* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] I NEED MY LAPTOP [CC Briefings 05072024] CALLS MEETING ORDER, MAY 7TH, 2024. STAFF PRESENTATIONS, ANNUAL AUDIT PROCESS PRESENTATION. YES. GOOD AFTERNOON. I'M SUSAN SANDERS, GEORGIA CLIENT. UM, UM, THIS PRESENTATION WAS COORDINATED AT THE REQUEST OF COUNCILWOMAN BESSIE ADAMS. UM, TO GIVE YOU A BRIEF OVERVIEW OF OUR OUR ANNUAL AUDIT PROCESS, OUR GOAL HERE IS TO DEMONSTRATE THE AMOUNT OF WORK THAT GOES INTO GRAND PRAIRIE ANNUAL EXTERNAL AUDIT, UM, LEADING UP TO THE COMPLETION OF OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT. AND ALSO, UM, WE WANNA BRAG A LITTLE BIT ABOUT OUR WONDERFUL STAFF IN ACCOUNTING, EXCUSE ME, IN ACCOUNTING FOR THE LAST 35 PLUS YEARS, GREG PRAIRIE FINANCE TEAM HAS RECEIVED THE, THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING AWARD FROM G-F-O-A-G-F-O-A. THANK YOU. GFOA STANDS FOR GFOA STANDS FOR THE GOVERNMENT FINANCIAL OFFICERS ASSOCIATION, UM, WHICH IS A HIGHLY VISIBLE PROFESSIONAL ASSOCIATION WITH OVER 20,000 MEMBERS, UM, NATIONWIDE. AND THIS AWARD REPRESENTS A PROGRAM TO ENSURE THAT THE CITY'S FINANCIAL STATEMENTS GO BEYOND THE MINIMUM REQUIREMENTS TO REFLECT THE FINANCIAL HEALTH OF OUR ORGANIZATION. GOOD. JUST THIS WEEK WE RECEIVED THE NEW PLAQUE, UM, FOR ACHIEVEMENT OF THIS AWARD ON OUR 20 20 20 22. THERE IT IS, FOLKS. ANNUAL FINANCIAL REPORT. YEAH. GIVE A HAND. THANK. GOOD JOB. GOTTA, THANK YOU. YEAH. THANK YOU, MAYOR. GOOD JOB. UH, LOOK, ANY OF US GO THROUGH THE AUDITS? I THINK HE GOES THROUGH ONE EVERY DAY. , UH, AUDITS ARE NO FUN. WE GET 'EM AT WORK. HAD ONE TODAY PASSED, BUT SOMETIMES THEY COME IN LOOKING. YEAH. YOU KNOW WHAT I MEAN? AND SO, UH, CONTINUE. OKAY. AND WE, WE DO WANT TO THANK COUNCIL, UM, FOR YOUR SUPPORT AND PROVIDING US THE RESOURCES WE NEED TO MAKE THIS HAPPEN EVERY YEAR. UM, WE HAVE JENNIFER RKA, UM, AUDIT PARTNER AT WEAVER TO HERE TO PRESENT FROM THE AUDIT, UM, PERSPECTIVE. AND THEN LOUIS PEREIRA, OUR NEWLY PROMOTED ASSISTANT DIRECTOR OF FINANCE. UM, WE'LL TALK A LITTLE BIT ABOUT IT, UM, FROM, FROM THE PERSPECTIVE OF OUR ACCOUNTING STAFF. SO I WILL NOW TURN IT OVER TO JENNIFER. THANK YOU ALL. I'M GOING TO BRIEFLY GO THROUGH THIS. UM, IF YOU HAVE ANY QUESTIONS, FEEL FREE TO STOP ME. THIS IS THE AUDIT TIMELINE. WE REALLY START OUT WITH OUR INITIAL AUDIT PLANNING PROCESS. AND THAT IS NOT ONLY IN-HOUSE, BUT WITH THE, UM, THE CITY STAFF AS WELL. WE COME BACK OUT FOR INTERIM FIELD WORK IN THE SEPTEMBER TIMEFRAME, AND THAT'S REALLY WHEN WE'RE GONNA BE FOCUSING ON INTERNAL CONTROLS AT THE CITY. UM, AND THEN COMPLIANCE TESTING, ONCE WE'RE BACK OUT FOR OUR FINAL FIELD WORK, THAT'S REALLY WHEN WE'RE DIVING INTO WHAT WE CALL OUR SUBSTANTIVE TESTING, WHICH IS ALL OF THE, UM, AUDIT ACCOUNT BALANCES, UM, THAT YOU FIND IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. UM, IT IS A LONG TIMELINE AND THAT'S BECAUSE YOU ALL ARE A LARGE CITY. UM, AND WE'RE TESTING A LOT OF DIFFERENT THINGS DURING THE COURSE OF, UM, FINAL FIELD WORK BETWEEN FINAL FIELD WORK. AND WHEN WE COME BACK OUT FOR THE F AND G MEETING, THAT'S WHEN WE ARE PUTTING TOGETHER AND PREPARING, UM, THE ACT FOR ITSELF, UM, SO THAT WE CAN PRESENT IT TO F AND G. AND THEN THE FINAL REPORT IS THEN, UM, BROUGHT TO COUNCIL AS A WHOLE. THEN WE START THAT WHOLE PROCESS OVER AGAIN. IF THERE ARE ANY NEW, UM, GASB STATEMENTS THAT COME OUT OR, UM, ANY NEW STANDARDS THAT COME OUT. WE TALK TO THE CITY, UM, THROUGHOUT THE FISCAL YEAR JUST TO GET MORE INFORMATION, UM, ABOUT WHAT'S GOING ON AT THE CITY. WE DO PERFORM OUR AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS. UM, AND THEN WE DO TWO TYPES OF COMPLIANCE TESTING. ONE OF THE LARGEST COMPLIANCE TESTS IS WITH REGARDS TO THE FEDERAL FINANCIAL ASSISTANCE, AND THAT'S UNDER UNIFORM GUIDANCE. AND THEN ALL OF THE OTHER COMPLIANCE TESTS REALLY ARE IN THAT OTHER COMPLIANCE BUCKET. ONE OF THE LARGEST ONES IS THE PUBLIC FUNDS INVESTMENT ACT. UM, BUT THEY'RE ALL OF THE ITEMS THAT ARE LISTED THERE, LOOKING AT LAWS, REGULATIONS, ET CETERA. THAT'S INCLUDED IN THAT COMPLIANCE TEST. WE TAKE OUR RISK-BASED APPROACH TO OUR AUDITS. UM, THAT'S WHERE WE PLACE HIGHER FOCUS ON SIGNIFICANT AUDIT AREAS [00:05:01] AND THEN AREAS OF SPECIFIC RISK. THAT DOESN'T MEAN THOSE ARE THE ONLY AREAS THAT WE TEST, IT'S JUST WHAT WE PLACE HIGHER FOCUS ON. WE DO PERFORM WALKTHROUGHS OVER SIGNIFICANT TRANSACTION CYCLES, AND THEN WE TAKE IT A STEP FURTHER AND ACTUALLY DO INTERNAL CONTROL TESTING OVER, UM, FINANCIAL REPORTING AND THEN COMPLIANCE WITH REGARDS TO THE FEDERAL FINANCIAL ASSISTANCE. UM, OUTSIDE OF THOSE INTERNAL CONTROL TESTS, WE'RE ALSO DOING COMPLIANCE TESTING OVER THE MAJOR PROGRAMS THAT ARE DETERMINED DURING, UM, OUR TEST WORK. AND THEN DO WE TAKE IT A STEP FURTHER, UM, IN OUR TESTING OF ACCOUNT BALANCES, USING A COMBINATION OF ANALYTICAL PROCEDURES, VOUCHING AND MATERIAL TRANSACTIONS, AND THEN SAMPLING . THESE ARE THE RESPONSIBILITIES UNDER GAS GAGGAS, AND THEN UNIFORM GUIDANCE. UM, REALLY TO SUM IT UP, IT IS OUR RESPONSIBILITY AS THE AUDITORS TO PLACE AN OPINION ON THE FINANCIAL STATEMENTS THAT YOU ALL RECEIVE. UM, WE DO NOT PROVIDE ABSOLUTE ASSURANCE, BUT REASONABLE ASSURANCE THAT THE FINANCIAL STATEMENTS ARE, UM, MATERIALLY, UM, REPRESENTED AND PROVIDED. UM, THAT JUST MEANS THAT WE DON'T TEST EVERY SINGLE LINE ITEM IN, IN THE APP FOR ITSELF. UM, THE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THE CITY. UM, SO THEY ARE REVIEWING THOSE STATEMENTS EVEN THOUGH WE ARE HELPING TO PREPARE THEM. UM, WHEN WE GO THROUGH THE PROCESS OF DOING OUR INDEPENDENCE CHECKS, WE LOOK TO ENSURE THAT INDIVIDUALS AT THE CITY DO HAVE THE KNOWLEDGE, EXPERIENCE, UM, TO PREPARE THOSE STATEMENTS. BUT WE'RE DOING IT OUT OF A CONVENIENCE FACTOR. AND THEN THIS IS SPECIFIC TO THE SINGLE AUDIT, WHICH IS THE FEDERAL FINANCIAL ASSISTANCE. THIS IS JUST SAYING THAT WE ARE TESTING INTERNAL CONTROLS OVER COMPLIANCE AS WELL AS COMPLIANCE TESTING. SO WE'RE ENSURING THAT, UM, THOSE PROGRAMS THAT HAVE BEEN SELECTED TO BE TESTED, UM, THE CITY IS COMPLYING WITH THE COMPLIANCE REQUIREMENTS THAT WERE SET FORTH BY THE AGENCY THAT HAS PROVIDED THAT FUNDING. AND THEN I WANNA INCLUDE THIS, THIS IS WHAT'S WORKING BEST FOR, UM, THE CITY. YOU ALL DID RECEIVE THE GFOA CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING. UM, WE DO, UM, HAVE TIMELY RESPONSES TO ALL OF OUR, UM, INQUIRIES AND REQUESTS DURING THE COURSE OF THE AUDIT. THERE WERE NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES, UM, NO AUDIT ADJUSTMENTS AND NO PAST ADJUSTMENTS. AND, UM, WE DID COMPLETE THE AUDIT, UM, EARLIER THAN PREVIOUS YEARS. AND SO, UM, GREAT JOB TO THE FINANCE AND ACCOUNTING DEPARTMENT. UM, THAT'S REAL, A REALLY GREAT, UM, STRENGTHS AND ACCOMPLISHMENTS, HOPEFUL THAT IT WILL EVEN GROW EVEN BETTER, UM, OVER THE COURSE OF THIS NEXT FISCAL YEAR DUE TO THE, UM, THE PARTNERSHIP THAT WE HAVE WITH THE CITY. UM, BUT WITH THAT, I'LL JUST TURN IT OVER TO YOU ALL FOR ANY QUESTIONS THAT YOU MAY HAVE FROM THE AUDIT PERSPECTIVE. AND DID YOU PRESENT YOUR AUDIT OPINION? WE, YES. SO AT F AND G, WE, UM, PRESENTED A, UM, UNMODIFIED OPINION, WHICH IS A CLEAN OPINION. IT'S THE HIGHEST LEVEL OF ASSURANCE THAT CAN BE PLACED ON A SET OF FINANCIAL STATEMENTS. SO THAT'S THE BEST THAT IT CAN GET FROM AN AUDIT OPINION. AND IS THAT FROM FOR FINANCIAL REPORTING AS WELL AS A SINGLE AUDIT? YES, MA'AM. THAT'S CORRECT. ALRIGHT. THANK YOU. GOOD. UM, REAL QUICKLY, I'M GONNA COVER WHAT ALL GOES THROUGH FOR ON THE FINANCE SIDE. SO WE START WORK IN, UM, EITHER SEPTEMBER, OCTOBER, THE AUDITOR SHOW UP FOR TWO WEEKS. WE GET ALL OUR WORK DONE OR START WORKING ON IT IN AUGUST. TRY TO HAVE IT ALL DONE BY THAT TIME THEY SHOW UP. SO THAT'S THE INTERIM. SEPTEMBER, OCTOBER, THEY'LL BE HERE FOR TWO WEEKS. THE FINAL FIELD WORK, THEY'RE HERE ABOUT SIX WEEKS. THEY'RE HERE FROM DECEMBER TO JANUARY. UH, THERE'S LIKE 77 REQUESTS ON OUR PBC LIST. UH, WE TRY TO GET AS MANY OF THOSE DONE BY THE TIME THEY GET HERE, BUT WE'RE STILL WORKING ON 'EM AS THEY'RE HERE. UM, THEY DO HAVE QUESTIONS AND SAMPLING THAT WE HAVE TO WORK ON. UM, ONCE WE GO THROUGH ALL THAT, UM, IN FEBRUARY WE'LL GET OUR FIRST DRAFT OF THE FER AND WE'LL REVIEW IT, MAKE CHANGES. WE'LL PROBABLY HAVE TWO OR THREE DIFFERENT DRAFTS BEFORE WE GET OUR FINAL, UM, FER, UH, TO PRESENT TO F AND G. SO IN MARCH WE'LL PRESENT THE AUTO RESULTS TO F AND G AND TO SEE THE COUNCIL FOR APPROVAL. SO OUR FINANCE TEAM, UH, LOOKS PRETTY BIG THERE. WE HAVE LIKE 24 IN FINANCE, BUT WE HAVE DIFFERENT DEPARTMENTS. WE HAVE ACCOUNTS PAYABLE, ACCOUNTS RECEIVABLE, UH, TREASURY, PAYROLL, AND OUR ACCOUNTANTS, UM, THEY ALL HAVE PART IN THE AUDIT. THEY ALL WORK DIFFERENT AREAS OF THE AUDIT. THEY'RE, UH, AUDITING. UM, BUT WE ALSO HAVE THE DEPARTMENTS THAT HELP, UH, THE OTHER DEPARTMENTS THAT HELP WITH THE AUDIT. SO I KNOW DURING THE AUDIT TIME, Y'ALL WILL GET CALLS FROM US OR CALLS FROM THE [00:10:01] AUDITORS ON ITEMS THAT WE'RE LOOKING FOR. SO IT'S NOT JUST THE FINANCE TEAM, IT'S EVERY OTHER DEPARTMENT IN CITY THAT ALSO HELPS WITH, UH, COMPLETING THE AUDIT. AND THAT IS MY PORTION. DO Y'ALL HAVE ANY QUESTIONS ON THAT? I HAS, IN YOUR HISTORY WITH THE CITY, HAS THERE EVER BEEN AN OPPORTUNITY WHERE THE SCOPE HAD TO BE EXPANDED? I'VE ONLY BEEN HERE TWO AND A HALF YEARS NOW. I'VE BEEN THREE AUDITS. NOT IN THOSE THREE AUDITS. IT HASN'T, SUSAN. NO, I'VE BEEN HERE SIX, UM, CUMULATIVELY SIX AND NOT SINCE, UM, NOT SINCE, NOT SINCE I'VE BEEN HERE. LAST ONE ON YOURSELF. I JUST WANT TO THANK YOU FOR THE PRESENTATION. UM, I'M IN YOUR FIELD OF WORK AND I KNOW HOW HARD IT'S TO PULL THAT BBC LIST TOGETHER WHILE YOU DOING YOUR DAY TO DAY TRANSACTION AND YOUR RESPONSIBILITIES. SO THANK YOU TO THE TEAM AS WELL FOR, UH, MAKING IT HAPPEN AND BRINGING SUCH EXCELLENT RESULTS AND, AND WINNING AWARD. THAT IS NOT AN EASY TASK. SO FOR THOSE TO THE FINANCE TEAM, I APPRECIATE THE WORK. THANKS MISS. THANK YOU. ALRIGHT, MEGAN, UH, OH, IT'S NOT WORKING FOR ME, BUT I PRINTED IT OUT. I'LL GO AHEAD AND GET STARTED. UH, MAYOR COUNCIL, AFTER MANY HOURS OF HARD WORK, UM, WE BELIEVE WE HAVE COME TO COUNCIL WITH A PROPOSAL THAT IS GOING TO BE VERY EFFECTIVE IN ADDRESSING OUR WATER AND OUR WASTEWATER PROPOSAL THAT RELATES TO OUR MULTIFAMILY, UH, RESIDENTIAL UNDER OUR WATER. IF YOU'LL LOOK AT THE SHEET, THAT IS THE FIRST ONE THAT MEGAN HAS HANDED YOU, THAT GIVES YOU A ESTIMATE OR A COMPARISON. THAT COMPARISON IS BASED ON THREE DIFFERENT APARTMENT COMPLEXES. ONE, THE COST PER UNIT, WHICH WAS ADOPTED IN 2324. THE TOP LEFT WITH 44 58 IS WHAT IT CAME TO. THE COST PER UNIT IS 2167, WHICH WOULD UNDER PROPOSED FROM JUNE TO OCTOBER. IS THAT IS BASED UPON A 3%, $3 INCREASE IS WHAT IT BOILS DOWN TO OVER WHAT THE, WHAT THE RATE WAS IN 22, 23. AND THE OTHER EXAMPLE IS FOLLOW THE SAME TRAJECTORY. SO BY VIRTUE OF THAT, IF YOU GO TO THE SECOND, THE NEXT SHEET, WHICH IS THIS SHEET HERE, IF YOU LOOK AT THIS SHEET SHEET, THIS SHEET ACTUALLY SHOWS YOU THE DIFFERENCE AS WAS ADOPTED IN 2324 AT THE BEGINNING OF THE YEAR, WE WERE A VOLUME RATE OF $5 AND 66 CENTS PER THOUSAND. WE ARE PROPOSING THAT WE GO TO ZERO TO 250,000 GALLONS AT A $7 PER THOUSAND RATE AND OVER 250,000 GALLONS AT A 9 25 RATE. WHERE THE MAJOR ADJUSTMENT IS BEING MADE IS ON THE PER APARTMENT UNIT RATE. THAT WILL GO FROM 7 72 DOWN TO 5 17 72 DOWN TO FIVE. NOW, UNDER THE WASTEWATER, WHAT WE HAD ADOPTED IN 2324 WAS 6 78 PER THOUSAND. OUR PROPOSED IS SIX 50 PER THOUSAND AND 16, 11 AND FIVE TO FIVE PER THOUSAND. THIS ADJUSTMENT WILL RESULT IN APPROXIMATELY A LESS THAN 20% INCREASE ON AVERAGE ACROSS THE BOARD USING THE ENTIRE VOLUME RATE BY GOING TO A VOLUME RATE. THIS ALSO ALLOWS FOR THE APARTMENT COMPLEX OR WHAT HAVE YOU TO CONTROL HOW MUCH THEIR WATER BILL IS BY HOW MUCH WATER THEY USE, WHICH IS ALSO AN ALTERNATIVE, ESPECIALLY IN DROP TIMES. THEY REDUCE THE AMOUNT OF WATER THEY USE. THEIR BILLS WILL COME DOWN OBVIOUSLY. SO, UM, BASICALLY THAT'S OUR PROPOSAL. IT'S GONNA RESULT IN A ANNUAL, POTENTIALLY ANNUAL COST OF 3.9 MILLION. HOWEVER, BECAUSE WE'RE ONLY PUTTING IT IN EFFECT FOR THE FIRST FOUR MONTHS, BECAUSE WE'RE GOING INTO THE BUDGET PROCESS IN AUGUST, [00:15:01] IT'S RIGHT AT $1.2 MILLION IS HOW IT'S GOING TO AFFECT US THIS YEAR BECAUSE THE RATE WILL COME DOWN NOW, BUT IT'LL ONLY BE IN EFFECT FOR FOUR MONTH PERIOD. WHICH MEANS THAT WE WILL BASICALLY BE LOSING, DROPPING 1.2 MILLION IN OUR CIP AND IT IS BASICALLY ONE SMALL WATER SEWER PROJECT THAT WE'LL BE LOSING BY VIRTUE OF DROPPING THE RATE AT THIS POINT IN TIME. SO BILL, JUST THE GLOBAL QUESTION IS, UM, AND YOU GAVE THIS ANSWER TO ME WHEN WE DISCUSSED, WE'RE DROPPING FROM 106% INCREASE TO, UH, SOMEWHERE UNDER A 20%. YES SIR. WHAT? HUNDRED 6% INCREASE. THANK YOU. UH, HOW MANY APARTMENT COMPACTS HAVE MADE THIS SAME REQUEST? UH, WE HAVE OFFICIAL REQUEST FOR ONE FORMAL COMPLEX. AND HOW DOES IT AFFECT THE OVERALL WATER RATE? 3.9 MILLION ALL OVER. BECAUSE I'M TRYING TO GRASP HOW DOES 3.9 MILLION AFFECT THIS ONE DEPARTMENT UNIT? BECAUSE DROPPING, IS THIS ONLY BECAUSE OF THE WAY THAT APARTMENT IS STRUCTURED AS FAR AS HAVING ALL THOSE WATER UNITS THERE? WELL, WHAT WE DID IS WE DID A SURVEY, AND THEN DURING THE SURVEY THERE WERE 10 APARTMENT UNITS THAT USED A SUBMETER ON THEIR PROPERTY. UH, AND I HAVE, WE HAVE TENANTS WITH INDIVIDUAL WATER METERS. THERE'S FOUR TENANT PAID, INCLUDING IN THEIR RENT AT 50 APARTMENT PAID ALLOCATED CHARGE BACK TO THE TENANT. AND WHAT THAT MEANS IS THEY HAVE AN ALLOCATION TABLE THAT THEY USE TO CHARGE IT BACK BASED ON BEDROOM SIZE. THERE'S 38 OF THOSE. AN APARTMENT PAYS USING A THIRD PARTY SERVICE. THERE'S 10 OF THOSE. AND ON FIVE THEY PAY A SET MONTHLY FEE FOR THEIR WATER. SO THE THE KEY IS, AND AS AND AS AS I'VE EXPLAINED BEFORE, FROM THE METER THAT GOES INTO THE PROPERTY MM-HMM . THAT'S OUR POINT OF CONTROL. RIGHT. I I UNDERSTAND. WE HAVE NO CONTROL FROM THAT POINT FORWARD AND BECOMES A BUSINESS MODEL AS TO WHAT THEY CHARGE THEIR TENANTS FROM THERE. I I UNDERSTAND THAT. SO JUST HAVE ONE APARTMENT ON COMPLAINING. NO ONE ELSE HAS A GOOD BREAKDOWN OF THE OTHER BUSINESS MODELS THAT IN THE CITY. IF THEY CAME TO COMPLAIN, WHAT WOULD WE DO AT THAT POINT? BECAUSE THEY WANT ADJUSTMENT BECAUSE THEY SEE SAVINGS AS WELL. FOR THOSE OTHER, THIS IS GOING GET SAVINGS TO THIS BE ACROSS THE BOARD. 3.9. WHERE IS THE 3.9 MILLION BEING LOST AT? 'CAUSE THE RATE IS BEING REDUCED TO EVERYBODY, NOT JUST TO ANY ONE INDIVIDUAL. PLEASE DON'T PUT THAT ON ME. AS I'M LOOKING AT ONE INDIVIDUAL, I'M TALKING ABOUT, I'M JUST, THE QUESTION ALL I JUST SAID APARTMENT COMPLEX IS DIFFERENT MODELS, HOW THEY CHARGE THEIR ATTENDANCE RATES. I MAKE IT CLEAR AGAIN, THERE'S DIFFERENT MODELS THAT THEY USE. SURE. HOWEVER, I'M LOOKING AT THE 3.9 MILLION. HOW DO WE COME WITH, THEIR CALCULATION IS GONNA BE 3.9 MILLION. WE COME UP WITH THAT 3.9 MILLION THROUGH AN AVERAGING OF WHAT THE WATER RATE, WHAT EACH COMPLEX HAS BEEN USING AND BASED UPON THEIR ONE MONTH'S USAGE, TAKE THEIR USAGE, LOOK AT IT, AND THEN WORK LOWER THE RATE FOR EVERYBODY TO THAT AMOUNT. THAT'S HOW WE COME TO, THAT'S HOW WE COVER THAT . AND I'M JUST YOU SAYING GO AHEAD. IT IS A DECREASE. YES. IT'S A WATER RATE DECREASE IS WHAT I'M HEARING. ABSOLUTELY. IT'S NOT A WATER RATE INCREASE. IT'S STILL AN INCREASE COMPARED TO WHAT IT WAS LAST YEAR BY $3 BY THREE AND LOWER, LOWER THAN WHAT IT WAS. I JUST WANNA MAKE SURE WE'RE ALL UNDERSTANDING WHAT'S THE DIFFERENCE BETWEEN WHAT'S WATER RATE INCREASE AND WATER RATE DECREASE? COUNCIL MEMBER JOHNSON, IT'S A DECREASE FROM WHAT WAS ADOPTED FOR 2324, BUT AN INCREASE. BUT IT IS A INCREASE FROM WHAT WAS ADOPTED IN 2223. SO WOULD THE PERSON BE HERE AT COUNCIL TONIGHT TO DISCUSS THIS WATER RATE? WELL SHE SEE NOW, LAST TIME THERE WERE A LOT OF CITIZENS THAT LIVE IN THE APARTMENTS THAT CAME. WE'LL SEE ABOUT TONIGHT. BUT HERE'S, HERE'S MY POINT. COUNCIL MEMBER JOHNSON, ALL OF YOU, I DON'T THINK WE SHOULD EVER DOUBLE ANYBODY'S RATE, BE IT COMMERCIAL, RESIDENTIAL. I THINK WE MADE A MISTAKE. UH, AND THOSE THAT DON'T GET BILL BY METER, THAT APARTMENT COMPLEX STILL GO THEIR RATE DOUBLED. YEAH. AND I WOULD SUBMIT TO YOU THAT OVER TIME THAT DOUBLING THE RATE WILL AFFECT THEIR RESIDENCE. I GOOD. AN INCREASE IN THEIR RENT. I CAN'T GUARANTEE THAT. BUT ALL APARTMENT OWNERS WANT AN ROI AND IT'S GOING TO AFFECT THEIR ROII WILL AGAIN SAY IT [00:20:01] HAS NOTHING TO DO WITH ANY INDIVIDUAL OR ANY APARTMENT. WE SHOULD NOT HAVE DOUBLED THE RATE ON ANYTHING. IF WE NEEDED THAT EXTRA $3.9 MILLION, WE SHOULD HAVE RERACK THE RATES FOR EVERYBODY, INCLUDING MY BUSINESS AND MY PAY OF HOMES INSTEAD OF HAVING WON SUBSET OF RATE PAYERS TAKE THE WHOLE BURDEN. AND I THINK GOING FORWARD NEXT YEAR, THAT'S WHAT WE NEED TO LOOK AT. AND IF WE NEED TO COME UP WITH THAT PICK NUMBER 3 MILLION END UP. LISTEN, DON'T ATTACK ONE RATE PAYER SPREAD AMONGST ALL OF 'EM. SO I JUST, I I JUST CAN HUNDRED 6% INCREASE. I DON'T DISAGREE WITH YOU ON THAT. I DON'T, I DON'T. UH, I THINK WHEN WE ADOPTED THE RING, IF PEOPLE WERE RECALL, WE WENT FROM A THREE TIER SYSTEM AND I BROUGHT TO THE, THE ATTENTION HOUSE BECAUSE I BELIEVE THEN WE WERE PAYING FOLKS WERE PAYING MORE FOR WATER AND WASTEWATER ON THE THREE TIER. WE WENT TO A FIVE TIER. I WAS NOT AT THAT MEETING WHEN F ADOPTED FIVE TIER COMING FOR THE COUNCIL. I DID MAKE IT CLEAR THEN I BELIEVE WE SHOULD GO TO 67 TIERS BECAUSE I THINK WE WERE GETTING TO THE RATES THAT THE WATER RATE AND THE WATER WASTE RATE TO WHAT PEOPLE HAVE. HEY, THAT'S, YEAH. , WE, WE WE'LL GET TO WHERE I THINK THAT'S SOMETHING WE NEED TO LOOK AT. LOOK AT WE, WE LOOK AT THAT AND, UH, FOR F AND G DURING THE BUDGET PROCESS THIS YEAR. SO I DON'T DISAGREE WHAT YOU'RE SAYING ABOUT ANYONE. I JUST WANNA MAKE SURE THAT THREE POINT MILLION WAS SPREAD ACROSS EVERYONE BECAUSE THREE, YEAH. THREE POINT FROM ONE UNIT SPREAD ACROSS EVERYBODY'S RATE WENT DOWN THE SAME COUNCIL MEMBER HEAD. YES. UM, JUST WANNA THANK STAFF FOR TAKING THE TIME TO MEET INDIVIDUALLY. UM, MANY OF US ASKED ALL OF US TO EXPLAIN AND ANSWER QUESTIONS. UM, 10 SUB APARTMENT TO ME WITH HOW MANY PEOPLE STAY IN EACH BUILDING IS ENOUGH TO IT'S 3000. YEAH. MAKE A DIFFERENCE. AND THEN WE'VE GOT ALL THE NEW DEVELOPMENTS THAT AREN'T GOING LINE YET. AND I HEAR A LOT OF PEOPLE ARE GOING THROUGH THIS MODEL, SO THIS COULD AFFECT A LOT OF PEOPLE. I DEFINITELY SUPPORT THIS AND ROLLING THIS BACK THAT, THAT THE JUMP WAS AGGRESSIVE. UM, MY QUESTION IS IF WE CAN COMMIT TO A YEAR THIS JUST A COUPLE MONTHS AND BE ABLE TO SAY THIS IS GONNA HAPPEN FOR THE NEXT YEAR WOULD BE IDEAL COUNCIL MEMBER. THAT WAS EXTREMELY DIFFICULT THIS POINT IN TIME BECAUSE WE ARE GOING INTO OUR BUDGET PROCESS AND THE COST OF WATER WILL INCREASE FOR US AND TO AT SOME POINT IN TIME, IT'S GONNA HAVE TO BE ADJUSTED TO PASS THAT ON. AND GOING THROUGH THE BUDGET PROCESS IS WHEN WE ADJUST THE WATER RATE TO ADJUST FOR ANY INCREASE IN COST TO US TO PURCHASE THE WATER. AND, AND COUNCIL HEAD. I WOULD SUGGEST, AND THIS IS DOABLE, THIS HAS BEEN SUCH A HOT TOPIC. THOSE OF US THAT WEREN'T ON NEVER HEARD THAT. WE'VE GONE UP 106% QUITE FRANKLY THE BUDGET. THERE'S THOUSANDS OF ITEMS ON THE BUDGET. UH, I THINK HAD WE SEEN THIS AT OUR BUDGET RETREAT, WE WOULD'VE REQUESTING IT. SO SINCE THIS IS A HOT TOPIC AND WE MAY WANT TO DO SOMETHING, I THINK F INGENIOUS WILL SEE THIS LIKE THEY ALWAYS DO DURING THE BUDGET PROCESS. BUT WE ALSO NEED TO LOOK AT IT AS A WHOLE COUNCIL THIS TIME THAT WOULD BE ABLE TO GIVE US ALL INPUT ON IT HERE. BECAUSE I HEAR WHAT YOU'RE SAYING. YEAH. I THINK THERE'S GONNA BE SOME ANXIETY. THEY'LL BE HAPPY IF THIS IS PASSED, BUT THEY DON'T KNOW WHAT WE'RE GONNA DO NEXT TIME. RIGHT. THIS IS JUST A COUPLE MONTHS. THIS, THIS IS JUST A COUPLE MONTHS SOLUTION. UM, SO I MEAN I WOULD THINK THAT JUST GO BACK TO WHAT WE JUST CAME FROM. I MEAN THAT, OH, I, I, NOW THE COUNCIL CAN DO THAT WITH FIVE VOTES, BUT I, I THINK WE, I THINK WHAT WE'RE HEARING IS, UH, WE DON'T WANT TO DO THAT. RIGHT. AND, AND JUST FROM OUR CONVERSATIONS WITH STAFF, UH, ONE COMMIT STAFF FOR DOING THIS AND A FAIR NUMBER, BUT WE DO REVISIT THIS KURT AND I COMMITTEE, WELL, YOU, YOU KURT MAY NOT STILL BE ON IT. DON'T MAKE ANY ASSUMPTIONS HERE. I MAY BE LIKE, I MAY BE LIKE MAYOR JOHNSON OVER IN DALLAS. JUST KIND KEEP EDGE WAS ON THE COMMITTEE AT THAT TIME. DECISION COLD. WELL, I WASN'T AT THAT MEETING. I MAKE THAT MEETING AT THE SAME TIME. I UNDERSTAND WHOEVER'S ON THAT COMMITTEE EXACTLY. WHEN WE, WHEN WE LOOK AT THIS AGAIN, WHOEVER LOOKS AT IT AGAIN, I THINK WE'RE, WE'RE PROBABLY GONNA HAVE TO MAKE SOME INCREASES FROM THIS. LET'S MAKE SURE THAT IT'S INCREMENTAL. INCREMENTAL. YEAH. BECAUSE IT JUST LIKE WHENEVER WE, HOW, HOW MUCH MONEY WE NEED [00:25:01] DO IT INCREMENTAL. WE WERE LOOKING AT THE ZERO TO 3000 GALLON RATE FOR SINGLE FAMILY SINGLE AND THEY WERE I FAMILY ANYTHING, ANYBODY. 20 0 3 GALLON WAS CURRENTLY AT 12%. 12. WE AT 25 I BELIEVE. AND THEN COUNCIL REVIEW THAT AND REDUCE IT BACK TO THE FLOOD. I THINK WE ALL GOTTA LOOK AT IT AND FIND A, A HAPPY MEDIUM AS WE HAVE TO INCREASE THE SERVICE COUNCIL. I THINK WE'VE GOT SOME WORK TO DO ON THE WATER BILL TIME A LOOK EVERY POSSIBLE BILL WE DO NEED TO MAKE SURE WE TAKE CARE OF OUR INFRASTRUCTURE. BUT AGAIN, I THINK WE ALL AGREED WE SHOULDN'T HAVE HAD 106% INCREASE ON 1 7 7 PAYERS. THAT SOUNDS LIKE THE SAME BEFORE FOR GRANDMAS BEEN GOING FROM 12 SINCE 25. WELL, SINCE FORMER COUNCIL MEMBER TONY SHOTWELL STEPPED IN THE ROOM, THAT'S ALWAYS WHAT HE WOULD SAY. AND I TOLD HIM AND HE LOOKED AT FARMER TONY, CAPTAIN COUNCIL MEMBER AND, AND COUNCIL MEMBER ELECT. IF Y'ALL, UH, GEORGE WAS HERE AT THAT TIME, BUT TONY, YOUR MEMBER, YOU WOULD ALWAYS SAY, WE NEED TO KEEP THAT RATE, PAY THE SAME. AND THAT'S SOMETHING WE CAN DISCUSS. BUT THAT'S ALWAYS BEEN SOMETHING WE'VE LOOKED AT THOSE SINGLE PARENTS THAT ARE HOME AND SENIORS, THAT LOW RATE, I DON'T MIND PAYING A HIGHER RATE ON MY BIG PROPERTY WHEN I GO OVER AND IT JUMPS DRASTICALLY WHEN YOU GO OVER. BUT I DON'T HAVE THE WATER MY GUARD, BUT I DO. I HAVE TO BECAUSE REBECCA THAT WATER. BUT, UH, THE STAFF DID A GREAT JOB. UM, I APPRECIATE ALL THE INPUT WE'VE HAD INCLUDING TONIGHT. DOES ANYBODY ELSE HAVE ANY QUESTIONS OR COMMENTS ABOUT IT TONIGHT? UH, THE, THE UH, AND WHILE YOU'RE EDITING, WHY DON'T YOU READ THEM THE MOTION YOU'LL BE MAKING FOR THAT ITEM BECAUSE WE CAN'T ENACT IT TONIGHT. TONIGHT'S JUST THE FIRST READING. YEAH. SO SO THAT'D BE ITEM 28 ON THERE FIRST READING. JUST WANT TO MAKE SURE IN THE, IN THE ITEMS THAT WE DO JUSTIFY THE NUMBER THE MONTH THAT THE RATE WOULD BE. I I DON'T THINK WE NEED TO, WE DON'T NEED TO. IT WILL BE THAT RIGHT? UNTIL WE READJUST THE RIGHT YES. BE RIGHT. QUESTION. OKAY. ALRIGHTY. GOOD QUESTION. YEAH, I'M JUST CURIOUS ON, ON THAT PART. BUT YEAH, UM, I KNOW IT'S A, IT IS A TOPIC AND, AND THERE WAS A LOT OF COMMUNICATION GOING BACK AND FORTH AND, YOU KNOW, UM, EVERYBODY DOES THEIR OWN DATA. I MEAN, JUST LIKE THE REPORT AGAIN, SOMETHING EVERYBODY'S GOING, YOU KNOW, SO UNDERSTAND THAT PROCESS. I JUST WANNA MAKE SURE THE REST OF UNDERSTAND THAT WE CAN'T LEAVE IT AT THIS RATE. I MEAN THE WATER GOES UP, YOU KNOW, THE COST OF, YOU KNOW, KEEPING IT WITH ALL THE OTHER WATER INFRASTRUCTURE GOES UP. YES, SIR. SO I, I JUST WANNA MAKE SURE THEY'RE GOOD WITH THAT. YOU KNOW, IT'S GOING BE ADJUSTMENT HOW MUCH WE, AND I'LL CERTAINLY MAKE THAT STATEMENT THAT THE SECOND MOVE YOU COULD HELP REMIND ME TO DO THAT BECAUSE I THINK THAT'S, YEAH. BECAUSE I KNOW THAT THERE'S RUMORS GOING AROUND THE MIDDLE END VOTED OF NOT SELLING THE SQUAD ANYMORE. AND NOW THAT WE HAVE TO GO BUY IT SOMEWHERE ELSE, THEN WE GOTTA MAKE UP MORE MONEY THERE. VERIFY THAT. EXACTLY. IT IT, THAT'S NOT TRUE. IT'S JUST A RUMOR THEY CAN'T, WE HAVE A LONG TERM AGREEMENT WITH 'EM. EXACTLY. BUT, BUT THAT'S A GOOD POINT. SO THEIR COUNCIL, THEY VOTED AGAINST NOT SELLING TO CITY OF GRAND BRIDGE. THAT'S WHAT THE RUMOR IS OUT THERE, WHICH THAT'S EASY TO CHECK. YEAH, THAT THAT'D BE AN EASY ONE. JUST TO THROW ALL THAT OUT. CAN WE MOVE ON? MAYOR, WANNA DO THE AGENDA REVIEW? THANK YOU, MAYOR. AT THIS TIME I ASK ALL REVIEW THE CONSENT ITEMS ON THE AGENDA THERE. ANY PARTICULAR I YOU WISH TO HAVE QUESTIONS OFFICER HAVE? AND BEFORE Y'ALL ASK THE QUESTION, I WANT JOHN TO READ WHAT I'VE COME UP WITH IN SPEAKING WITH STAFF THAT I THINK A GOOD, UM, REASONABLE WAY TO MOVE FORWARD ON THE RI JUST A LITTLE BIT OF TIME. THIS IS THE, THIS IS THE MOTION I'M GOING ASK MAYOR POT LOPEZ PUT ON THE FLOOR TONIGHT, 27TH. FURTHER THE MOTION WE, I MOVE TO AUTHORIZE THE NEGOTIATIONS ALL RESPONDENT DOMESTIC FOR THE DOWNTOWN GRAND RESPOND AND AUTHORIZE THE CITY MANAGER TO RE AN UPDATE PROPOSAL TO THE CITY COUNCIL FOR PUBLIC WORKS SHOT AT THE RECORD. JULY CITY COUNCIL MEETING. I DO HAVE, UH, A POINT OF CLARIFICATION, MEL, I DIDN'T WANT TO INCLUDE THE RESPONDENTS TO THE FIRST RPI OVER A YEAR AGO JUST TO [00:30:01] RESPONDING TO THE MORE RECENT RPI SO HE CAN ADD SOMETHING IN THERE FOR THAT. SO, UH, THAT GIVES US SOME TIME TO LET THEM GO BACK AND READJUST IT IF THEY NEED TO MAKE A NEW TIMELINE SUCH AS THAT. UH, INSTEAD OF COMING UP WITH A REAL QUICK DECISION TONIGHT. SO THAT'S THE MOTION I'M ASKING FOR, UH, JOHN TO RE ASK FOR Y'ALL'S SUPPORT. SO, SO CAN YOU CLARIFY THAT? YEAH. SO DEPENDING HOW WE WORD IT, BUT POTENTIAL WORDING COULD BE I MOVE TO AUTHORIZE NEGOTIATIONS ALL PENDING AND I DON'T KNOW IF NEGOTIATIONS WE'RE NOT GONNA BE NEGOTIATING IT. OKAY. UM, I WANT, HERE'S WHAT I ASKED, TOLD MEL. I WANTED, I WANT TO GO BACK TO THE RBI RESPONDEES OF THE SECOND RBI AND SAY, ARE YOU STILL INTERESTED? DO YOU NEED TO MAKE ANY ADJUSTMENTS BECAUSE SIX MONTHS HAS PASSED. IF THEY NEED TO MAKE SOME ADJUSTMENTS, REFL UP THE RFPI RESPONSE, GET, GET BACK TO US. THAT'S THE SIMPLE ANSWER. AND I THINK THAT KIND OF WAS A LITTLE TOO CONFUSING. I DON'T WANT TO START NEGOTIATIONS WITH THEM. I JUST WANT TO ASK THEM. DOES THAT MAKE, I WANT JUST ASK CAN A RESUBMISSION RE YEAH. RESUBMISSION. NO. REV. IF THEY, IF THEY WANT TO OR THEY CAN PULL OUT REVISED SUBMISSION, YOU CAN DO THAT ONE TOO. AND ALSO I THOUGHT, WELL, MY GOODNESS, UH, OUR STAFF HANDLED EPIC CENTRAL. THEY HANDLED ALL THIS. UH, NOW WERE THEY THE MANAGEMENT TEAM THAT BUILT THE PUBLIC SAFETY BUILDING? NO, WE HIRED SOMEBODY TO DO IT, BUT WE KIND OF CAME UP WITH VISION ALL THAT. WERE THEY THE, SO I JUST WANT TO HEAR FROM STAFF WHAT THEY WOULD DO. SO DOES THAT CLARIFY FOR YOU CUSTOMER? YEAH. WELL, HERE ON WORDING HERE SAYS WITH NEW DIRECTION, WE JUST WANT TO GET CLARITY ON ITEM 27. OH, WE'RE GIVING, WE'RE GIVING, WE'RE GIVING A MAIL CAME UP WITH, ON THE AGENDA, JUST SOMETHING LOOSE SO WE COULD GIVE THEM NEW DIRECTIONS. DIRECTION FOR NEXT STEPS. DIRECTION FOR, YEAH, IT SAYS DIRECTIONS FOR NEXT STEPS. THAT'S JUST ON THE AGENDA. IT SAYS DIRECTIONS FOR NEXT STEPS. SO THE NEXT STEP WOULD BE WHATEVER THE COUNCIL, THIS WOULD BE THAT DIRECTION. AND THAT'S JUST TO ASK FOR THE PREVIOUS RESPONDENTS TO RESPOND TO THE IDEA, BUT TO INCLUDE THE CITY STAFF IDEA AS WELL. YES. THAT'S MY SUGGESTION. BUT NOT TO OPEN IT TO ANY OTHER YEAH, YOU OPEN IT UP TO THE CITY OBJECT. YEAH, THAT'S, THAT'S, THAT'S MY SUGGESTION. ANY OTHER COMMENTS OR QUESTIONS? I HAVE MY INTERVIEW RIGHT NOW. YOUR VERSION SOUNDED VERY GOOD. I MOVE TO AUTHORIZE, UM, REVISED SUBMISSIONS. REVISED SUBMISSION OF THE REVI PENDING RESPONDED FOR MASTER SERVICE FOR DOWNTOWN . WE DEVELOPMENT PROJECT TO GOOD CITY STAFF RESPONDENT AND AUTHORIZED THE CITY MANAGER TO REG THE UPDATE PROPOSAL TO THE CITY COUNCIL FOR A PUBLIC WORKSHOP AT THE REGULAR JULY COMPANY. SO ALL WE NEED TO CLARIFY WOULD BE THE RESPONDENTS TO THE FIRST, THE SECOND RPI, NOT THE FIRST ONE. WOULD IT BE SOLELY FOR MASTER DEVELOPERS AND, AND LEAVE EVERYONE OUT. EVERYONE ELSE ON EXPERT SOLELY FOR THOSE THAT RESPONDED TO THE SECOND WE'RE, WE'RE GONNA GET THE DATE WE PUT MASTER DEVELOPER HERE. YOU'RE JUST SAYING THE WORD DEVELOPER MASTER OFFICE MASTER. YEAH. WHAT DO WE DO MA? THAT, THAT'S JUST WHAT'S ON THE AGENDA. THE MOTION WILL CONTROL. SO WE'LL, WE'LL GO WITH WHAT'S WE'RE NOT SAYING THAT IN MOTION. OKAY. YES. YEAH, THAT'S NOT AN MOTION. THE OTHER THING THIS DOES, UM, WELL THAT, BECAUSE WHAT I, AND AFTER TALKING BILL IT, I READ THE RFPI RESPONSES AGAIN AND I JUST THINK SIX MONTHS HAS PASSED AND THEY NEED THAT TIMELINES MAY PASS FINANCING HAS PASSED, BUT LET'S MAKE SURE WE PICK, UH, WE ALL KNOW WHAT I WANT. DO I THINK IT'S CLEAR. ANY OTHER QUESTIONS OR COMMENTS? KIND OF GET WITH MEL AND GET THAT CLARIFIED. UM, ANY, I'LL TURN IT BACK TO YOU. YEP. UM, ANY OTHER ITEMS? WELL WE JUST SPEAK ABOUT, UM, HEY, YOU'RE NOT AT THE DESK. UM, ITEMS 24 RASHAD, I'M SORRY. MAIL TRUMP. SHOOT RASHAD, I DON'T LIKE TO USE THAT WORD. ITEM 24 TO 26 WILL BE THE FIRST PUBLIC HEARING. SO WE CLOSE THE PUBLIC HEARING AFTER WE ALLOW ANYONE TO SPEAK. AND THEN AFTER THAT, THERE WILL BE A SECOND READING ON JUNE 4TH. [00:35:02] RASHAD 35 36 HAS REQUEST THE TABLE. WELL GOOD, BECAUSE THERE'S TWO THINGS GOING ON TONIGHT. ISN'T THAT AMAZING? SO, YEAH. CAN'T WE, CAN'T WE? NO, I'M NOT GONNA SAY IT. SOMEBODY WOULD TAKE ME SERIOUSLY, BUT HAROLD, UH, YOU KNOW, IT IS KIND OF UNIQUE. THE STARS AT HOME START AT EIGHT 30. THE MAS ARE IN OAK CITY. START AT EIGHT 30. YEAH. TONIGHT AND THURSDAY NIGHT. WE'RE LUCKY THAT THE MAVERICKS WERE THE SECOND SEAT AND THEY WOULDN'T HAVE HOME COURT. 'CAUSE THEN THEY'D PROBABLY HAVE LAST NIGHT, YOU KNOW, IT WOULD MESSED UP. THEY WOULD'VE STARTED AT ONE AND EIGHT 30 OR SIX, YOU KNOW, I THINK THEY NEED SIX HOURS TO CHANGE THE FLOOR OVER. BUT, UH, WE'RE GONNA FIND THAT CHANCE OUT MONDAY IN THERE. THAT HOW, HOW LONG IT TAKES. YEAH. I'VE SEEN THE FAST FORWARD FILMING OF IT. OH MY GOSH. THEY GET IT DONE. THEY'VE GOT SUPER COLD REFRIGERATOR UNITS THAT CHIP NEEDS TO DO THAT. YEAH, SORRY. THEY DON'T, THEY DON'T EVER MELT THE ICE FOLKS. ONLY MONEY. UM, WE ARE NOT HAVING AN EXECUTIVE SESSION. UM, UH, WE'RE REASSESSED UNTIL SIX 30. IF YOU DON'T LIKE THE, SOMETHING THAT WAS PROVIDED, SOME COUNCIL MEMBERS IN THE PAST DONE SOMETHING ELSE. SO YOU CAN JUST SEE YOU AT SIX 30. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.