* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:03] HELLO EVERYONE, AND THANK YOU FOR JOINING US TODAY, UH, FOR THE FISCAL YEAR 20 25 26, PROPOSED BUDGET PRESENTATION, UH, AND NEWS CONFERENCE IN ATTENDANCE TO TAKE YOUR QUESTIONS AFTER I DELIVER MY PREPARED REMARKS IS MY OUTSTANDING BUDGET TEAM, UH, CHIEF FINANCIAL OFFICER, ED VINO, UH, OFFICE OF BUDGET AND ORGANIZATIONAL EXCELLENCE DIRECTOR CARRIE LANG AND OFFICE OF BUDGET AND ORGANIZATIONAL EXCELLENCE, DEPUTY DIRECTOR, UH, ERIC NELSON. THIS YEAR'S $6.3 BILLION OPERATING BUDGET WAS SHAPED AND INFLUENCE BY AUSTIN RESIDENTS WHO PROVIDED INPUT THROUGH SURVEYS AND BOTH IN PERSON AND VIRTUAL MEETINGS I HOSTED AROUND THE CITY. WHILE ENGAGEMENT IS ALWAYS KEY IN DETERMINING BUDGET PRIORITIES, IT WAS PARTICULARLY CRITICAL THIS YEAR, GIVEN THE SIGNIFICANT FINANCIAL CHALLENGES THAT WE ARE FACING. THE $33 MILLION DEFICIT IN THE GENERAL FUND WAS PRIMARILY DRIVEN BY THE STATE'S 3.5% CAP ON PROPERTY TAX REVENUE GROWTH, LOWERING THE PROJECTED SALES TAX REVENUES AS WELL, AND CUTS IN FEDERAL FUNDING. THIS PROPOSED BUDGET PRIORITIZED SERVICES AUSTINITES EXPECT AND DESERVE WHILE TAKING INTO ACCOUNT THE CURRENT FINANCIAL LANDSCAPE. THROUGH CAREFUL PLANNING AND LISTENING TO OUR COMMUNITY, WE PRESENTED A BALANCED BUDGET THAT ALIGNS WITH THREE CRITICAL FOCUS AREAS, PEOPLE, PLACES AND PARTNERSHIPS. WE PRIORITIZED ENGAGEMENT WITH OUR COMMUNITY AND STAFF ALIKE WHILE BUILDING STRONGER PARTNERSHIPS WITH LOCAL, REGIONAL, AND INTERNATIONAL PARTNERS. THE PROPOSED BUDGET STRENGTHENS OUR COMMUNITY'S SENSE OF PLACE BY CREATING A MORE LIVABLE AND AFFORDABLE AND RESILIENT AUSTIN. BALANCING THE BUDGET WITH A SHORTFALL IN REVENUES WHILE INVESTING IN KEY AREAS WAS MADE POSSIBLE BY CLOSE AND CRITICAL, LOOK AT ALL SPENDING, MAKING REDUCTIONS, REALIZED SAVINGS WHERE APPROPRIATE, AND IN A WAY THAT DOES NOT IMPACT IMPORTANT SERVICES. WE INCREASE FUNDING IN KEY AREAS SUCH AS SHELTER FOR PEOPLE EXPERIENCING HOMELESSNESS, EMERGENCY RENTAL ASSISTANCE, ENERGY REBATES AND INCENTIVES, YOUTH ATHLETIC FIELDS, STORM DRAINAGE, REHABILITATION, AND MUCH MORE. I'VE APPRECIATED ALL OF THE CITY DEPARTMENT'S PARTICIPATION AS WE WORK TOGETHER ON THIS PROPOSED BUDGET. WHILE CHALLENGING, I AM PROUD OF THIS PROPOSED BUDGET AND THE COUNTLESS HOURS OF WORK BY THE STAFF THAT WENT INTO ITS CREATION. IT REPRESENTS A FINANCIALLY SOUND ROADMAP TO ENSURE THOSE WHO LIVE AND WORK IN AUSTIN AS WELL AS THOSE WHO VISIT OUR CITY FOR THE UNIQUE EXPERIENCE THAT IT OFFERS WILL CONTINUE TO BENEFIT FROM THE EXCEPTIONAL LEVEL OF SERVICE AUSTINITES HAVE COME TO EXPECT AS WE PLAN AHEAD, WE CONTINUE TO DO SO STRATEGICALLY WHILE LISTENING AND RESPONDING TO OUR COMMUNITY MEMBERS AND SEEKING INNOVATIVE PATHWAYS TO ENCOURAGE, WE ARE PRESERVING AND PROMOTING AND PROGRESSING THE VALUES OF A D CITY OF AUSTIN AND ALL THE FOLK WHO CALL IT HOME. WE'LL, NOW TAKE YOUR QUESTIONS. YOU TALKED ABOUT HOW THIS BUDGET HELPED EXPAND EMERGENCY RESPONSE OPERATIONS, UM, AND YOU, YOU MENTIONED WILDFIRES, BUT WHEN IT TALK, WHEN WE TALK ABOUT FLOODS, BECAUSE THAT'S BEEN, YOU KNOW, IN THE FOREFRONT OF THE NEWS LATELY, HOW DOES THIS KIND OF, THIS BUDGET FIT INTO, YOU KNOW, UM, SOME OF THOSE TYPES OF, UM, SOME THOSE DEALS? WELL, THE KEY POINT WOULD BE, UH, THAT IT DOES NOT TAKE US BACKWARDS, PARTICULARLY AS IT RELATES TO US, UH, AS A CITY, KEEPING OUR RESIDENTS SAFE AND BEING AVAILABLE TO ASSIST OTHER RESIDENTS, PARTICULARLY IN OUR REGION, UH, WHO ARE IN NEED. AND SO BETWEEN, WHETHER IT'S OUR FIRE DEPARTMENT OR OUR WATERSHED DEPARTMENT, THE POLICIES AND THE THINGS THAT OUR COUNCIL HAS ASKED US TO IMPLEMENT, UH, HAVE FURTHER STRENGTHENED HOW WE LOOK AT ENSURING THAT ONE, OUR RESIDENTS ARE SAFE. UH, THAT ONE, WE'RE A RESILIENT COMMUNITY AND WE'RE ABLE TO RESPOND, UH, WHEN IN FACT WE'RE NEEDED. AND SO I DO NOT BELIEVE, UH, ANYTHING HAS TAKEN US BACKWARDS. ACTUALLY, IT'S STRENGTHENED US, ONE, BY EVEN GIVING THE CHIEF MORE, UH, FLEXIBILITY, UH, TO MANAGE HIS STAFFING LEVELS TO ENSURE AGAIN, THAT WE'RE READY, UH, WHEN NEEDED, CITY MANAGER. BROAD. NEXT, JUST KIND OF BOUNCING OFF OF THAT, UH, I, THE, THE SINGLE BIGGEST, UH, REDUCTION IN SPENDING THAT I SAW WAS IN OVERTIME FOR POLICE AND FIRE. UH, COULD YOU BREAK DOWN A LITTLE BIT JUST EXACTLY HOW THAT WORKS AND, AND, AND WHAT KIND OF RESTRUCTURING WILL TAKE PLACE TO SAVE THAT MONEY? SURE. UH, LET ME FIRST START AND THEN I'LL DEFER TO MRS. LANG AND OR ED SHOULD I, UH, NEED ANY CLARIFICATION. SO WHEN WE TALK ABOUT POLICE IN THE BIG PICTURE, UH, ONE OF THE ISSUES AND CHALLENGES, I THINK IT CAME UP EARLIER IN THE BUDGET PRESENTATION. IT WAS OUR STAFFING LEVELS. AND PART OF, UH, THE ISSUES THAT DRIVE OVERTIME IN OUR [00:05:01] POLICE DEPARTMENT ARE CALLING OFFICERS IN ON OVERTIME DUE TO SHORTAGES, PARTICULARLY IN OUR PATROL DIVISION, WHICH RESPONDS TO, UH, LEVEL ONE AND TWO CATEGORY CLASS CALLS. AND SO THE CHIEF, UH, IS WORKING WITH, UH, THE RESPECTIVE FOLK IN HER DEPARTMENT TO REDEPLOY AND REASSIGN INDIVIDUALS IN OTHER UNITS TO PATROL TO REDUCE THE NEED FOR OVERTIME TO RESPOND, UH, TO THOSE CRITICAL CALLS. AND SO THAT'S WHERE YOU WILL SEE THE REDUCTION BY A SHIFTING IN WHAT IS NOW USED IN OVERTIME TO STAFF. THE, UH, ISSUES RELATED TO OUR, UM, PATROL UNIT WILL NOW DEFER TO EXISTING STAFF CURRENTLY ON DUTY THAT WILL BE PUT BACK IN PATROL AND ROTATE THROUGH PATROL. SIMILARLY IN FIRE, THE OVERTIME REDUCTION THAT WE BUDGETED TO BEGIN IN UH, JANUARY, UH, IS TO, UH, REQUEST THAT COUNCIL GIVE THE CHIEF FLEXIBILITY TO MANAGE THE STAFFING LEVELS. RIGHT NOW ON EVERY APPARATUS, UH, IT IS MANDATED THAT THERE ARE FOUR PEOPLE ON EACH ONE OF THE UNITS, UH, REGARDLESS. AND SO THAT IS DRIVING OVERTIME, PARTICULARLY WHEN WE HAVE PEOPLE WHO ARE OUT ON VACATION AND OR SICK LEAVE AND OR ARE INJURED. AND SO THEY'RE CALLING PEOPLE BACK, WHICH ONE, AS THE CHIEF MENTIONED A LITTLE EARLIER, DOESN'T GIVE TIME FOR PEOPLE TO ACTUALLY REST AND UH, ACTUALLY, YOU KNOW, RECHARGE THEIR BATTERY. SO THIS WOULD ALLOW THE CHIEF THE FLEXIBILITY TO HAVE STAFFING OF FOUR PEOPLE ON CERTAIN UNITS THAT REQUIRE, UH, FOUR PERSON STAFFING, BUT ACTUALLY BE ABLE TO ACCOMMODATE AND KEEP THOSE UNITS AVAILABLE WITH THREE PEOPLE ON THEM TO ALLOW, UH, AGAIN, FOR UH, THE RESPONSE TO HAPPEN AS IT ALWAYS HAS, BUT NOT REQUIRING FOUR PEOPLE ON A UNIT WHICH LOWERS OVERTIME BECAUSE YOU'RE NOT STAFFING IT BECAUSE OF SHORTAGES WITH CALLING PEOPLE BACK IN AT PREMIUM TIME. AND SO THAT'S HOW WE BELIEVE WE CAN REALIZE SAVINGS IN BOTH OF THOSE PARTICULAR DEPARTMENTS. AND I DON'T BELIEVE I MISSED ANYTHING, THANK YOU. BUT YOU WOULD HAVE TO ASK THEM TO RESCIND THE ORDINANCE THAT THEY PASSED IN 2018. SO THAT IS PART OF WHAT WILL NEED TO HAPPEN. UH, COUNCIL WOULD HAVE TO ADD LANGUAGE TO THAT, THAT PROVIDES THE CHIEF THE FLEXIBILITY TO DO THAT. AND HOPEFULLY OVER THESE BUDGET CONVERSATIONS, UH, ONE WE'LL MAKE THAT EVEN MORE CLEAR TO COUNCIL, WHICH I THINK THEY DO UNDERSTAND, BUT UNDERSTAND THAT IT IN NO WAY, UH, WILL JEOPARDIZE THE SAFETY OF THE RESPONSE THAT YOU WOULD RECEIVE FROM THE FIRE DEPARTMENT CITY MANAGER. YOU ALSO, IN FINDING SOME THIS $33 MILLION, WE'VE MOVED $14 MILLION OVER FROM THE RESERVE FUND. WE'VE MADE SOME STAFFING CHANGES. CAN YOU ALSO TALK ABOUT MAYBE THERE BEING CHANGES TO MAYBE POTENTIALLY MONEY FOR PROGRAMS THAT MAY NOT HAVE SEEN SOME OF THE SAME FUNDING LAST YEAR, OR WHAT SOME OF THOSE REDUCTIONS MIGHT HAVE BEEN TO HELP CUT AWAY AT THAT 33 MILLION? SO, UH, ONE, UH, TO TALK ABOUT THE PRECISE REDUCTIONS, I THINK THAT WAS A BROAD QUESTION, BUT I WOULD SAY, UH, PARTICULARLY AS IT RELATES TO THE SOCIAL SERVICE FUNDING, WHICH I THINK, UH, WE, UH, USED, UH, OUR BUDGET STABILIZATION RESERVE, UH, TO SUPPORT NOT HAVING TO CUT 14 PLUS MILLION DOLLARS THERE. UH, AS I ARTICULATED, UH, A LITTLE EARLIER TO THE COUNCIL, THAT WAS TO PROVIDE DO NOTICE, UH, LONGER THAN A MONTH AND A HALF TO TWO MONTHS FOR OUR PROVIDERS, UH, SO THAT THEY COULD GET THEIR BUDGET AND OR REPRIORITIZE SOME OF THEIR SERVICE LEVELS SHOULD IT BE NECESSARY, UH, NEXT YEAR. AND SO, UH, WE BELIEVE THOSE SERVICES ARE CRITICAL WHEN WITH SO MUCH GOING ON AT THE FEDERAL AND STATE LEVEL AND THE RESOURCES THAT WE ARE LOSING THERE AND HOW THAT'S IMPACTING THE PEOPLE THAT ARE CLOSEST TO OUR RESIDENTS AND PROVIDING THEM SERVICES WITH OUR ASSISTANCE, WE DIDN'T WANT TO DISRUPT THAT. AND SO WE TOOK A STRATEGIC APPROACH TO HOW WE, UH, REDUCED, UH, AREAS, UH, IN OUR DEPARTMENTS TO NOT IMPACT STAFF OR ERODE THE ACTUAL SERVICES THAT THEY PROVIDE. AND SO, UH, WE WERE VERY CLEAR, I THINK IN THE PRESENTATION, PARTICULARLY AS WE FORECASTED THE FISCAL YEAR 2027 BUDGET, THAT SHOULD WE NOT RECEIVE ADDITIONAL REVENUE, THERE WILL BE MORE DIFFICULTY IN BALANCING THE BUDGET NEXT YEAR, UH, BECAUSE WE'VE ELIMINATED QUITE A FEW THINGS THAT WERE ONE TIME IN NATURE THAT WE WERE ABLE TO ACCOMPLISH THIS YEAR. KIND OF A SIMILAR QUESTION FOR THE HOUSING TRUST FUND, COULD YOU JUST SPEAK TO THE DECISION TO KIND OF USE UP SOME MORE DOLLARS FROM THAT SOURCE THIS YEAR? AND ALSO WANTED TO ASK, JUST GIVEN KIND OF THE PROJECTION OF LESS NEW PROPERTY VALUE COMING ONLINE, YOU KNOW, WHAT THAT MEANS FOR THE HOUSING TRUST FUND IN FUTURE YEARS? SURE. AND I'M GOING TO DEFER THE SPECIFICS OF THAT PARTICULAR FUND, UH, TO OUR BUDGET DIRECTOR WHO UNDERSTANDS WHAT WE WENT THROUGH TO ANALYZE AND KIND OF WHERE WE FOUND THOSE UH, RESOURCES THIS YEAR. CARRIE, THANK YOU. CITY MANAGER. UM, SO WHEN WE LOOK AT THE HOUSING TRUST FUND, WE WORKED REALLY CLOSELY WITH THE HOUSING DEPARTMENT STAFF TO IDENTIFY, UM, AREAS OF SAVINGS IN, IN, UM, PAST YEARS AND AVAILABILITY IN THE FUNDS BALANCES TO ALLOW FOR US TO FUND, UM, THE MARSHALING YARD IN PARTICULAR, UM, FOR FISCAL YEAR 26. SO IT WAS WORK THAT WE'VE DONE HAND IN HAND TO TRY TO UNDERSTAND [00:10:01] WHAT CAN WE, UM, USE THOSE FUNDS FOR APPROPRIATELY IN, IN FISCAL YEAR 26 WHILE CONTINUING THE SERVICES THAT ARE, UH, FUNDED AND, AND, AND OR THROUGH THE HOUSING TRUST FUND. SO EMERGENCY RENTAL ASSISTANCE IS STILL FUNDED. THERE ARE A NUMBER OF VOUCHERS THAT ARE STILL FUNDED, SO THERE'S STILL FUNDING AVAILABLE THROUGH THAT FUND IN ADDITION TO ALLOWING US TO FUND, UM, THE MARSHING YARD FOR FISCAL YEAR 26. AND I THINK, EXCUSE ME, YOUR SECOND QUESTION WAS RELATED TO NEW TAX VALUE? YEAH, KIND OF JUST WITH THE, THE LOWER TAX PROJECTIONS IN FUTURE YEAR. I GUESS THAT KIND OF TIES INTO THERE BEING LESS DEVELOPMENT ANTICIPATED AND POTENTIALLY LESS NEW FUNDING FROM, I THINK COUNCIL MEMBER BAIL MENTIONED, LIKE THE BONUS PROGRAM PAYING INTO THE HOUSING TRUST FUND. SO REPLENISHING THAT IN FUTURE YEARS, I GUESS. SO SPECIFICALLY, UH, TO THAT POINT, UH, WHEN YOU THINK ABOUT HOW THE RESOURCES FLOW INTO THAT FUND, UH, THE COMMENT WAS MADE. UH, WHEN YOU COMPARE LAST YEAR'S AMOUNT OF 5.3 BILLION TO I BELIEVE THE 2.3 BILLION THAT WAS IDENTIFIED AT THIS EARLY STAGE, UH, WHAT'S CRITICAL TO THINK ABOUT IS THE THINGS THAT WE NEED TO BE DOING AS A CITY, UH, IN ECONOMIC DEVELOPMENT, IN HOW WE SET OUR POLICIES, WHETHER IT'S OUR DENSITY BONUS AND OR ESTABLISHING NEW PROGRAMS THAT INCENTIVIZE AND HELP, UH, BUILD THE TYPE OF HOUSING AT THE AFFORDABLE RATES. I THINK THE COUNCIL DESIRES, UH, WE'VE GOTTA FOCUS IN AND ACTUALLY HAVE A PLAN AND A ROADMAP FOR HOW WE'RE GOING TO BEGIN TO ATTRACT AND MOVE MORE INDIVIDUALS ONE INTO HOUSING, BUT ALSO ENCOURAGE DEVELOPMENT IN THIS COMMUNITY. THAT'S SOMETHING WE'LL BE WORKING OVER THE, THE NEXT YEAR AND WE'VE GOTTA DO THAT GIVING, UH, WHERE WE ARE WITH THE STATE CAPS AND OR THE NATURALLY OCCURRING, UH, CONSTRUCTION AND THINGS THAT ARE HAPPENING. WE'VE GOTTA DO MORE TO INCENTIVIZE AND ENSURE THAT WE CAN KEEP UP WITH, UH, OUR ONGOING EXPENSES BY PUTTING MORE VALUE, UH, ON PROPERTY THAT ULTIMATELY BECOMES SUBJECT TO TAXATION. ANY OTHER QUESTIONS? ALRIGHT, WELL THANK YOU VERY MUCH. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.