THEY WERE RECOMMENDED.

YOU DIDN'T SEE THEM IN JULY BECAUSE THEY WERE CAPITAL ITEMS. SO, WE'RE PRESENTING THEM HERE.

AND THEN LAST ON THIS SHEET THE WATER AND SEWER REHAB PROGRAM JUST WANT TO HIGHLIGHT THAT WE HAVE REDUCED THE WATER AND SEWER BOND CO BOND FUNDING AND OFFSET IT WITH TWO MILLION DOLLARS ANNUALLY IN NON BOND.

INTEREST INCOME THAT WE ARE ANTICIPATING ANNUALLY.

SO IT REDUCED OUR OVERALL RATE MODEL, THE BURDEN ON THE WATER AND SEWER RATE PROGRAM, AND WE ANTICIPATE USING THAT $2 MILLION.

SO IT KEEPS THE TOTAL WATER AND SEWER REHAB PROGRAM AT THE CONSISTENT $5 MILLION ANNUALLY.

SOME YEARS ARE A LITTLE BIT DIFFERENT, BUT WE DIDN'T CHANGE ANY OF THOSE OVERALL ANNUAL FUNDING AMOUNTS.

WE JUST OFFSET SOME OF THE FUNDING.

GOING TO THE SECOND SHEET, WHICH THIS IS ALSO PAGE 17 OF YOUR PACKET.

SORRY, I DIDN'T MENTION THAT BEFORE.

SO AT THE TOP THERE, THE UPPER PRESSURE PLANE WATERLINE LOOPING, WA2403.

JUST WANTED TO NOTE THAT WE MOVED ALLOCATION, MOVED 472,757 OF THE FY27 ALLOCATION FROM WATER BOND FUNDING TO WATER IMPACT FEE FUNDS.

SO THERE'S AN AVAILABLE BALANCE THERE.

ALSO WANT TO HIGHLIGHT WA2502 AND WA2801.

JUST BELOW THAT PROJECT, THE THREE WATER PROJECTS LISTED BELOW THAT, WA-3101, 3102, AND 177389, THOSE THREE PROJECTS WERE ALSO PART OF THAT WATER AND SEWER FUND BALANCING.

THOSE ALLOCATIONS MOVED OUT IN THE CIP.

THE TRUNK RELIEF LINE WW2301 THERE WERE SEWER IMPACT FEE FUNDING ADDED TO THE ALLOCATION ON THAT ONE TO REDUCE THE OVERALL BOND

[01:20:02]

FUNDING AND THEN WW250 TO THE PARKVIEW DRIVE SEWER UPSIZING TO 10-INCH THAT PROJECT IS BEING REMOVED FROM THE CIP, BUT IT WILL BE INCLUDED IN OUR WATER AND SEWER REHAB PROGRAM BECAUSE IT IS A NEIGHBORHOOD STREET, SO WE'RE ABLE TO ADD THAT TO ONE OF OUR UPCOMING PROJECTS THEN OUR THIRD SHEET OF THE CHANGE SUMMARY, PAGE 18 OF THE PACKET.

I WANTED TO NOTE THREE PROJECTS ON THIS SHEET.

ONE IS PC2710.

THAT IS A NEW PROJECT THAT WAS ADDED THROUGH THE BUDGET PROCESS.

SUPPLEMENTAL PROCESSES AS TOMMY MENTIONED THE RUSSELL FARM BORN HOME FIREPLACE REPAIR THIS PROPOSED CIP ADDS 107,100 DOLLARS IN FY 27 FROM INTEREST INCOME NON BOND FUNDING TO COMPLETE THAT PROJECT THE NEXT PROJECT PC 2711 VILLAGE CREEK TRAIL EAST OF I-35 THIS WAS DISCUSSED AS PART OF OUR TOWN CREEK SEWER PROJECT AND POSSIBLY LOOKING AT UTILIZING SOME OF THE AREA THAT WE'RE ACQUIRING FOR THAT SEWER PROJECT AS GETTING THE EASEMENTS FOR THE FUTURE TRAIL.

SO WE ARE PROGRAMMING SOME FUNDING 431,000 IN FY 27 FROM PARK ZONE 3 AND PARK DEVELOPMENT ZONE 3 SOME FUNDING THAT WAS AVAILABLE IN OUR FUND BALANCE TO GET THAT PROJECT DESIGNED AND GET AN ALIGNMENT LAID OUT SO WE KNOW EXACTLY WHERE THOSE EASEMENTS OVERLAP I DON'T THINK THAT THAT ALLOCATIONS ENOUGH FOR FULL CONSTRUCTION, BUT WE'RE AT LEAST GOING TO GET STARTED ON THAT PROJECT AND THEN LAST PROJECT I WANTED TO MENTION IS PC2712.

THAT'S THE BRICK ALARM SYSTEM PHASE TWO.

THAT'S ANOTHER ONE THAT WAS IDENTIFIED THROUGH THE BUDGET SUPPLEMENTAL PROCESS.

WE ADDED $112,300 IN FY27 TO COME FROM INTEREST INCOME NON-BOND FUNDING.

FOR THE MOST PART THE OTHER PROJECTS ARE CONSISTENT WITH THE JUNE 1ST PRESENTATION.

SO MOVING FORWARD WITH THE SLIDES YOU HAVE ALL THESE IN FRONT OF YOU.

I'M NOT GOING TO GO THROUGH UNLESS YOU GUYS HAVE ANY SPECIFIC QUESTIONS.

I'M NOT GOING TO GO THROUGH EACH PROJECT.

I THINK THE CHANGES COVER THE GIST OF WHAT CHANGED SINCE JUNE 1ST.

BUT I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE ABOUT SPECIFIC PROJECTS.

ANYBODY? HEY, RANDY, ON THE...

RUSSELL FARM THE BORN HOME FIREPLACE IS THAT IS THAT FIREPLACE USED I GUESS WHICH WOULD WARRANT THE NEED TO REDO IT.

I DON'T BELIEVE IT'S USED BUT IT IS IT HAS THE POTENTIAL OF FAILING AND CAUSING MORE DAMAGE IF IT'S NOT REPAIRED IT HAS A FOUNDATION ISSUE UNDERNEATH THE THE FLOOR THAT'S NOT SUPPORTING THAT FIREPLACE AND SO PART OF ITS PULLING AWAY AND WE WANT TO MAKE SURE THAT THAT STAYS INTACT AND IT DOESN'T FURTHER DEGRADE.

I JUST SEEM, I'M JUST LOOKING AT THE DOLLAR AMOUNT AND I'M LIKE, THAT'S KIND OF A LOT.

IS THERE NOTHING THAT WE CAN JUST PUT UP? LIKE REINFORCE AND THEN TAKE THE FIREPLACE OUT AND PUT SOMETHING ELSE THAT LOOKS LIKE A FIREPLACE RANDY IF I DON'T WANT TO SPEAK IN FOR YOU BUT MY UNDERSTANDING IS WE'RE ENGAGING A STRUCTURAL ENGINEER THEY'RE GOING TO BE ASSESSING OPTIONS AND THEN WE'RE GOING TO GO FROM THERE SO THIS IS A HIGH LEVEL ESTIMATE BUT UNTIL WE GET THE STRUCTURAL ENGINEER REPORT FINISHED AND COMPLETE, I DON'T KNOW THAT WE CAN SPEAK TO THAT.

AND RANDY, IF I'VE MISSTATED.

THAT IS CORRECT.

BUT IN TERMS OF REMOVING IT, I DON'T KNOW ALL THE DETAILS ON RUSSELL FARM AND US TAKING THAT OVER THAT PROPERTY.

BUT I BELIEVE WE HAVE TO KEEP THAT IN AS CLOSE TO ITS EXISTING CONDITION AS POSSIBLE AND KEEP THINGS MAINTAINED.

SO I DON'T THINK IT'S NOT AN OPTION TO REMOVE IT.

OUR USE AGREEMENT RESTRICTS.

SUBSTANT CHANGES LIKE THAT TO REMOVE IT WOULD BE LIMITED.

YEAH SO IT'S GONNA BE THE INFINITE MONEY PIT.

I TAKE IT JUST GONNA SAY I MEAN WE'RE GOING THROUGH A MASTER PLAN NOW TO CONSIDER WAYS TO POTENTIALLY ENHANCE PROGRAMMING AND OPPORTUNITIES TO RECOUP MORE ON THE INVESTMENT, BUT IF IT WAS FUNCTIONAL AND WE WERE USING IT I THINK THAT'D BE THAT'S A GREAT BUT I JUST WAS QUESTIONING THE DOLLAR AMOUNT OKAY SO THE STREET SIDEWALKS AND DRAINAGE PROJECTS ON HERE, THEY ALL CAN BE FUNDED WITH OUR CURRENT INSS TAX RATE THAT WAS PRESENTED.

FOR THE WATER AND SEWER PROJECTS, THOSE ALL CAN BE FUNDED WITHIN THE PROPOSED FY27 RATE THAT'S BEEN IDENTIFIED IN PREVIOUS PRESENTATIONS.

AND JUST KIND OF GOING THROUGH

[01:25:01]

THESE THESE SLIDES THESE ARE ALL INCLUDED.

I WANTED TO NOTE SOME ADDITIONAL UPDATES HERE.

SO MOVING FORWARD TO THE UNPROGRAMMED PROJECT CONSIDERATIONS.

SO THIS THIS LIST IS CONTINUING TO GROW AS WE IDENTIFY FUTURE NEEDS.

WE ARE ADDING THEM TO THIS LIST AND TRYING TO PUT TOGETHER GOOD ESTIMATES FOR THE PROJECT SO WE CAN CONSIDER THEM FOR FUTURE CIP AMENDMENTS OR UPDATES BUT I DO WANT TO POINT OUT A COUPLE OF CHANGES SO THIS LIST BECAUSE IT IS GETTING LONGER IT'S NOW BEEN CATEGORIZED BY THE PROJECT TYPE SO A LITTLE BIT MORE CLARITY IT'S NOT JUST A CONSISTENT LIST IT'S NOW BROKEN OUT BY PROJECT TYPE AND WE HAVE INCLUDED ONE OF THE BIG UPDATES IS WE INCLUDED ALL OF THE STORM DRAIN OR DRAINAGE PROJECTS THAT ARE INCLUDED IN THE STORMWATER FEE ANALYSIS, SO WE'VE ADDED A BUNCH OF THOSE PROJECTS THAT ARE IDENTIFIED IN THE CIP PORTION OF THAT AS WELL AS A FEW OTHERS, SO JUST WANTED TO NOTE THAT THIS PROJECT OR THIS LIST CONTINUES TO GROW AND WE'LL HAVE TO GO THROUGH IT IN THE IN THE FUTURE WITH THAT, THAT COVERS THE PROPOSED FY27 CIP.

I'M AVAILABLE TO ANSWER ANY OTHER QUESTIONS YOU MAY HAVE.

ANYBODY? SO WITH THAT SAID, WHEN I PRESENT THE BUDGET ON THE 10TH, THIS WILL BE THE CIP THAT I'M PRESENTING.

THAT'S GOOD.

THANK YOU, RANDY.

[7.C.Receive a report, hold a discussion, and provide staff direction on Short-Term Rentals. (Staff Contact: Tony D. McIlwain, Development Services Director) ]

NEXT IS ITEM 7C, RECEIVE A REPORT, HOLD A DISCUSSION, AND PROVIDE STAFF DIRECTION ON SHORT-TERM RENTALS.

STAFF CONTACT IS TONY MCELWAIN, DEVELOPMENT SERVICES DIRECTOR.

GOOD EVENING, MAYOR AND COUNCIL.

THIS EVENING, THE PURPOSE OF THIS PRESENTATION IS TO GO THROUGH SHORT-TERM RENTALS AND OFFER A LONG-DELAYED RESPONSE TO A REQUEST FROM THE COUNCIL IN 2003 TO BRING THIS ITEM BACK.

BUT IT OFTEN GIVES YOU SOME SNAPSHOT OF WHERE WE ARE AND OPPORTUNITIES THAT MIGHT EXIST FOR THE CITY GOING FORWARD.

WE RECEIVED A REQUEST FROM A COUNCIL MEMBER TO BRING SHORT-TERM RENTALS FORWARD TO COUNCIL FOR A DISCUSSION.

THIS ITEM PROVIDES AN UPDATE ON THE STR PROCESS, CO-COMPLIANCE EFFORTS, CONSIDERATION ON THE COLLECTION OF HOT MUD ON THESE RENTALS, AND THIRD-PARTY VENDOR SERVICES.

BACK ON MAY 1ST OF 2023, COUNCIL APPROVED THE STR REGISTRATION PROCESS, A $150 PERMIT FEE, AND NO DIRECTION TO ACTIVELY COLLECT HOT MUD.

THE CITY, BY WAY OF DEFINITION, DEFINES A SHORT-TERM RENTAL AS A RESIDENTIAL PREMISES OR PORTION THEREOF USED FOR LODGING ACCOMMODATIONS TO OCCUPANTS FOR A PERIOD OF NOT LESS THAN ONE OR MORE THAN 30 CONSECUTIVE DAYS.

SO IN THAT REGARD, THAT'S THE DISTINCTION BETWEEN A SHORT-TERM RENTAL AND SOMEONE INVOLVED IN A LONGER LEASING ARRANGEMENT.

BUT AT THAT MEETING, COUNCIL REQUESTED A ONE-YEAR UPDATE ON THE PROGRAM, WHICH WAS INADVERTENTLY NOT DONE BY STAFF.

STAFF, I.E., IS ME, SO I APOLOGIZE TO THE COUNCIL.

I DROPPED THE BALL ON THAT AND DIDN'T BRING THAT BACK FORWARD TO YOU.

BUT THIS HOPEFULLY WILL GIVE YOU SOME BACKGROUND INFORMATION OF WHAT WE'VE BEEN DOING IN THE LAST THREE YEARS.

THE CITY'S APPLICATION PROCESS REQUIRES OPERATORS TO OBTAIN A PERMIT AND REGISTER THEIR STR.

WE THEN REVIEW THE PERMIT REQUEST AND CONDUCT INSPECTIONS OF THE PREMISES.

THE PERMITS EXPIRE ON THE LAST DAY OF THE MONTH, ONE YEAR AFTER THE DATE OF ISSUANCE, AND NEW PERMITS ARE REQUIRED FOR THE CONTINUOUS OPERATION OF A SHORT-TERM RENTAL.

SO ONCE YOU HAVE ONE OPERATE, YOU START THAT PROCESS AGAIN WITH CITY STAFF.

THIS IS JUST MORE INFORMATION BY WAY OF THE APPLICATION REQUIREMENTS.

THIS IS DISCUSSED AT LENGTH WITH THE COUNCIL, BUT WE NEED PHYSICAL ADDRESS, NUMBER OF BEDROOMS, OWNER'S CONTACT INFORMATION, NAME, ADDRESS, AND EMAIL OF A PERSON WHO HAS LEGAL AUTHORITY TO ACT FOR THE OWNER, CONTACT INFORMATION BY REGARD OF A TELEPHONE NUMBER, AND THE ADDITIONAL INFORMATION THAT YOU SEE ON THE SCREEN.

SHORT-TERM OPERATORS MUST ALLOW THE CITY TO CONDUCT AN ON-SITE INSPECTION OF THE SHORT-TERM RENTAL PREMISES TO ENSURE COMPLIANCE WITH MINIMUM HEALTH AND SAFETY REQUIREMENTS FOR USE AND OCCUPANCY.

SO UPON COMPLETION OF THE INSPECTION, IF WE FIND A PREMISES TO BE IN VIOLATION OF ONE OR MORE OF THE PROVISIONS OF THE APPLICABLE CITY CODE, IN ORDER TO SAY WE DIDN'T

[01:30:01]

PROVIDE WRITTEN NOTICE TO THE OPERATOR OF THE VIOLATION AND SET A RE-INSPECTION DATE, THAT IS TO WORK WITH THEM TO GET EVERYTHING RESOLVED PRIOR TO ISSUANCE OF THE PERMIT.

THE FIRE MARSHAL'S OFFICE IS PRINCIPALLY RESPONSIBLE FOR CONDUCTING THE INSPECTIONS FOR SHORT-TERM RENTALS.

WHAT WE LOOK FOR AS A CITY STAFF OF SMOKE ALARMS AND FIRE EXTINGUISHERS BEING PRESENT EMERGENCY EVACUATION ROUTES.

WE DON'T WANT THAT TO BE A SITUATION WHERE YOU NEED TO USE THOSE BUT WE NEED TO HAVE THAT ON FILE SO REGARD TO CODE COMPLIANCE WHEN WE PUT TOGETHER THIS PRESENTATION.

THERE WAS A SNAPSHOT ON THAT DAY I CAN TELL YOU THAT AS OF TODAY'S DATE WE HAVE 16 APPROVED SHORT-TERM RENTALS AND WE HAVE 15 THAT ARE CURRENTLY UNDER REVIEW.

SO I GOT A NEW LIST FROM LISA DUELLO EARLIER THIS MORNING.

WE'VE ACTUALLY GOT ABOUT 45 SHORT-TERM RENTALS THAT WE'VE MADE CONTACT WITH.

THEY'RE IN SOME COMBINATION OF BEING APPROVED, UNDER REVIEW, NO LONGER OPERATING AS A SHORT-TERM RENTAL, WHICH REQUIRES US TO GO IN AND RECONFIRM THAT FROM TIME TO TIME.

SOME ARE LOCATED OUTSIDE THE CITY LIMITS.

SO WE'VE GOT THEM IN VARIOUS STATES.

OF BEING, SO TO SPEAK, BUT WE HAVE BEEN WORKING TO BRING THOSE OPERATORS UNDER THE UMBRELLA OF COMPLIANCE WITH THE CITY.

THEY'VE BEEN ACCOMMODATING.

WE ANTICIPATE HAVING UPWARDS OF 30 SHORT-TERM RENTALS WHEN WE GET FINISHED WITH THE EXERCISE.

WE DO HAVE A HANDFUL OF INDIVIDUALS WHO HAVE NOT YET RESPONDED.

WE'VE SENT OUT TWO NOTICES AND WE'LL PROCEED WITH CO-COMPLIANCE EFFORTS FOLLOWING THAT.

AS YOU KNOW, WE DO NOT HAVE AN ABUNDANCE OF CODE COMPLIANCE OFFICERS.

THERE ARE SOME CHALLENGES WITH SUSTAINED EFFORT ON SHORT-TERM RENTALS.

IT'S NOT ENOUGH MANPOWER FOR US TO HAVE A SUSTAINED, DEDICATED WORK.

EFFORT TO GET IN OUR ARMS AROUND THESE.

WHAT WE'VE BEEN DOING WITH THE HELP OF OTHERS IS GOING THROUGH THE VERBAL WEBSITE.

IT'S A GOOD EXAMPLE OF WHAT WE'RE LOOKING AT TO FIND POSSIBLE LOCATIONS FOR SHORT-TERM RENTALS.

AND WE ALSO DISCUSSED THIRD PARTY OPTIONS TO AUGMENT THE IDENTIFICATION AND OUTREACH TO SHORT TERM RENTAL OPERATORS.

THIRD PARTIES ARE TYPICALLY USED IN SOME COMMUNITIES TO ALSO ASSIST WITH HOT MOP COLLECTION IF THE CITY DECIDES TO MOVE IN THAT DIRECTION.

SHORT-TERM RENTALS ARE NOT EXEMPT FROM HOT MOD TAX SINCE THEY RENT ROOMS FOR LESS THAN 30 CONSECUTIVE DAYS.

SO THE STATE HOT MOD RATE IS 6%, THE CITY CHART IS A LOCAL HOT MOD OF 7%, AND HOT MOD TAXES, JUST AS A REMINDER, CAN ONLY BE USED FOR TOURIST.

SO THE QUESTION THAT WE ASKED INTERNALLY IS IF CITY COUNCIL DECIDES TO MOVE FORWARD WITH THIRD PARTY COLLECTION OF HOT MOTT, WHAT DOES THE LAW PROVIDE FOR? SO THANKS TO THE HELP OF MR. HRABISKY, HE IDENTIFIED TEXAS TAX CODE SECTION 351.1012.

THIS IS ELECTRONIC TAX ADMINISTRATION SYSTEM.

AND THIS IS THE THIS IS THE LANGUAGE IN THE TAX CODE THAT CITIES CAN UTILIZE TO SPEND NOT MORE THAN THE LESSER OF ONE PERCENT OR SEVENTY FIVE THOUSAND DOLLARS OF THE REVENUE DERIVED FROM THE TAX THAT WOULD BE HOT FOR AN ELECTRONIC TAX ADMINISTRATION SYSTEM.

SO AGAIN, THE LESSER OF 1%...

OR 75 000 OF THE REVENUE FOR THE FOR THE USE OF A TAX ADMINISTRATION SYSTEM AND THEN THIS LANGUAGE ALSO ALLOWS THE CITY TO CONTRACT WITH A THIRD PARTY TO ASSIST IN THAT EFFORT HOWEVER IF THE CITY AUTHORIZES AND REQUIRES AN ELECTRONIC TAX ADMINISTRATION SYSTEM WE ALSO MUST ALLOW THE HOT MODEL COLLECTORS, THAT IS THE HOTELS AND SHORT-TERM RENTALS, TO WITHHOLD FROM THE TAX PAYMENT 1% OF THE AMOUNT OF THE TAX COLLECTED AS REIMBURSEMENT FOR THE COST OF COLLECTING THE TAXES PROVIDED BELOW.

AND I WON'T READ INTO THAT, BUT THAT'S ANOTHER PROVISION OF THE TEXAS TAX CODE.

SO THE STATE GIVES AND IT TAKES AWAY IN THAT IT DOES ALLOW US TO UTILIZE THE TAXES, BUT ALLOWS THEM TO RECOUP THE EXPENDITURE FOR THE UTILIZATION OF THAT SYSTEM.

BUT IT'S SOMETHING THAT IS AVAILABLE FOR MUNICIPALITIES SHOULD THE COUNCIL DIRECT STAFF TO ACTIVELY COLLECT HOT MOTT OR ADMINISTER IT THROUGH AN ELECTRONIC TAX ADMINISTRATION

[01:35:03]

SYSTEM WITH OR WITHOUT A THIRD-PARTY VENDOR.

PRIOR TO THIS ITEM BEING ON YOUR AGENDA TONIGHT, WE DID RESEARCH SOME THIRD-PARTY VENDORS WITH AN AIM TOWARD INFORMATION GATHERING AND POSSIBLE ASSISTANCE WITH THE ID AND ADMINISTRATION OF SHORT-TERM RENTALS.

AS YOU MIGHT WELL IMAGINE, THERE ARE SEVERAL COMPANIES THAT PROVIDE RESOURCES TO LOCAL GOVERNMENTS TO AID IN THIS EFFORT.

HOWEVER, SHOULD THE CITY ENTER TO A CONTRACT WITH A THIRD PARTY VENDOR, THERE WOULD BE A GENERAL FUND EXPENSE FOR THOSE SERVICES, TAX REVENUE EXPENDITURE ASSOCIATED WITH THE ELECTRONIC TAX ADMINISTRATION, AND A 1% TAX REVENUE LOSS ASSOCIATED WITH THE REQUIRED OPERATOR WITHHOLDING.

SO JUST TO GIVE YOU A QUICK BREAKDOWN OF WHAT WOULD BE REQUIRED SHOULD WE RAMP UP AND ACTIVATE OUR HOT MOCK COLLECTION UTILIZING AN ELECTRONIC SYSTEM.

BELOW THE TABLE DETAIL IN THE HOT MOD AS A PERCENT OF THE TOTAL ADOPTED OPERATING BUDGET.

WHAT WE'RE LOOKING AT IS BASICALLY A HOT MOD ADOPTED BUDGET OF $723,390 WITH THAT BEING 0.40 OF THE BUDGET.

DURING THE FIRST QUARTER, 27 DIFFERENT OPERATORS PAID LOCAL HOTMAIL TO THE CITY.

THAT AMOUNT WAS OVER $95,000.

WE HAD TWO OPERATORS, BUT ONLY ONE WAS REGISTERED AS A SHORT-TERM RENTAL.

WE NOTICED THAT A SECOND ADDRESS WAS A SHORT-TERM RENTAL, BUT WE THINK THEY WENT DORMANT OR STOPPED OPERATING.

BUT I'M SORRY, THEY TRANSITIONED FROM SHORT-TERM TO LONG-TERM RENTAL, AND WE DID VERIFY THAT WITH A CONVERSATION.

SO WHAT WE HAD WAS ONE OPERATOR WHO REMITTED LOCAL HOT-MOT TAX AS A SHORT-TERM RENTAL OPERATOR DURING THE FIRST QUARTER.

SO THE PURPOSE TONIGHT IS TO SEEK YOUR FEEDBACK AND DIRECTION REGARDING SHORT-TERM RENTALS.

IS COUNCIL INTERESTED IN MAKING ANY CHANGES TO THE CITY'S REGISTRATION PROCESS OF FEE? IS COUNCIL INTERESTED IN ACTIVELY COLLECTING HOT MOT FOR SHORT-TERM RENTALS AND IF SO ARE YOU INTERESTED IN UTILIZING A THIRD-PARTY VENDOR TO ASSIST WITH THIS EFFORT? I'M HERE TO ANSWER ANY QUESTIONS.

WE'VE LOOKED AT THIS IN DEPTH WITH THE CITY MANAGEMENT TEAM AND STAND BY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE OF SHORT-TERM RENTALS.

ONE QUESTION I MAY HAVE, TONY, IT MAY BE A LEGAL QUESTION, IS IF AN INDIVIDUAL RENTS OUT THEIR PROPERTY FOR TWO DAYS AND THEN SIX DAYS AND THEN 60 DAYS AND THEN 90 DAYS AND THEN BACK TO TWO DAYS AND THREE DAYS, IS THAT CONSIDERED LONG-TERM RENTAL OR SHORT-TERM RENTAL WITH A MIX? THAT IS CONSIDERED SHORT-TERM RENTAL IF THERE ARE BREAKS IN OCCUPANCY.

IF IT'S TWO DAYS OF RENTAL AND THEN IT'S VACANT FOR TWO DAYS AND THEN THEY LEASE IT FOR ANOTHER TWO WEEKS, EACH INDIVIDUAL RENTAL AGREEMENT IS A SHORT-TERM RENTAL.

IT WOULD HAVE TO BE A RENTAL AGREEMENT WITH ONE PARTY FOR AN EXTENDED PERIOD LONGER THAN 30 DAYS.

OKAY, BUT IF THEY DID, I'VE SEEN THEM WHERE THEY'VE RENTED THEM OUT, LIKE ONE BEDROOM, TO A CORPORATION FOR 90 DAYS, AND THEN THAT CORPORATION IS DONE WITH IT, AND THEN IT LEASES OUT FOR TWO DAYS, THREE DAYS, AND THEN THEY COME BACK AND RENT IT FOR 90 DAYS AGAIN.

IT'S THE FIRST TIME THEY EXECUTE A RENTAL AGREEMENT FOR LESS THAN 30 DAYS HOTMOD IS APPLICABLE FOR THAT PERIOD OF TIME THEN IF TWO MONTHS LATER THEY SIGN AN AGREEMENT FOR FOUR MONTHS WITH SOMEBODY ELSE THAT'S BEYOND 30 DAYS SO IT'S NOT SUBJECT TO THE HOT MOD TAX OKAY, BUT AS FAR AS SHORT-TERM RENTAL REGISTERING THERE'S TWO REQUIRED TO REGISTER.

YES, SIR.

OKAY HOW MUCH OF YOUR TIME IS THIS TAKING UP? MINE, NOT MUCH, BUT FOR CO-COMPLIANT STAFF, QUITE A BIT.

AND SO THEY'RE THE BOOTS ON THE GROUND THAT WILL GO IN AND IMPOTENTLY VERIFY COMPLAINTS, VERIFY WHETHER OR NOT A SHORT-TERM RENTAL ACTUALLY EXISTS.

AND SO WHAT WE HAVE, THANKS TO THE AID OF, AGAIN, WE HAD A COUNCIL MEMBER WHO WAS VERY EFFECTIVE IN GETTING US INFORMATION.

WE INDEPENDENTLY VERIFY NOT ONLY THROUGH THIRD-PARTY WEBSITES, BUT ALSO BY MAKING CONTACT.

THE SALES SHEET THAT WE'RE WORKING FOR HAS PROBABLY EXCESS OF 70 DIFFERENT ADDRESSES.

WE'VE GONE EVERY SINGLE ONE.

[01:40:01]

AND WE WILL FOLLOW UP IF WE DON'T GET CONTACT OF THAT LIST.

I THINK WE HAVE FIVE THAT HAVE NOT RESPONDED.

SO SOME PEOPLE HAVE TRANSITIONED FROM SHORT TERM TO LONG TERM.

WE'RE NOT AUTHORIZED TO ASK FOR A LEASE, BUT THEY PROVIDED THAT AS INFORMATION FOR OUR RECORDS.

SOME INDIVIDUALS HAVE SAID THAT THEY'RE NOT RUNNING SHORT TERM RENTAL OPERATIONS.

BUT WE HAVE NOTICED THAT THE WEBSITE PRESENCE HAS NOT COME DOWN, SO IT'S STILL LISTED.

SO THAT REQUIRES US TO DO ADDITIONAL FOLLOW-UP.

SO TO ANSWER YOUR QUESTION, IT OCCUPIES A CHUNK OF TIME FOR CODE COMPLIANCE JUST FROM THE IDENTIFICATION STANDPOINT AND THEN SETTING UP AND ARRANGING TO TALK TO THE OPERATOR.

IS THE THIRD PARTY COST EFFECTIVE? SO THE THIRD PARTY IS GOING TO BE AN IMPACT JUST BECAUSE IT WOULD BE A CONTRACT WE WOULD HAVE TO SIGN.

AND A THIRD PARTY WOULD ASSIST, A THIRD PARTY WOULD ASSIST IN IDENTIFICATION.

WE STILL HAVE TO INDEPENDENTLY VERIFY THOSE.

SO WE WOULD NEVER JUST TAKE A LIST AT CARTE BLANCHE AND JUST MOVE FORWARD WITH IT.

WE WOULD HAVE TO INDEPENDENTLY VERIFY AND THEN STILL MAKE THE CONTACT.

WOULD IT GET US ORIENTED IN A CERTAIN DIRECTION? YES, SIR, IT WOULD.

IT WOULD BE MAYBE A DEDICATED IDENTIFICATION SOURCE THAT WE OTHERWISE AREN'T UTILIZING RIGHT NOW.

MAYOR, TO THAT END, I THINK ONE OF THE QUESTIONS WE'VE DISCUSSED AMONGST STAFF IS, OBVIOUSLY, THERE'S A COST ASSOCIATED WITH THAT.

WE'VE NOT GONE THROUGH A PROCUREMENT.

WE'VE ONLY TALKED TO ONE COMPANY.

THE COST BENEFIT OF THE AMOUNT OF MONEY WE WOULD EXPEND ON THE SERVICE VERSUS WHAT WE BRING IN, IT'S VERY DIFFICULT FOR US TO SAY WITHOUT GOING THROUGH SOME KIND OF PILOT PROGRAM.

SO YOU'VE HAD AN UPTICK ON THE NUMBER OF SHORT-TERM.

HOW DID YOU FIND OUT ABOUT THEM? DID THEY VOLUNTARILY CALL THE CITY, OR DID YOU ALL RESEARCH THEM AND FIND THEM? NO, WE ACTUALLY RECEIVED THE INFORMATION FROM A COUNCIL MEMBER WITH A LIST OF...

POSSIBLE SHORT-TERM RENTALS AND WE WORKED THAT LIST AND WE HAD QUITE A FEW THAT WERE OPERATING OUTSIDE OF THE CITY'S REGISTRATION PROCESS.

SINCE THEN THAT'S KIND OF WHET THE APPETITE OF THE CODE COMPLIANCE STAFF TO CONTINUE WITH THE EFFORT TO GO IN AND IDENTIFY OTHER SHORT-TERM RENTALS THROUGH EITHER VRBO THE PROPERTY OWNER.

I THINK THE PROPERTY OWNER IS THE ONE THAT HAS THE MOST ACCESS TO THE PROPERTY.

AS YOU KNOW THEY DON'T GIVE YOU SPECIFIC ADDRESSES SO IT WAS A LOT OF TRYING TO PINPOINT RECOGNIZE THE EXTERIOR OF THE PROPERTY DRIVE DOWN WHAT YOU THINK IS THE STREET GO IN AND GAME THE SYSTEM MORE OR LESS TO FIGURE OUT WHERE THESE ARE AND THEN MOVE FORWARD WITH MAKING CONTACT WITH THE PROPERTY OWNER.

I THINK MANAGING THE SHORT-TERM RENTALS IS JUST PART OF THE CITY DOING BUSINESS.

JUST LIKE INSPECTING HOTELS, JUST LIKE INSPECTING RESTAURANTS, INDUSTRIAL BUILDINGS.

IT'S THE PROCESS THAT THE CITY HAS TO MANAGE TO BE THE CITY.

WE CAN'T JUST ALLOW AN ENTITY TO COME IN.

AND NOT BE MANAGED.

SHORT-TERM RENTALS, WE HAVE FAMILY THAT STAY THERE, WE HAVE TOURISTS THAT STAY THERE, JUST LIKE IN HOTELS, AND THERE NEEDS TO BE A WAY TO MAKE SURE THAT THEY STAY THERE SAFE IN OUR CITY AND ARE COMFORTABLE, AND BY INSPECTING THEM, WE MAKE SURE THAT THAT'S DONE, AND THAT SHOULD BE THE CITY'S BUSINESS TO TAKE CARE OF THAT, NOT TO JUST IGNORE IT.

AND AS FAR AS COLLECTING, YES, WE NEED TO COLLECT THE MONEY.

AND IT'S MONEY ON THE TABLE THAT'S THERE.

AND WE NEED TO HAVE THAT BECAUSE THE WAY THE LAW WAS WRITTEN, TOURISM TAKES CARE OF TOURISM.

AND IF WE DON'T COLLECT THE TOURISM MONEY, THE HOT TAX MONEY, THEN THE CITIZENS ARE PAYING FOR THE TOURISM.

AND I'D RATHER THE TOURISTS PAY FOR TOURISM.

AND MAYOR COUNCIL I I COUNCILMAN SCOTT THANK YOU FOR YOUR COMMENTS I I I DID NOT MENTION THAT I DID SOME CALLING AROUND JUST IN ADVANCE OF THIS MEETING AND TALK TO SOME OF THE ADJACENT CITIES.

AND I KNOW THAT WAXAHACHIE, GRAND PRAIRIE, WEATHERFORD, BEDFORD ALL ACTIVELY COLLECT LOCAL HOT MOTT ON THEIR SHORT-TERM RENTALS.

I CALLED OTHER CITIES.

WE REACHED OUT.

WE DID NOT GET A RESPONSE.

I'M SURE WE'LL GET A RESPONSE.

BUT THOSE ARE THE CITIES THAT WERE ACTIVELY COLLECTING IT.

THEY HAD A PAYMENT PORTAL ON THE STR LINK ON THEIR WEBSITE.

AND IT'S A.

THE FIRST CITY I CALLED HAD A PERSON WHO IDENTIFIED HERSELF

[01:45:01]

TO ME AS THE SHORT-TERM RENTAL PERSON FOR THE CITY.

SO SHE CHUCKLED WHEN I ASKED HER THE QUESTION.

SHE GOES, THAT'S ALL I TYPICALLY DO.

I'M THE PERSON.

SO THERE ARE CITIES THAT ARE ACTIVELY INVOLVED IN COLLECTING LOW HOT MONEY ON THE SHORT-TERM RENTALS.

WELL, I AGREE WITH LARRY.

IT'S GOING TO HAPPEN WHETHER WE LIKE IT OR NOT.

SO WE HAVE TO MANAGE IT.

HATS OFF TO HAVING CAUGHT WHAT YOU HAVE CAUGHT BUT IT'S JUST GOING TO BE AN ONGOING THING TO MANAGE YOU KNOW AND HERE WE ARE TALKING ABOUT PERSONNEL AND TRYING TO GET OTHER PERSONNEL AND STUFF WE DON'T HAVE THE MONEY AND WE'RE PUTTING MORE BURDEN ON OTHER GROUPS WELL, THE ORDINANCE IS WRITTEN THE WAY IT IS, AND THAT'S OUR ORDINANCE.

WE HAVE TO OWN IT, AND WE HAVE TO ENFORCE IT, AND SO THAT'S WHAT STAFF WILL DO.

I THINK MS. DUELLO IS PUTTING IN PLACE A PROCESS.

WHENEVER I ASK HER FOR AN UPDATED LIST, SHE HAS IT AVAILABLE, AND IT'S UPDATED WITH THE LAST STAFF INTERACTION.

SO WE'LL INTEGRATE THIS PART OF OUR LOCAL INSPECTION RUNS WHERE WE THINK WE HAVE THEM.

WE'RE CANVASSING THE CITY ANYWAY, DOING THE JOB, AND WE'LL JUST CONTINUE TO DO SO.

WE DO EXPECT THAT LIST TO POSSIBLY GROW, BUT IT'S MADE A TREMENDOUS DIFFERENCE BECAUSE I EXPECT US TO HAVE UPWARDS OF 20 NEW REGISTERED SHORT-TERM RENTALS.

THAT'S BEING CONSERVATIVE AS A RESULT OF THE INITIAL LIST WE RECEIVED.

DO YOU THINK THE UPTICK IS BECAUSE OF WORLD CUP? THE RECENT UPTICK, SURE, BUT I WOULD SUSPECT MAYBE SOME OF THESE HAVE BEEN IN USE FOR A WHILE.

I THINK THAT WE'VE HAD SOME OF THESE SHORT-TERM RENTALS GOING ON FOR A WHILE.

TONY, IT'S CORRECT TO SAY HISTORICALLY OUR ENGAGEMENT INTERACTION WITH SHORT-TERM RENTALS WITH REGARDS TO COMPLAINTS OR OPERATING WITHOUT REGISTRATION HAS LARGELY BEEN COMPLAINT DRIVEN? YES, I KNOW THAT THE MAYOR CAN SPEAK AND SO CAN YOU, MR. CITY MANAGER, ABOUT THE NUMBER OF EMAILS WE GET FROM ADJACENT PROPERTY OWNERS THAT HAVE CONCERNS ABOUT SHORT-TERM RENTALS.

I HAVE FILLED THAT CALLS AND THE PEOPLE THAT CALL.

SHORT-TERM RENTALS ARE VERY SAVVY ABOUT WHAT SHORT-TERM RENTALS CAN AND CAN'T DO.

WE HAVE GIVEN THEM INFORMATION ABOUT THE LAYOUTS, THE OCCUPANCY LOADS, WHETHER OR NOT THE CITY HAS GONE AND PERFORMED INSPECTIONS.

AND SO TO THE BEST OF OUR ABILITY, WE MAKE SURE THAT WE GIVE THEM INFORMATION AND WE ALWAYS ENCOURAGE THEM TO CONTACT US IF THERE ARE ANY KIND OF ISSUES REGARDING COMPLIANCE THAT WE NEED TO BE AWARE OF.

SO THE REASON WHY I SAY THAT IS I THINK THERE ARE A NUMBER OF THINGS IF THE COUNCIL'S DIRECTION IS TO ACTIVELY PURSUE THE PAYMENT OF HOT MOD THAT WE CAN DO IN TERMS OF PROVIDING BETTER INFORMATION THAT REGISTRATION, HAVING A PAYMENT PORTAL.

I THINK THERE'S A LOT OF THINGS THAT ADMINISTRATIVE WE CAN DO TO ENHANCE THAT WITH REGARDS TO A SHIFT FROM KIND OF A REACTIVE LARGELY REACTIVE ENGAGEMENT ON SHORT-TERM RENTALS TO A MORE PROACTIVE THERE'S AN IMPACT TO THAT.

I THINK WHAT I WOULD RECOMMEND IS WE WOULD EXPLORE THE OPPORTUNITY FOR WHAT A THIRD PARTY MIGHT NET US IN TERMS OF GIVING US A SOLID LIST AND THINGS LIKE THAT TO HELP IDENTIFY THAT THAT WE CAN FOLLOW BEHIND THAT WOULD LIKELY BE SOMETHING THAT WOULD BE BELOW THE PURCHASING THRESHOLD FOR THE COUNCIL TO CONSIDER, BUT IF WE WERE GOING TO DO IT, IT'S NOT AN APPROPRIATION, SO WE'D HAVE TO COME BACK AND HAVE THAT CONVERSATION.

SO I'D RECOMMEND THAT WE EXPLORE THOSE OPTIONS WITH PROCUREMENT AND GET MORE DETAILS AND THEN POTENTIALLY COME BACK WITH REGARDS TO WHAT A THIRD PARTY WOULD BE, WHAT THEY WOULD BE ABLE TO PROVIDE US, AND THEN WHAT THAT WOULD LOOK LIKE FROM A MORE ACTIVE CODE ENFORCEMENT STANDPOINT.

IF THE COMFORTABLE THE COUNT COMFORTABLE WITH THAT DIRECTION? WELL, WITH THE FACT THAT THE SPORTS FACILITY, THE COMPANY IS COMING IN, KEEPING US BUSY, WE'RE GOING TO HAVE MORE SHORT TERM.

I MEAN, THAT'S GOING TO HAPPEN.

AND IT'S GOING TO BE A GOOD THING, BUT WE HAVE TO MANAGE IT.

WE CAN'T TURN A BLIND EYE TO IT.

ONE OF THE THINGS I LIKE BEST ABOUT THE SHORT-TERM RENTAL STRUCTURE, THE WAY THINGS WORK, IS THAT VRBO AND AIRBNB, THERE MAY BE OTHERS, IT'S A SELF-POLICING.

THING WHEN TENANTS TAKE A PLACE ON THEY WILL TYPICALLY RATE THE PLACE ONLINE AND OFFER COMMENTS AS TO THE WAY THE PLACE WAS WAS IT MAINTAINED WELL DID EVERYTHING WAS IT AS IT WAS PRESENTED AND LIKEWISE THE TENANT IS RATED BY THE OWNER OF THE SHORT-TERM RENTAL SO WITH THOSE TWO FACTORS WORKING TOWARDS POSITIVE OUTCOMES, UNDOUBTEDLY, I THINK THE CITY'S ROLE

[01:50:02]

IN TRYING TO INSPECT AND PROVE UP ALL THESE THINGS MAY BE A LITTLE BIT SUPERFLUOUS TO A SYSTEM THAT PRETTY MUCH TAKES CARE OF ITSELF.

WE MAY HAVE PEOPLE SLEEPING IN HOUSES THAT THEY OWN THAT DON'T HAVE WORKING SMOKE DETECTORS.

OKAY, THAT'S PART OF IT.

BUT I THINK THE PRIMARY DECISION IS DO WE OR DO WE NOT WANT TO COLLECT SHORT-TERM RENTAL TAXES? ONCE WE'VE MADE THE DECISION TO DO THAT, I WOULDN'T RECOMMEND IMMEDIATELY PURSUING A THIRD-PARTY COLLECTOR BECAUSE WE NEED TO SEE HOW MUCH TIME THIS SITUATION TAKES.

TAKES.

WE CAN DO IT WITHIN EXISTING STAFF CAPABILITIES.

THOSE DUTIES CAN BE SHARED AMONG OTHER DUTIES, SO THERE'S NOT A LOT OF WASTED TIME OF A PERSON DISAPPOINTED.

IF IT TURNS OUT TO BE A FULL-TIME OPERATION FOR A NEW FTE, THEN PERHAPS WE HIRE A NEW FTE, AND THAT TAKES THE PLACE.

AT THAT POINT, WE CAN MAKE A DECISION WHETHER OR NOT TO INVOLVE A THIRD PARTY AND WEIGH THE COST OF THE THIRD PARTY FEES VERSUS THE COST OF DOING IT IN-HOUSE.

BUT THE PRIMARY DECISION I THINK WE NEED TO COME TO IS DO WE WANT TO COLLECT THIS TAX? TAX OR NOT.

AND I TEND TO THINK WE PROBABLY SHOULD, ESPECIALLY GIVEN THE ANTICIPATION THAT THIS IS GOING TO GET TO BE A BIGGER AND BIGGER THING.

I KNOW WITH SFC, AS YOU SAID, TAKING OVER CHISHOLM HALL FIELDS, THERE'S GOING TO BE A MUCH HIGHER DEMAND FOR THAT THAN WHAT WE'VE HAD IN THE PAST.

AND I THINK IT WOULD BE A GOOD IDEA.

WHEN THESE DISCUSSIONS TOOK PLACE SEVERAL YEARS AGO, I TENDED NOT TO WANT TO START COLLECTING THESE TAXES SIMPLY BECAUSE THE SURROUNDING AREA DIDN'T CHARGE THEM THAT WOULD PUT BURLESON UH STR OWNERS AT A DISADVANTAGE COST-WISE AGAINST PEOPLE OUTSIDE THE CAMP OUTSIDE THE CITY BUT I THINK I'M STARTING TO GET THE IMPRESSION THAT MOST OF THE CITIES THAT SURROUND US ARE PROBABLY GOING TO COLLECT THIS AND THERE'S YOU KNOW NO REASON WHY WE SHOULDN'T BECAUSE THAT'S WHERE PEOPLE WANT TO BE.

SO I WOULD SAY LET'S GO FORWARD WITH IT.

THAT WOULD BE MY INCLINATION AT THIS TIME.

I WANT TO HEAR A LITTLE BIT MORE ABOUT IT, BUT I THINK WE SHOULD MOVE TOWARDS INSTANT.

...INSTITUTING THE FEE.

WHOEVER CAME UP WITH THE LIST OF PEOPLE PROBABLY WASN'T TOO HARD TO FIND.

YOU GO ON AIRBNB, EVERY ONE OF THOSE I'VE SEEN DOES LIST THE ADDRESS, AND YOU CAN COMPARE THE ADDRESS AGAINST WHAT YOU'VE GOT REGISTERED IN YOUR DATABASE AND FIND OUT PRETTY QUICKLY WHETHER SOMEBODY'S...

RUNNING WITHOUT PERMITTING.

SO MY INCLINATION IS TO GO FORWARD WITH THE DECISION TO INSTITUTE THE TAX AND BEGIN TO COLLECT IT.

MAYOR PRO TEM, I'LL DEFER TO MR. RUBITSKY, WHO'S BEEN INVOLVED IN THIS PROCESS.

OUR CURRENT HOT MY ORDINANCE WOULD INCLUDE SHORT-TERM RENTAL.

SO IT'S NOT THAT WE DON'T NECESSARILY COLLECT IT'S THAT WE HAVEN'T NECESSARILY ACTIVELY PURSUED AS A RESULT OF THE DIRECTION FROM THE COUNCIL THAT DOESN'T NECESSARILY MEAN THAT WE WE WOULDN'T BE RECOMMENDING SOME MODIFICATIONS TO THAT ORDINANCE TO PROVIDE BETTER CLARITY.

BUT LEGALLY, WE CAN COLLECT IT TODAY, AND WE DO HAVE THOSE THAT REMIT IT.

BUT WITH REGARDS TO TRYING TO ACTIVELY FOLLOW UP ON WHO'S MADE PAYMENT OR NOT, BASED ON PREVIOUS DIRECTION, THAT'S NOT SOMETHING WE'VE ACTIVELY DONE.

MY RECOLLECTION WAS THAT PREVIOUS DIRECTION FROM THIS COUNCIL WAS TO ESTABLISH A PERMITTING PROCESS AND ASK PEOPLE TO SIGN UP AND OBTAIN THE PERMITS, BUT NOT TO COLLECT THE TAX.

SO I DON'T KNOW HOW THE ORDINANCE WOUND UP GETTING WRITTEN.

THAT'S THE CASE, BUT I THINK IT WAS EXISTING DEFINITIONS WOULD COVER THE USE OF SHORT TERM RENTALS.

I THINK HOW WE AS STAFF INTERPRETED THE DIRECTION FROM COUNCIL WAS THAT IF THOSE THAT REMITTED AND PAY IT, THEY DO, BUT TO NOT ACTIVELY PURSUE PAYMENT.

AND IF WE MISTOOK COUNCIL'S DIRECTION AND I TAKE RESPONSIBILITY FOR THAT.

RESPONSIBILITY DOESN'T MATTER.

I JUST THOUGHT WE HAD MADE THE DECISION THAT WE WERE GOING TO TRY TO TRY TO RECOGNIZE WHAT WE HAVE, LIKE WE'VE DONE TONIGHT.

HOW MANY DO WE HAVE OUT THERE? WHAT ARE THEY DOING WITH A VOLUNTARY SIGN UP PROCEDURE LIKE WE HAD BEFORE? THEN WE'D HAVE...

HAVE A REASONABLE NUMBER.

BUT I DON'T THINK, IF I'M WRONG, I'M WRONG, BUT I DON'T RECALL THAT WE EVER DIRECTED STAFF TO GO OUT AND TELL PEOPLE, OKAY, NOW YOU'VE GOT TO START PAYING THIS TAX BECAUSE YOU REGISTERED.

MY UNDERSTANDING WAS THAT WAS THE OPPOSITE, THAT WE TOLD THEM ALL YOU HAVE TO DO IS REGISTER.

BUT WE DON'T WANT YOU TO COLLECT THE UNTIL SOME SUBSEQUENT TIME IF EVER UNDERSTOOD MY THAT WAS MY UNDERSTANDING WHAT WE VOTED ON AT THE TIME.

I'M NOT SURE.

I THINK SHERRY HAS ALL THE ANSWERS YES, WE DO HAVE A SPEAKER CARD SHERRY SCOTT HELLO I'M THE ONE WHO CREATED THE LIST AND IT TOOK ME HOURS AND HOURS AND HOURS TO DO THE LIST AND THEY DON'T

[01:55:01]

HAVE THE ADDRESSES ON THE SITE ITSELF.

SOMETIMES THE MAP WILL SHOW A VICINITY OF WHERE IT'S AT, BUT IT WILL BE BLOCKS AWAY.

BUT MY THOUGHT IS, IF YOU'RE GOING TO PROMOTE A HOT-MOT GRANT TO BRING PEOPLE INTO THE CITY, WHY ARE YOU NOT COLLECTING THE TAX? I MEAN, YOU COULD BUY A NEW CHRISTMAS TREE EVERY YEAR WITH THE AMOUNT OF MONEY THAT...

YOU COULD BRING IN ON THIS HOT MOP TAX.

GOOD JOB.

ANYWAY, I'VE WORKED VERY HARD ON THAT LIST, AND IT'S NOT AN EASY, EASY THING TO DO.

IN MY OWN DEFENSE, I'VE NEVER BEEN THE ONE IN OUR FAMILY THAT SELECTS THE RIGHT.

IT'S ALWAYS BEEN MY WIFE, SO YOU LADIES KNOW MORE THAN I DO.

WELL, I'VE HAD TO DRIVE AROUND THE NEIGHBORHOODS AND COMPARE THE PICTURE TO THE HOUSE ON THE STREET WHERE IT SAID IT WAS, AND IT'D BE BLOCKS AWAY.

THAT'S A LOT OF WORK DOING IT THAT WAY.

APOLOGIES FOR MY MISUNDERSTANDING.

I THINK WE'RE ALL ON BOARD ON MOVING FORWARD WITH THIS, RIGHT? I THINK WE ARE.

SO BEFORE WE WRAP, TONY, WILL YOU GO BACK TO THE PREVIOUS SLIDE JUST FOR THE QUESTIONS? PART OF OUR, I THINK, ASSIGNMENT OF BRINGING THIS BACK AFTER A YEAR WAS TO ASSESS WHETHER OR NOT THE COUNCIL WANTED TO SEE ANY CHANGES TO OUR PROCESSES AND PROCEDURES.

SO I WANT TO PAUSE THERE FOR A MOMENT AND SEE WHETHER THERE'S ANY DIRECTION TO CHANGE WHAT WE'RE DOING WITH REGARDS TO OUR REGISTRATION PROCESS.

I THINK FROM STAFF'S PERSPECTIVE, IT'S WORKED WELL, THE PROCESSES AND PROCEDURES WE HAVE IN PLACE.

AND TONY, I DON'T KNOW THAT YOU WOULD RECOMMEND ANY CHANGES AT THIS TIME.

NO, NOT WITH THE PROCESS OF PROCEDURE.

I ALWAYS ASK WHETHER OR NOT YOU THINK THE FEE IS STILL SUFFICIENT.

WE TRY TO DO COST RECOVERY AND NOT GOING TO GET THERE WITH $150 FEE.

BUT BASED ON WHAT WE THINK IS WHAT YOU THINK IS BEST FOR THE COMMUNITY, I THINK THE PROCESS IS FINE.

IN TERMS OF WHAT WE REQUIRE OF THEM.

IT'S NOT MUCH DIFFERENT THAN WHAT WE SEE OTHER CITIES DOING.

I THINK ONE OF THE BIGGEST PROBLEMS WHEN I GOT DRUG INTO THIS WAS THE PARTIES GOING NEXT DOOR.

YES, SIR.

AND IT WAS THE SAME GROUP EVERY WEEKEND AND STUFF OF THAT NATURE.

I DON'T WANT TO PUT ANYTHING ELSE ON PD.

THEY'VE GOT ENOUGH GOING ON.

BUT THIS IS GOING TO BE AN ISSUE.

BUT IT'S GOING TO HAPPEN.

NOISE IN PARKING.

I AGREE.

BUT IT'S GOING TO BE HERE WHETHER WE LIKE IT OR NOT.

SO WE MIGHT AS WELL DO SOMETHING WITH IT.

SO THEN THE NEXT QUESTION I THINK WE'VE HEARD IS THE ACT OF PURSUIT.

AND AGAIN, MATT, I DON'T WANT TO PUT YOU ON THE SPOT HERE, BUT I THINK HEARKENING BACK MAYBE TO THAT PREVIOUS CONVERSATION, I THINK THERE'S A LEGAL REQUIREMENT FOR THE COLLECTION, BUT THE PURSUIT IS MAYBE SOME OF.

CORRECT.

WHEN WE PASSED OUR SHORT-TERM RENTAL ORDINANCE, WE DID NOT REQUIRE THE PAYMENT OF HOT-MOT TAX TO MAKE APPLICATION.

WE DIDN'T MAKE IT ONE OF THE REASONS FOR IT TO REVOKE THE PERMIT.

SO YOU CAN GET A PERMIT WITHOUT PAYING YOUR HOT-MOT TAX AT THIS TIME.

NOW, OUR HOT-MOT ORDINANCE ON THE BOOKS IS BROAD ENOUGH, LIKE YOU SAID EARLIER, TOMMY, TO INCLUDE SHORT-TERM RENTALS, AS ALAN DESCRIBED EARLIER.

BUT WITH REGARDS TO THE DIRECTION WE'RE GETTING THIS EVENING, WE MAY RECONSIDER OUR PROCESSES AND MAKE MODIFICATIONS AS A RESULT.

RESULT OF THE DIRECTION WE'RE GETTING.

THAT'S WHAT WE HEAR THE COUNCIL SAYING IS MAKE EVERY EFFORT TO COLLECT TO THE EXTENT POSSIBLE.

SO WE'LL PROCEED WITH THAT.

AND THEN WITH REGARDS TO DIRECTION ABOUT THE ENGAGEMENT OF A THIRD PARTY, WE'VE HEARD KIND OF MAYBE SOME DIFFERENT SENTIMENT, BUT IS THERE A DESIRE TO KIND OF WAIT AND SEE WHAT THESE INITIAL CHANGES ARE? CHANGES NET US OR IS THERE A DESIRE TO EXPLORE A THIRD PARTY AND COME BACK SEEKING ADDITIONAL DIRECTION FROM THE COUNCIL? I THINK WHAT DAN HAD SAID WAS LET'S GET THINGS STARTED.

LET'S SEE IF WE NEED THAT THIRD PARTY AND GET MORE INFORMATION ABOUT THE THIRD PARTY.

LET'S SEE WHAT WE CAN DO, BUT WE NEED TO FIND OUT WHAT THE THIRD PARTY INVOLVEMENT WOULD BE, WHAT IT WOULD COST, AND HOW IT WOULD BENEFIT US.

HOW MUCH IS THE THIRD PARTY GOING TO DO? THAT WON'T STOP US FROM DOING OUR DUE DILIGENCE AND LOOKING AT WHAT COSTS WOULD BE AND SCOPE, AND WE CAN EVALUATE AND THEN COME BACK AT A LATER DATE WITH THAT INFORMATION, KIND OF WHAT I WAS ALLUDING TO EARLIER.

I THINK WE HAVE OUR DIRECTION.

WE'RE ON BOARD.

[02:00:01]

THERE YOU GO.

[7.D.Receive a report, hold a discussion, and provide staff direction regarding Tax Increment Reinvestment Zones (TIRZ) and Tax Increment Financing (TIF). (Staff Contact: Eric Oscarson, Deputy City Manager)]