Dec 06, 2023 Audit and Finance Committee

I'LL BE A LITTLE IN AND OUT HERE, BUT I APPRECIATE IT.

UH, COUNCIL MEMBER RYAN TER AND I, UH, CO-SPONSORED IN ITEM NUMBER FIVE.

THANK YOU FOR BEING HERE THIS MORNING.

UM, WE,

[5. Update on development of organizational goals, performance measures, and strategies for the Fiscal Year 2025 budget.]

SO WE'RE GONNA TAKE THAT UP FIRST RELATED TO STRATEGIC PLANNING.

GOOD MORNING, AND THANK YOU ALL.

I DIDN'T REALIZE I WAS FIRST.

THAT IS, I APPRECIATE THAT.

UM, I'M GLAD TO BE HERE.

CARRIE LANG, BUDGET OFFICER FOR THE CITY AND FINANCIAL SERVICES DEPARTMENT, AND I AM GOING TO GIVE AN UPDATE ON THE PROGRESS THAT WE'VE MADE ON THE CREATION, UM, OR THE, UM, CHANGES TO THE CITYWIDE STRATEGIC PLAN.

AS WELL AS ESTABLISH A, A LONG RANGE, UM, PLAN THAT CAN BE OPERATIONALIZED.

SO, UM, YOU KNOW, THE CITY STARTED WITH CREATION OF THE, UM, STRATEGIC DIRECTION 2023, AND WE BEGAN WORKING ON, UM, REVAMPING THAT PLAN.

AS WE LOOKED AT HOW WE WERE GOING TO MOVE FORWARD WITH THE, UH, CITY'S CONTINUED EFFORTS IN STRATEGIC PLANNING.

WE BEGAN WORKING ON THE NEXT ITERATION, UM, WITH THE FOUNDATION OF SSD 23.

SO WE LOOKED AT WHAT WAS INCLUDED IN SD AND DECIDED TO START WITH THAT GROUNDWORK AND BEGAN USING, UM, THINGS LIKE THE CHALLENGE STATEMENTS AND THE, UM, INITIATIVES INSIDE OF SSD 23 TO BEGIN CREATING THE PLAN.

OVER THE LAST TWO YEARS, AND THIS SLIDE KIND OF TALKS ABOUT THE PROGRESS AND THE THINGS THAT WE'VE DONE SO FAR OVER THE LAST TWO YEARS, WE'VE CONDUCTED EXECUTIVE WORKSHOPS.

WE MOBILIZED CROSS-DEPARTMENTAL, UM, TEAMS TO WORK ON DEVELOPING GOALS AND MEASURES AND STRATEGIES FOR THE UPCOMING PLAN.

UM, AND WE ARE REALLY LOOKING AT CREATING THESE MEASURES AND STRATEGIES THAT ARE ACTIONABLE AND WILL ALLOW US TO MOVE FORWARD AS A CITY.

UM, WE, WE CONDUCTED, UM, CITYWIDE, OR THE CITYWIDE GOALS WERE APPROVED BY CITY MANAGEMENT.

YOU SAW THOSE, THOSE GOALS WITHIN THE FISCAL YEAR 24 BUDGET DOCUMENT.

AND RIGHT NOW, I'LL KIND OF TALK A LITTLE BIT MORE ABOUT THIS IN DETAIL.

WE'RE LOOKING AT REFINING THOSE MEASURES, REFINING THE STRATEGIES, IMPLEMENTING A PILOT, UH, PLAN FOR NINE OF THE PILOT TEAMS TO REALLY DIG INTO WORK PLANS AND SHOWING PROGRESS ON THE, ON THE, UH, STRATEGIC PLAN AND FINALIZING THE MEASURES, UM, SO THAT WE CAN DEVELOP A DASHBOARD FORWARD.

SO WHAT ARE THE OBJECTIVES? WHEN WE THINK ABOUT THE CITYWIDE STRATEGIC PLAN? WE REALLY WANTED TO MAKE SURE WE LOOKED AT THE GREAT WORK THAT WAS DONE WITH SSD 23, BUT LOOK AT THE LEARNED LESSONS FROM THAT PLAN, WHAT THINGS WE CAN DO BETTER, WHAT THINGS WE CAN TAKE AWAY FROM THE PLAN.

WE WANTED TO MAKE SURE WE DEFINED THE CITYWIDE GOALS, MEASURES, AND STRATEGIES BASED ON THINGS THAT WE COULD ACHIEVE AS A CITY THAT WE HAD, UM, UM, PURVIEW OVER.

AND THEN WE WANTED TO MAKE SURE, AS YOU ALL KNOW, THE AUDITOR'S OFFICE COMPLETED A AUDIT AND MADE RECOMMENDATIONS IN MARCH OF THIS YEAR.

WE WANTED TO MAKE SURE WE WERE INCORPORATING THOSE RECOMMENDATIONS IN THE CREATION OF THE NEXT PHASE OF THE PLAN.

THIS PLAN IS, UM, MORE STAFF LED BASED ON THOSE RECOMMENDATIONS, BUT IT IS VERY WELL INFORMED BY THE PRIORITIES OF COUNCIL.

UM, IN, IN ADDITION TO INCORPORATING THE AUDIT RECOMMENDATIONS, WE WANTED TO MAKE SURE THE PLAN WAS A LIVING DOCUMENT THAT WOULD BE FLEXIBLE, UM, AND ALLOW FOR US TO ADAPT TO THE CHANGING NEEDS OF THE CITY,

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THAT IS, THAT IS THE FOCUS OF THE PLAN.

SO WHEN WE THINK ABOUT WHAT WE'VE DONE SO FAR, THE STAFF HAS MADE A LOT OF, UH, HAVE HA HAS HAD SOME GREAT ACCOMPLISHMENTS WITH THE DEVELOPMENT OF THE PLAN.

AGAIN, WE ESTABLISHED 24 CITYWIDE GOALS THAT WERE INCLUDED IN THE FISCAL YEAR 24, UH, BUDGET DOCUMENT.

BUT IN ADDITION TO THAT, IN ORDER TO GET TO THAT SPACE, WE HAD TO MOBILIZE OVER 200 DIVERSE STAFF.

SO AGAIN, THE GOAL IS TO OPERATIONAL, OPERATIONALIZE THE PLAN INTO THE, INTO THE ORGANIZATION, AS WELL AS ALLOW FOR IT TO LEAD AND GUIDE THE DECISIONS THAT ARE BEING MADE.

UM, WE ARE CONTINUING REFINEMENT.

SO, UM, WITH THOSE 24 GOALS, WE HAVE 55 MEASURES, STRATEGIC MEASURES THAT HAVE BEEN CREATED.

WE ARE CONTINUING REFINING OF THOSE MEASURES, MAKING SURE WE HAVE TARGETS, MAKING SURE THEY'RE ACTUALLY MEASURABLE AND MOVE WILL MOVE THE GOAL FORWARD.

AND WE HAVE ASSOCIATED STRATEGIES 151 STRATEGIES AND DEVELOPING WORK PLANS THAT WILL HELP MAKE SURE THAT THIS PLAN ISN'T JUST SITTING ON A SHELF, THAT WE ARE SEEING THE WORK THAT IS BEING DONE BEHIND IT.

SO WHEN WE TALK ABOUT THE GOALS, UM, WHAT WE HAD TO DO WHEN WE WERE CREATING THE, THE GOALS AND WE LOOKED AT THE 24 GOALS THAT WERE CREATED, WE WANTED TO MAKE SURE THAT WE, UM, CREATED CATEGORIES THAT ALIGNED THOSE GOALS TOGETHER.

THESE SEVEN CATEGORIES THAT YOU'LL SEE BETWEEN THIS SLIDE AND THE NEXT SLIDE, UM, ARE CATEGORIES THAT ARE CROSSING OVER, UH, ASSISTANT CITY MANAGER, JOB FUNCTIONS, AS WELL AS DEPARTMENTS.

SO IT'S VERY CROSS COLLABORATIVE ACROSS DEPARTMENTS.

AND THEN, UM, IT ALSO, WE ALSO WANT TO SHOW HOW THESE GOALS AND HOW THESE CATEGORIES STILL ALIGN WITH THE PRIORITIES THAT WE'VE HEARD FROM COUNCIL.

SO WE LOOKED AT THE, UM, ITEMS FROM COUNCIL FOR THE LAST TWO YEARS, AND OF THE 243 ITEMS FROM COUNCIL, THE GOALS AS A WHOLE REPRESENT 93% OF THOSE ITEMS. SO WE CAN, WE CAN TIE 93% OF THE, THE RESOLUTIONS AND INFORMATION AND REQUESTS WE GOT FROM COUNCIL TO THE WORK THAT WE'RE DOING IN THE STRATEGIC PLAN.

AND IN THESE NEXT TWO SLIDES, I WON'T GO THROUGH EACH GOAL SPECIFICALLY, BUT IN THESE NEXT TWO SLIDES, YOU CAN SEE THE ALIGNMENT OF IFC.

SO HOUSING HOMELESSNESS AND HOUSING HAS 56 IFCS THAT ARE ALIGNING, UM, COMMUNITY HEALTH AND RESILIENCE HAS 38 IFCS THAT ALIGN.

AND THEN WHEN YOU CONTINUE TO LOOK AT THE NUMBER OF THE DIFFERENT CATEGORIES, WE SEE THE ALIGNMENT FROM PUBLIC SAFETY AS WELL AS MOBILITY AND CRITICAL INFRASTRUCTURE.

SO THEN THIS, THIS SLIDE HERE REALLY JUST TALKS ABOUT WHAT WE'RE DOING ON THE NE OVER THE NEXT STEPS AND HOW THIS, UH, PLAN IS, UH, GOING TO BE SET UP WHEN ONCE IT'S FINALIZED.

WE START WITH THE VISION AND VALUES THAT YOU'VE SEEN IN, UM, IMAGINE AUSTIN.

THE COMPREHENSIVE PLAN.

WE CREATED THE GOALS, UM, BASED ON THE CHALLENGE STATEMENTS THAT WERE, UH, INCLUDED IN STRATEGIC DIRECTION 2023.

WE BEGAN DEVELOPING THESE MEASURES AND STRATEGIES THAT WILL SHOW PROGRESS TOWARDS ACHIEVING THE GOALS, AS WELL AS ACTIONABLE PLANS ON HOW WE'RE GOING TO IMPLEMENT THOSE MEASURES OVER THE NEXT, UM, WE'VE DONE A, A KICKOFF FOR THE NINE PILOT TEAMS, AND OVER THE NEXT SEVERAL MONTHS, WE WILL BE CREATING, UM, WORKSHOPS TO REALLY DEVELOP WORK PLANS THAT WE PLAN TO BRING FORWARD AND, AND, AND, UM, CONTINUE TO DEVELOP SO THAT THOSE WORK PLANS CAN SHOW WHAT OUR, OUR TIMELINES ARE, WHAT OUR PROJECT GOALS ARE IN IMPLEMENTING THE OVERALL STRATEGIC PLAN.

SO WHEN I THINK ABOUT, WHEN I, WHEN WE THINK ABOUT THE NEXT STEPS OVER THIS MONTH, STARTING LAST MONTH AND BEGINNING THIS MONTH IN DECEMBER, UM, WE INITIATE THE PILOT WORK PLANS.

WE'LL HAVE WORKSHOPS OVER THE NEXT SEVERAL MONTHS WITH THOSE PILOT TEAMS. UM, WE'RE CONTINUING TO REFINE THE MEASURES AND STRATEGIES.

ABOUT 90% OF THE MEASURES HAVE, UM, ALL THE ELEMENTS NEEDED TO CREATE THE DASHBOARD THAT WE'RE WORKING ON.

SO WE'RE WORKING ON FINALIZING THE REST OF THOSE MEASURES AND STRATEGIES.

UM, AND THEN WE WILL MOVE FORWARD WITH, UM, INITIATING THE CITY LEADERSHIP REVIEW PRO, UH, REVIEW PROCESS AND THE DASHBOARD THAT WILL BE AN OUTWARD PERSON DASHBOARD THAT SHOWS THE, UH, PROGRESS WE'RE MAKING ON THE PLAN, UM, ANY CHANGES THAT WE'RE MAKING ON THE PLAN.

AND I WANNA REITERATE THAT THE GOAL IS TO HAVE A LIVING DOCUMENT, A LIVING PLAN THAT WILL ADAPT TO THE WORK THAT WE'RE DOING AS A CITY AND ALLOW IT FOR US TO, FOR EXAMPLE, IF A STRATEGY IS COMPLETE OR WE FIND OUT A STRATEGY ISN'T WORKING THE WAY THAT WE THINK, HAVE SOME ABILITY TO ADAPT THOSE STRATEGIES AND MAKE CHANGES IN THE LIFE OF

[00:10:01]

THE PLAN TO ULTIMATELY REACH THE GOALS THAT WE'VE CREATED.

THANK YOU ALL.

I AM HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

UM, CAN WE SEE THE SCREEN SO I CAN SEE WHO'S ONLINE PLEASE? THANK YOU.

SO COUNCIL MEMBER FUENTES HAS JOINED US ONLINE AS WELL.

FOR THE RECORD, UM, COUNCIL MEMBER RYAN ALTER, DID YOU HAVE SOME QUESTIONS? I DO.

THANK YOU, CARRIE, FOR THAT.

ONE THING I'M JUST TRYING TO UNDERSTAND AS Y'ALL DEVELOP THIS, ESPECIALLY AS YOU MOVE IT TOWARDS, UH, NEXT YEAR'S BUDGET, IS, YOU KNOW, Y'ALL HAVE SET FORWARD THESE GOALS AND THE STRATEGIES, BUT AS, UH, WE CERTAINLY KNOW IN ANY BUDGET PROCESS, YOU CAN'T FUND EVERYTHING, RIGHT? SO, SO WE HAVE TO DECIDE WHAT OF OUR GOALS ARE MORE IMPORTANT, WHAT OUR PRIORITIES ARE, AND I WANT TO KIND OF UNDERSTAND HOW Y'ALL ARE LOOKING AT THIS, UH, THROUGH THAT LENS OF, OF PRIORITIZATION, UH, BECAUSE, YOU KNOW, THAT CERTAINLY CROSSES INTO THE POLICY REALM.

AND SO TRYING TO FIGURE OUT HOW WE AS A BODY CAN IMPART OUR PRIORITIES ON THIS PLAN.

WELL, I THINK THE SHORT ANSWER IS WE, THROUGH THE CONTINUED CONVERSATIONS THAT WE HAVE WITH YOU ALL AS COUNCIL, AND SO AS I SHOWED A LITTLE IN A COUPLE OF THE SLIDES, THE, UH, CATEGORIES AND GOALS HAVE A NUMBER OF IFCS.

WE HAVE ALIGNMENT WITH THE ITEMS FROM COUNCIL.

UM, WE CONTINUE TO HAVE CONVERSATIONS SO IT, IT WILL BE INFORMED, THE PRIORITIES WILL BE INFORMED BY THE CONTINUED DISCUSSIONS WITH THE BODY.

UM, AND I THINK THAT AS WE, AS WE, UM, CONTINUE WITH THE DEVELOPMENT OF THE PLAN AND PRIORITIES, WE'LL LOOK AT THOSE, THOSE CONVERSATIONS GLEAN WHAT THE, WHAT THE COUNCIL WOULD LIKE TO SEE AND, AND INCLUDE THOSE IN THE PROPOSED DOCUMENT.

UM, I THINK THERE'S OPPORTUNITY FOR SEVERAL SPACES FOR US TO, UM, GIVE, RECEIVE INPUT WHEN WE'RE, YOU KNOW, LOOKING AT THE FORECAST PERIOD OR THINGS LIKE THAT THROUGHOUT THE TIMELINE THAT IF WE NEED TO COME BACK, WE CAN COME BACK AND HAVE CONTINUED CONVERSATIONS.

BUT I FEEL LIKE WE'VE BEEN LISTENING OVER THE LAST CONTINUAL TIME TO, TO TRY TO MAKE SURE THAT WE'RE ALIGNING THIS PLAN, THE GOALS AND PRIORITIES BASED ON WHAT WE'RE HEARING FROM YOU ALL AS A BODY.

AND SO WHEN WE TALK ABOUT THE MEASURES ELEMENT, UH, ARE THOSE STILL BEING DEVELOPED OR WHEN, WHEN WILL WE GET TO SEE KIND OF WHAT OUR TARGETS ARE IN TERMS OF METRICS THAT WE CAN ACTUALLY MEASURE? SO WE ARE STILL REFINING THE MEASURES.

THERE'S, THERE'S BEEN SOME REALLY GOOD WORK THAT'S BEEN DONE AND CREATING MEASURES AS WELL AS, UM, DETERMINING THE DATA SOURCE.

SO WE ARE, WE'RE IN THE REFINEMENT STAGE, MAKING SURE THAT THESE MEASURES ARE GOING TO MOVE THE, THE GOALS FORWARD AT THIS MOMENT.

UM, AND, AND SO WE ARE LOOKING AT FINALIZING THE MEASURES IN BEFORE WE GET TO, IN, IN THE SPRING OF 24, SO THAT WE CAN BE ABLE BE PREPARED TO BEGIN BUILDING THE DASHBOARD AND, UM, SHOWING THE MEASURES TO, TO COUNCIL AND THE PUBLIC.

YEAH, I WOULD REALLY, I'M INTERESTED ESPECIALLY, YOU KNOW, AS WE THINK ABOUT, I LOOKED AT, UM, ONE OF THE GOALS, AND I DON'T HAVE IT IN FRONT OF ME, BUT ESSENTIALLY AS IT RELATES TO HOMELESSNESS, TO, UH, YOU KNOW, NOT ONLY STOP INCREASING OUR HOMELESS COMMUNITY, BUT ALSO THEN SET US ON A PATH FOR, UH, ENDING HOMELESSNESS.

HOW, HOW WE CAN MEASURE WITHIN THE INVESTMENTS WE'RE MAKING IN OTHER, UH, STEPS WE'RE TAKING.

YOU KNOW, ARE WE, ARE WE DOING MORE THAN SPENDING MONEY? ARE WE ACTUALLY ACHIEVING RESULTS? AND SO, UH, AND THAT GOES FOR, FOR MANY SPACES, BUT, UM, I'M EXCITED TO SEE THOSE AS SOON AS YOU CAN AND, AND YOU KNOW, WHERE WE MIGHT HAVE, UH, EITHER DIFFERENT IDEAS OR PRIORITIZATION, JUST, UH, WANNA MAKE SURE WE CAN HAVE THOSE CONVERSATIONS EARLIER RATHER THAN LATER.

YES, SIR.

I REALLY APPRECIATE YOUR WORK.

THANK YOU, COLLEAGUES.

UM, DO YOU OTHER FOLKS HAVE ANY QUESTIONS? COUNCIL MEMBER POOL, I WANTED TO THANK THE STAFF FOR TAKING US WITH THE STRATEGIC PLANNING PROCESS INTO THE NEXT PHASE.

I REMEMBER SITTING IN A BIG ROOM WITH MY COLLEAGUES TRYING TO CRAFT THE INITIAL STRATEGIC PLAN FOR THE CITY OF AUSTIN.

AND THAT WAS, WHAT, ABOUT SEVEN YEARS AGO NOW? MM-HMM, SIX OR SEVEN, SOMETHING LIKE THAT.

IT WAS PRE PANDEMIC FOR SURE.

AND THEN COMING BACK AND DOING A REFRESHER AND REESTABLISHING OUR FOLKSY AND FINDING WHAT WOULD BE OUR TOP MAIN PRIORITIES.

AND IT WAS GOOD WORK.

AND, UM, UH, AND IT CONTINUES.

AND THIS IS, UM, THIS IS A REALLY GOOD UPDATE AND I APPRECIATE, UM, OUR BUDGET OFFICER PRESENTING THIS TODAY.

OKAY, I HAVE A, I HAVE A COUPLE, UH, QUESTIONS I DO APPRECIATE, UM, HOW THIS BUILDS OFF OF OUR PRIOR WORK.

UH, COUNCIL MEMBER KELLY, OR COUNCIL MEMBER OF FUENTES, DO YOU HAVE QUESTIONS?

[00:15:01]

I THINK WE HAVE, YOU KNOW, MOVE THE BUCKETS AROUND, UM, SLIGHTLY DIFFERENTLY MAYBE TO, TO BETTER MEET, UM, OUR NEEDS.

I DO HAVE A COUPLE QUESTIONS THOUGH.

UM, ONE, YOU MENTIONED THAT YOU WERE FOCUSING IN ON NINE STRATEGIC MEASURES, OR I THINK THAT WAS THE CATEGORY, UM, THAT YOU WERE CALLING THE NINE, UM, ITEMS FOR THIS BUDGET.

UM, CAN WE SEE THOSE NINE ITEMS OR CAN YOU SHARE WHAT THOSE NINE THINGS ARE? YEAH, SO WE ARE, WE ARE, I, I CAN GIVE YOU ALL THAT, THAT DETAIL, I GUESS PUSH THAT OUT.

UM, BUT WE ARE WORKING ON, UM, NINE AREAS TO CREATE PILOT, UH, A PILOT WORK PLAN.

SO WHAT WE HAVE CREATED SO FAR ARE, UM, MEASURES AND STRATEGIES AND THE STRATEGIES ARE PLANS, BUT WE WANNA DIG A LITTLE BIT DEEPER AND SHOW PROJECT KIND OF TIMELINES ON HOW WE'RE MOVING THOSE PLANS FORWARD.

SO THAT IS WHAT WE'RE KIND OF FOCUSING ON.

UM, BUT I WILL SHARE THOSE, THOSE NINE ITEMS WITH YOU ALL.

UM, I CAN SEND SOMETHING OUT TO SHARE EXACTLY WHAT THOSE NINE ITEMS ARE.

I THINK THAT WOULD BE HELPFUL FOR US TO REALLY GET A, A, A SENSE OF HOW THIS MAY BE OPERATIONALIZED MOVING FORWARD.

AND, UM, I APPRECIATE THE EMPHASIS ON THE IFCS AS A WAY FOR, FOR COUNCIL, UH, INPUT.

BUT THEN THERE ARE ALSO ITEMS FROM STAFF THAT ORIGINATED WAY BACK WHEN WITH ITEMS FROM COUNCIL, UM, OR EVEN JUST OUR NATURAL PART OF OUR PROCESS THAT WE NEED TO MAKE SURE ARE, YOU KNOW, REFLECTED HERE.

SO I'M THINKING OF, YOU KNOW, THE A RR VISION PLAN, UM, OUR LIBRARIES PLAN, UM, WHICH ARE NOT NECESSARILY DIRECTLY FROM IFCS, BUT ARE THINGS THAT WE HAVE WEIGHED IN ON, YOU KNOW, AS COUNCIL, UM, FOR THAT.

AND, AND SO I JUST WANNA FLAG THAT I HOPE THAT YOU'RE ALSO, THERE ARE THINGS THAT, YOU KNOW, STAFF HAVE BROUGHT US THAT WE HAVE AGREED TO THAT ARE NOT IFCS AS, AS SHOULD HAPPEN, THAT ARE ALSO IMPORTANT, UM, AS WELL FOR THESE, THESE CATEGORIES.

I AGREE.

COUNCIL MEMBER.

AND I THINK THAT WHAT WE'VE DONE WITH THE CROSS, UM, THE CROSS DEPARTMENTAL TEAMS AND THE TEAMS THAT HAVE PERMEATED THROUGHOUT DIFFERENT LEVELS OF THE CITY HAS ALLOWED FOR THOSE DISCUSSIONS AS WELL.

SO IN THIS PRESENTATION IN PARTICULAR, I WANTED TO SHOW THAT WE ARE REALLY, UM, ALIGNING TO THE THINGS THAT COUNCIL HAS PUT FORTH, BUT STAFF HAS TALKED ABOUT THE PLANS THAT HAVE ALREADY BEEN IN PLACE AND BEEN APPROVED OR BEEN INITIATED, AND HOW THOSE PLANS CAN, UM, SPEAK TO THE STRATEGIC PLAN AND INFORM THE STRATEGIC PLAN AND OUR MEASURES AND STRATEGIES.

SO THE PLANS ARE ALSO FEEDING YES.

INTO IT, NOT JUST STAFF SEATS.

AND THEN, UM, SPEAKING OF LIBRARIES, I WAS SORT OF HARD PRESSED TO FIGURE OUT WHICH CATEGORY, UM, OF THE GOALS LIBRARIES FALL UNDER.

UM, YOU KNOW, I THINK THAT OUR RESIDENTS REALLY RELY ON OUR LIBRARIES AND, UM, YOU KNOW, THERE, THERE'S SOME, YOU COULD KIND OF, SORT OF PEG IT INTO, BUT, YOU KNOW, WE HAVE A WHOLE GOAL JUST FOR THE ANIMAL CENTER.

AND I THINK THAT OUR COMMUNITY RELIES HEAVILY ON OUR LIBRARIES, NOT JUST FOR RESILIENCE REASONS, UM, AND NOT JUST FOR CREATIVE SECTOR.

AND SO I WAS HAVING A LITTLE, YOU KNOW, OR EVEN OUR, YOU KNOW, UM, OUR, OUR CULTURAL CENTERS, ET CETERA.

WHERE DO THOSE FIT IN THIS SCHEME? AND I WILL HAVE TO GO BACK AND LOOK AT THE DETAIL, BUT I'M GOING TO MAKE THE EDUCATED ASSUMPTION AT THIS POINT, UM, THAT IT WILL, THOSE, THOSE STRATEGIES AND THE, THAT WORK WOULD, WOULD FALL INTO COMMUNITY HEALTH AND RESILIENCE.

BUT LET ME GO BACK TO THE TEAM AND KIND OF VERIFY THAT AND MAKE, AND, AND I THINK WHAT WE WANTED TO DO WITH THESE CATEGORIES AS WELL AS SOME OF THESE GOALS, IS TO MAKE THEM KIND OF OVERARCHING SO THAT AS, UM, WE ELEVATE THINGS THAT NEED TO BE ADDRESSED TO MOVE FORWARD THOSE GOALS IN GENERAL.

SO A LIBRARY CAN BE ELEVATED IN A SPACE, COMMUNITY CENTERS CAN BE ELEVATED IN SPACE OR REDUCING THE SPACE AS WE SEE PROGRESS BEING MADE.

SO LET ME GO BACK AND LOOK AT THAT AND I CAN GIVE YOU SOME MORE INFORMATION.

WE COULD, UM, LOOK AT OUR PLAN.

AND, AND I THINK ALSO SORT OF YOUTH AND CHILDREN WAS ANOTHER ONE WHERE IT KIND OF FITS, BUT IT DOESN'T FIT.

AND, UM, AND JUST WANNA MAKE SURE THEY'RE NOT BEING DROPPED.

YES, DEFINITELY THROUGH THE CRACKS IN THE, IN THE PROCESS OF TRYING TO, TO STREAMLINE THIS.

AND THEN YOU MENTIONED SOMETHING I THINK IS REALLY IMPORTANT THAT, YOU KNOW, YOU WANTED TO GET STUFF THAT WE COULD ACTUALLY MEASURE.

I KNOW THAT WAS ONE OF MY BIGGEST FRUSTRATIONS WITH SSD 23, IS WE SET OUT THAT WE WERE GONNA MEASURE THESE THINGS, THEN THEY NEVER GOT MEASURED.

AND SO THEN WE COULD NEVER SEE OUR PROGRESS BECAUSE WE DIDN'T HAVE THE MEASURES AGAINST WHICH

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UM, SO I'M LOOKING FORWARD TO SEEING KIND OF WHAT THOSE ARE AND, AND HOW YOU ARE, HOW YOU ARE, UM, THINKING ABOUT THOSE, THAT THAT HAS BEEN, UM, THE, ONE OF THE BIGGEST CHARGES, UM, FOR OUR TEAMS AS WE'VE CREATED THIS TO THIS STAGE OF THE PLAN.

UM, IF YOU REMEMBER IN THE AUDIT, UH, REPORT, THE RECOMMENDATION WAS TO MOVE AWAY FROM COMMUNITY INDICATORS OR, YOU KNOW, REPURPOSE COMMUNITY INDICATORS IN ANOTHER SPACE.

AND SO WE, WE ARE REALLY LOOKING AT CREATING MEASURES THAT WE HAVE THE, UM, THE OVERSIGHT AND THE AUTHORITY TO SHOW THE CHANGES AND THE IMPACT THAT THE CITY IS MAKING AS AN ORGANIZATION AND NOT HAVE A LOT OF MEASURES THAT ARE, UM, INFLUENCED BY SEVERAL OTHER, UH, VARIABLES.

AND SO, UM, WE WILL BE HAPPY TO SHARE THAT INFORMATION SO THAT YOU ALL CAN SEE, YOU KNOW, THE MEASURES AS THEY'RE DEVELOPED, THE GOALS AND TARGETS THAT WE'RE CREATING.

SOME OF THE MEASURES ARE BRAND NEW MEASURES, SO WE'LL BE USING, UH, 25 TO CREATE BASELINES OR, YOU KNOW, BUT A NUMBER OF THE MEASURES ALREADY HAVE TARGETS AND, AND WE'RE WORKING ON FINALIZING THAT INFORMATION.

UM, AND I WANNA JUST HIGHLIGHT, I REALLY APPRECIATE UNDER COMMUNITY HEALTH AND RESILIENCE THAT IT SAYS ENSURE AND PRESERVE EQUITABLE ACCESS TO PARKS, ET CETERA.

UM, YOU KNOW, ONE OF, ONE OF THE THINGS THAT WE HAVE BEEN WORKING ON, SAY WITH THE LAND MANAGEMENT PLAN AND, UM, CONVERSATIONS WE'VE BEEN HAVING ABOUT THE NEED FOR, UM, MAINTENANCE IN OUR PARKS, INCLUDING THE CONVERSATION WE HAD LAST WEEK ABOUT THE CMC, IS THAT WE HAVE A LOT OF WORK TO DO, UM, FOR MAINTAINING THE PARKS THAT WE HAVE.

WE ALSO DO NEED TO GROW THE PARKS.

UM, BUT I APPRECIATE THAT, UM, FRAMING OF IT BECAUSE I DO THINK WE NEED VERY MUCH TO PAY ATTENTION TO THE MAINTENANCE OF OUR PARKS, UM, ON THAT.

UM, SO, UH, THERE ARE NO OTHER QUESTIONS.

UH, WE'LL THANK MS. LING FOR BEING HERE.

AND I JUST WANNA SAY, YOU KNOW, I, I GET THE PRIVILEGE OF STANDING UP HERE, BUT AS I MENTIONED IN THE EARLIEST SLIDE, IT'S OVER 200 STAFF THAT'S BEEN WORKING ON THIS.

SO THIS IS SOMETHING THAT I THINK THE TEAM AS A WHOLE HAS TAKEN VERY SERIOUSLY AND WE LOOK FORWARD TO, TO THE CONTINUED WORK.

AND, UM, PLEASE BE IN TOUCH IF WE NEED TO HAVE OPPORTUNITIES TO WEIGH IN AT AUDIT, IN FINANCE AT PARTICULAR, UM, SPOTS THAT MAY BE MORE APPROPRIATE THAN A, UM, WORK SESSION.

OR OBVIOUSLY WE'RE WELCOME IT AT WORK SESSION OKAY.

AS WELL.

IS ITEM NUMBER THREE, DISCUSSION AND POSSIBLE ACTION REGARDING RECOMMENDATIONS FOR APPOINTMENT OF MEMBERS TO THE AUSTIN CONVENTION ENTERPRISE BOARD.

SO OUR NEXT ITEM, WE ARE GOING TO MOVE, UM, ITEM TWO, MUNICIPAL CIVIL SERVICE TOWARDS THE END.

'CAUSE WE'RE GONNA, UM, BE TAKING UP THAT IN EXECUTIVE SESSION WITH THE RELATED ITEM.

SO OUR NEXT ITEM

[3. Discussion and possible action regarding recommendations for appointment of member(s) to the Austin Convention Enterprises Board. (part 1 of 2)]

I'M GONNA RECOGNIZE COUNCIL MEMBER POOLE.

THANKS, CHAIR.

UM, WE HAVE, UM, IN FRONT OF US AN EXPIRED TERM, UH, FOR ONE DIRECTOR.

AND, UH, WE'LL BE BRINGING FORWARD, UH, RECOMMENDATION FOR A REPLACEMENT.

AND THAT RESOLUTION IS ON THE PAGE ON THE, UH, DAIS IN FRONT OF YOU.

UM, ALSO OUR, UM, CFO ED VAN NINO IS HERE IF ANYBODY HAS ANY QUESTIONS.

AND I'M HOPING THAT THIS WILL BE ON OUR AGENDA FOR, UM, OUR NEXT MEETING, HOPEFULLY ON DECEMBER 14.

SO, COUNCIL MEMBER FUENTES HAD ASKED ME TO HOLD THIS DISCUSSION UNTIL SHE WAS ON THE DAES.

DO YOU HAVE QUESTIONS? COUNCIL MEMBER FUENTES.

AND I ASSUMED SINCE YOU WERE UP THERE, YOU WERE ON, WE'RE HAVING TROUBLE HEARING YOU.

CAN YOU HEAR ME NOW? YES.

CAN YOU HEAR ME NOW? YES, WE CAN.

UM, SO I, YOU KNOW, MY QUESTION ON, ON THIS APPOINTMENT, UM, BEFORE US, WELL, I GUESS I WOULD WANT SOME, UM, SOME INSIGHT AS TO THE RECOMMENDATION FOR THIS APPOINTMENT.

FIRST WOULD BE MY FIRST QUESTION.

I, SUSANNA CARBAJAL, UM, IS A LONGTIME, UH, CITY STAFFER.

YOU HAVE HER, UM, RESUME IN FRONT, I HOPE YOU DO, IN FRONT OF YOU.

AND, UM, ENO IS HERE AND HE CAN ANSWER SOME QUESTIONS ABOUT THE RECOMMENDATION COMING FROM STAFF FOR MS. CARBAJAL TO TAKE THIS POSITION, THIS APPOINTMENT.

CAN, WE CAN GET THEM ANSWERED.

AND ALSO, ALSO MY STAFF JUST REMINDED ME, CAROLINE WEBSTER IS HERE ALSO FROM LEGAL, AND IT MAY BE THAT CAROLINE, UM, IS BETTER, UM, POSITIONED TO ANSWER THE QUESTION.

SO MS. WEBSTER, COULD YOU ALSO COME FORWARD SO THAT COUNCIL MEMBER FUENTES, UM, HER QUESTIONS

[00:25:01]

HI, GOOD MORNING.

UM, CAROLINE WEBSTER WITH THE LAW DEPARTMENT.

UM, THE ACE BOARD, UH, CONSISTS OF FIVE MEMBERS AND THEY SERVE SIX YEAR TERMS. AND UNLIKE A LOT OF THE OTHER BOARDS AND COMMISSIONS, THEY TEND TO, THEY DON'T GET NECESSARILY GET ALL APPOINTED ON MARCH 1ST.

LIKE WITH OUR OTHER ONES, THEY HAVE KIND OF A ROLLING, UH, APPOINTMENT SCHEDULE.

AND SO WE LOOK BACK ON THE RESOLUTIONS THAT HAVE BEEN PASSED PREVIOUSLY TO SEE KIND OF WHOSE TERM IS UP AND, AND WHERE THEY ARE IN THEIR TERM, ET CETERA.

UH, EARLIER THIS YEAR WE HAD AN INDIVIDUAL WHO RESIGNED, UH, SHERRY GREENBERG, AND THEN YOU ALL APPOINTED, UH, MR. MADRES TO FILL THAT UNEXPIRED TERM.

AND RIGHT NOW YOU HAVE A TERM THAT ENDED IN, UH, ON JUNE, I THINK 21ST OF THIS YEAR.

AND NO APPOINTMENT WAS MADE TO REPLACE THAT INDIVIDUAL.

SO HE HAS JUST BEEN HOLDING OVER.

THAT WAS MR. UH, PHILIP SCHMIDT, WHO'S BEEN HOLDING OVER SINCE THAT TIME.

AND SO THIS IS REALLY JUST TO FILL THAT OFFICE, UH, SO THAT HE DOESN'T HOLD OVER INDEFINITELY UNDER THE, UH, TERMS OF THE BYLAWS AND, UH, OTHER INSTRUMENTS RELEVANT TO THIS PARTICULAR, UH, COMMISSION COMMITTEE.

THEY, UM, THEY CAN HOLD OVER, BUT ONLY UP UNTIL THEIR SUCCESSOR IS APPOINTED.

AND SO CERTAINLY THE IDEA IS TO GO AHEAD AND, AND APPOINT A, ANOTHER AVEN INDIVIDUAL OR REAPPOINT THE SAME INDIVIDUAL, WHATEVER COUNSEL PREFERS FOR THE PARTICULAR INCIDENT.

UH, SO THAT'S WHAT, UH, THAT'S WHY THIS HAS COME UP AT THIS POINT IN TIME.

AND IS MR. SCHMIDT, IS HE, IS HIS, IS HE TERMED OUT? WHAT YEAR IS HE ON HIS TERM? HE'S, HE'S FINISHED HIS SIX, HIS SIX YEAR TERM.

I DON'T KNOW FOR SURE IF THIS IS HIS FIRST TERM OR SECOND TERM.

UM, HE WAS PREVIOUSLY APPOINTED BY A COUNCIL MEMBER CASAR, UH, SIX YEARS AGO.

AND, UH, SO AS I SAID, THERE WAS NO REAPPOINTMENT THAT CAME IN, UH, UP UNTIL THIS POINT.

AND SO THAT'S WHY THERE'S, UH, NOW A PROPOSED INDIVIDUAL TO SERVE IN THAT ROLE.

AND HAS HE INDICATED THAT HE WOULDN'T, HE'S NOT SEEKING REAPPOINTMENT AND WOULD LIKE TO RESIGN OR TO FINISH OUT THE YEAR? NOT THAT I'M AWARE OF.

I'D LIKE TO TAKE THIS ITEM INTO EXECUTIVE SESSION IF THAT IS OKAY.

SURE.

MS. WEBSTER, IS THAT OKAY? YES, THAT'S ACCEPTABLE.

SO WHEN WE GET TO THAT POINT, IF SOMEONE CAN JUST REMIND ME, UM, TO ADD THAT TO THE SCRIPT, THAT WOULD BE OKAY.

I'M WORKING ON THE SCRIPT, SO I'LL ADD THAT TO THE SCRIPT FOR YOU.

UM, WILL WE BE ABLE TO DO THAT EXECUTIVE SESSION VIRTUALLY? UM, I BELIEVE SO.

OKAY, GREAT.

I JUST WANTED TO MAKE SURE THAT OPTION'S AVAILABLE.

ITEM FOUR, BRIEFING ON THE CITY'S PENSION SYSTEM.

UM, WE WILL LET A TXN KNOW, AND HOPEFULLY THEY CAN MAKE THAT HAPPEN.

I THINK WE HAVE SEVERAL OF US VIRTUALLY, SO I THINK THAT SHOULD BE A MATTER OF, OF, OF PROCESS.

UM, OKAY.

SO WE WILL, UM, TABLE ITEM THREE FOR NOW, UM, AND COME BACK TO THAT.

UM, AND WE'LL NOW MOVE ON TO

[4. Briefing on the City’s Pension systems.]

UM, I BELIEVE MR. VINO IS GOING TO DO THIS PRESENTATION.

UM, UM, BEFORE WE GET STARTED, UM, ON THE, THE PENSION OVERVIEW THAT MR. ENO'S GONNA PROVIDE, I DO WANNA, UM, ACKNOWLEDGE THE SERVICE OF SOME OF MY COLLEAGUES ON THE VARIOUS PENSION BOARDS.

I BELIEVE COUNCIL MEMBER POOLE IS ON THE COS BOARD AND COUNCIL MEMBER KELLY IS ON THE A PRS BOARD AND THE MAYOR BY STATUTE SERVES ON THE FIRE, UH, PENSION.

BUDGETARY IMPLICATIONS THAT RESULT FROM THE SYSTEM'S PERFORMANCE, WHICH THEN WILL HAVE AN IMPACT ON HOW MUCH THE CITY HAS TO CONTRIBUTE.

UH, GOOD, GOOD MORNING COMMITTEE MEMBERS, ED VAN ENO, CHIEF FINANCIAL OFFICER, AND I'M ACTUALLY NOT GOING TO DO THE BULK OF THIS PRESENTATION.

I'M GONNA SET IT UP AND INTRODUCE OUR, UH, GUEST SPEAKER.

BUT WHAT YOU'RE GONNA SEE TODAY IS A NEW LOOK FOR OUR ANNUAL PENSION UPDATE PRESENTATION.

AS YOU ARE WELL AWARE, WE MADE SIGNIFICANT CHANGES TO BOTH THE, UH, CIVILIAN SYSTEM, WHICH WE CALL COER, UM, AS WELL AS THE POLICE SYSTEM, WHICH WE CALL, UM, A PRS.

UM, SO WE MADE SIGNIFICANT REFORMS OF BOTH OF THE RETIREMENT SESSIONS THE LAST, UM, IN THE, IN THE LAST TWO SESSIONS.

AND IN MAKING THOSE CHANGES, WE WENT TO A FAR MORE COMPLICATED FUNDING MODEL.

IT USED TO BE THAT WE ARE ON A STATIC FUNDING MODEL.

SO REGARDLESS OF THE SYSTEM'S PERFORMANCE, THE, THE, THE CITY'S CONTRIBUTIONS TO THE SYSTEMS WAS SET BY STATUTE, AND THAT'S WHAT WE CONTRIBUTED.

UM, WE WERE VERY PLEASED TO WORK IN COLLABORATIONS WITH THE SYSTEM TO MOVE TO WHAT'S CALLED AN ACTUARILY DETERMINED FUNDING MODEL, WHERE THE CITY'S CONTRIBUTIONS, UM, ADJUST DEPENDING UPON THE SYSTEM'S PERFORMANCE.

UM, THAT REALLY REQUIRED A NEW TOOL, A MORE POWERFUL TOOL TO ALLOW THE CITY TO TRACK AND MONITOR THESE SYSTEMS AND TO BE ABLE TO FORECAST POTENTIAL

[00:30:01]

SO WE HAVE BEEN WORKING WITH A COMPANY CALLED GOV, IVEST GOV.

IVEST PRODUCES A, UM, A PENSION MODELING SOFTWARE THAT'S, UH, VERY POWERFUL AND ADAPTABLE.

UM, AND AS YOU KNOW, 2022 WAS A VERY BAD YEAR FOR INVESTORS ACROSS THE GLOBE.

MOST, UH, INVESTORS AND, AND MOST PENSION SYSTEMS LOST MONEY IN 2022.

AND SO WHAT YOU'RE GONNA SEE, UM, WITH THE MODELING SOFTWARE THAT WE HAVE IS HOW THOSE LOSSES IN 2022 IMPACT THE FINANCIAL STATUS OF OUR THREE DIFFERENT SYSTEMS. AGAIN, WE HAVE A CIVILIAN SYSTEM, A POLICE SYSTEM, AND A FIRE SYSTEM, AND YOU CAN REALLY SEE HOW THE ACTUARILY BASED MODEL IS, IS WORKING.

THAT ITSELF CORRECTS AND IT KEEPS US ON A, A PATH TOWARDS FINANCIAL SUSTAINA SUSTAINABILITY.

UM, SO I'M GONNA INTRODUCE IRA SUMMER, WHO IS OUR SENIOR CONSULTANT FROM GOV VESTS, WHO'S BEEN WORKING WITH US ON THIS.

IRA IS A RETIREMENT PROGRAM EXPERT WITH MORE THAN 30 YEARS OF CONSULTING EXPERIENCE AS AN ACTUARY FOR PUBLIC RETIREMENT SYSTEMS. HE'S ALSO TAUGHT FINANCE AND ECONOMICS, UH, CLASSES.

UM, AND HE IS WORKED WITH NUMEROUS PUBLIC AGENCIES ACROSS THE COUNTRY ON IMPLEMENTING THIS, UH, THIS SOFTWARE TOOL, UM, UM, FOR THEM.

SO THAT'S, THAT'S ALL I HAVE.

IRA, YOU WANNA COME UP AND RUN YOU THROUGH THE, THE SLIDES.

IRA'S GONNA GIVE YOU SOME, UH, ACTUARIAL ONE-ON-ONE.

YOU REALLY DO NEED TO KNOW SOME OF THE TERMINOLOGY TO FOLLOW WHAT HE'S GONNA BE TALKING ABOUT LATER.

SO HE'LL DO THAT.

AND THEN, UM, HE'S GOT A LOT OF SLIDES TO A LOT OF GRAPHICS TO SHOW HOW THE SYSTEMS ARE DOING.

YOUR BENEFIT FORMULAS AND THE ASSETS YOU HAVE IN EACH OF THE PLANS.

UM, LET'S SEE IF I KNOW HOW THIS THING WORKS.

SO, UM, WHAT I'M HOPING TO DO, I'M BREAKING THIS INTO SORT OF THREE PARTS.

FIRST, I WANT TO TALK ABOUT SOME OF THE BASICS.

UH, TALK ABOUT HOW PENSION PLANS ARE FUNDED AND, UH, A LITTLE BIT ABOUT HOW ACTUARIES TALK.

UH, ACTUARIES HAVE A TENDENCY TO USE WORDS THAT SOUND JUST LIKE ENGLISH, BUT DON'T TEND TO WORK EXACTLY THE SAME WAY.

SO I WANNA MAKE SURE AS I START USING THAT TERMINOLOGY THAT YOU UNDERSTAND WHAT THE TERMINOLOGY IS.

THEN I'M GONNA GO BACK INTO SOME HISTORICAL INFORMATION AND SEE WHERE YOU'VE BEEN, HOW YOU GOT TO WHERE YOU ARE NOW, UH, AND THEN PUSH FORWARD AS TO WHERE THINGS ARE GOING AND SEE IF YOU ARE ON A, A REASONABLE PATH MOVING FORWARD.

UM, THE TERMS OF THE BASICS OF HOW PENSIONS WORK, THE, THE MATHEMATICS INVOLVED IN THE WHOLE, IN DOING THE ACTUARIAL CALCULATIONS, VERY COMPLICATED, BUT THE CONCEPT BEHIND IT IS VERY SIMPLE.

ALL THE ACTUARIAL FUNDING COMES DOWN TO IS ACROSS TIME.

THE MONEY COMING INTO THE PENSION FUND IS SUPPOSED TO BE ENOUGH TO COVER THE MONEY COMING OUT OF THE PENSION FUND.

THAT'S ALL IT IS.

IT'S MONEY AND EQUALS MONEY OUT.

MONEY COMING OUT OF THE PENSION FUND IS A COMBINATION OF BENEFITS AND EXPENSES.

AND OF THOSE TWO, BY FAR THE LARGEST IS BENEFITS.

EXPENSES TENDS TO BE A SMALL PORTION OF THE WHOLE THING.

UH, MONEY COMING INTO THE PLAN COMES FROM A COMBINATION OF EMPLOYEE CONTRIBUTIONS, CITY CONTRIBUTIONS, AND INVESTMENT RETURN.

AND OF THOSE THREE, BY FAR THE LARGEST IS INVESTMENT RETURN, DEPENDING ON HOW WELL FUNDED THE PENSION PLAN IS AND HOW THE MARKETS ARE DOING.

INVESTMENT RETURN CAN BE ANYWHERE FROM 60 TO 90% OF THE MONEY COMING INTO THE PLAN.

NOW THAT'S GREAT NEWS IN TERMS OF KEEPING YOUR COSTS DOWN OVER THE LONG TERM.

IT IS, UH, FRUSTRATING WHEN THE MARKETS ARE VOLATILE, WHICH IS WHERE WE HAVE BEEN FOR THE LAST TWO DECADES.

BECAUSE WHEN INVESTMENT INCOME DROPS DOWN, THE, THE, BASICALLY THE VALVE THAT HAS TO OPEN TO MAKE UP FOR IT IS CITY CONTRIBUTIONS AND THERE TENDS TO BE VOLATILITY.

NOW, NORMALLY THE RETIREMENT SYSTEM DOES WHAT THEY CAN TO KEEP THINGS RELATIVELY STEADY ACROSS TIME IF YOU'RE USING AN ACTUARIALLY FUNDED MODEL.

UH, THEY DO THIS WITH A VARIETY OF ACTUARIAL METHODOLOGY AND ACTUARIAL ASSUMPTIONS.

THE ASSUMPTIONS BASICALLY FALL INTO TWO CATEGORIES.

ECONOMIC ASSUMPTIONS, ONE'S RELATED TO MONEY, UH, THINGS LIKE INVESTMENT RETURN, SALARY GROWTH, INFLATION AND DEMOGRAPHIC ASSUMPTIONS.

UM, NOW THEY, YOU KNOW, IN TERMS OF THE, THE, THEY DO THIS BASED ON YOUR PEOPLE,

[00:35:01]

UH, WHEN THEY DO THE CALCULATIONS, THEY TEND TO USE SPECIFIC PENSION TERMINOLOGY.

UM, FIRST TERM I'M GONNA TALK ABOUT IS NORMAL COST.

NORMAL COST IS THE COST FOR EACH YEAR OF SERVICE AS IT'S EARNED.

SO THE GOAL OF THE PENSION FUNDING IS TO PAY FOR THE BENEFITS WHILE THE EMPLOYEE IS WORKING.

SO THERE'S ENOUGH MONEY TO BE ABLE TO PAY FOR THEM WHEN THEY ARE RETIRED.

SO THE CONTRIBUTIONS SHOULD START WHEN THEY GET HIRED.

THEY'RE GONNA END WHEN THEY LEAVE.

AND IF EVERYTHING GOES ACCORDING TO PLAN, NORMAL COST IS THE RIGHT AMOUNT TO PAY FOR THAT.

SO THERE'S ENOUGH MONEY WHEN THEY HIT RETIREMENT TO PAY FOR THEIR BENEFITS THROUGHOUT RETIREMENT.

UM, THE NORMAL COST TEND TO BE BASED ON THE PLAN'S, ACTUARIAL ASSUMPTIONS, WHAT THE BENEFIT IS, UH, THE AGE AT WHICH THE EMPLOYEES HIRED, HOW MUCH THE EMPLOYEE MAKES AND EMPLOYEE CONTRIBUTIONS.

THERE'S A TOTAL NORMAL COST AND THE EMPLOYER NORMAL COST, WHAT'S REFERRED TO AS A NORMAL COST GETS SUBTRACTED OUT FROM THAT.

SO THERE'S A SHARE BETWEEN WHAT THE EMPLOYEES PAY AND THE EMPLOYER PAYS.

THE ACTUARIAL ACCRUED LIABILITY IS BASICALLY THE TARGET.

HOW WELL FUNDED YOU'RE SUPPOSED TO BE AT ANY POINT IN TIME, AGAIN WITH THE GOAL BEING TO PAY FOR IT BY THE TIME THE PERSON RETIRES.

SO WHEN SOMEBODY'S FIRST HIRED, THEIR ACTUARIAL ACCRUED LIABILITY IS NOTHING.

YOU'RE NOT SUPPOSED TO HAVE ANYTHING SET ASIDE BY THE TIME THEY GET TO RETIREMENT.

IT'S SUPPOSED TO BE THE WHOLE VALUE OF THEIR BENEFIT AS THEY MARCH THROUGH THEIR WORK LIFETIME.

THE TARGET MOVES UP FROM NOTHING UP TO WHERE IT'S, SO THAT'S, IT'S GONNA INCREASE AS THE EACH YEAR AS THEY'RE WORKING, IT'S GONNA GROW.

AND IT ALSO CHANGES WHEN THE ACTUARIAL ASSUMPTIONS CHANGE OR WHEN PLAN EXPERIENCE CHANGE.

SO IF LIFE EXPECTANCY INCREASES BENEFIT AND YOU NEED MORE MONEY IN THERE TO PAY MORE BENEFITS FOR A LONGER PERIOD OF TIME, THE UNFUNDED ACTUARIAL ACCRUED LIABILITY IS THE DIFFERENCE BETWEEN THE LIABILITIES THAT YOU HAVE AND THE ASSETS THAT YOU'VE SET ASIDE AT ANY POINT IN TIME.

SO THIS TELLS YOU IF YOU'RE ON TARGET, MOST PENSION PLANS ACROSS THE COUNTRY HAVE AN UNFUNDED LIABILITY.

THEY'RE A LITTLE BEHIND TARGET.

THIS HAPPENS FOR A VARIETY OF REASONS.

UM, THE THREE BIGGEST REASONS THAT WE SEE UNFUNDED LIABILITIES FOR PLANS ACROSS THE COUNTRY, NUMBER ONE TENDS TO BE THAT INVESTMENT RETURNS HAVE NOT MATCHED THE THE ASSUMED RATE OF RETURN.

SO YOU DIDN'T HIT YOUR TARGET.

SECOND BIGGEST REASON IS THAT THE ASSUMPTIONS HAVE CHANGED ACROSS TIME.

YOU WERE FUNDING AT A CERTAIN TARGET YOU THOUGHT YOU WERE GONNA MAKE, FOR EXAMPLE, 8%.

NOW YOU CHANGED THE EXPECTATIONS, BOND WENT DOWN IN VALUE OR BOND RETURNS MAY HAVE GONE DOWN ACROSS TIME, YOU'RE EXPECTING LESS MONEY.

SO NOW EXPECTING 7% LESS MONEY EXPECTED FROM INVESTMENT RETURN MEANS MORE MONEY'S GONNA BE NEEDED FROM YOU.

UNFUNDED LIABILITY GETS CREATED.

THIRD REASON THAT WE SEE IS THAT THE CONTRIBUTIONS GOING INTO THE PLAN ARE NOT ENOUGH TO PAY FOR THOSE BENEFITS TO CATCH UP.

SO WHEN THE AGENCIES THAT ARE NOT FUNDING ON AN ACTUARILY DETERMINED BASIS, UM, ARE THE ONES THAT TEND TO FALL BEHIND, UH, CROSS TIME, THE CONTRIBUTION RATE MAY HAVE BEEN OKAY AT ONE POINT IN TIME, BUT AS THE THE WORLD CHANGES AROUND YOU, THE AMOUNT THAT YOU NEED TO CONTRIBUTE HAS TO SHIFT WITH IT.

AND IF IT DOESN'T, PLANS TEND TO FALL BEHIND, ESPECIALLY DURING TOUGH ECONOMIC TIMES.

THE AMORTIZATION PERIOD IS THE NUMBER OF YEARS IT'S GONNA TAKE TO PAY OFF THAT UNFUNDED LIABILITY AND CATCH UP TO WHERE YOU'RE SUPPOSED TO BE.

UM, THAT CAN RANGE ANYWHERE FROM, YOU KNOW, SHORT PERIOD, THREE, FIVE YEARS, THREE UP TO 30.

THE TEXAS PENSION REVIEW BOARD DOESN'T LIKE TO SEE IT GET LONGER THAN 30 YEARS, WOULD ACTUALLY PREFER IT TO BE SHORTER.

THE CONTRIBU AN ACTUARIALLY DETERMINED CONTRIBUTION AND YOU HAVE AN ACTUARIALLY DETERMINED CONTRIBUTION NOW FOR TWO OF YOUR THREE PLANS IS A COMBINATION OF NORMAL COST, COST FOR EACH YEAR, SERVICE AS IT'S EARNED, PLUS A PAYMENT TOWARDS THE UNFUNDED LIABILITY, A PAYMENT TO CATCH UP TO GET TO A HUNDRED PERCENT FUNDED.

THOSE TWO AMOUNTS TOGETHER BECOME THE PAYMENT TO YOUR RETIREMENT SYSTEM, THE ACTUARIALLY DETERMINED CONTRIBUTION.

AND THAT'S THE USUALLY THE CONTRIBUTION YOU NEED TO, TO STAY ON TARGET TO GET TO YOUR FUNDING IN THAT TIME PERIOD.

SO WHERE HAVE YOU BEEN ACROSS TIME? LET'S START WITH INVESTMENT RETURNS AGAIN, BECAUSE THE BIGGEST THING IMPACTING RESULTS TENDS

[00:40:01]

TO BE INVESTMENT RETURN.

UH, THIS GRAPH SHOWS THE RETURN ON A YEAR BY YEAR BASIS FOR EACH OF THE THREE PLANS FOR THE LAST 10 YEARS.

UM, RED IS FIRE, BLUE IS POLICE.

'CAUSE RED IS ALWAYS FIRE AND BLUE IS ALWAYS POLICE.

AND I GOT AS CLOSE TO THE UNIVERSITY OF TEXAS AS COLORS I COULD FOR THE OTHER ONE.

UH, 'CAUSE MY NIECE GRADUATED FROM THERE WITH A PHD IN MATH, UH, , I'M VERY PROUD.

UM, FIRST THING I SEE WHEN I'M LOOKING AT THIS IS THAT THE UP YEARS ARE THE SAME FOR ALL THE PLANS AND THE DOWN YEARS ARE THE SAME FOR ALL THE PLANS.

AND THAT DOESN'T SURPRISE ME.

I, WE SEE THAT FROM PENSION FUNDS ALL ACROSS THE COUNTRY.

THE REASON WE SEE THAT IS THEY'RE ALL INVESTING IN THE SAME MARKETS.

THEY ALL DIVERSIFY THEIR INVESTMENTS, BUT, UH, OVER TIME SOME OF THE PLANS TEND TO DO BETTER THAN OTHERS.

THE THE ASSET ALLOCATIONS ARE NOT EXACTLY THE SAME BETWEEN THE THREE PLANS AND THE SELECTION OF INVESTMENTS THEMSELVES ARE NOT THE SAME BETWEEN THE THREE PLANS.

LOOKING AT THIS, THE, DURING THIS 10 YEAR PERIOD, THE, UM, I THINK THE, AGAIN, WE CAN ACTUALLY SHOW THE RESULTS A LITTLE BETTER ON THE NEXT SLIDE.

THEM MOVING TOWARDS THE TARGET OF GETTING TO A HUNDRED PERCENT FUND.

TIMES THE ONE YEAR, THREE YEAR AND 10 YEAR RETURNS.

THE FIRE PLAN STRONGER 10 YEAR RETURN, HIGHER AVERAGE THAN THE OTHERS.

POLICE IN THE MIDDLE AND THE CIVILIAN PLAN AT THE BOTTOM, UH, WHEN THE MARKET WAS DOWN 2022.

AND I DO WANT TO PUSH THAT BACK TO HERE.

2022 DOWN MARKETS, BAD MARKETS FOR EVERY PLAN ALL ACROSS THE COUNTRY.

EVERY ASSET CLASS LOST MONEY IN 2022, THERE WAS NO PLACE TO HIDE.

UM, SO THE ONLY QUESTION WAS HOW MUCH MONEY ARE YOU GONNA U LOSE? UM, THE FIRE PLAN LOST A LITTLE LESS POLICE PLAN CLOSE TO THE FIRE, AND THE CIVILIAN PLAN LOST MORE.

UM, THE RETURNS ON A THREE YEAR BASIS, COORS IS SIGNIFICANTLY BEHIND THE OTHER TWO.

UM, SO AGAIN, LESS MONEY FROM INVESTMENT RETURN DOES MEAN MORE MONEY'S GONNA BE NEEDED TO FOR BY FROM THE CITY.

UH, NOW EACH OF THESE PLANS USES WHAT'S REFERRED TO AS ASSET SMOOTHING BECAUSE OF THE VOLATILITY IN THE MARKETS SO THAT IT DOESN'T IMMEDIATELY IMPACT YOUR FUNDER PERCENTAGE AND DOESN'T IMMEDIATELY HIT YOUR CONTRIBUTION RATES BECAUSE THEY EXPECT THE MARKETS TO BE VOLATILE.

THEY SMOOTH OUT THE UPS AND THE DOWNS IN THE MARKET OVER A FIVE YEAR PERIOD.

THEY TAKE THE AMOUNT THAT THEY, THAT THE INVESTMENT RETURNS ARE HIGHER OR LOWER THAN WHAT'S EXPECTED AND SPREAD THAT OUT OVER A FIVE YEAR PERIOD SO THAT IF THE UPS AND DOWNS CANCEL EACH OTHER OUT LIKE THEY'RE EXPECTED TO, YOUR RATE CAN BE A LITTLE MORE STEADY.

SO IF WE LOOK AT THE FUNDING, UH, OR THE RETURNS ON AN ACTUARILY VALUE, THE ACTUARIAL VALUE BASIS, YOU'LL SEE AGAIN A LOT LESS VOLATILITY HERE.

THE NUMBERS WERE ALL POSITIVE, BUT THE LINES ACROSS THAT WAS THE EXPECTED RETURN FOR EACH OF THE PLANS.

AGAIN, BLUE POLICE, RED FIRE, UH, ORANGE CIVILIAN PLAN FOR MOST OF THE YEARS, THE RETURNS ON AN ACTUARIAL BASIS WERE LESS THAN WHAT WAS EXPECTED.

NOW THE, THIS AGAIN, LOT LESS VOLATILITY ON THE ACTUARIALLY SMOOTH BASIS, THE ASSUMPTIONS RELATIVELY STEADY, THEY LOOK FLAT ON THIS, BUT THEY'RE NOT ACTUALLY FLAT.

UH, THE ASSUMED RATE OF RETURN HAS BEEN SLOWLY DECREASING FOR EACH OF THE PLANS AS WELL.

AND THAT'S BEEN HAPPENING WITH PENSION PLANS ALL ACROSS THE COUNTRY.

UM, FOR THE POLICE PLAN, BEGINNING OF THIS PERIOD, IT WAS 8%.

AT THE END OF THE PERIOD, IT WAS DOWN TO SEVEN AND A QUARTER.

UM, COS WENT FROM 7.75 TO 6.75.

LESS MONEY EXPECTED FROM FUTURE INVESTMENT RETURN IS ALL, IS RAISING YOUR LIABILITY, NOT HITTING THE TARGET, RAISING YOUR LIABILITY.

SO THAT'S WHAT WE'RE SEEING.

LESS MONEY FOR.

INVESTMENT RETURN MEANS MORE MONEY REQUIRED FROM CONTRIBUTIONS.

GETTING BACK TO THE BASICS RATHER THAN THE, IT'S COMPLICATED MATH IN TERMS OF THE FUNDED PERCENTAGES, WHAT WE SEE HERE IS THE FIRE PLAN.

MUCH STRONGER FUNDED POSITION TO START WITH, BUT IT HAS BEEN COMING DOWN OVER THE LAST DECADE.

UH, THE MOST IMPORTANT THING WHEN I TEND TO LOOK AT PENSION PLANS ACROSS TIME IS WE LIKE TO SEE

[00:45:01]

YOU WANT TO BE MAKING PROGRESS.

AND IN THIS LAST DECADE WHAT WE'RE SEEING IS NOT A LOT OF PROGRESS.

THINGS HAVE BEEN COMING DOWN.

NOW THE MAIN REASON, AGAIN, THEY'RE COMING DOWN ASSUMPTION CHANGES, LOWERING THE DISCOUNT RATE ACROSS TIME AS WELL AS THE MARKETS BEING VERY, VERY DIFFICULT AND NOT HAVING TROUBLE AND NOT BEING ABLE TO MAKE THE RETURNS.

UM, FOR PLANS THAT ARE ACTUARILY FUNDED, AGENCIES MAKE UP FOR THAT BY MAKING BIGGER CONTRIBUTIONS.

YOUR CONTRIBUTIONS FOR MA MUCH OF THIS TIME PERIOD WERE FIXED PERCENTAGES, UH, OF PAY.

SO THEY WERE SET AT A CERTAIN POINT IN TIME THAT WHERE THEY APPEAR TO BE REASONABLE AND SUFFICIENT.

BUT AS THE, THE EXPERIENCE CHANGED, AS THE SITUATION CHANGED, THE CONTRIBUTION DIDN'T CHANGE WITH THEM.

THE AMORTIZATION PERIOD, THE AMOUNT OF TIME IT WOULD TAKE TO PAY OFF YOUR UNFUNDED LIABILITY AT THE RATE YOU ARE PAYING.

UH, AS SHOWN IN THIS GRAPH, UH, WHAT WE SEE, AGAIN, FIRE STARTED MUCH LOWER, BUT IN THE LAST COUPLE YEARS HAS JUMPED UP AS THE INVESTMENT LOSSES ARE NOT BEING MADE UP BY THE CONTRIBUTIONS.

THE POLICE, YOU'LL NOTICE IN 2018 AND 2019 TOP OF THE GRAPH AND THEY WOULD GO EVEN HIGHER.

THEY WERE ACTUALLY INFINITE AT THAT POINT IN TIME SAYING THAT THE CONTRIBUTIONS WOULD NEVER BE ENOUGH TO PAY FOR ALL THE BENEFITS.

UH, THAT WAS HOPEFULLY ONE OF THE REASONS WHY YOU SWITCHED TO AN ACTUARIALLY DETERMINED BASIS WITH THE POLICE PLAN TO MAKE SURE THE CONTRIBUTIONS WERE SUFFICIENT TO PAY ALL THE BENEFITS THAT YOU PROMISED.

SO WHERE ARE WE GOING FROM HERE? WE'LL LOOK AT THIS FOR EACH OF THE PLANS SEPARATELY FOR THE POLICE PLAN.

YOU PREVIOUSLY PAID A FIXED 21.313% OF PENSIONABLE COMPENSATION.

UH, YOU SWITCHED TO AN ACTUARIAL FUNDING APPROACH AND YOU STARTED PAYING OFF ON THAT BASIS IN PAYING AMOUNT IN 2022.

UH, EMPLOYEE CONTRIBUTION IS CURRENTLY 15% OF PAY.

THIS GRAPH SHOWS THE UNFUNDED LIABILITY.

THE RED LINE IS THE ACTUARIAL FUNDING THAT YOU'RE ON RIGHT NOW.

THE UNFUNDED LIABILITY IS PROJECTED TO GO UP A LITTLE OVER THE NEXT FEW YEARS AS THE INVESTMENT LOSS IN 2022 GETS SMOOTHED IN AND REALIZED OVER A FIVE YEAR PERIOD.

SO THAT'S GONNA GET REFLECTED OVER THE NEXT FEW YEARS AND IT'S GONNA GO UP BEFORE IT STARTS GETTING PAID OFF AS PLANNED.

ON THE OTHER HAND, IF YOU HAD STAYED AT THE 21.313, THE UNFUNDED LIABILITY WOULD'VE KEPT GROWING AND YOU WOULD'VE DEFINITELY NEVER PAID IT OFF AND IT WOULD'VE KEPT GROWING ACROSS TIME.

YOUR FUNDED PERCENTAGE, THE ASSETS DIVIDED BY THE LIABILITIES WOULD'VE DROPPED DOWN ON LEVEL PERCENTAGE BASIS.

BUT BECAUSE YOU SWITCHED THE ACTUARIAL FUNDING BASIS IS TAR IS EXPECTED TO GET TO A HUNDRED PERCENT FUNDED IN 2050.

SO YOU'RE ON TARGET TO DO THIS, YOU NEED TO MAKE ADDITIONAL CONTRIBUTIONS.

SO THE CONTRIBUTIONS ON THE ACTUARIAL FUNDING BASIS ARE HIGHER THAN THEY WOULD'VE BEEN UNDER THE PRIOR BASIS.

INSTEAD OF PAYING 21.3%, YOU'RE GONNA BE PAYING 39% AFTER THE, UH, INVESTMENT LOSSES GET PHASED IN.

NOW THESE PROJECTIONS ASSUME THAT THEY'RE GONNA, ON AVERAGE HIT THE INVESTMENT RETURN ACROSS TIME.

MARKETS ARE DOING A LOT BETTER RIGHT NOW.

UH, IT BECOMES A LITTLE EASIER WHEN INTEREST RATES ARE AT 5% THAN WHEN INTEREST RATES WERE AT ZERO.

UH, AT LEAST THE FIXED INCOME PORTION IS EARNING SOMETHING A LITTLE MORE SOLID AS A PERCENTAGE OF PAY CONTRIBUTIONS WILL LEVEL OUT.

ONCE THEY HIT THE THE HIGH RATE AT 39% DOLLAR TERMS, THOUGH WE EXPECT THIS TO THE CONTRIBUTION, YOUR PAYROLL SHOULD BE INCREASING AND BECAUSE OF THAT, THE DOLLAR AMOUNT WILL BE INCREASING ACROSS TIME FOR THE CIVILIAN PLAN.

YOU RECENTLY SWITCHED, YOU HAVE BEEN PAYING 19% OF COMPENSATION, YOU SWITCHED TO AN ACTUARIAL FUNDING BASIS AND YOU'LL BEGIN PAYING ON THAT BASIS BEGINNING IN JANUARY NEXT MONTH.

NOW EMPLOYEE CONTRIBUTIONS ARE CURRENTLY 8% OF PAY, BUT AS PART OF THAT AGREEMENT, THE EMPLOYEES ARE GONNA START PAYING 9% OF PAY NEXT YEAR AND 10% OF PAY THE YEAR AFTER.

SO THEY'RE ALSO PICKING UP A LITTLE BIT MORE AS YOU GO THROUGH THIS.

WHAT THAT DOES, AGAIN, THE NEXT FEW YEARS WE SEE THE RED LINE, THE ACTUARIAL BASIS THAT YOU'RE ON, IT'S GONNA GO UP AS THE UNFUNDED LIABILITY.

AS THE INVESTMENT LOSS GETS PHASED

[00:50:01]

IN OVER A FIVE YEAR PERIOD, IT WILL THEN HIT A PEAK AND START COMING DOWN.

ON THE OTHER HAND, IF YOU'D STAYED AT THE 19%, IT WOULD'VE STAYED UP THERE.

THE CONTRIBUTIONS WOULD NOT HAVE BEEN SUFFICIENT TO PAY THIS OFF IN ANY REASONABLE AMOUNT OF TIME.

THE FUNDER PERCENTAGE, AGAIN SHOOTING UP TO A HUNDRED PERCENT IN 2050.

SO YOU'RE GONNA BE ON TARGET TO GET THERE IN A 30 YEAR PERIOD.

CONTRIBUTIONS OVER THE NEXT FIVE YEARS WILL BE GOING UP AS A PERCENTAGE OF PAY.

UH, THEN THEY'LL START COMING DOWN.

THE MAIN REASON FOR THAT IS THAT YOUR, UH, FUNDING, ACTUARIAL FUNDING FROM WITH COS IS SET UP TO BE A LEVEL DOLLAR AMORTIZATION OF THE UNFUNDED LIABILITY SO THAT YOU'RE PAYING THE SAME DOLLAR AMOUNT EACH YEAR AS THE PAYROLL GOES UP, AS A PERCENTAGE OF PAY IT STARTS, IT COMES DOWN ACROSS TIME, STILL TARGETED TO PAY IT OFF OVER A 30 YEAR PERIOD.

TO DO THAT, THAT MEANS YOU'RE PAYING MORE IN THE BEGINNING AND LESS AT THE END.

AND WE SEE THAT IN TERMS OF THE CONTRIBUTIONS IN DOLLAR TERMS GOING UP A LITTLE IN THE BEGINNING.

AND AGAIN, GIVING YOU MORE OF A CUSHION AS TIME GOES TO BE ABLE TO GET YOU IN A BETTER PLACE.

SO INEVITABLY WHEN SOMETHING GOES WRONG OR UNEXPECTED, UH, YOU'RE IN A BETTER POSITION TO HANDLE IT FOR THE FIRE PLAN.

UH, THE FIRE PLAN HAS BEEN IN A STRONGER FINANCIAL POSITION THAN THE OTHER PLANS FOR THE LAST DECADE.

UH, THE CITY IS CURRENTLY PAYING 22.05% OF PENSIONABLE COMPENSATION AND THE EMPLOYEES ARE PAYING 18.7% OF, YOU KNOW, RELATIVELY HIGH CONTRIBUTION.

UH, THERE IS CURRENTLY NO AGREEMENT TO GO TO ACTUARIAL FUNDING, BUT I WANTED TO SHOW YOU BOTH THE, THE CURRENT PROCESS AND WHAT'S GONNA HAPPEN AND HOW IT WOULD BE DIFFERENT IF YOU DID SWITCH TO AN ACTUARIAL FUNDING MODEL ON HERE.

UM, AND SO I PICKED THE ONE THAT COER IS UNDER BECAUSE IT'S AS GOOD AS ANY.

SO THE, AGAIN, YOUR UNFUNDED LIABILITY HAS BEEN RELATIVELY LOW, BUT OVER THE NEXT FIVE YEARS BECAUSE OF THE BIG INVESTMENT LOST IN 2022, AS IT GETS PHASED IN, THE UNFUNDED LIABILITY IS PROJECTED TO GO UP, UH, PRETTY MUCH DOUBLE OVER THAT TIME PERIOD.

UH, TO BE OVER A QUARTER OF A BILLION DOLLARS.

UH, IF YOU JUST STAY ON THE CURRENT BASIS, THE GREEN LINE SHOWS THAT YOU IT'S GONNA STAY UP THERE.

THOSE CONTRIBUTIONS, WHICH HAVE BEEN ENOUGH IN THE PAST, ARE NOT GONNA BE ENOUGH MOVING FORWARD.

ON THE OTHER HAND, IF YOU SWITCH THE ACTUARIAL FUNDING BASIS, SOMETHING SIMILAR TO WHAT'S GOING ON WITH COERCE OR A PRS, THEN YOU WILL BY DEFINITION HAVE ENOUGH MONEY TO GET TO A HUNDRED PERCENT FUNDED IN 2050 OVER A 30 YEAR PERIOD FUNDED PERCENTAGE.

UM, AGAIN, IT DOESN'T LOOK LIKE MUCH HERE, BUT IN DOLLAR TERMS, AGAIN, IT'S SIGNIFICANT.

AND AGAIN, THE RED LINE, THE ACTUARIAL FUNDING LINE IS MOVING UP AT A MUCH MORE RAPID PACE THAN THE CURRENT FUNDING.

NOW THE GOOD NEWS IS THAT YOU ARE ALREADY 80, 90% FUNDED, WHICH MEANS YOU HAVE A LITTLE MORE TIME WITH THE FIRE PLAN TO BE ABLE TO THINK THROUGH THE BEST WAY TO DEAL WITH THIS.

BUT WHAT THIS SHOWS IS THAT THE CURRENT PROCESS ITSELF IS NOT GONNA GET YOU TO WHERE YOU NEED TO GO UNLESS THE MARKETS, UH, START ACTING MUCH NICER AND FRIENDLIER.

UM, NOW TO GET THERE AGAIN, EMPLOYEE EMPLOYER CONTRIBUTIONS WOULD NEED TO GO UP.

AGAIN, PENSION FUNDING IS NOT MAGIC.

IT MEANS MORE MONEY NEEDS TO GET IN THERE AND IDEALLY SOONER RATHER THAN LATER.

SO THE CONTRIBUTIONS WOULD NEED TO GO UP AS A PERCENTAGE OF PAY FROM ABOUT 22% TO 25, ALMOST 26% IN DOLLAR TERMS, WE SEE THEM GOING UP.

NOW AGAIN, YOU'LL NOTICE THE RED LINE DIPS BELOW THE CURRENT LINE FOR THE FIRST FEW YEARS.

AS THE INVESTMENT LOSS THOUGH GETS PHASED IN, THEN IT STARTS MOVING ABOVE.

SO THE, YOU KNOW, THIS IS MORE A QUESTION OF EITHER YOU DEAL WITH IT, YOU KNOW, THE SOONER YOU START TO LOOK AT IT, THE SOONER YOU DEAL WITH IT, THE MORE TIME YOU HAVE AND THE LESS DRASTIC THE CHANGE NEEDS TO BE TO BE ABLE TO TAKE CARE OF THAT.

UM, AND I THINK THAT'S ALL I HAVE.

UH, THERE'S ONLY SO MUCH DEPRESSING NEWS THAT I CAN GIVE AT ANY ONE TIME.

JUST WANNA CLOSE

[00:55:01]

IT OUT.

UH, THANK YOU IRA.

AND I JUST WANTED TO CLOSE IT OUT REAL QUICK 'CAUSE I KNOW THAT WAS A LOT AND I, AND I HOPE YOU AND YOUR STAFF WILL GO AND LOOK AT THIS, THE INFORMATION, IT'S, IT'S, UM, REALLY, REALLY GOOD INFORMATION TO ME.

THE KEY TAKEAWAY IS THAT OVER THE LAST TWO LEGISLATIVE SESSIONS, WE'VE IMPLEMENTED SIGNIFICANT PENSION REFORMS TO OUR POLICE SYSTEM AND TO OUR CIVILIAN SYSTEM.

AND THOSE REFORMS ARE WORKING TO GUARANTEE THAT THE MONEY WILL BE THERE TO PAY THOSE BENEFITS TO THOSE WORKERS IN THE, IN THE FUTURE.

AND WE'RE GONNA BE THERE AS WELL WITH FIRE AS, AS IRA SAID, THE FIRE SYSTEM'S IN VERY GOOD SHAPE RIGHT NOW.

BUT WE BELIEVE IN ORDER TO ENSURE THAT THE SYSTEM CONTINUES TO BE IN SHAPE, WE ALSO NEED TO MAKE REFORMS TO THE FIRE SYSTEM TO MOVE TO AN ACTUARILY DETERMINED FUNDING MODEL.

WE'VE ALREADY BEGUN CONVERSATIONS WITH, UH, THE EXECUTIVE DIRECTOR OF THE, OF THE FIRE SYSTEM ABOUT PURSUING THOSE CHANGES IN, UH, IN THE NEXT SESSION.

UM, THE OTHER KEY TAKEAWAY TO ME IS THAT NOW UNDER AN ACTUARILY DETERMINED MODEL, THE PERFORMANCE OF THESE SYSTEMS HAS BUDGET IMPLICATIONS FOR US.

AND SO WE NEED TO WATCH IT VERY, VERY CAREFULLY AND THAT'S WHY WE'VE HIRED GOVERNMENT GOVET AND WE HAVE THIS SOFTWARE TO HELP US MONITOR AND PROJECT THE HEALTH OF THESE SYSTEMS AND HOW IT AFFECTS THE CITY'S BUDGET IN IN THE FUTURE.

SO THAT'S JUST MY CLOSING REMARKS AND THEN WE'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

UM, THANK YOU FOR THAT, UH, VERY THOROUGH PRESENTATION.

I THINK IT'S IMPORTANT FOR US TO HAVE THAT LEVEL OF DETAIL AND I APPRECIATE THE WORK, UH, MR. ENO THAT YOU AND YOUR STAFF HAVE DONE IN, IN COLLABORATION WITH THIS COMMITTEE, UM, TO ADJUST THE A PRS AND THE COERCE PROCESS TO FOLLOW THE ACTUARIAL MODEL.

UM, I DO HAVE A COUPLE OF QUESTIONS BEFORE I OPEN IT UP.

UM, WHAT IS, YOU KNOW, YOU SHOWED US THE DATA THROUGH DECEMBER OF 22.

UM, WHAT ARE THE RATES OF RETURN THAT WE'RE SEEING THIS YEAR SO FAR? UM, IN 23, UM, THE, THE, I HAVEN'T HAD A CHANCE TO LOOK SPECIFICALLY AT THE PLANS, BUT, UH, I, WE WORK WITH HUNDREDS OF PENSION PLANS ALL ACROSS THE COUNTRY.

MARKET RETURNS HAVE BEEN A LOT MORE POSITIVE IN 2023 THAN THEY WERE IN 2022, ALTHOUGH DEPENDING ON WHAT DAY YOU LOOK, THINGS CAN GET VERY DEPRESSING VERY FAST.

UM, BUT THE RETURNS, MOST OF THE PENSION PLANS THROUGH JUNE 30, UH, WERE AT TARGET IS WHAT WE'VE SEEN ACROSS COUNTRY, NOT WELL ABOVE TARGET, RIGHT AROUND THE TARGET, PLUS OR MINUS A COUPLE PERCENT.

SO THAT'S WHERE WE WOULD EXPECT THESE PLANS TO BE THROUGH, UM, SEPTEMBER 30, WHICH IS PROBABLY THE LAST SET SET OF NUMBERS THAT THEY HAVE.

UM, JUST HOPE FOR A STRONG DECEMBER.

UM, THERE ARE SO MANY THINGS RIGHT NOW THAT COULD GO WRONG AND AFFECT THE ECONOMIES, WHETHER IT'S THE, YOU KNOW, OPEC DECIDING TO RAISE THE PRICE OF OIL AND SHUT DOWN THE PRODUCTION, OTHER THINGS HAPPEN.

YOU DON'T NEED MORE PRESSING THESE.

SO MANY OTHER THINGS THAT ARE OUTSIDE OF YOUR CONTROL.

SO MR. VANNI? NO, IF YOU COULD, UM, JUST PROVIDE US, UM, AFTER WE HAVE THE DECEMBER 31ST RETURNS FOR 23 AS FOLLOW UP TO THIS PRESENTATION, IF YOU COULD PROVIDE THAT FOR EACH OF THEM.

AND MY ASSUMPTION IS IF WE, AND, AND AND ALSO PROVIDE WHAT THE ACTU THE GOAL RATES OF RETURN FOR EACH ONE WHEN YOU DO THAT.

UM, SO MY ASSUMPTION IS THAT IF WE ARE MEETING THE ACTUARY, THE RETURNS, UM, THAT'S A GOOD THING.

IF WE'RE ABOVE IT, THAT HELPS TO REDUCE WHAT WE HAVE TO HAVE TO PAY.

UM, BUT IF YOU COULD JUST PROVIDE THAT BASIC UPDATE SOMETIME IN JANUARY WHEN, WHEN APPROPRIATE, UM, ASSUMING YOU'LL HAVE THOSE, WE SHOULD BE ABLE TO GIVE YOU A REAL GOOD INDICATION BY JANUARY.

IT WON'T BE THE FINAL NUMBERS UNTIL, UNTIL LATER IN THE YEAR.

SOMETIMES IT TAKES A WHILE TO JUST LIKE ON OUR FINANCIAL BOOKS, IT TAKES A LITTLE WHILE TO CLOSE THINGS OUT AND GET TO THE EXACT, BUT WE SHOULD BE ABLE TO GIVE YOU A REAL GOOD INDICATION.

UM, BUT THE KEY IS AS YOU BOTH OF YOU HAVE HIT ON, IT'S NOT ENOUGH FOR IT TO JUST BE POSITIVE, RIGHT? 5% OBVIOUSLY IS BETTER THAN NEGATIVE 15% LIKE WE SAW IN 22, BUT 5% IS STILL BELOW WHAT ALL OF THESE SYSTEMS HAVE ASSUMED FOR RETURNS.

AND SO EVEN AT 5% WE'D STILL BE ADDING UNFUNDED LIABILITY.

AND SO, UM, NEED TO BEAT YOUR TARGET IS THE, IS THE GAME HERE.

RIGHT.

AND THAT'S WHAT I WANNA UNDERSTAND IS WHERE WE, THAT'S WHY I ASKED FOR BOTH OF THOSE SO THAT I COULD SEE WERE RELATIVE TO THE RATE OF RETURN.

UM, AND THEN FOR SLIDE 26 FOR A PRS, UM, THAT LOOKS LIKE A PRETTY SIZABLE ADDITIONAL PAYMENT IN THIS UPCOMING BUDGET.

DO YOU HAVE A SENSE OF HOW LARGE THAT WOULD BE? I MEAN, EYEBALLING, IT LOOKED LIKE ON THE ORDER OF 20 MILLION, UM, I DON'T HAVE OFF THE CUFF NOW.

PART OF THAT BIG INCREASE IS BECAUSE WE INTENTIONALLY PHASED THIS IN OVER THREE YEARS WITH THE, THE OKAY.

POLICE DEPARTMENT.

PART OF IT IS BECAUSE OF THE 22 LOSSES, BUT PART OF IT, A BIG PART OF IT IS JUST BECAUSE WE CHOSE TO PHASE THIS IN OVER TIME.

SO WE DIDN'T HAVE THAT BUDGETARY SHOCK ALL AT THE BEGINNING.

UM, BUT WE CAN ALSO PROVIDE YOU WITH THE DOLLAR AMOUNT OF THE INCREASE WE'RE PROJECTING.

INCREASE THAT WE'RE PROJECTING AND HOW MUCH YOU HAD ALREADY FORECAST, BECAUSE YOU OBVIOUSLY HAD FORECASTED SOME OF IT.

IF YOU COULD PROVIDE US THE DOLLAR AMOUNT OF THE

[01:00:01]

SO THAT'S GONNA BE NOT AS HARD TO, TO ACCOMMODATE AS THE, AS THE DELTA.

WE FORECAST THE VAST MAJORITY OF THAT BECAUSE WE KNEW WHAT THE PHASE IN WAS GONNA BE.

AND MOST OF IT'S COMING FROM THE PHASE IN WHILE THE 2022 WAS A, WAS A TOUGH YEAR, AS IRA MENTIONED, IT'S PHASED IN ACTUARILY OVER THREE YEARS.

SO IT DOESN'T START NECESSARILY HAVING AN IMPACT ON OUR CONTRIBUTIONS, UH, RIGHT AWAY.

SO YOU'RE SAYING, SO I JUST, I'M JUST TRYING TO UNDERSTAND THAT HOW OBVIOUSLY IT GETS PHASED IN.

YEP.

BUT YOU'RE SAYING THAT WE ALREADY HAVE PLANNED IN OUR BUDGET 20 MILLION BUMP ROUGHLY SPEAKING BECAUSE OF THE PHASE IN YES.

WE ALREADY KNEW THAT IT WAS COMING.

MM-HMM, .

SO MOST OF I REPRESENTED IT AS A SINGLE PERCENTAGE BECAUSE IT'S EASIER TO THINK ABOUT BUT WE REALLY HAVE TWO COMPONENTS TO OUR FUNDING NOW.

WE HAVE THIS UNFUNDED LEGACY LIABILITY, WE CALL IT, THAT'S REALLY ON A MORTGAGE PAYMENT, JUST LIKE YOUR HOUSE.

IT'S ON A 30 YEAR MORTGAGE PAYMENT.

I COULD TELL YOU 25 YEARS FROM NOW WHAT THAT PAYMENT WILL BE.

THE PAYMENT ESCALATES EVERY YEAR BY 3%.

SO WE KNOW EXACTLY WHAT IT'LL BE.

AND THEN THIS OTHER PIECE IS THIS ACTUARILY DETERMINED PIECE BASED UPON THE, THE NORMAL COST.

AND IT'S ONLY THAT PIECE THAT FLUCTUATES BASED UPON, UM, UM, THE INVESTMENT RETURNS AND THE PERFORMANCE OF THE SYSTEM.

THIS LEGACY LIABILITY, UH, IS PAID DOWN ON AN, ON AN EXACT SCHEDULE.

WE KNOW EXACTLY WHAT IT'S GONNA BE.

SO WE CAN PLAN, WE PLAN FOR ALL OF THAT.

SO WHAT IS THE LEGACY LIABILITY PAYMENT PROJECTED TO BE FOR THIS COMING YEAR AND HOW DOES THAT COMPARE TO WHAT WE CAME I LOVE IT WHEN I HAVE NUMBERS OFF THE CUFF, BUT I DON'T HAVE THAT ONE, SO I'LL WE'LL GET THAT TO YOU.

WANNA BE ON THE TEXAS PENSION REVIEW BOARD WATCH LIST.

I JUST WANNA UNDERSTAND 'CAUSE THE WAY THIS PRESENTATION WAS AS, AS IF THAT WAS ALL FROM THE ACTUARIAL, THE ADJUSTMENT TO THE ACTUARIAL YEAH.

APPROACH AND YEP.

OUR APPROACH FOR THAT FOR A PRS INCLUDES THOSE TWO COMPONENTS.

AND SO WE NEED TO SEPARATE THAT.

'CAUSE I WAS LOOKING AT THAT AND I WAS LIKE, OH, WOW, WE'VE GOTTA COME UP WITH $20 MILLION NOW NO, FOR NEXT YEAR.

BUT YOU'RE SAYING WE ALREADY HAVE THAT BUDGETED, WE'VE ALREADY GOT IT PLAN, BUT WE CAN GET YOU THE, THE DETAILS IF WE, YOU KNOW, IF WE NEED TO INCREASE IT A LITTLE BIT BECAUSE OF THE LOSSES IN 22, WE CAN TELL YOU HOW MUCH IT'S NOT GONNA BE A, A SIGNIFICANT INCREASE, UM, BECAUSE WE, OKAY.

SO MORE OF THAT IS OUR EFFORT TO, TO, TO CHANGE YES.

THAT'S REALLY HELPFUL.

UH, COLLEAGUES, ANY OTHER QUESTIONS? COUNCIL MEMBER POOL, I JUST WANTED TO THANK STAFF FOR THE REALLY THOUGHTFUL RAMP UP INTO THE ADEC, UM, APPROACH.

IT WAS, IT WAS A REALLY IMPORTANT DECISION THAT THIS DIOCESE MADE OVER THE LAST YEAR.

AND GETTING US THERE, UM, WAS ALSO REALLY IMPORTANT.

I WAS AT A NATIONAL CONFERENCE FOR, UM, UH, UH, UH, EMPLOYEE RETIREMENT SYSTEMS BACK IN OCTOBER AND ADEC, AND THE CONVERSATION AROUND THE FLEXIBILITY, UH, FOR THE RETURNS WAS, UH, A KEY COMPONENT OF THAT, UH, THREE DAY CONFERENCE.

AND I WAS, UM, REALLY GRATEFUL TO BOTH HEAR THE BEST PRACTICES AT THE NATIONAL AND INTERNATIONAL LEVEL, BUT ALSO TO KNOW THAT AUSTIN HAD MOVED, UH, SO WELL INTO THAT POSITION.

AND SO THANK YOU FOR THAT.

MR. ANO, IF I COULD HAVE ONE MORE CLOSING COMMENT, JUST 'CAUSE IT, IT STRUCK ME THAT THIS IS, THIS IS A PARTNERSHIP MANAGING THESE SYSTEMS AND THE RISK ASSOCIATED WITH THE SYSTEM IS A PARTNERSHIP BETWEEN THE CITY AS THE PLAN SPONSOR AND THE MEMBERS WHO ARE THE BENEFICIARIES.

AND SO WE'VE TALKED A LOT ABOUT THE ACTUARILY DETERMINED BASIS FOR THE, FOR THE CITY, BUT ALSO IN, IN THE PRESENTATION YOU SAW FROM IRA WAS EMPLOYEE CONTRIBUTIONS FROM, FOR THE CIVILIANS WENT UP FROM 8% TO 10%.

THAT'S A TWO PERCENTAGE POINT INCREASE, BUT ANOTHER WAY TO LOOK AT IT IS IT'S A, YOU KNOW, WHATEVER THAT ACTUAL PERCENT INCREASE IS FROM 25 PER, YOU KNOW, IS IT 25? YEAH.

UM, 25% INCREASE, UM, IN WHAT THE CI UH, EMPLOYEES ARE PAYING.

AND OVER ON POLICE, THEY WENT FROM 13% TO 15%.

AGAIN, A TWO PERCENTAGE POINT INCREASE.

AND BOTH CIVILIANS AND POLICE HAVE TAKEN A, A LOWER BENEFIT TIER FOR NEW HIRES FOR EXISTING, UM, UH, EMPLOYEES WHO WE HAD MADE A COMMITMENT TO A CERTAIN BENEFIT LEVEL, THEY'RE GONNA KEEP THAT.

BUT IN 2012, THE CIVILIAN SYSTEM IMPLEMENTED A LOWER BENEFIT TIER A GROUP B PLAN, AND WE DID THE SAME THING FOR, UH, THE, UH, THE POLICE OFFICERS.

SO THE NEW OFFICERS HAVE A, A LOWER BENEFIT TIER, UM, AND YOU SEE THAT ACROSS THE COUNTRY.

YOU SEE THAT, YOU KNOW, AND EVEN HERE IN TEXAS, HOUSTON, DALLAS, THEY ALL HAVE LOWER BENEFIT TIERS, UM, THAT HAVE BEEN NECESSARY BECAUSE THE MARKET RETURNS HAVE BEEN COMING DOWN, UM, OVER THE LAST COUPLE DECADES.

AND SO THE BENEFITS NEEDED TO COME DOWN TO MATCH, UH, THAT LEVEL OF INVESTMENT RETURN.

WE'RE ALSO RESPONDING TO DIRECTION FROM THE STATE LEGISLATURE IN THESE MATTERS.

THAT'S ANOTHER GOOD POINT.

THE TEXAS PENSION REVIEW BOARD HAS A STANDARD, UM, THAT SYSTEMS NEED TO BE BELOW 30 YEARS ON THAT AMORTIZATION PERIOD.

AND IF YOU GET ABOVE THAT, YOU GET PUT ON THE WATCH LIST.

UH, YOU DON'T

[01:05:01]

AND IF YOU'RE ON THAT WATCH LIST FOR THREE YEARS OR MORE, YOU ARE MANDATED TO CREATE FOR, TO DEVELOP A FUNDING RESTORATION PLAN.

SO WE'RE, WE HAVE WORKED WITH POLICE AND COWORKS TO PROACTIVELY DO THAT, SO WE DON'T GET TRIGGER, TRIGGER THAT REQUIREMENT.

UM, UM, NOW IT'S IN THIS PRESENTATION THAT FIRE CURRENTLY HAS AN AMORTIZATION PERIOD OVER 30 YEARS.

AND SO WE NEED TO DO THAT AS WELL.

WE NEED TO PROACTIVELY LOOK AT THAT SYSTEM SO THAT WE DON'T GET PUT ON THE WATCH LIST AND THAT WE HAVE A, A FUNDING PLAN, A REST RESTORATIVE FUNDING PLAN PUT IN PLACE BEFORE WE ARE REQUIRED BY, UH, THE TEXAS PENSION REVIEW BOARD TO, TO CREATE ONE.

WE WANNA DO IT IN ADVANCE.

UP ITEM NUMBER SIX, WHICH IS THE DEVELOPMENT SERVICES DEPARTMENT FOLLOW-UP AUDIT.

AND THANK YOU FOR EMPHASIZING THE PARTNERSHIP WITH OUR EMPLOYEES.

I THINK EVERYONE HERE, UM, VALUES THE IMPORTANCE OF PROVIDING THE SECURITY OF THE PENSIONS TO OUR EMPLOYEES AND UNDERSTANDS HOW THAT IS A VALUABLE BENEFIT AND, AND IMPORTANT FOR THEIR SECURITY MOVING FORWARD.

UM, SO DEFINITELY THINK THAT IS VERY IMPORTANT.

UM, COLLEAGUES, ANY OTHER QUESTIONS? COMMENTS? OKAY, GREAT.

WELL, UM, THANK YOU VERY MUCH.

AND AS I UNDERSTAND IT FROM YOUR COMMENTS, MR. VAN NINO, THE PLAN IS TO BE MOVING FORWARD, UM, WITH ADJUSTMENTS FOR FIRE MOVING INTO THE NEXT LEGISLATIVE SESSION, ASSUMING WE HAVE BUY-IN FROM THE, I'VE HAD A COUPLE VERY PRODUCTIVE MEETINGS WITH THE EXECUTIVE DIRECTOR.

I'LL ACTUALLY BE PRESENTING TO THE, UM, TO THE FIRE RETIREMENT BOARD ON DECEMBER 11TH.

I'M TALKING ABOUT THE REFORMS THAT WE IMPLEMENTED IN COORS AND WITH POLICE AND, AND HOW THEY'VE BEEN EFFECTIVE IN LAYING THE GROUNDWORK FOR HAVING THOSE DISCUSSIONS WITH THE FIRE SYSTEM.

[6. Development Services Department Follow-up Audit.]

THANK YOU FOR YOUR TIME THIS MORNING, AND WE'RE HAPPY TO ANSWER ANY QUESTIONS.

EVERYONE HEAR ME? OKAY.

HELLO? OKAY, MY NAME IS JAKE PERRY.

I'M THE AUDITOR IN CHARGE FOR THIS PROJECT.

UM, SO OUR OFFICE ROUTINELY ISSUES FOLLOW-UP REPORTS, UH, ON OUR RECOMMENDATIONS FROM PREVIOUS AUDITS.

THIS PROJECT COVERED TWO THAT WE DID ON THE DEVELOPMENT SERVICES DEPARTMENT.

UH, THE FIRST WAS THE 2017 DEMOLITION PERMITS AUDIT, WHERE WE FOUND THAT THE, UH, DEMOLITION PERMITTING PROCESS WAS NOT DESIGNED TO MEET CITY OR STAKEHOLDER STANDARDS.

UH, IN RESPONSE, WE ISSUED TWO RECOMMENDATIONS TO IMPROVE THE PROCESS.

THE OTHER AUDIT WE COVERED WAS THE 2019 PERMITTING PROCESS IMPROVEMENTS AUDIT, WHICH FOUND THAT THOUGH THERE HAD BEEN IMPROVEMENTS IN THE OVERALL PERMITTING PROCESS, TIMELINES AND COSTS WERE STILL AN ISSUE TO CUSTOMERS.

IN RESPONSE, WE ISSUED FOUR RECOMMENDATIONS TO FURTHER UPDATE THE PROCESS.

SO FOR THE 2017 DEMOLITION PERMITS AUDIT, WE FOUND THAT RECOMMENDATION ONE, WHICH CALLED ON DSD TO HOLD STAKEHOLDER MEETINGS TO INFORM THEIR REDESIGN OF THE PERMITTING OF THE DEMOLITION PERMITTING PROCESS HAS BEEN IMPLEMENTED.

A RECOMMENDATION TWO TO ACTUALLY REDESIGN THE PROCESS IS STILL UNDERWAY.

RECOMMENDATION TWO IS STILL UNDERWAY, UM, BECAUSE IT CALLS FOR DSD TO ENSURE THAT THE APPROPRIATE REVIEWS, SAFETY MEASURES AND NOTICES ARE COMPLETE PRIOR TO DEMOLITION ACTIVITIES.

UM, WE FOUND THAT DSD IS UNABLE TO VERIFY THAT ALL OF THOSE ELEMENTS WERE COMPLETE PRIOR TO DEMOLITION.

UM, NEITHER WE NOR DSD WERE ABLE TO ACCOUNT FOR SEVERAL ELEMENTS OF EACH DEMOLITION PERMIT, INCLUDING ENVIRONMENTAL INSPECTIONS, PLUMBING PERMITS, THE ASBESTOS COLLECTION FORM AMONG OTHERS.

UM, WE ALSO FOUND THAT DSD HAS BEEN AUTOMATICALLY, UM, FAILING THE FIRST PRE-CONSTRUCTION INSPECTION FOR EACH DEMOLITION PERMIT TO ALLOW ENOUGH TIME, UH, FOR THE DISBURSEMENT OF NOTIFICATION MATERIALS.

AND BOTH OF THESE THINGS COME FROM, UH, ISSUES WITH DATA MANAGEMENT.

FOR THE SECOND AUDIT, WE COVERED THE 2019 PER PERMITTING PROCESS IMPROVEMENTS AUDIT.

WE FOUND THAT THREE OUT OF THE FOUR RECOMMENDATIONS HAVE BEEN FULLY IMPLEMENTED BY DSD.

THE IMPLEMENTED RECOMMENDATIONS HAVE TO DO WITH PUSHING FOR CODE CHANGES FOR DIGITIZING THE PERMITTING PROCESS, AND EXPANDING, UH, STAKEHOLDER OUTREACH AND EDUCATION EFFORTS.

UH, RECOMMENDATION ONE TO ADDRESS DELAYS IN THE PERMITTING PROCESS IS STILL UNDERWAY.

RECOMMENDATION ONE IS STILL UNDERWAY BECAUSE DSD HAS YET TO COME TO A COMPREHENSIVE COALITION AGREEMENT WITH AUSTIN ENERGY.

UH, DSD HAS COME TO COALITION AGREEMENTS WITH OTHER DEPARTMENTS INVOLVED IN THE PERMITTING PROCESS, BUT THE AGREEMENT WITH AUSTIN ENERGY WAS AN IMPORTANT POINT, UM, NOTED IN THE 2019 AUDIT.

UM, THE OTHER PARTS OF THE RECOMMENDATION, WHICH INCLUDE EXPANDING CUSTOMER ENGAGEMENT, UH, TO ELECTRONIC TIMELINE TRACKING, UH, HAVE BEEN COMPLETED, BUT THE OVERALL, UH, RECOMMENDATION IS STILL AWAITING ON THE IMPLEMENTATION OF THE COALITION AGREEMENT MEASURES.

SO OVERALL, FOUR OUTTA THE SIX RECOMMENDATIONS THAT WE GAVE DSD HAVE BEEN IMPLEMENTED.

UM, AND FOR THE REMAINING TWO, THERE ARE CLEAR NEXT STEPS.

UH, FIRST, DSD OUGHT TO CONSISTENTLY AND COMPREHENSIVELY TRACK ALL ELEMENTS OF THEIR DEMOLITION PERMITS.

UH, AND SECOND DSD OUGHT TO COME TO A COMPREHENSIVE COALITION AGREEMENT WITH AUSTIN ENERGY.

[01:10:02]

DO WE HAVE SOMEONE FROM DSD THAT WANTED TO RESPOND OR? GOOD MORNING.

THANK YOU, MR. MAYOR.

ANGELA MEANS DEPUTY DIRECTOR OF, UH, DEVELOPMENT SERVICES DEPARTMENT.

DO YOU HAVE ANY PARTICULAR COMMENTS THAT YOU WANTED TO MAKE? UH, THE DEVELOPMENT SERVICES DEPARTMENT CONCURS WITH THE AUDITOR'S, UH, RECOMMENDATIONS.

BOTH OF THOSE RECOMMENDATIONS ARE UNDERWAY.

A LOT OF OUR EFFORT HAS BEEN FOCUSED ON OUR PARTNERSHIP WITH OUR PARTNER DEPARTMENTS THAT ARE ALL TIED TO THE DEVELOPMENT PROCESS AND THE WORK THAT WE'VE DONE WITH THE MCKINSEY AND COMPANY, UH, INITIATIVE.

SO AS FAR AS THE COALITION AGREEMENTS, IT WAS IMPORTANT FOR US TO MAKE SURE THAT WE INCLUDED THE GREAT WORK THAT WE'RE DOING THERE TO ENSURE THAT ALL OF THE COALITION AGREEMENTS INCLUDE THAT LANGUAGE.

WE ANTICIPATE HAVING THAT COMPLETED BY MAR LATE MARCH, EARLY APRIL WHEN THE MCKINSEY EFFORT IS COMPLETED.

AND AS FAR AS THE DEMOLITION PERMITS, WE WILL HAVE THE INTERIM SOLUTION COMPLETED WITHIN THE NEXT 30 DAYS.

AND, UM, I THINK THIS IS A LITTLE BIT OUT, OUT OF THE SCOPE OF THE AUDIT, BUT, UM, LATELY WE'VE BEEN SEEING A LOT MORE, UM, RENOVATIONS THAT I, THAT I'VE BEEN SEEING WHERE THEY'RE NOT CALLED DEMOLITIONS, BUT A LAY PERSON WOULD CALL THEM A DEMOLITION.

THEY'RE BASICALLY JUST GO DOWN TO THEIR STUDS.

THERE A REASON WE DON'T CALL THAT A DEMOLITION.

I MEAN, THEY LEAVE LIKE 10 STUDS UP.

AND I WILL HAVE TO ASK, UH, MR. TODD WILCOX TO COME UP TO THE MIC.

HE'S OUR BUILDING OFFICIAL.

UH, GOOD MORNING.

I'M TODD WILCOX AND BUILDING OFFICIAL, UM, PER THE INTERNATIONAL EXISTING BUILDING CODE AND THE APPENDIX AND THE INTERNATIONAL RESIDENTIAL CODE, IF, IF A REMODEL DOESN'T GET TO A CERTAIN EXTENT, 50% OR GREATER BY MOVING WALLS, UH, TAKING OFF SHEET ROCK REALLY DOESN'T COUNT AS FAR AS THE CODE GOES.

YOU HAVE TO MOVE THE WALLS OR, OR HAVE AN ALTER ALTERATION, EXCUSE ME.

IF IT DOESN'T GET TO 50%, THEN IT'S NOT CONSIDERED A COMPLETE DEMO OR, OR A SIGNIFICANT ALTERATION TO THE PROPERTY AND WOULD BE JUST A, A MINOR REMODEL.

SO EVEN IF IT'S LIKE LITERALLY THEY JUST HAVE THE STUDS UP, IF IT'S JUST THE STUDS NOT CONSIDER, THEY'RE NOT MOVING THE WALLS OR TAKING THE WALLS COMPLETELY DOWN, THEN THE CODE DOESN'T CONSIDER IT A MAJOR ALTERATION.

BUT IF THEY JUST HAVE THE STUDS UP, THEY'VE, YOU'RE, YOU'RE SAYING THE WALLS CAN BE DISAPPEAR, BUT WHERE THEY'RE LOCATED HAS TO STAY.

THE, THE DRYWALL CAN AND INSULATION, EVERYTHING ELSE CAN DISAPPEAR, BUT THE WALLS HAVE TO STAY WHERE THEY ARE.

UNTIL IT GETS TO 50% AND THEN IT KICKS IT INTO THE NEW CODE MODELS.

THANK YOU FOR THAT.

MM-HMM.

CLARIFICATION COLLEAGUES, ARE THERE ANY QUESTIONS? THANK YOU.

COUNCIL ES.

IS THERE SOMEONE HERE FROM, FROM, IS THERE SOMEONE HERE FROM AUSTIN ENERGY? NO.

NO, THERE'S NOT.

UM, WOULD YOU MIND SPEAKING TO THE, THE RECOMMENDATION THAT WAS FLAGGED REGARDING THE NEED FOR, UM, THE AGREEMENT WITH AUSTIN ENERGY AND PARTICIPATION WITH AUSTIN ENERGY? I KNOW FROM, UH, THE FEEDBACK THAT I'VE RECEIVED FROM MY COMMUNITY, THE, YOU KNOW, THERE'S SIGNIFICANT SUPPLY CHAIN ISSUES WITH GETTING TRANSFORMERS, UM, IN THE AREA.

UH, AND THE PROCESSES WITH AUSTIN ENERGY HAVE BEEN FLAGGED FOR ME ON NUMEROUS OCCASIONS AS A HUGE PART OF THE DELAY IN US BEING ABLE TO GET HOUSING OFF THE GROUND.

SO WOULD YOU MIND SPEAKING TO THAT RECOMMENDATION? UH, YES.

WE'RE WORKING VERY CLOSELY WITH OUR PARTNERS IN AUSTIN ENERGY.

UH, WE'VE HAD SEVERAL MEETINGS THROUGH THE MCKINSEY WORK.

UM, THERE ARE DIFFERENT TEAMS THAT ARE, UH, AT VARIOUS LEVELS WITHIN THE ORGANIZATION TO ENSURE THAT WE TIGHTEN UP OUR RELATIONSHIPS AS WELL AS THE REVIEW TIMES AND THE, UH, CUSTOMER EXPERIENCE THAT, THAT WE ARE TRYING TO IMPROVE.

AND SO, I WILL SAY, I'LL SEND ENERGIES AT THE TABLE.

THEY'RE COMMITTED JUST LIKE THE DEVELOPMENT SERVICES DEPARTMENT IS, AND WE, UH, HAVE A DRAFT AGREEMENT THAT WE WILL MAKE SURE, UH, INCLUDES ALL OF OUR, UM, ALL OF OUR STANDARDS THAT WE WOULD LIKE TO IMPROVE UPON.

AND SO I, I FEEL THAT BY THE END OF MARCH, EARLY APRIL, THOSE ITEMS WILL, WILL BE ADDRESSED AS WELL.

AND I'LL JUST FLAG FOR, UH, CITY MANAGEMENT.

I'M NOT SURE IF THERE'S SOMEONE FROM THE CMOS OFFICE, BUT IF I COULD HAVE SOMEONE FROM AUSTIN ENERGY FOLLOW UP WITH MY OFFICE, I'D LIKE TO, TO TALK THROUGH WITH AUSTIN ENERGY, THEIR LEVEL OF COMMITMENT TO SEE WHAT ELSE THEY CAN AND, AND ARE WORKING ON.

ANY OTHER QUESTIONS? UM, THANK YOU VERY MUCH.

APPRECIATE IT.

I LOOK FORWARD TO THE MCKINSEY REPORT AND THE FOLLOW UP WITH THAT AS WELL.

ITEM NUMBER SEVEN, BRIEFING ON EFFORTS TO IMPROVE THE EMERGENCY MEDICAL SERVICES REVENUE CYCLE.

UM, THAT NOW BRINGS

[7. Briefing on efforts to improve the Emergency Medical Services revenue cycle .]

US TO

[01:15:01]

UM, WE HAVE ONE SPEAKER THAT WE WILL START WITH, WHICH IS, UM, MISS SHE MORNING.

AND WHILE SHE'S PULLING UP, UM, HER COMMENTS, UM, I JUST WANNA RECALL FOR FOLKS THAT THE WORK THAT WE'RE GONNA HEAR PRESENTED TODAY ABOUT THE EMS REVENUE CYCLE IS SOMETHING THAT GREW OUT OF THE DISPATCH EQUITY AND OPTIMIZATION EFFICIENCY STUDY REPORT.

THAT REPORT IDENTIFIED BILLING IMPROVEMENTS AS OPPORTUNITIES AND A POTENTIAL SOURCE OF ADDITIONAL FUNDING FOR THE EMS DEPARTMENT.

UM, THAT WAS A STUDY THAT I CHAMPIONED.

THE STUDY PREDATES, UM, CHIEF LUCKER, AND HE'S BEEN WORKING TO, UM, IMPLEMENT THE BILLING IMPROVEMENTS SINCE HE CAME ON BOARD.

UM, WE ALSO HAD DIRECTION IN THE FISCAL YEAR, UM, BUDGET ADOPTION, UM, WITH THE ATTEMPT THAT THE REVENUE, UM, FROM THE INCREASED FEES THAT WE'D BE RECEIVING BE INVESTED BACK INTO EMS, UH, MS. SHE, GO AHEAD.

THANK Y'ALL SO MUCH.

MY NAME IS SELENA, UM, AND I'M PRESIDENT OF THE AUSTIN EMS ASSOCIATION.

AND, UM, I REALLY WANNA THANK, UM, THE CHAIR, UH, ALTAR FOR WORKING WITH US MANY YEARS AGO.

UM, WE RECOGNIZE HOW FAR BEHIND WE WERE IN REVENUE COLLECTION, UM, AND WE WORKED REALLY HARD ON GETTING MORE PEOPLE TO HELP US GO THROUGH THE BACKLOG.

UM, AND CHIEF LUCR HAS DONE A REALLY WONDERFUL JOB IN MAKING SURE THAT, UM, ALL OF THAT HAS BEEN PROCESSED.

UM, ONE OF THE EFFORTS IS ALSO JUST TRYING TO GET OUR MEDICS TO MAKE SURE THAT WE APPROPRIATELY DOCUMENT, UM, TO CREATE BETTER BILLING PRACTICES AND STANDARDS AND, UM, MAKE SURE THAT, UM, FOLKS ARE DOING THEIR JOB APPROPRIATELY.

UM, AND IN THAT EFFORT, WHAT WE TALKED ABOUT IS WE KNOW THAT, UM, OUR MEDICS ARE STILL EXTREMELY SHORT STAFFED AND, UM, WE'VE THOUGHT ABOUT DIFFERENT CREATIVE WAYS THAT WE CAN BRING IN MORE MONEY TO HELP WITH THE STAFFING SHORTAGE.

AND ONE OF IT IS ONE OF THE AMENDMENTS WE BROUGHT FORWARD THAT, UM, SHE JUST DISCUSSED.

AND WE KNOW THAT TODAY, UM, THAT AN ADDITIONAL 10 MILLION, UM, LIKELY AFTER LOOKING AT THE BACKUP WAS BROUGHT IN THIS YEAR.

AND SO WE EXPECT THAT THAT MONEY, UM, GOES TO PROVIDE MORE, UM, EFFORTS IN HELPING RECRUITMENT AND RETENTION IN EMS. UM, WE KNOW THAT SOME OF THAT MONEY WAS DEDICATED SPECIFICALLY TO, UM, UH, FOLD INTO OUR CONTRACT, WHICH WE GREATLY APPRECIATE.

UM, I DO HAVE SOME RECOMMENDATIONS FOR FURTHER ITEMS, UM, AND A LOT OF THEM ARE ONE-TIME COSTS, BECAUSE I KNOW THAT OUR REVENUE MIGHT NOT CONTINUE TO GROW, ALTHOUGH I, I HOPE IT WILL.

UM, WE KNOW THAT A PD, WHICH IS ALSO EXTREMELY SHORT STAFFED, RECEIVED, UM, HIRING AND RETENTION BONUSES OUTSIDE OF THE CONTRACT PROCESS, UM, THEY WEREN'T EVEN NECESSARILY REQUESTED BY THE POLICE UNION.

UM, AND SO WHEN WE THINK ABOUT DIFFERENT SHORT TIME, UM, THINGS THAT WE CAN DO, ONE OF THEM IS A SIMILAR STRUCTURE OF RECRUITMENT BONUSES, RETENTION BONUSES, UM, THAT WAS PUT INTO, THAT WAS PUT INTO ORDINANCE FOR A YEAR FOR A PD AS LONG AS WE'RE AS SHORT STAFFED AS WE ARE, UM, I DO KNOW THAT MANY PEOPLE THAT I HAVE TRIED TO ACTIVELY RECRUIT HAVE SAID THAT MOVING TO AUSTIN IS JUST PROHIBITIVELY COST-WISE.

UM, AND SO I THINK THAT WOULD REALLY HELP IN DRAWING MORE PEOPLE.

UM, IN JANUARY, WE ONLY HAVE 17 PEOPLE STARTING OUT OF A CLASS OF 30, AND THAT'S AFTER OUR RAISES WENT INTO EFFECT.

UM, I THINK THERE'S A LOT OF STUFF IN OUR DEPARTMENT THAT CAN ALSO INCREASE RETENTION.

OUR CALL VOLUME CONTINUES TO GO UP, UM, MAKING OUR WORKLOAD HIGHER AND HIGHER.

UM, AND ESPECIALLY WITH OUR STAFFING BEING DOWN, WE HAVE FEWER AMBULANCES ON THE STREET.

UM, THERE'S SOME ADVANCED EQUIPMENT THAT I THINK WOULD REALLY MAKE, UM, LIFE A LITTLE BIT EASIER FOR MEDICS, INCLUDING VENTILATORS AND PUMPS ON EVERY AMBULANCE.

WE ONLY HAVE THEM FOR OUR COMMANDERS, BUT IF ALL OF OUR MEDICS COULD RUN VERY, VERY POTENT MEDICATIONS THROUGH PUMPS, THAT WOULD DECREASE OUR WORKLOAD.

AND IF OUR MEDICS COULD RUN ALL PATIENTS WHO NEED TO BE VENTILATED THROUGH A VENTILATOR INSTEAD OF HAVING A MEDIC OR A FIREFIGHTER MANUALLY PROVIDE OXYGEN, UM, THAT WOULD ALSO REALLY DECREASE THE WORKLOAD ON OUR MEDICS.

UM, I ALSO, WHEN WE TALK ABOUT, UM, HIRING, UM, PUBLIC SAFETY FOR WHATEVER REASON HAS BEEN EXEMPTED FROM JUNETEENTH AND THE SAME CITY POLICY FOR FAMILY LEAVE.

UM, AND WE KNOW THAT WE CAN ALL DO BETTER WHEN IT COMES TO DIVERSITY AND PUBLIC SAFETY.

SO I THINK PROVIDING JUNETEENTH FOR ALL THE PUBLIC SAFETY AGENCIES AND 12 WEEKS OF FAMILY LEAVE FOR ALL THE PUBLIC AGENCIES WOULD GO FURTHER AND BRINGING IN MORE WOMEN, BRINGING IN ALL SORTS OF DIVERSE, UM, DIVERSITY INTO THESE DEPARTMENTS THAT NEED THEM.

UM,

[01:20:01]

JUST A FEW OTHER THINGS.

UM, WE KNOW THAT WE ARE ALSO BEHIND IN HAVING VEHICLES FOR SOME OF OUR SUPPORT STAFF THAT HELP THE REST OF THE CREW.

AND SO, UM, WE'RE ASKING FOR, I'M ASKING FOR ADDITIONAL VEHICLES.

AND ALSO, UM, A FD HAS AN OCCUPATIONAL HEALTH NURSE, UM, AND THEY HELP FOLKS THAT ARE GOING THROUGH OJS WITH THE WHOLE PROCESS.

AND THIS NURSE HAS DONE WONDERS IN GETTING FOLKS BACK TO THE JOB MUCH QUICKER.

UM, AND I'VE SEEN SO MANY PEOPLE THAT HAVE LANGUISHED WITH INJURIES, UM, FOOT INJURIES, KNEE INJURIES, AND HAVE, HAVE GREAT DIFFICULTY WORKING THROUGH THE SEDGWICK AND THE OJI PROCESS, THE ON-THE-JOB INJURY PROCESS.

SO HAVING AN OCCUPATIONAL HEALTH NURSE COULD ACTUALLY GET FOLKS BACK TO WORK IN RETURN.

I'VE SEEN A LOT OF PEOPLE QUIT BECAUSE THEY CAN'T GET OVER AN INJURY AND IT JUST SEEMS LIKE THEY CAN'T GET APPROVAL FOR DIFFERENT SURGERIES AND OTHER THINGS.

SO THOSE ARE JUST SOME OF MY IDEAS AND I'M HAPPY TO SEND A LIST.

UM, AND I REALLY APPRECIATE, UM, COUNCIL MEMBER ALTER AND COUNCIL MEMBER POOLE FOR, UM, REALLY WORKING WITH ME AND THINKING ABOUT, UM, THE RETENTION BONUSES AND OTHER WAYS THAT WE CAN, UM, PROMOTE THESE EFFORTS AND, AND JUST BRING OUR STAFFING TO WHERE IT NEEDS TO BE.

THANK YOU, CHIEF LEITZ.

I'M EXCITED THAT WE'RE ABLE TO HAVE THIS PRESENTATION TODAY.

GOOD MORNING COUNCIL MEMBERS.

UM, THANK YOU VERY MUCH FOR HAVE GIVING ME THE OPPORTUNITY TO, UH, PRESENT TO YOU ALL A LITTLE BIT ABOUT, UM, THE EXPERIENCE THAT WE HAVE HAD OVER THE PAST FEW YEARS WORKING ON OUR OVERALL, UM, EMS REVENUE CYCLE.

UM, I THINK THAT AS WE, AS WE TALK THROUGH THIS, AS WE MOVE FORWARD, THIS IS TRULY IS A, UH, SUCCESS STORY FOR US.

IT'S SOMETHING THAT MYSELF AND THE ENTIRE ORGANIZATION IS EXCEPTIONALLY PROUD OF.

UM, AND IT IS, UH, CERTAINLY, UM, MUCH OF THIS IS BECAUSE OF YOUR SUPPORT AS WE LOOK TO BE ABLE TO, UH, THINK DIFFERENTLY AND GROW AND EXPAND OUR DIVISIONS, OUR BILLING DIVISION, UM, TO RESPOND TO THE NEEDS OF THE COMMUNITY AND, AND THE NEEDS OF THE INCREASING VOLUME THAT WE'VE SEEN OVER THE PAST, UH, FEW YEARS.

SO THE FIRST PIECE OF REALLY GOOD NEWS IS THAT THE BILLING BACKLOG IS COMPLETELY UNDER CONTROL AT THIS POINT.

UM, THIS IS A VERY BIG GRAPH, BUT TO GIVE YOU A SNAPSHOT, UM, AS WE ENTERED INTO FISCAL YEAR 23, UM, WE SAW A BILLING BACKLOG OF ABOUT 16,900 TR TRICKS THAT WE NEEDED TO PROCESS.

UM, AS OF THE END OF THE FISCAL YEAR, WE WERE, UH, WELL BELOW 4,000.

AND AS OF, UH, THIS WEEK WE FLUCTUATE BETWEEN SOMEWHERE BETWEEN 1,002 THOUSAND TRIPS DEPENDING ON, UM, UH, WEEKENDS AND OTHER THINGS THAT HAPPEN, WHICH IS WELL WITHIN THE MARGIN OF ERROR.

UM, YOU KNOW, WE'RE TRANS, WE'RE DOING SOMEWHERE IN THE RANGE OF 150, 200 TRANSPORTS A DAY.

AND SO, UH, THAT ONE WEEK TO WEEK AND A HALF BACKLOG IS, IS ABOUT NORMAL TIME FOR, UH, THE FULL LEVEL OF PROCESSING FOR ALL OF THESE CLAIMS. .

THE OTHER BIG, UH, GOOD PIECE OF REVENUE OR BIG GOOD PIECE OF, UH, NEWS FROM US IS THAT, UM, WE FAR EXCEEDED OUR REVENUE, UH, PROJECTIONS FOR 2023.

UM, WE HAD A, UH, REVENUE TARGET OF $25.2 MILLION.

UM, AND THAT WAS, UH, WELL ABOVE WHAT WE HAD SEEN IN PREVIOUS YEARS.

AND, UH, WE DID, UH, TURN AROUND AND SEE A $34 MILLION TOTAL, UH, TRANSPORT FEE.

UM, AND IF WE TAKE A LOOK AT THE OVERALL REVENUE HISTORY YEAR OVER YEAR, UM, WHAT WE CAN SEE IS AGAIN, UH, HOVERING AROUND 25 MILLION, UM, DOLLARS IN NET PATIENT REVENUE FOR, UNTIL WE APPROACHED INTO COVID, WE SAW A DROP AS WE SAW A SIMILAR DROP IN OUR OVERALL, UH, TRANSPORT REVENUE OR TRANSPORTS.

AND, UH, NOW SEEING AN INCREASE TO 35 MILLION IN 2023.

UM, I WILL ACTUALLY HIGHLIGHT, UH, ONE ERROR HERE.

UH, THE CHARITY CARE REVENUES IS SEPARATE FROM, UH, THE 34 MILLION.

SO THOSE WAS ARE $34 MILLION IN TOTAL, UM, NET REVENUE FOR US FOR, UH, PATIENT TRANSPORT.

SO IF WE LOOK AT THE COMPARISON OF 2023 VERSUS 2020, UH, VERSUS BUDGET, WE SAW ABOUT A 9%, $9 MILLION OVER BUDGET, UH, REVENUE, AND ABOUT A, UM, AGAIN, ABOUT A $14 MILLION INCREASE OVER THE PREVIOUS YEAR'S, UH, COLLECTIONS, WHICH IS SOMETHING WE WERE VERY PROUD OF, UH, CAME IN AT ABOUT 123% OF BUDGET FOR, UH, KNIT PATIENT REVENUE.

AND WITH THAT, I'LL OPEN UP FOR QUESTIONS.

UM, THANK YOU SO MUCH, CHIEF.

I'M VERY EXCITED TO SEE THIS.

THIS IS, YOU KNOW, ADDITIONAL REVENUE THAT GOES INTO THE GENERAL FUND, BUT AS WE HAVE DISCUSSED MULTIPLE TIMES, UM, WE WANTED A CHUNK OF THAT TO BE REINVESTED IN, INTO EMS. THAT WAS THE HOPE OF COUNCIL AS WE EMBARKED ON THESE CHANGES AND MADE SOME INVESTMENTS TO, TO SECURE THAT FUNDING.

UM, I WANTED TO ASK YOU A COUPLE QUESTIONS.

FIRST OF ALL, WHAT IS THE SIZE OF OUR JANUARY, 2024 CLASS? WE HAVE 16 INDIVIDUALS IN THE JANUARY, 2024 CLASS, UM, NINE, NINE MEDICS, WHICH IS ENTRY LEVEL AND SEVEN OF THE LATERAL CLINICAL SPECIALISTS.

A LATERAL CLASS, WE DO TRY TO ANTICIPATE, UM, A CLASS SOMEWHERE AROUND 30.

AND HOW MANY WERE WE HOPING TO HAVE IN THE GLASS? GENERALLY SPEAKING, ESPECIALLY FOR

[01:25:01]

UH, WHAT I, WHAT I WILL SAY ABOUT THIS CLASS, HOWEVER, UM, IS I, THERE WERE A NUMBER OF INDIVIDUALS WITH THE BARGAINING AND THE, UM, THAT WAS GOING ON OVER THE PAST YEAR.

UM, IT WAS VERY, UH, VISIBLE.

IT WAS VERY WELL KNOWN, UM, ACROSS THE EMS COMMUNITY.

UM, THE DEADLINE FOR HIRING FOR THE JANUARY CLASS WAS JUNE OF 2023.

AND SO THE DEADLINE TO GET INTO THIS CLASS PREDATED, UM, THE CHANGES THAT WERE MADE IN THE ASSOCIATION.

BARGAINING.

UM, WHAT INVESTMENTS DO YOU THINK MIGHT BOOST RECRUITMENT? UM, I, I THINK WE, WE CONTINUE TO MAKE SOME SIGNIFICANT INVESTMENTS THIS YEAR ALONE, AND I APPRECIATE, UH, UM, ALL THE SUPPORT THAT WE HAVE GOTTEN.

UM, AS WE'VE, UH, SAW SOME ADDITIONAL DOLLARS PUT TOWARDS RECRUITING IN THE 2024 BUDGET, SOME ADDITIONAL POSITIONS, UH, THAT WE ARE STILL WORKING TO CONTINUE TO HIRE.

UM, WE'VE MADE SOME, UH, SOME GOOD CHANGES IN THOSE AREAS AS WE LOOK TO, UM, HAVE A BETTER FOOTPRINT AND REALLY KIND OF MODIFY THE WAY THAT WE DO OUR RECRUITING AWAY FROM, UM, INTO A, A TWO-PRONGED APPROACH.

ONE OF THE CHALLENGES THAT WE HAVE SEEN HISTORICALLY WAS THAT, UM, OUR RECRUITING DEPARTMENT WAS ALSO OUR HIRING DEPARTMENT, IF YOU WILL.

AND SO, UM, IF YOU LOOK AT THE NUMBERS THAT WE SAW IN THE VARIOUS ACADEMIES OVER THE PAST YEAR, WHEN WE WENT FROM TWO ACADEMIES TO FOUR ACADEMIES, IT WAS A, IT WAS A GREAT IDEA, IT WAS GOOD.

WE'VE SEEN ADDITIONAL STAFFING BROUGHT IN, BUT THE SAME STAFF THAT WERE PROCESSING THE APPLICATIONS WERE ALSO THE ONES THAT WERE EXPECTED TO GO DO THE RECRUITING.

AND SO FOR ONE SERIES, WE'D SEE A LOW NUMBER OF APPLICANTS, WHICH FREED UP THOSE INDIVIDUALS TO DO RECRUITING, AND THEN THE FOLLOWING ACADEMY, WE'D SEE A VERY LARGE ACADEMY.

AND THEN THEY WERE FOCUSED ON, ONCE THEY WERE FOCUSED ON PROCESSING THOSE, THEY DIDN'T HAVE THE TIME TO DO THE RECRUITING.

AND SO YOU SAW THIS FLUCTUATION EVERY OTHER ACADEMY OF LARGE AND SMALL AND LARGE AND SMALL.

AND WHEN WE CAME TO YOU, UH, OR WE CAME TO THE CITY MANAGER'S OFFICE, UH, PRIOR TO THE 2024 BUDGET, THAT WAS SOMETHING THAT WE HIGHLIGHTED AND IT RESULTED IN ADDITIONAL STAFF BEING ALLOCATED, UM, TO THE DEPARTMENT FOR RECRUITING SO THAT WE CAN REALLY BIFURCATE THAT DEPARTMENT AND HAVE SOME STAFF MEMBERS THAT ARE FOCUSING ON THE PROCESSING AND SOME STAFF MEMBERS THAT ARE FOCUSING ON THE RECRUITING.

UH, AND I THINK TO TO YOUR OTHER QUESTION, UM, YOU KNOW, CERTAINLY WE'VE, WE CONTINUE TO HAVE CONVERSATIONS WITH, UM, WITH THE CITY MANAGER'S OFFICE ABOUT WAYS THAT WE CAN BE MORE CREATIVE IN THE WAY THAT WE RECRUIT.

UM, THE, UH, THERE'S REALLY TWO, TWO THINGS I THINK THAT SET EMS APART FROM SOME OF THE OTHER PUBLIC SAFETY ENTITIES IN THE CITY.

UM, ONE BEING THAT WE ARE THE ONLY CIVIL SERVICE DEPARTMENT OR, UH, SWORN CIVIL SERVICE DEPARTMENT THAT REQUIRES YOU TO BE CERTIFIED BEFORE YOU'RE HIRED.

SO, UM, WE REALLY NEED TO LOOK AT HOW IT IS THAT WE CAN, UM, DO OUTREACH, DO INTERNSHIP PROGRAMS, AND DO OTHER THINGS, UM, TO ENCOURAGE INDIVIDUALS TO ENTER INTO THE PROFESSION, UM, AND TO PARTNER WITH THINGS LIKE HIGH SCHOOLS AND OTHER AREAS TO SEE IF WE CAN GET MORE INDIVIDUALS, UM, TRAINED EITHER THROUGH US OR THROUGH PARTNERSHIPS TO BECOME EMTS.

UM, AND THEREBY THEREFORE BE ELIGIBLE TO COME INTO THE DEPARTMENT.

THE SECOND THING THAT REALLY SETS US APART IS THAT, UM, AUSTIN, TRAVIS COUNTY EMS, WHICH I'VE SAID MANY TIMES HERE, I'M SO PROUD OF AND IS WHAT DREW ME TO, UH, COME FROM THE OTHER SIDE OF THE COUNTRY TO THIS ORGANIZATION, UM, IS SO UNIQUE AND SUCH SO WELL RECOGNIZED ACROSS THE COUNTRY THAT THERE ARE INDIVIDUALS FROM ACROSS THE COUNTRY THAT WANT TO COME TO AUSTIN, TRAVIS COUNTY EMS. AND I THINK THAT THAT SETS US APART FROM SOME OF THE OTHER PUBLIC SAFETY ENTITIES.

UM, I CAN'T SAY FOR CERTAIN, I HAVEN'T SEEN THEIR NUMBERS, BUT, UM, WE, WE SEE HERE IS THAT IN EXCESS OF 50% OF OUR NEW HIRES ARE COMING FROM OUTTA STATE.

UM, AND THAT CAN BE A, A BARRIER FOR US.

AND SO WE NEED TO WORK THROUGH CREATIVE IDEAS ABOUT HOW IT IS THAT WE CAN, UM, MAKE THIS A PALATABLE PLACE FOR FOLKS, UM, THAT ARE IN THEIR EARLY CAREERS AND MAY NOT HAVE THE SAME TYPES OF SAVINGS AND BUFFERS IN PLACE TO BE ABLE TO MAKE THAT MOVE TO AUSTIN, UM, SUCCESSFULLY.

ON, UM, NEW STATIONS ON GROWTH, ON ENSURING THAT WE HAVE, UH, CUTTING EDGE TECHNOLOGY.

UM, LOOK FORWARD TO WORKING WITH YOU TO THINK ABOUT OTHER WAYS THAT WE CAN, UM, DEPLOY SOME OF THESE FUNDS FOR RECRUITMENT, IS MY HOPE.

UM, WHAT ABOUT THINGS FOR BOOSTING RETENTION? UM, IS, ARE THERE STILL ISSUES WITH RETENTION THAT ARE CHALLENGING? UH, SO FROM A, THERE'S ALWAYS ROOM FOR IMPROVEMENT FROM A RETENTION PERSPECTIVE.

UM, AND I THINK THAT, UM, WHAT WE HAVE SEEN IN THIS ORGANIZATION, UM, WHAT WE SEE NATIONWIDE IS JUST CONTINUING TO WORK ON MAKING SURE THAT THIS IS A, A GOOD PLACE TO WORK.

UM, AND I THINK THAT'S SOMETHING THAT WE REALLY STRIVE FOR AS AN ORGANIZATION HERE, UM, TO WORK ENSURE THAT, UM, THERE'S A, A GOOD LEADERSHIP CULTURE, THAT THERE IS A CULTURE OF ENGAGEMENT.

UM, YOU KNOW, WE HAVE INVESTED AS A COMMUNITY SIGNIFICANTLY OVER THE PAST FEW YEARS ON STATION RENOVATIONS,

[01:30:01]

UM, YOU KNOW, THERE, THERE'S CERTAINLY ALWAYS AREAS FOR US TO IMPROVE.

I MEAN, WE COULD GO BACK AND RENOVATE EVERY STATION AND, AND, YOU KNOW, BUT THAT, THAT'S NOT NECESSARILY FINANCIALLY FEASIBLE.

AND SO WE HAVE TO KIND OF BALANCE THOSE, UM, WITH THE NEEDS OF THE, THE OVERALL NEEDS OF THE CITY, THE COMMUNITY, UM, AND, AND EMS AS A WHOLE.

UM, YOU KNOW, I THINK THAT CONTINUING TO PUT THAT EMPHASIS ON MAKING SURE THAT WE ARE REASONABLE, UM, AND RESPONDING TO THE NEEDS OF OUR WORKFORCE, YOU KNOW, ONE OF THE, THE CHALLENGES THAT WE SEE IS WE RECOGNIZE THAT THERE IS AN INCREASING, UM, VOLUME OF CALLS.

THERE IS AN INCREASING WORKLOAD ON, UM, THE EMS PERSONNEL AND THAT THAT IS A HUGE RETENTION ISSUE BECAUSE, UM, THERE'S SUCH HIGH VOLUME.

AND SO USING THINGS LIKE THE, THE C FOUR PROGRAM AND OTHER THINGS TO TRY TO REDUCE THE AMBULANCE VOLUME SO THAT THE FOLKS THAT ARE WORKING ON THE AMBULANCES, WHICH ARE REALLY THE WORKHORSE OF THE DEPARTMENT ARE ONLY, ARE FOCUSED ON GOING TO SICK INDIVIDUALS.

AND WE DO THAT THROUGH SOME OF THOSE OTHER CREATIVE PROGRAMS. THAT BEING SAID, WE STILL SEE INCREASES IN VOLUMES, AND THERE WILL BE TIMES WHEN WE NEED TO HAVE THAT DISCUSSION WITH THE CITY MANAGER, WITH, UH, YOU KNOW, WHEN WE LOOK AT AN OVERALL BUDGET AS TO WHAT DOES IT LOOK LIKE WHEN WE DO NEED TO ADD, UM, ADDITIONAL RESOURCES.

BUT THAT CAN BECOME CHALLENGING BECAUSE WE'RE STILL WORKING TO GET OURSELVES TO WHERE, TO WHERE WE NEED TO BE FROM A STAFFING PERSPECTIVE.

UM, AND WE DON'T WANT TO STEP TOO FAR OUT OVER WHEN WE ALREADY HAVE AN EXISTING VACANCY PROBLEM, UM, BY ADDING ADDITIONAL RESOURCES.

AND SO IF WE CAN FIND THOSE CREATIVE SOLUTIONS, UM, AND I DO THINK THAT THE C FOUR PROGRAM, UM, THAT, THAT SO MANY OF Y'ALL HAVE BEEN SUCH ADVOCATES FOR US, UM, IS REALLY GONNA BE KEY TO US AS WE, UM, UH, WORK TO IMPROVE THE OVERALL WORK EXPERIENCE OF OUR, OF OUR STAFF.

AND I, AND I THANK YOU YOU FOR YOUR SUPPORT ON THAT.

WITH THE REALITY OF WHAT PEOPLE ARE EXPERIENCES THAT, THAT WE MAY BE SEEING AN INCREASE.

I MEAN, I THINK THE REASON THAT I'M HONING IN ON THE VACANCY ISSUE AND ON RETENTION AND RECRUITMENT IS TO ADDRESS THAT VACANCY ISSUE THAT, THAT YOU'RE RAISING.

UM, ONE LAST QUESTION HERE.

UM, HAVE THERE BEEN AN INCREASE IN ON THE JOB IN, UM, INJURIES THAT YOU'VE SEEN? 'CAUSE THAT ALSO AFFECTS RETENTION? UH, COULD I ANSWER YOUR EARLIER QUESTION ONE MORE? CAN I JUST ADD ONE MORE ADDITIONAL COMMENT? SURE.

UM, IT'S, WHEN WE LOOK AT THE RECRUITMENT AND RETENTION ISSUE FOR OUR DEPARTMENT, UM, WE ARE NET POSITIVE FOR, FOR HIRING INDIVIDUALS.

UM, AND, UH, I THINK THAT'S AN IMPORTANT DISTINCTION AND IT, IT, IT WILL TAKE TIME FOR US TO GET TO WHERE IT IS THAT WE NEED TO BE FROM A HIRING PERSPECTIVE.

UM, BUT PART OF WHAT WE DO AS AN ORGANIZATION TO MAKE OURSELVES SO SUCCESSFUL IS THAT WE DO, UM, HAVE SOME OF THE MOST HIGHLY TRAINED INDIVIDUALS, WHICH TAKES TIME FOR INDIVIDUALS TO GET THROUGH THE PROCESS.

UM, IF YOU GO INTO THE, THE FIELD RIGHT NOW, THERE ARE NUMEROUS AMBULANCES WHERE THERE IS, UH, ONE OR TWO INDIVIDUALS THAT ARE IN VARIOUS LEVELS OF TRAINING TO GET THEM TO A PLACE WHERE THEY CAN BE CLEARED AS ADDITIONAL, UM, YOU KNOW, STAFFING.

UM, AND IT, IT'S CHALLENGING FOR US AND I THINK FOR, FOR THOSE, UM, YOU KNOW, EVEN BEYOND ME, YOU KNOW, THOSE THAT ARE TRULY ON THE FRONT LINES RIGHT NOW.

'CAUSE THEY DON'T NECESSARILY, THEIR EXPERIENCES THAT WE HAVEN'T BEEN ABLE TO STAFF ADDITIONAL AMBULANCES, BUT WE'RE WORKING THROUGH THAT PROCESS OF GETTING PEOPLE THROUGH.

UM, IF YOU LOOK HISTORICALLY AT OUR STAFFING OVER THE PAST, UM, SAY 5, 6, 7 YEARS, THERE WAS ONLY ONE YEAR WHERE WE SAW A REAL NET NEGATIVE FOR INS VERSUS OUTS.

BUT WE CONTINUE, UM, TO BE A, AN ORGANIZATION, A CITY THAT IS GROWING, UM, WHETHER IT IS THE NEW FIRE AND EMS STATIONS THAT ARE BEING BUILT, GOODNIGHT RANCH AND CANYON CREEK AND, UM, TRAVIS COUNTRY AND, AND THE OTHERS.

THOSE ADD ADDITIONAL VACANCIES TO US.

AND SO IT, WHILE THE RATE GOES UP, IT DOESN'T NECESSARILY REFLECTIVE OF A MASS EXODUS, UH, OF THE DEPARTMENT.

AND, AND SO WE'RE REALLY WORKING HARD TO, TO FIND THAT BALANCE BETWEEN RECRUITING, AS YOU MENTIONED, AND RETENTION AND MAKING SURE THAT PEOPLE, UM, KNOW HOW MUCH THEY'RE VALUED AND KNOW THAT THAT THOSE INITIATIVES THAT, THAT Y'ALL HAVE PUT INTO PLACE TO ADD ADDITIONAL STATIONS, ALTHOUGH THEY INCREASE THE VACANCY RATE, THE GOAL IS TO THEREBY WHEN THEY'RE FILLED, REDUCE THE WORKLOAD ON THE STAFF O OVERALL.

SO, AND TO YOUR QUESTION ABOUT THE, THE ON-JOB INJURIES, WE HAVE ACTUALLY, OUR ON-THE-JOB INJURIES HAVE BEEN, UM, SOMEWHAT NET, UM, HAVE BEEN FLAT.

UM, WHAT I WOULD NEED TO PRESENT TO YOU AND WHAT I NEED TO COME BACK TO YOU ON, AND I, AND I COMMIT TO THIS, IS UNDERSTANDING WHAT THE IMPACT OF COVID-19 WAS.

BECAUSE IF I LOOK HISTORICALLY WE SAW IN, YOU KNOW, A LARGE NUMBER OF COVID-19 ON THE JOB INJURIES.

AND AS THOSE DECREASE, THE QUESTION WOULD BE, ARE WE SEEING AN INCREASE IN OTHER ON-THE-JOB INJURIES, UM, THAT'S MAKING THE OVERALL NUMBER LOOK FLAT

[01:35:01]

SO I CAN'T FULLY ANSWER THAT QUESTION FOR YOU, BUT I'M HAPPY TO COME BACK.

I, I APPRECIATE THAT AND I DO WANNA ACKNOWLEDGE THAT, UM, YOU KNOW, WITH RESPECT TO EMS, WITH THE VACANCY, A LOT OF THAT IS BECAUSE WE'VE ADDED AMBULANCES, WE'VE ADDED STATIONS, UM, AS OPPOSED TO GOING BACKWARDS, UM, WITH YOUR EXISTING STAFFING, THERE IS STILL NONETHELESS, UM, THE NEED TO RETAIN THE STAFF THAT WE HAVE WHO ARE HIGHLY SKILLED, UM, AND TO RECRUIT MORE SO THAT WE CAN FILL THOSE VACANCIES TO MEET THE, MEET, MEET THE GROWING NEEDS.

BUT IT, BUT IT IS A VERY IMPORTANT POINT TO UNDERSTAND THAT THE ORIGIN OF THE VACANCIES THAT WE'RE LOOKING AT IS THAT WE'VE ACTUALLY TRIED TO ADD STAFF, UM, TO THINGS.

SO I THINK THAT'S IMPORTANT.

UM, CONGRATULATIONS.

I'M VERY EXCITED TO SEE THIS INCREASE IN REVENUE.

LOOK FORWARD TO WORKING WITH YOU.

UM, I'M NOT SURE IF SOMEONE FROM THE CITY MANAGER'S OFFICE IS HERE OR IF THEY'RE WATCHING, UM, BUT LOOK FORWARD TO CONTINUING, UM, THE CONVERSATION.

I SEE MR. FANO, UM, HERE, UM, WE BEGAN THAT CONVERSATION THE OTHER DAY AND HOPEFULLY WE CAN CONTINUE TO FIND SOME WAYS TO, TO INVEST SOME OF THIS MONEY AS, UM, COUNCIL HAD DIRECTED.

SO THANK YOU VERY MUCH.

APPRECIATE YOUR TIME.

UNLESS THERE, I'M SORRY, COUNCIL , THANK YOU.

THANK YOU FOR YOUR PRESENTATION AND JUST WANTED TO SHARE MY SUPPORT FOR ENSURING THAT WE'RE ABLE TO EXPAND PAID PARENTAL LEAVE FOR OUR SWORN EMPLOYEES, UM, AS WELL AS ENSURE THAT THEY HAVE, UH, JUNETEENTH OFF AS A PAID HOLIDAY.

THANK YOU VERY MUCH.

THANK YOU FOR YOUR SUPPORT AND LOOK FORWARD TO CONTINUED GROWTH.

TO ITEM EIGHT, UM, REGARDING ENFORCEMENT OF LOBBYIST REGULATIONS.

ANY OTHER QUESTIONS? OKAY, GREAT, THANK YOU.

UM, WE WILL NOW MOVE

[8. City Attorney's Annual Report regarding enforcement of Lobbyist Regulations, Chapter 4-8 of the City Code.]

MY NAME IS JI RIZVI.

I'M AN ASSISTANT CITY ATTORNEY WITH THE LAW DEPARTMENT'S OPEN GOVERNMENT AND ETHICS AND COMPLIANCE DIVISION, UH, UNDER SECTION 4 8 12 OF THE AUSTIN CITY CODE.

THE LAW DEPARTMENT SUBMITS, UH, THIS REPORT RELATED TO COMPLIANCE AND ENFORCEMENT OF CHAPTER FOUR EIGHT, UH, OF THE CITY CODE, DEALING WITH THE REGULATION OF LOBBYISTS.

THIS REPORT THAT WAS PROVIDED AS BACKUP TO THIS ITEM, UH, WE'LL COVER THE PERIOD OF AUGUST OF 2020 THROUGH OCTOBER OF 2023.

AND GOING FORWARD, A WRITTEN REPORT WILL BE MADE TO YOU ON A QUARTERLY BASIS, UH, AS WELL AS AN ORAL REPORT ON AN ANNUAL BASIS PER ON CODE.

AS YOU CAN SEE FROM THIS REPORT, SINCE 2020, THE LAW DEPARTMENT RECEIVED NO REFERRALS FOR ENFORCEMENT, UH, FROM THE CITY AUDITOR, CITY CLERK, OR OTHER DEPARTMENTS, AND NO INVESTIGATIONS WERE OPEN.

ONE COMPLAINT WAS FILED WITH THE ETHICS REVIEW COMMISSION, UH, IN THE SUMMER OF 2022.

A PRELIMINARY HEARING WAS HELD IN SEPTEMBER OF 2022, AND THE ETHICS REVIEW COMMISSION VOTED TO DISMISS THE COMPLAINT.

UH, AT THIS TIME, I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU ALL HAVE, UM, ABOUT THE REPORT.

THANK YOU VERY MUCH, COLLEAGUES.

ANY QUESTIONS? OKAY, THANK YOU.

ITEM NINE, WHICH HAS TO DO WITH THE DISASTER PREPAREDNESS AUDIT.

AND WE, UM, ARE MOVING TO SLIGHTLY DIFFERENT REPORTING PROCESS.

ABSOLUTELY RIGHT.

WE WILL BE PROVIDING A WRITTEN REPORT ON A QUARTERLY BASIS GOING FORWARD, AS WELL AS AN, UH, ORAL REPORT LIKE THIS ONE ON AN ANNUAL BASIS.

[9. Disaster preparedness audit recommendations update.]

UM, IN LIGHT OF THE VERY EXTENSIVE BRIEFING THAT WE HAD, UM, WE'RE GONNA POSTPONE THAT AUDIT UNTIL THAT, THAT REPORT UNTIL JANUARY.

WE HAVE STILL ASKED STAFF TO COME BACK AND GO THROUGH, UM, EXACTLY WHAT THEY HAVE DONE THAT WAS IN THAT AUDIT ITEM, YOU KNOW, SO THAT WE CAN SEE ITEM BY ITEM WHAT HAS BEEN DONE, UM, LOOKING AT IT, THAT SLICE OF IT.

UM, AND ALSO WITH RESPECT TO THE STORM MARA, UM, RECOMMENDATIONS TO UNDERSTAND THE TIMELINE FOR IMPLEMENTATION AND THAT WILL BE RETURNING, UM, IN JANUARY.

UM, BEFORE

[3. Discussion and possible action regarding recommendations for appointment of member(s) to the Austin Convention Enterprises Board. (part 2 of 2)]

WE BREAK TO GO INTO EXECUTIVE SESSION, I THINK COUNCIL MEMBER FUENTES, DO YOU WANNA JUST SPEAK TO ITEM THREE BRIEFLY BEFORE WE GO INTO EXECUTIVE SESSION? YEAH, BEFORE WE GO INTO EXECUTIVE SESSION, I WANTED TO ASK IF, UH, CAROLINE WEBSTER IS ABLE TO JOIN US AT THE FRONT, UM, TO PROVIDE ACCURATE INFORMA OR SOMEONE, IF I CAN HAVE SOMEONE FROM OUR LEGAL TEAM JOIN US AT THE FRONT TO PROVIDE ACCURATE INFORMATION AS TO THE TERM OF PHILIP SCHMIDT ON SERVING ON THE ACE BOARD.

HI, CAROLINE WEBSTER WITH THE LAW DEPARTMENT.

UH, I DID CHECK THE BYLAWS AND THE STATE LAW AND THE TERMS ARE SIX YEARS IN, UM, PHILIP

[01:40:01]

SCH SPECIFIC SITUATION.

I WAS MISTAKEN WHEN I SPOKE EARLIER, SO I'LL CORRECT MYSELF.

HE, HE WAS ACTUALLY APPOINTED TO FILL ANOTHER TERM.

AN INDIVIDUAL HAD LEFT AND HE WAS APPOINTED TO FILL THE REMAINDER OF THAT UNEXPIRED TERM IN 2020.

AND SO HE, HE FINISHED OUT THE LAST THREE YEARS OF THAT TERM.

UH, THERE IS NOTHING IN THE LAW THAT RESTRICTS HOW MANY TERMS, CONSECUTIVE TERMS THAT THEY CAN SERVE, BUT, UH, BUT YEAH, THE TERMS ARE SIX YEARS AND HE HAS SERVED, SERVED THREE YEARS OF A, OF ANOTHER TERM.

GOOD DEAL.

I APPRECIATE THAT INFORMATION.

I THINK IT, IT'LL BE HELPFUL FOR US GOING INTO EXECUTIVE SESSION.

SURE.

ARE NOW GONNA GO INTO, UM, EXECUTIVE SESSION.

UM, SO WE

[Executive Session]

UM, UNLESS THERE'S SOMETHING ANYBODY WANTS TO RAISE BEFORE I READ THE SCRIPT FOR THAT.

UM, AND MY UNDERSTANDING IS WE DO, DO HAVE IT AVAILABLE, UH, VIRTUALLY.

IS THAT CORRECT? OKAY.

YES.

SO COUNCIL MEMBER KELLY, UM, AND COUNCIL MEMBER AL ALTER, IF YOU'RE ABLE, UM, YOU CAN JOIN US VIRTUALLY.

UM, SO THE AUDIT AND FINANCE COMMITTEE WILL NOW GO INTO CLOSED SESSION TO TAKE UP TWO ITEMS. UM, THE TIME IS 1114 PURSUANT TO SECTION 5 5 1 0 7 4 OF THE GOVERNMENT CODE.

THE AUDIT AND FINANCE COMMITTEE WILL DISCUSS PERSONNEL MATTERS RELATED TO ITEM TWO, WHICH IS ITEM 10 ON OUR AGENDA DISCUSSION AND POSSIBLE ACTION REGARDING RECOMMENDATIONS FOR APPOINTMENT OF MEMBERS TO THE MUNICIPAL CIVIL SERVICE COMMISSION.

AND ITEM THREE, DISCUSSION AND POSSIBLE ACTION REGARDING RECOMMENDATIONS FOR APPOINTMENT OF MEMBERS TO THE AUSTIN CONVENTION ENTERPRISE BOARD.

UM, IS THERE ANY OBJECTION TO GOING INTO EXECUTIVE SESSION ON THE ITEMS ANNOUNCED? HEARING NONE, THE COMMITTEE WILL NOW GO INTO EXECUTIVE SESSION.

WE WILL COME OUT, WE WILL HAVE TO, UM, TAKE SOME QUICK VOTES ON THOSE ITEMS WHEN WE COME BACK.

I WILL NOW, UM, MOVE TO ITEM TWO, UH, WITH RESPECT TO MUNICIPAL CIVIL SERVICE.

WE ARE OUT OF CLOSED SESSION, ENC CLOSED SESSION.

WE DISCUSS PERSONNEL MATTERS RELATED TO ITEMS TWO DASH 10, UM, AND THREE.

UM,

[2. Discussion and possible action regarding recommendations for appointment of member(s) to the Municipal Civil Service Commission.]

AND I'LL JUST ANNOUNCE THAT WE ARE GOING TO MOVE FORWARD WITH INTERVIEWS THAT WE ARE GOING TO SCHEDULE, UM, IN JANUARY.

UM, WE HAVE ALSO ASKED FOR THE CLERK TO ADD AN ATTENDANCE WAIVER, UM, FOR ONE MEMBER OF MCS CAVITA GUPTA, UM, TO BE ON OUR, OUR DECEMBER 14TH AGENDA.

UM, WITH RESPECT TO ITEM THREE, DO I HAVE A MOTION COUNCIL MEMBER POOLE MOVE TO APPROVE, UH, MOVING THE RECOMMENDATION TO APPOINT CIANA CARAVA HALL TO THE ACE BOARD, UH, ON OUR DECEMBER 14 COUNCIL MEETING.

LAST ITEM IS FUTURE ITEMS REAL QUICK.

THAT'S SECONDED BY COUNCIL MEMBER KELLY.

ANY DISCUSSION? UM, SO WE'LL NOW TAKE, FIRST OF ALL, I'D LIKE TO THANK, UM, MR. SCHMIDT FOR HIS SERVICE, UM, AND WE WILL NOW MOVE TO A VOTE.

ALL THOSE IN FAVOR.

SO COUNCIL MEMBER KELLY, MYSELF AND COUNCIL MEMBER IN FAVOR, COUNCIL MEMBER FUENTES.

HOW ARE YOU VOTING? I'LL ABSTAIN.

COUNCIL MEMBER, FUENTES IS ABSTAINING.

UM, SO THAT ITEM IS ADOPTED.

UM, THE

[Future Items]

AS, UH, COREY STOKES CITY AUDITOR AS MENTIONED BEFORE, UM, THE UPDATE ON DISASTER PREPAREDNESS AUDIT RECOMMENDATIONS, AS WELL AS AFTER ACTION REPORT RECOMMENDATIONS WILL HAPPEN IN JANUARY.

UM, WE'LL ALSO BRING, OH, AND IT SOUNDS LIKE THERE WILL BE SOME MUNICIPAL CIVIL SERVICE RELATED ITEMS, UM, IN JANUARY.

AND THEN WE WILL BE BRINGING A CITYWIDE ETHICS REVIEW, UM, THAT WAS DONE BY MY OFFICE WITH A CONSULTANT.

THERE'S A ITEM FROM FLEET ON FLEET MANAGEMENT AND OPTIMIZATION, AN UPDATE ON PARD RELATED BONDS.

UM, AN AUDIT OF SUPPORT FOR MEDICALLY VULNERABLE PEOPLE, AND THEN SOME AUDIT RELATED CITY CODE CHANGES.

SO, UM, LOTS OF THINGS FOR, ACTUALLY, THEY'RE NOT SPECIFIED JANUARY VERSUS FEBRUARY, BUT LOTS OF THINGS FOR EARLY NEXT YEAR.

GREAT, THANK YOU.

AND, UM, WE'RE, OUR GOAL IS TO HAVE THE MUNICIPAL CIVIL SERVICE, UM, INTERVIEWS DURING A SPECIAL CALL MEETING, UM, BECAUSE WE HAVE A FAIRLY FULL AGENDA FOR THE JANUARY MEETING.

AND, AND, UM, MS. WEBSTER'S GONNA WORK WITH THE CLERKS AND OUR STAFFS TO GET THAT SCHEDULED FOR US.

WELL THANK YOU WITH THAT.

UM, WE'LL ADJOURN AT 1159.

NICE.