[00:00:02] I THINK WE'RE READY. OKAY. IT IS NOW 548 AND THE JULY 29TH WATER AND WASTEWATER COMMISSION MEETING TO ORDER IN [CALL TO ORDER] PERSON. WE HAVE COMMISSIONERS NAVARRO AND REYES AND MYSELF, AND VIRTUALLY WE HAVE COMMISSIONERS CHARLIE WALTON AND MARZULLO. AND NOT PRESENT IS COMMISSIONERS MOSS AND PANDURANGI. SO WE DO HAVE QUORUM. THANK YOU VERY MUCH. I DO WANT TO SAY WE WANT TO SAY THANK YOU TO THE STAFF. THIS IS A VERY APOLLO 13 FEELING. INTO GETTING THIS PIECE TOGETHER, SETTING UP THE RIGHT SYSTEMS. SO I APPRECIATE THAT SO THAT WE CAN MOVE FORWARD WITH THE MEETING TODAY. SO. WE DON'T HAVE ANY SPEAKERS, RIGHT. SPEAKERS. SO FIRST UP. [APPROVAL OF MINUTES] AND WE WILL GO INTO THE APPROVAL OF THE MINUTES FROM THE LAST MEETING ON JULY 15TH. ARE THERE ANY QUESTIONS OR COMMENTS? SEEING NONE. DO I HAVE A MOTION TO APPROVE? MOVE TO APPROVE. SECOND. SECOND. MOTION AND SECOND. EVERYONE VOTING IN FAVOR. APPROVAL. PLEASE RAISE YOUR HAND. OKAY. MINUTES ARE APPROVED UNANIMOUSLY. THANK YOU VERY MUCH. SO NOW I'M GOING TO DO THE ROLL CALL AND SEE IF THERE'S ANY QUESTIONS OR REFUSALS FOR THE ITEMS. SO. NO QUESTIONS, NO REVEALS. NO QUESTIONS. NO QUESTIONS. NO REFUSALS. COMMISSIONER. NO QUESTIONS. NO COMMISSIONER TO YOU. NO QUESTIONS. NO REFUSALS. I HAVE NO QUESTIONS OR REFUSALS. COMMISSIONER TRUSTEE. NO QUESTIONS. NO REFUSALS. COMMISSIONER. WOLSTENCROFT. NO QUESTIONS. NO REFUSALS. COMMISSIONER. YOU KNOW,. NO QUESTIONS, NO REFUSALS. OKAY. THANK YOU VERY MUCH. SO WE'RE GOING TO MOVE THINGS AROUND A BIT. WE'RE GOING TO WAIT ON THE DISCUSSION ACTION ITEMS AND MOVE INTO THE STAFF BRIEFINGS. [5. Staff briefing on Austin Water’s Capital Improvement Plan (CIP) spending plan annual development process - Martin Tower, Austin Water Managing Engineer] WE'LL GO THROUGH THE STAFF BRIEFINGS. AND THEN AFTER THE STAFF BRIEFINGS, WE'LL JUMP INTO THE COMMITTEE UPDATES. AND THEN AFTER THE COMMITTEE UPDATES, WE'LL MOVE BACK TO THE DISCUSSION ITEMS. SO FIRST UP, WE WILL HAVE THE STAFF BRIEFING ON AUSTIN WATERS CAPITAL IMPROVEMENT PLAN SPENDING PLAN AND ANNUAL DEVELOPMENT PROCESS BY MARTIN TOWNS. GOOD EVENING. SO YEAH, I'M MARTIN TOWER, I'M THE MANAGER OVER OUR INFRASTRUCTURE MANAGEMENT DIVISION. WE EXIST TO KIND OF BRIDGE THE GAP BETWEEN FINANCE ENGINEERING OPERATIONS TO ENSURE THAT CAPITAL RESOURCES AND CAPITAL INVESTMENTS ARE ALIGNED WITH OUR RISKS SO WE DO A LOT WITH CAPITAL PLAN DEVELOPMENT PROCESS. WE ALSO DO A LOT TO ADVANCE ENTERPRISE ESTIMATING TO SUPPORT THAT. I HAVE A LITTLE PRESENTATION HERE THAT I'LL GO THROUGH AND SOME QUESTIONS ALONG THE WAY ABOUT 6 OR 7. SLIDE. SLIDE PLEASE. SO AUSTIN WATER PLANT AUSTIN WATER OWNS AND OPERATES SIX MAJOR INDUSTRIAL FACILITIES, HUNDREDS OF FACILITIES SUCH AS RESERVOIRS, 3000 MILES OF WASTEWATER PIPE, 4000 MILES OF WATER PIPES, AND ALL THE FACILITIES NEEDED FOR STAFF THAT WE RELY UPON TO ENSURE RELIABLE WATER, WASTEWATER AND WATER SERVICES. IT'S AN ESTIMATED WORTH REALLY HUNDREDS OF MILLIONS OF DOLLARS. OUR CAPITAL IMPROVEMENTS PROGRAM ALLOWS US TO RENEW AGING INFRASTRUCTURE, PURSUE OPPORTUNITIES TO INNOVATE OUR SYSTEMS, AS WELL AS EXPAND CAPACITY AS NEEDED TO KEEP UP WITH OUR DYNAMIC COMMUNITY. THE NET RESULT IS CURRENTLY THE LARGEST, MOST SOPHISTICATED PROGRAM IN THE CITY. [00:05:06] IT'S ONE IN WHICH STAFF AT EVERY LEVEL OF THE ORGANIZATION CONTRIBUTE TO IDENTIFY AND ADDRESS THEIR NEEDS AND ENSURE RELIABLE SERVICES. EVERY SO OFTEN, A COMMITTEE OF THE EXECUTIVE TEAM OVERSEES THE ANNUAL PROCESS BY WHICH OUR CITY DEVELOPS. OUR PLAN IS BUILT UP FROM ZERO, REVIEWING PROPOSED CAPITAL INVESTMENTS COMING FROM ACROSS THE ORGANIZATION, AS WELL AS REVISITING PROGRESS OF PROJECTS TO ENSURE ALIGNMENT PRIORITIES. IN PRACTICE, THIS TAKES THE FORM OF A CONSENSUS REVIEW AND JUDGMENT BY OUR EXECUTIVES OF DOZENS OF STANDARDIZED BUSINESS CASES WHICH FOR EXAMPLE, AND THEY COVER ALL OUR MAJOR INVESTMENTS. IN THIS CASE, THIS IS PAIRED WITH THE DELEGATION OF AUTHORITY. IT'S AN ALLOCATION FOR ASSET RENEWAL BASED ON ENTERPRISE ASSET MANAGEMENT DATA, ALLOWING THE MANAGERS TO BUDGET FOR THE HUNDREDS OF PROJECTS THAT ADDRESS OUR BREAD AND BUTTER RENEWABLE ENERGY ASSETS. IN THIS WAY, AUSTIN WATERS ASSETS ARE SCRUTINIZED. THEY'RE VETTED AND VALIDATED EVERY YEAR, PUT TOGETHER, AND DOZENS OF PROJECTS OF MILLIONS OF DOLLARS ARE PUT OUT A PLAN BEFORE IT'S FINALIZED. THROUGH THIS PROCESS RIGHT NOW. OUR OUR STANDING CHAIRS, THEY'RE INSTRUMENTAL IN GATHERING THEIR DIVISION MANAGER LEVEL, MID MANAGEMENT LEVEL READERS MAY GET FEEDBACK FROM INTERNAL AND EXTERNAL STAKEHOLDERS TO SCOPE PROJECTS AND SYNTHESIZE CAPITAL PLAN PROPOSALS FOR THEIR RESPECTIVE INDUSTRY. THEY NOT ONLY DETERMINE HOW BEST TO DEPLOY THE RENEWAL FUNDING DELEGATED TO THEM, BUT ALSO IDENTIFY OPPORTUNITIES FOR COLLABORATION WITH OTHER CITY DEPARTMENTS, REGIONAL MOBILITY PROGRAMS, AS WELL AS EFFICIENCY OPPORTUNITIES BY PARTICIPATING IN THE SERVICE, EXTENSION DEVELOPMENT AND OTHER INSTITUTIONS. THESE MANAGERS AND STAFF ARE ENGAGED WITH THE MANY KEY PLANNING EFFORTS ONGOING ACROSS THE CITY, SUCH AS FAR FORWARD THIS PERIOD, BUT ALSO A NUMBER OF PLANNING EFFORTS THAT ARE UNDERWAY AND GIVEN TIME. THIS ENSURES THAT THE CAPITAL INVESTMENT PIECES OF THESE PLANS ARE ADEQUATELY ACCOUNTED FOR IN OUR. NEXT. IN THIS SLIDE, YOU CAN SEE THE SCALE OF THE FIVE YEAR PLAN AS WE DEVELOPED AND REFINED IT OVER THE YEARS SINCE THE FY 2024 PLAN, AND ALSO WANTED TO CREATE FIVE YEAR PLANS, FORECAST OUT TEN YEARS OUT TO COMMUNICATE WITH STAKEHOLDERS THAT ARE INVOLVED IN OUR WORK, BUT AS WELL AS TO MOBILIZE THE RESOURCES NEEDED TO DELIVER THESE BESPOKE COMPLEX SOLUTIONS, WHICH TYPICALLY TAKE 3 TO 7 YEARS TO ACTUALLY DELIVER. AND THE LONGER, MORE COMPLEX, USING OUR DATA DRIVEN, RISK ADJUSTED ZERO BASED PLANNING PROCESS, OUR LEADERSHIP IS ABLE TO SYSTEMATICALLY REFINE $4 BILLION STAFF REQUEST TO $3.2 BILLION, FIVE YEAR PLAN BUDGET. A LOT OF THE GROWTH YOU SEE IN THE BARS HAS BEEN THE ARRIVAL OF LONG ANTICIPATED MAJOR GENERATIONAL INVESTMENTS INTO THE FIVE YEAR WINDOW OF STUDY. EXAMPLES OF THESE PROJECTS INCLUDE EXPANSION, EXPANDED INVESTMENTS IN OUR REGIONAL WATER SYSTEM, INVESTMENTS IN OUR WASTEWATER PIPE NETWORKS SUCH AS THE CREEK INTERCEPTOR, STRENGTHENING OF OUR WATER DISTRIBUTION SYSTEMS SUCH AS THE SOUTHWEST PARKWAY, AND THE TASTE OF INVESTMENTS IN PARTS OF THE SYSTEM THAT WE HAVE. AND THEN MY LAST SLIDE, SLIDE SIX. ALSO, WATER HAS A VARIETY OF INVESTMENT NEEDS TO COVER THE DIFFERENT ASSET CLASSES THAT WE RELY UPON TO DELIVER WATER SERVICES. THIS FALL, THE INVESTMENT DRIVERS. SO COMBINING RENEWAL, ENHANCEMENT AND GROWTH, YOU CAN SEE HOW DISTRIBUTION OF INVESTMENTS FROM DIFFERENT INFRASTRUCTURE CLASSES ACROSS THE ORGANIZATION. AND REALLY ONE OF THE ONES THAT JUMPS OUT, OF COURSE, IS THE ACTUAL EXPANSION WHICH IS INCLUDED IN THAT LARGE GREEN SECTION ON THE LEFT SIDE, AS WELL AS SUBSTANTIAL INVESTMENTS IN THE WASTEWATER NETWORKS, WHICH ARE THOSE SECOND, THIRD LARGEST PORTIONS OF THAT. [00:10:02] BUT OVERALL, IT CREATES A TOTAL OF 3.2 BILLION. AND I KNOW THERE WERE SOME INTERESTING HOW THIS PLAN VARIES OR IS DIFFERENT FROM THE PLAN THAT WE RELEASED LAST YEAR. AND WE CAN SPEAK A LITTLE BIT TO THAT IN TERMS OF HOW MUCH OF THAT CARRY OVER, WHICH WAS THE VAST MAJORITY, ABOUT 90% OF THIS VALUE, EVEN IF THE PER PROJECT ACCOUNT WITHIN ABOUT 70% PROJECTS. OTHERWISE, THE SOME OF THE VOLATILITY OR SOME OTHER CHANGES WE WOULD SEE FROM THIS PLAN THAT WALNUT CREEK INVESTMENT MARCHING IN THE FIRING WINDOW IN FULL FORCE. $40 MILLION TO ITS CURRENT LEVEL. 4.4 BILLION IN THE FIVE YEAR WINDOW. AND THEN, AS WE HAVE RECEIVED THE FEEDBACK AND ADJUSTING TO THE. CHANGES ALONG THE WAY WITH OUR. RECOVERY INVESTMENTS IN THE. FIRING DOWN FROM THAT $200 MILLION LEVEL TO REALLY FOCUS ON THE PILOTING WORK. AND SOME OF THE HIGH LEVEL CHANGES FROM PLAN TO PLAN. OR FOLLOW ANY QUESTIONS ALONG THOSE LINES? ANSWER ANY QUESTIONS. THANK YOU VERY MUCH. COMMISSIONERS THERE ANY QUESTIONS? I DO HE GAVE US A VERY IN-DEPTH PRESENTATION. AND SO WE LEARNED A LOT AS A BUDGET COMMITTEE. AND SO THIS WAS GREAT. SO IF YOU HAVE ANY QUESTIONS OR. YOU DID A GREAT JOB. SO. DID YOU. YES. HI. NO. IT'S OKAY. THANKS, MARTIN, FOR THE PRESENTATION. DEEPLY APPRECIATE IT. ESPECIALLY THIS LAST SLIDE. HELPING WALK US THROUGH THE DIFFERENCE BETWEEN THIS YEAR'S FIVE YEAR WINDOW FOR THE CIP AND WHAT CHANGED OVER LAST YEAR. THIS IS, I THINK EXACTLY THE, THE TYPE OF OVERVIEW WE WERE HOPING FOR. I WAS WONDERING IF YOU COULD SPEND A MOMENT JUST WALKING THROUGH WHAT A REALLY HIGH LEVEL, EVEN JUST CATEGORICALLY I KNOW THAT YOU PROBABLY DON'T HAVE 300 PROJECTS MEMORIZED, BUT THESE TWO BULLETS HERE ON SLIDE SIX, THE SUB PROJECTS NOT CARRIED FORWARD, THE 2.7% OF THE CIP AND THE NEW SUB PROJECTS THAT REPRESENT 4.7. CAN YOU JUST HELP US UNDERSTAND YOU KNOW, OF THESE SUB PROJECTS, GENERALLY SPEAKING, WHAT DIDN'T MOVE FORWARD AND WHAT IS BEING ADDED. YEAH. NO PROBLEM. SO OF THE PROJECTS MOVING FORWARD. THERE IS 114 TOTAL 79. WITH THE LARGER PROJECTS THAT ARE IN STORE. SO FOR EXAMPLE, SOME PROJECTS ARE SIMPLY GETTING EXECUTED AND THEIR SPENDING NEEDS ARE GOING AWAY AS THEY GO INTO THE PAST. SO THAT IS TRUE FOR KIND OF FOCUSING ON THE HIGHEST VALUE PROJECTS THAT DIDN'T GO FORWARD. SO OUR WATER TREATMENT PLANT REHAB PROJECT, THAT'S FINE. THAT'S DISRUPTION RIGHT NOW. AND WE'LL BE SPENDING AT LEAST AT THE TIME WE'RE CREATING THIS PLAN. WE FEEL SPENDING IS GOING TO GO INTO THE 27 THAT WE JUST GOT DONE. WE HAVE SOME THAT IS BECAUSE WE ARE PARTNERING WITH DEVELOPMENT AND UPSIZING OR ADDING BETTERMENTS TO THEIR SERVICE REQUESTS. AND THOSE ARE PROJECTS THAT ARE EXECUTED BY DEVELOPMENT AND THEIR PACE AS THEY SEE FIT. SO IF THEY CHOOSE TO RECONSIDER THAT INVESTMENT, OUR INVESTMENT DOESN'T GET ADDED TO IT. AND THERE WERE FULLY. SEVEN PROJECTS THAT DID NOT GET CARRIED FORWARD, THAT WERE ASSOCIATED WITH AND THAT TOTALED $20 MILLION. THAT'S 73. SO THOSE ARE, IF YOU WILL, SENDING RISKS THAT WE'RE WELL AWARE OF. WE STILL TAKE ADVANTAGE OF OPPORTUNITY FOR THAT. SO THOSE ARE THE EXTENSION REQUEST PROJECTS THAT ARE THOSE. THERE WAS SOMEWHERE WE JUST REORGANIZED. SO WE BETWEEN LAST PLAN AND HIS PLAN, [00:15:04] ADDED A LITTLE BIT OF MONEY TO OUR WATER SERVICES REPLACEMENT PROGRAM. BUT SIGNIFICANTLY, WE, THE MANAGERS IN CHARGE OF THAT PROGRAM SAW FIT TO CONSOLIDATE THE WAY THAT THAT CONTRACT IS EXECUTED. SO THREE SUBPROJECTS BECAME ONE. AND IT APPEARED THAT SOME OF THESE PROJECTS FELL OFF. BUT REALLY IT'S JUST A REORGANIZATION OF SOME OF THOSE PROJECTS. THAT THAT'S ABOUT A ABOUT 15, ACTUALLY, ABOUT $19 MILLION OF THE REORGANIZATION BUDGET. AND THEN FINALLY, THERE WERE SOME PROJECTS THAT WERE JUST REPRIORITIZED BY OUR STAFF SAID, OKAY, THIS PLAN, WE'RE GOING TO NEED TO PUSH SOME OF THAT SPENDING OUT TO MAKE ROOM FOR MORE PRIORITIES. EXAMPLES OF THAT WERE THE CENTRAL CONTROL CENTER REPROGRAMED TO START AT NUMBER TWO, AND I THINK MAYBE ALSO THE STAR STATION REHAB PROJECT. SO. DIFFERENT REASONS WHY WE SEE SPENDING SHIFTING AROUND IN DIFFERENT PLACES. BUT THAT'S, THAT'S A LOT OF WHY 73 MILLION FOR THE NEXT ONE. AS FAR AS THE ADDITIONAL PROJECTS THAT HAVE LESS KIND OF SPECIFICS AT MY FINGERTIPS FOR THAT, BUT I CAN SPEAK TO SOME OF THE QUESTIONS OR WE HAD FULLY 156 PROJECTS THAT WERE ADDED PREVIOUSLY IN DIFFERENT WAYS. GREAT. THANK YOU MARTIN. I THINK THAT COVERS WHAT I WAS, I THINK, MOST INTERESTED, ESPECIALLY JUST THINKING OF THE PROJECTS NOT CARRIED FORWARD. AND I, I APPRECIATE YOU KNOW, JUST SORT OF THE, THE BIG PICTURE REALLY LOOKING AT, YOU KNOW, THE FACT THAT THE CIP PLANNING PROCESS IS. CHANGEABLE AND LIVING YOU KNOW, LOOKING AT THE FIVE YEAR WINDOW FROM LAST YEAR TO THIS YEAR I JUST REALLY APPRECIATE THE DISCUSSION AROUND THINGS, CONSOLIDATE THINGS, REORGANIZE THINGS, DON'T MOVE FORWARD BECAUSE THEY DON'T MAKE SENSE ANYMORE. BUT ALSO THAT IS AT EVERY STEP INFORMED BY THE PROCESS YOU ALL HAVE PUT TOGETHER WITH THE CIP PLANNING CHAIRS AND HOW THAT FITS INTO THE REST OF THE PROCESS WITH AUSTIN WATER FINANCE. SO APPRECIATE THAT. THANK YOU. I HAD A FOLLOW UP QUESTION, IF THAT'S OKAY. IS THAT A DID I GET A YES? GO AHEAD, GO AHEAD. STILL A LITTLE MUFFLED. WE CAN PARKING LOT THIS QUESTION, BUT IT'S KIND OF THE THEME IN MY MIND AS I PREPARED FOR THIS MEETING, WHICH IS WHETHER IT IS DOING AN ANALYSIS OF WHERE WE INVEST OR DOING AN ANALYSIS OF WHERE WE PULL BACK PLAN PROJECTS. DOES AUSTIN WATER HAVE A WAY OF LOOKING AT OUR LMI COMMUNITIES? AND REALLY ANALYZING KIND OF WHERE YOU CAN SUSS IT OUT. SO LIKE SOMETHING LIKE WALNUT CREEK KIND OF SERVES EVERYBODY OR A LARGE PORTION OF THE CITY, BUT FOR LOCALIZED PROJECTS ARE THEIR IMPACT OR INVESTMENT ASSESSMENTS OF IF AND HOW WE'RE SERVING DIFFERENT DISTRICTS, PARTICULARLY THROUGH A LENS OF INCOME. I THINK THAT THAT'S AN AREA THAT WE'RE IMPROVING UPON TO TRY AND UNDERSTAND THE IMPACTS OF THE AREAS OF WORKING. AS YOU POINT OUT, A LOT OF THE WORK THAT WE DO IN IS SYSTEM WIDE AND AFFECTS MULTIPLE ZIP CODES AND PARTS OF TOWN. BUT ONE OF THE THINGS THAT WE'VE IMPLEMENTED IN THE LAST FEW YEARS WAS TRYING TO GET AN UNDERSTANDING OF SOME OF THE DEMOGRAPHIC INFORMATION OUT THERE DOING ACTIVE CONSTRUCTION. SO WE DO PROVIDE THAT WHERE POSSIBLE. PART OF OUR BUSINESS CASE. COVER SHEET. CONTEXTUAL INFORMATION. IF WE WENT BACK TO THE BUSINESS SIDE, IT'S TOO SMALL TO READ, BUT THERE IS A MAP OF THE WORK THAT WE'RE DOING, AS WELL AS SOME INCOME DATA FOR THE ZIP CODES THAT WE ARE ACTIVELY CONSTRUCTING AND FOR THOSE PROJECTS. SO WE ARE WORKING TO INCREASE OUR VISIBILITY INTO HOW THESE COMMUNITIES ARE IMPACTED. YEAH. YEAH, I, I, MY BACKGROUND IS IN A LOT OF BANKING AND FINANCE. [00:20:01] AND BY LAW, THEY'RE REQUIRED TO REPORT INVESTMENT RIGHT IN ITS LMI. AND IDEALLY YOU SEPARATE THE LOWER FROM THE MEDIUM MIDDLE. BUT I JUST THINK AS THE CITY AND THIS IS BEYOND AUSTIN WATER. SO AS THE CITY, IF WE'RE REALLY SERIOUS ABOUT AFFORDABILITY, THERE'S SOME KIND OF STANDARD WHERE WE LOOK, YOU KNOW, WHERE WE'RE INVESTING OR WHERE WE'RE PULLING BACK, HOW RATES ARE AFFECTING. AND I KNOW THERE'S SOME OF THAT. SO I'M NOT SAYING IT'S NOT THERE AT ALL AND THAT YOU ALL DON'T THINK ABOUT IT. I JUST I WOULD LOVE TO SEE, YOU KNOW, A CONSISTENT LENS OF THAT COMMUNITY IMPACT AND HOW IT INFLUENCES DECISIONS. SO MY QUESTION HERE WOULD BE LIKE, OKAY, WHERE WE DIDN'T BRING PROJECTS FORWARD WITH DISTRICTS, YOU KNOW, WHAT COMMUNITIES DIDN'T GET THE PROJECTS WE THOUGHT THEY DID OR THE INVERSE AGAIN, WHERE WE ARE INVESTING, WHERE WHICH DISTRICTS KIND OF GET MORE OF THE CITY BOOTY FOR LOCALIZED MAINTENANCE AND UPGRADES, ETC.. SO MAYBE FOR FUTURE MEETINGS OR IT'S A BROADER QUESTION, I CAN BRING IT BACK, WHICH IS WHY I INTRO'D THIS WITH THE PARKING LOT QUALIFIER. BUT THESE QUESTIONS WON'T GO AWAY LATER TODAY, SO I LOOK FORWARD TO THE REST OF OUR SESSION. SO THANK YOU. I APPRECIATE THAT, COMMISSIONER. I WOULD LIKE TO JUST ADD AND MARTIN TOUCHED ON THIS, BUT WE HAVE A ASSET MANAGEMENT RISK BASED SYSTEM FOR PRIORITIZING OUR REHABILITATION PROJECTS THAT REALLY TARGETS FOR PERFORMING AREAS OF OUR SYSTEM. AND SO WHILE IT DOESN'T AND IT'S A LITTLE BIT ADJACENT TO YOUR POINT ABOUT REPORTING. REPORTING WHERE WE'RE MAKING INVESTMENTS. BUT I DO WANT TO JUST SAY LIKE THE FACT THAT WE, REGARDLESS OF THE AREA OF TOWN, OUR REHABILITATION PROGRAM IS FOCUSED ON IMPROVING THE PERFORMANCE OF OUR SYSTEM FOR THE CUSTOMERS THAT ARE CURRENTLY IN AREAS. YEAH. IF I CAN ADD, THAT'S ONE OF THE INTERESTING NATURE OF THE INFRASTRUCTURE THAT WE'RE DEALING WITH HERE. UNLIKE A PARK WHERE WHAT THE PARK TO BE CLOSE TO MY HOUSE OR THE ROAD IN FRONT OF THE HOUSE. THAT INCLUDES THE PIPE THERE TO THE BENEFIT OF EVERYONE DOWNSTREAM AND UPSTREAM AND, MANY PEOPLE WILL EXPERIENCE THE CONSTRUCTION THAT WILL BENEFIT THE SYSTEM. SO IT'S IT'S A LITTLE BIT INDIRECT IN THE WAY THAT THE INVESTMENTS WOULD NECESSARILY BENEFIT THE LOCAL COMMUNITY. AND THESE ARE 97% PULL FORWARD. SO IT'S NOT LIKE A FROM THIS PROJECT THAT WAS PLANNED FOR THIS DISTRICT. WE'RE NOT GOING TO DO IT ANYMORE. IT JUST MAY NOT FIT WITHIN THE BUDGET AND MAY NOT BE AS PART OF THAT RISK ASSESSMENT NEXT YEAR. SO YEAH, IT'S NOT A TYPE OF PROGRAM WHERE WE'RE JUST DECIDING, I KNOW THEY'LL REBUILD EVERY YEAR, BUT IT'S A LOT OF VERY FORWARD. YEAH THAT'S RIGHT. I MEAN, FROM THE TIME WE DO THE ANALYSIS TO UNDERSTAND IMPROVEMENTS THAT WE NEED TO MAKE SEVERAL YEARS BEFORE WE HAVE ENGINEERING AND CONSTRUCTION IN PLACE, AND CERTAINLY AFTER SEVERAL MORE YEARS BEFORE IT'S ACTUALLY FINISHED. SO IT'S IMPORTANT THAT OUR PLAN, WE DON'T WANT TO JUMP AROUND. WE WANT OUR PLAN TO BE CONSISTENT YEAR OVER YEAR, WHILE STILL BRINGING IN THESE OPPORTUNITIES TO REFINE AND ADJUST, PUSH SOME THINGS OUT IF WE NEED TO PULL SOME THINGS FORWARD, IF WE NEED TO, AS OUR UNDERSTANDING OF OUR RISKS AND SERVICE LEVELS DEVELOPS OVER TIME. AND IF IT'S BETTER ANSWERED BY SOMEONE ELSE, THAT'S ALSO OKAY. BUT IN THINKING ABOUT THE CAPITAL IMPROVEMENT PLANNING PROCESS, WHERE ARE THE TOUCH POINTS FOR PUBLIC INVOLVEMENT, PUBLIC INVOLVEMENT? IS THAT PRIMARILY IN THIS CASE, YOU DON'T HAVE ANY PUBLIC PARTICIPATION TODAY, OR ARE THERE OTHER AREAS WHERE DEPARTMENTS, THE CITY, WHOMEVER ACTIVELY SEEKS PUBLIC INPUT. SO WE HAVE A PUBLIC INFORMATION OFFICE AND YOU ALL HAVE HEARD FROM THEM OVER IN PREVIOUS MEETINGS. AND ONE ELEMENT OF THEIR WORK IS PUBLIC ENGAGEMENT ON OUR PROJECTS. AND SO AND WE DO WORK WITH THE CAPITAL DELIVERY SERVICES, WHO PROVIDES SERVICES FOR OUR PROJECTS AND THE CITY'S DEPARTMENT OF COMMUNICATIONS AND ENGAGEMENT, A COMMUNICATIONS ENGAGEMENT. AND IN ORDER TO MAKE SURE THAT WE'RE CONSISTENTLY APPROACHING THE COMMUNITY [00:25:02] ENGAGEMENT AND MAKING SURE THAT WE'RE GETTING AHEAD, LETTING PEOPLE KNOW THAT WE'RE COMING AND THEN LETTING THEM KNOW THEY'RE STARTING AND THEN COMMUNICATING WITH CONSTRUCTION. WE DO A LOT OF PROJECT SPECIFIC NEWSLETTERS. SO THERE'S THAT. COMMUNITY ENGAGEMENT IS BUILT INTO THE DELIVERY PROCESS. ANY OTHER QUESTIONS? COMMISSIONERS. YES. I WANTED TO TO CIRCLE BACK TO COMMISSIONER TILLY'S QUESTION, BECAUSE I THINK THIS OPENS UP AN INTERESTING POINT FOR DISCUSSION AGAIN. AND THIS MAY BE PARKING LOT FOR FOR FUTURE MEETINGS, BUT REALLY SORT OF THINKING ABOUT THE WAY THAT WE LOOK AT DATA AROUND THE WAY THE COMMUNITY IS SERVED BY PROJECTS AND HOW THAT BURDEN IS SHARED ACROSS RATEPAYERS. ESPECIALLY WHEN WE CAN SORT OF STRATIFY THAT BETWEEN LOW MEDIUM AND THEN OTHER TYPES OF HOUSEHOLDS. YOUR POINT COMMISSIONER IS REALLY WELL MET AROUND, YOU KNOW, WHAT WOULD IT LOOK LIKE IF WE SORT OF VISUALIZED AND MAPPED THE THE DISTRIBUTION OF OUR CUSTOMERS AND YOU KNOW, WHICH LMI COMMUNITIES ARE SERVED BY PROJECTS COMING TO THE FORE. I'M CURIOUS IF THERE IS ANOTHER WAY THAT WE CAN ALSO SORT OF VISUALIZE WHAT IS THE BURDEN OF FINANCING NECESSARILY DISTRIBUTED ACROSS RATEPAYERS? I THINK OF, YOU KNOW, THE OLD ADAGE THAT THE RENT EATS FIRST. BUT AT A TIME WHEN, YOU KNOW, I THINK HOUSING AFFORDABILITY AND UTILITY AFFORDABILITY ARE TOP OF MIND FOR MANY HOUSEHOLDS. AND AS THOSE RATES CONTINUE TO INCREASE ACROSS TEXAS IN OUR CITY, THINKING ABOUT WHAT IS THE SHARE OF A LOW OR MEDIUM INCOME HOUSEHOLD FOR HELPING BEAR THE BURDEN OF CAPITAL IMPROVEMENTS AND REALLY SORT OF UNDERSTANDING OR STARTING TO, TO PUT TOGETHER AN UNDERSTANDING OF. JUST HOW THAT SHARED. I DON'T KNOW. COMMISSIONER TRULY, IF THAT WAS PART OF WHAT YOU WERE GETTING AT IN YOUR QUESTIONS, NOT JUST SORT OF LIKE THE MAPPING AND THE VISUALIZATION, SORT OF LIKE IN A COMMUNITY INVESTMENT STYLE, BUT ALSO LOOKING AT WHAT IS THE SHARE OF, OF THE DEBT FINANCING AND CAPITAL IMPROVEMENT BURDEN, FOR LACK OF A BETTER WORD, ACROSS DIFFERENT HOUSEHOLD INCOME LEVELS. YEAH. WHEN WE GET TO THE DISCUSSION ABOUT RATES AND HOW IT IMPACTS KIND OF OUR CREDIT RATINGS, DEFINITELY. I MEAN, IN A VERY SIMPLIFIED WAY, I WOULD SAY, ARE WE PROGRESSIVE IN HOW WE SET RATES AND ESTABLISH FUTURE RATES? FOR SURE, FOR SURE. THANK YOU. GOOD EVENING COMMISSIONERS. JOSEPH GONZALEZ DEPUTY DIRECTOR OF BUSINESS SERVICES. AND WE WILL TOUCH ON RATES AND, YOU KNOW, A LOT OF THE THINGS THAT WE DO CERTAINLY IMPACT AFFORDABILITY. IN A LATER PRESENTATION. BUT YOU KNOW, TO ANSWER YOUR QUESTION BROADLY WE DO MAINTAIN A SYSTEM AND SO YOU KNOW, WE, WE GO THROUGH A COMPREHENSIVE PROCESS EVERY 5 TO 7 YEARS TO, TO LOOK AT HOW OUR DIFFERENT CUSTOMERS AND DIFFERENT CUSTOMER CLASSES. USE OUR SYSTEM AND, YOU KNOW, INDUSTRY BEST PRACTICES OF SETTING RATES AND ALLOCATING COSTS BASED ON HOW DIFFERENT CUSTOMERS AND TYPES OF CUSTOMERS UTILIZE OUR SYSTEM. AND SO WE DO THAT REALLY HIGH LEVEL. WE HAVE, WHEN IT COMES TO RESIDENTS AND, AND SOME OF OUR MOST VULNERABLE CUSTOMERS YOU KNOW, WE SEPARATE SEPARATELY FOR OUR CUSTOMER ASSISTANCE PROGRAM CUSTOMERS FOR RESIDENTIAL CUSTOMERS THAN WE DO FOR OUR RESIDENTIAL CUSTOMER ASSISTANCE PROGRAM CUSTOMERS. WE HAVE ONE. I'D LIKE TO THANK THE CUSTOMER ASSISTANCE PROGRAM IN THE COUNTRY. IT HAS AN AUTOMATIC ENROLLMENT FUNCTION WHEREBY, YOU KNOW, INDIVIDUALS WHO ARE ALREADY ENROLLED IN A VARIETY OF SOCIAL SERVICES PROGRAMS, WHETHER IT'S MEDICAID OR CHIP OR VETERANS ASSISTANCE PROGRAMS, YOU KNOW, SPECTRUM, THE DIFFERENT PROGRAMS THAT AUTOMATICALLY QUALIFY YOU FOR CUSTOMER ASSISTANCE PROGRAM. I THINK THAT'S ONE OF THE THINGS THAT SETS US APART. OUR PROGRAM TO SOME OF OUR PEERS MOST OF THE ASSISTANCE PROGRAMS REQUIRE REQUIRE FOLKS TO APPLY TO ENROLL. WHEREAS THE AUTOMATIC ENROLLMENT PROCESS ALLOWS US TO REACH PEOPLE [00:30:07] WHO'VE ALREADY GONE THROUGH THE PROCESS TO APPLY FOR THOSE SOCIAL PROGRAMS. THOSE CUSTOMERS GET THEY GET A 40% DISCOUNT. WE MAINTAIN 50% DISCOUNT FOR. THE LAST 8 TO 10 YEARS FOR OUR CUSTOMER ASSISTANCE PROGRAM CUSTOMERS. SO IT'S REALLY IMPORTANT THAT FOR OUR MOST VULNERABLE CUSTOMERS THAT THEY CAN AFFORD ESSENTIAL SERVICES THAT WE PROVIDE. IN ADDITION, IF WE THINK ABOUT OUR CAPITAL PROJECTS AND AND, YOU KNOW EVEN MORE SO ABOUT NEW CONNECTIONS TO OUR SYSTEM YOU KNOW, WE SET CAPITAL RECOVERY FEES AND MAXIMUM ALLOWABLE CANCELLATION FOR FOR STATE CALCULATION SO THAT NEW DEVELOPMENT PAYS FOR ITSELF. SO WHEN INDUSTRY INDUSTRY COMES IN YOU KNOW, THEY'RE PAYING THEIR FAIR SHARE OF BUYING INTO THE SYSTEM. SO, YOU KNOW, THAT HELPS RELIEVE THE BURDEN NOT JUST ON OUR MOST VULNERABLE CUSTOMERS, BUT ALL EXISTING CUSTOMERS WHO NEED HELP PAYING FOR ITSELF. THE OTHER THING I WOULD ADD IS THAT WHEN WE SET UP OUR TIERED RATE STRUCTURE FOR SINGLE FAMILY RESIDENTIAL, WE SET THE FIXED FEES AND THE TIER ONE AND TWO. IN A WAY, YOU KNOW, WE NEED TO RECOVER OUR COSTS AND WE WANT OUR RATES AT THE HIGHER LEVEL TO ENCOURAGE WATER CONSERVATION. BUT OUR RATES IN THOSE FIRST TWO TIERS ARE REALLY DESIGNED TO TO MAKE SURE THAT ESSENTIAL WATER USE IS AFFORDABLE FOR ALL OF OUR CUSTOMERS. AND SO THE CUSTOMERS THAT STAY UNDER THAT TIER ONE, TIER TWO LIMIT WILL PAY AN AFFORDABLE RATE. AND THEN AS YOU GET INTO THOSE HIGHER LEVELS, PARTICULARLY FOUR AND FIVE TIERS, THEN IT BECOMES MUCH MORE OF A PRICE SIGNAL TO ENCOURAGE PEOPLE TO CONSERVE. AND WE MADE SOME ADJUSTMENTS TO BOTH THE FIXED FEE AND THE RATE IN TIER THREE. I THINK WE ADJUSTED ALL THE TEARS, BUT WE HEARD FROM LARGE FAMILIES WHEN WE WERE DOING OUR LAST RATE DESIGN THAT WHEN THEY TIPPED INTO TIER THREE, IT WAS A BIG INCREASE. AND SO WE MADE SOME ADJUSTMENTS THERE TO TO HELP ALLEVIATE THAT FOR OUR FAMILIES. SO WE ARE DEFINITELY LISTENING TO OUR CUSTOMERS AS WE'RE GOING THROUGH THE RATE DESIGN PROCESS. IN ORDER TO BALANCE ALL OF OUR NEEDS, WE NEED TO RECOVER OUR COSTS SO WE CAN INVEST IN OUR SYSTEM. WE NEED TO ENCOURAGE WATER CONSERVATION, AND WE NEED TO MAINTAIN AFFORDABILITY FOR ALL OF OUR CUSTOMERS. AND OF COURSE, IN PARTICULAR, OUR CUSTOMERS. RIGHT. AND AS WE LOOK AT TIER TIERS ONE AND TWO, WHERE WE CONSIDER THOSE WE SET RATES TO RECOVER OUR COSTS FOR THE AVERAGE CUSTOMER AND THOSE LEVELS FOR OUR RESIDENTIAL CUSTOMERS, OUR CUSTOMERS ABOUT 60 THROUGHOUT THE YEAR, ABOUT 66% OF OUR CUSTOMERS GENERALLY STAY IN TIER 1 OR 2. SO THEY ARE IMPORTANT. BUT THE CUSTOMER IS ABOUT 78% OF OUR STAY HERE. SO THE VAST MAJORITY OF OUR CUSTOMERS DO STAY HERE. THANK YOU COMMISSIONER. THANKS, JOSEPH. THANKS, MARTIN. PRESENTATION. APPRECIATE IT. SO NOW WE WILL MOVE ON TO STAFF [6. Staff briefing on Austin Water’s annual staffing planning process - Allison Orton Sprigg, Austin Water Enterprise Strategic Planning Manager] BRIEFING ON AUSTIN WATER'S ANNUAL STAFFING PLANNING PROCESS. BY ALLISON SPRAGUE, AUSTIN WATER ENTERPRISE PLANNING MANAGER. HI. GOOD EVENING. I'M ALLISON SPRAGUE, ENTERPRISE MANAGER ACROSS THE WATER. MY TEAM OVERSEES OUR ENTERPRISE STRATEGIC SERVICES FOR AUSTIN WATER STRATEGIC PLANNING ACTIVITIES. OUR ALIGNMENT TO CITYWIDE PLAN AND PRIORITIES. WE OVERSEE PERFORMANCE MANAGEMENT IN TERMS OF OUR KPIS AND PERFORMANCE MEASURES. WE ALSO OVERSEE OUR MANAGEMENT PROGRAM AND ALL OF OUR PROJECTS. KNOWLEDGE MANAGEMENT. SO TODAY I'M GOING TO GIVE YOU TO YOU ALL ABOUT OUR [00:35:01] ANNUAL STAFFING PROCESS. OUR STRATEGIC APPROACH TO STAFFING. WE ALL HEARD FROM MARTIN EARLIER. WE'VE GOT A LOT OF PROJECTS GOING ON WITH AUSTIN WATER, NOT JUST IN SIP, A LOT OF NON SIP AS WELL. AND WE ARE ALWAYS LOOKING TO SEE HOW WE CAN BETTER RESOURCE THOSE STRATEGIC WAY. SO NEXT SLIDE PLEASE. YES. THANK YOU. ALRIGHT, SO WITH AUSTIN WATER STAFFING, WE APPROACH IT ON AN ANNUAL CYCLE. WE TAKE A BETTER PART OF QUARTER ONE EACH FISCAL YEAR TO MOVE THROUGH OUR DEVELOPMENT AND DISCUSSION PROCESS. WHAT WE DO IS SUBMIT EVERY YEAR, TWO FISCAL YEARS AT A TIME TO THE CITY OF AUSTIN BUDGET. SO WE ARE ALWAYS LOOKING TO DEVELOP TWO YEARS IN THE FUTURE. ONE OF THE THINGS THAT WE ARE FOCUSING ON NOW IS FIVE YEARS OUT, FIVE YEAR FORECASTING. SO WE DO THIS ON AN ANNUAL CYCLE. OUR PLANNING INCLUDES FULL TIME EMPLOYEES PLANNING FOR FULL TIME EMPLOYEES. IT ALSO INCLUDES PLANNING TO CONVERT OUR TEMPORARY OR CONTRACTOR ROLES INTO FULL TIME POSITIONS AS WELL. AND THEN WE ALSO LOOK FOR OPPORTUNITIES FOR OVERTIME REDUCTION AND BRINGING IN POSITIONS UNDER CONTROL AND SWIMLANE OR PIPELINE ORGANIZATION. IT'S AN INCREDIBLY ROBUST PROCESS. WE'VE BEEN WORKING ON FINE TUNING THE PROCESS OVER THE LAST SIX YEARS, ESSENTIALLY. SO EVERY YEAR WE'RE MAKING IMPROVEMENTS TO GET IT WHERE IT IS TODAY. AND IT INFORMED A LOT OF HISTORICAL INFORMATION, INFORMATION JUSTIFICATIONS PURPOSES FROM OUR PROGRAM AREAS AS WE DEVELOP IT. IT'S VERY, VERY COLLABORATIVE BOTH VERTICALLY AND HORIZONTALLY. HORIZONTALLY. WE ARE WORKING THROUGH OUR PROGRAM AREAS. OUR LEADERS WITHIN EACH PROGRAM AREA ARE WORKING WITH DIRECTORS TO REQUEST AND EVALUATE THEIR AREAS AND TEAMS, INDIVIDUALS THAT NEED RESOURCING. WE ALSO WORK HORIZONTALLY, HORIZONTALLY, HORIZONTALLY WITH OUR HUMAN RESOURCES AND FINANCE TEAMS TO BUILD OUT A COMPREHENSIVE PLAN FOR THE ORGANIZATION. IT'S REPEATABLE. LIKE I SAID, WE'VE BEEN WORKING ON THE LAST SIX YEARS REALLY TO IMPROVE THIS PROCESS AND DIAL IT IN. A BIG PART OF THE PROCESS IS ALSO ENSURING THAT WE ARE ALIGNED TO OUR ORGANIZATION'S ENTERPRISE STRATEGIC PLAN, THE STRATEGIC PLAN AND MAKING SURE WE ARE RESOURCING APPROPRIATELY THE GOAL AREAS THAT WE WANT TO MOVE ON. NEXT SLIDE. SO LIKE I SAID, WE DO THIS ON AN ANNUAL CYCLE. WE USED TO REALLY FOCUS A LOT ON IT DURING QUARTER ONE AND WE STILL DO, BUT WE NOW SAY THAT STAFFING HAS NO OFF SEASON. WE ARE NOW LOOKING AT STAFFING PRETTY MUCH EVERY QUARTER. WE'RE PULLING OUT THE PLAN AND TAKING A LOOK AT WHERE WE NEED TO MAKE ADJUSTMENTS OR FILL GAPS. SO REALLY, WE'RE ON THE PRECIPICE OF KICKING OFF OUR STAFFING PLANNING PROCESS FOR THIS FISCAL YEAR. WE TYPICALLY START IN THE SUMMER MONTHS TO START GATHERING, PUTTING THE WORD OUT, KICKING OFF AND SAYING, HEY, Y'ALL, NOW'S THE TIME TO REVIEW YOUR STAFFING PLANS. LET'S START, START THINKING ABOUT WHERE YOU WANT TO MAKE REQUESTS OR MOVE STAFF AROUND. WE THEN GO INTO THE QUARTER, ONE OF EACH FISCAL YEAR. WE HAVE A SERIES OF PLANNING MEETINGS WITH OUR EXECUTIVE TEAM, FINANCE TEAM, RESOURCES TEAM. AND TO GET EVERYTHING READY AND PLAN DEVELOPED AND THEN HAND OFF TO FINANCE IN JANUARY QUARTER TWO SO THAT THEY CAN GO THROUGH FORECASTING PROCESS AND BUDGET PROCESS WITH THIS PLAN IN HAND. OUR HR TEAM STARTS OUR RECRUITMENT STRATEGY PLANNING FOR ALL THE NEW POSITIONS THAT ARE GOING TO COME IN, IN EACH QUARTER OR EACH FISCAL YEAR. AND AND THEN BEFORE YOU KNOW IT, WE'RE BACK IN QUARTER FOUR AGAIN AND WE'RE COMING TO THE NEXT YEAR. SO THAT'S JUST TO KIND OF GIVE YOU AN IDEA OF WHEN AND HOW WE'RE LOOKING AT IT OVER THE COURSE OF THE YEAR. NEXT SLIDE PLEASE. SO I MENTIONED BEFORE PROCESS IMPROVEMENTS. YOU KNOW, WHEN I FIRST GOT TO AUSTIN WATER WE WERE STILL USING A WHITEBOARD. IT WAS A WHITEBOARD IN THE CONFERENCE ROOM. AND WE'VE BEEN STEADILY LOOKING AT DIFFERENT WAYS, TOOLS, PROCESSES, METHODS, DATA THAT WE CAN LOOK AT TO IMPROVE THE PROCESS. SO 2020, WE REALLY LOOKED AT DIGITAL TOOLS THAT WERE AVAILABLE TO US TO REALLY CATEGORIZE AND MAINTAIN ALL THE INFORMATION AROUND STAFFING AND MOVE IT OUT OF THE EXCEL SPREADSHEET SPACE AND MOVE IT INTO A POWER PLATFORM. SO WE INTRODUCED OUR STAFFING PLANNING SYSTEM IN 2020. 2022 IS REALLY WHEN WE STARTED LOOKING AT A LOT OF HISTORICAL DATA WE WERE MAKING EVERY [00:40:05] YEAR. GROWTH RATE WAS LOOKING LIKE EVERY YEAR. AND AGAIN, GIVING US ANOTHER POINT OF DATA TO BE MAKING DECISIONS. IN 2024, WE REALLY STARTED DIALING INTO THE DECISION. SO I MENTIONED EARLIER, THE PLAN INCLUDES FULL TIME EMPLOYEES OR FTS, BUT WE ALSO STARTED LOOKING AT OUR TEMPORARY EMPLOYEES OR OUR CONTRACTOR ROLES HOW WE MIGHT BETTER BE SERVED BY BRINGING THEM IN HOUSE AND WE ACCOUNT FOR THOSE POSITIONS AS WELL. AND THEN ALSO IN 2026. IF YOU'LL RECALL, I WAS HERE IN DECEMBER PRESENTING OUR STRATEGIC PLAN. AND SO THIS YEAR WE'VE DONE A LOT OF ALIGNMENT INTERNALLY TO MAKE SURE WE HAVE RESOURCES TO ALIGN TO OUR BIG GOALS FOR AUSTIN WATER AND THOSE PROJECTS THAT FALL UNDER EACH OF THOSE GOALS. SO MORE TIGHTLY ALIGNED WITH THOSE. AND THEN PREVIOUSLY, LIKE I MENTIONED, WE'RE COLLABORATING A LOT WITH OUR HUMAN RESOURCES TEAM AND OUR FINANCE TEAM WITH THIS PROCESS. YOU KNOW, WITH OUR HR TEAM, THEY'RE REVIEWING THE TITLES THAT WE'RE PULLING IN OUR JOB DESCRIPTIONS. THEY'RE GETTING A BETTER UNDERSTANDING OF THE POSITIONS THAT ARE GOING TO GO LIVE EACH FISCAL YEAR THAT THEY'LL THEN NEED TO RECRUIT AND HIRE FOR. SO THAT OPENS UP TRANSPARENCY THERE. AND THEN OF COURSE, WE WORK CLOSELY WITH TO MAKE, TO MAKE SURE THIS INPUT GOES WELL INTO OUR BUDGET PROCESSES. NEXT SLIDE. SO WITH ALL OF THOSE IMPROVEMENTS, WE REALLY DIALED INTO OUR CURRENT PROCESS AS IT STANDS TODAY. AND WHAT WE'LL BE USING THIS THIS QUARTER ONE OF 27 SO WE REALLY HAVE FIVE MAIN STEPS WITH THIS PROCESS. WILL BE. THE FIRST ONE IS AN ANNUAL REVIEW OF WHAT OUR GOALS AND PRIORITIES ARE FOR THAT YEAR. YOU KNOW, WE'RE LOOKING AT OUR ENTERPRISE PLAN, THE CITY WIDE LEVEL. WE'RE LOOKING AT ALL THE DIFFERENT PROJECTS THAT ARE GOING ON ACROSS THE ORGANIZATION AND PRIORITIZING WHERE WE WANT TO RESOURCE. FROM THERE, WE WORK WITH OUR PROGRAM AREAS. THEY'RE GOING TO BE LOOKING IN WITH THEIR TEAMS DIVISIONS, OUR DIVISION MANAGERS, SUPERVISORS, ANY LEADER WITHIN YOUR PROGRAM AREA IS GOING TO BE LOOKING AT THEIR TEAMS WORK THAT THEY HAVE TO DO WHAT THEY NEED TO DO TO MAINTAIN OUR CURRENT LEVELS OF SERVICE AND OPERATIONS, AS WELL AS WHAT WE MIGHT LIKE TO HAVE IN TERMS OF ENHANCING FROM THERE, WE MOVE ALL OF THE REQUESTS INTO OUR STAFFING PLANNING SYSTEM. WE THEN PULL ALL INFORMATION OUT OF THE SYSTEM AND REALLY VISUALIZE IT INTO A FIVE YEAR ROLLING FORECAST. AND THEN WE WORK VERY CLOSELY WITH THE EXECUTIVE TEAM IN TERMS OF ACTUALLY DEVELOPING THAT PROGRAM. SO I'M GOING TO GO INTO EACH PHASE OF THIS PROCESS. NEXT SLIDE. SO THE FIRST ONE IS REALLY DIALING INTO OUR GOALS AND PRIORITIES. NEXT SLIDE. SO WE MENTIONED BEFORE WE HAVE A LOT OF ALIGNMENT WORK THAT WE'VE BEEN WORKING ON THIS YEAR. BUT EVEN WHEN WE'RE DEVELOPING OUR STRATEGIC PLAN, WE'RE REALLY KEEPING IN MIND WHAT THE CITY OF AUSTIN, OUR CITYWIDE STRATEGIC PLAN IS ASKING OF US WHAT BROADER, LONGER TERM PLANS LIKE AUSTIN, WE'RE SAYING THAT WE NEEDED TO HAVE AS WELL AS THE COMMUNITY INPUT. AND SO WITH THAT NEXT SLIDE WE HAVE DIALED INTO EACH ONE OF OUR GOAL AREAS FOR OUR AUSTIN WATER STRATEGIC PLAN CAN BE DIRECTLY ALIGNED TO CITYWIDE GOALS AND PRIORITIES AS WELL AS THEIR STRATEGIES AND PLANS UNDERNEATH EACH ONE. SO THIS ALLOWS US NEXT SLIDE TO TAKE A LOOK AT OUR FIVE HIGH LEVEL GOALS FOR AUSTIN WATER AND SAY, OKAY, DRIVING TEAM IS SUPPORTING COMMUNITY HEALTH. SO FOR EXAMPLE, SERVICE EXCELLENCE IS SUPPORTING OUR COMMUNITY. HEALTH INFRASTRUCTURE IS SUPPORTING OUR MOBILITY AND CRITICAL INFRASTRUCTURE GOALS. AND SO WITHIN EACH ONE OF THESE AREAS, WE NOW HAVE, YOU KNOW, LARGE INVENTORY OF PLANS THAT ARE UNDERWAY. SO THIS REALLY HELPS US KIND OF DIAL INTO WHERE WE NEED TO APPLY RESOURCES BUDGET. RIGHT. NEXT SLIDE. AND THEN JUST AS A VERY HIGH LEVEL FRAMEWORK VIEW OF WHAT WE'RE TRYING TO DO HERE IS THAT AND ARE DOING IS THAT WE ARE LOOKING AT OUR GOAL AREAS PLAN THAT ARE ALIGNED TO CITYWIDE PRIORITIES. WE'RE LOOKING AT WHAT MEASURES, HOW WE CAN MEASURE PERFORMANCE OR WHAT PERFORMANCE SHOULD BE IN AN AREA. TAKING A LOOK AT HOW WE CHANGE OR MAKE IMPROVEMENTS. WHAT THOSE CHANGE TACTICS ARE, AND THEN HOW WE NEED TO PRIORITIZE OUR RESOURCES AND WHERE THOSE RESOURCES NEED TO GO. THAT'S IT AT A HIGH LEVEL. NEXT SLIDE. SO OUR PROGRAM AREA STAFFING PLANNING IS OUR IS OUR NEXT PHASE NEXT WEEK. SO ONE OF THE THINGS THAT WE DID IN LAST YEAR'S PROCESS WAS REALLY BALANCE THIS CONCEPT OF MAINTAINING VERSUS ENHANCING PERFORMANCE. THIS IS ALSO A CONCEPT THAT'S BEING USED AT THE CITY WIDE BUDGET PLANNING PROCESS AS WELL, IS WHAT IS IT THAT WE NEED TO DO TO MAINTAIN OUR CURRENT LEVEL OF PERFORMANCE? [00:45:01] AND THEN WHAT IS IT THAT WOULD ENHANCE IT? RIGHT? SO WE APPLIED THE SAME THING TO OUR RESOURCES AND OUR FTE ROBUST OR TEMPORARY CONDITIONS. WE WANTED TO LOOK AT OKAY, WHAT DO WE ABSOLUTELY NEED TO HAVE TO MAINTAIN OUR CURRENT LEVEL? AND THEN WHAT IS THE NEXT? AND REALLY LOOK AT OUR POSITIONS THAT WAY. SO KIND OF A REAL LIFE EXAMPLE ON THE NEXT SLIDE WE KIND OF DIALED INTO SOME THEORETICAL EXAMPLE SCENARIOS THAT AUSTIN WATER. SO THEY MAY SOUND FAMILIAR, BUT I PROMISE THEY'RE JUST EXAMPLES. SO SO WE WERE LOOKING AT, FOR EXAMPLE, A REQUEST THAT CAME IN AND WE'RE TRYING TO DETERMINE, OH, IS THIS A MUST HAVE OR IS THIS A RIGHT? SO FOR EXAMPLE, A MORE GRANULAR LEVEL, WHAT WE'RE LOOKING AT DOING IS LOOKING AT THE SCENARIOS THAT, THAT, THAT REQUEST IS COMING IN UNDER. SO FOR EXAMPLE, UNDER MAINTAINING, WE HAVE A PUBLIC INFORMATION REQUEST SPECIALIST REQUEST. WE HAVE ONE PUBLIC INFORMATION REQUEST SPECIALIST. WE'RE REQUIRED TO RESPOND TO THE IRS WITHIN TEN BUSINESS DAYS. WE'RE CURRENTLY USING ADDITIONAL STAFF FROM OTHER AREAS TO FULFILL THAT TEN DAY RESPONSE TIMELINE. OUR PRAYERS ARE ALSO INCREASED, RIGHT. SO THAT CREATES A SCENARIO WHERE WE WOULD IDENTIFY THAT WE HAVE A MINIMUM PERFORMANCE. WE NEED TO ADHERE TO THAT TEN BUSINESS DAY CYCLE. SO WE KNOW WE PROBABLY NEED TO ADD RESOURCES. SO THE REQUESTS THAT CAME IN FOR ONE PR SPECIALIST AND ONE PR COORDINATOR, WE'RE CATEGORIZING LIKE THAT IS MAINTAINED IN ORDER TO MAINTAIN AND LEAD THIS PERFORMANCE. WE'RE SAYING THIS IS THIS IS A MAINTAIN LEVEL POSITION AND THAT WILL BE CATEGORIZED. NOW LET'S SAY A DIFFERENT SCENARIO. WE ARE EXPERIENCING A DROUGHT. WE'D LIKE TO IMPROVE OUR RESILIENCY BY INCREASING OUR WATER SUPPLY. RIGHT. WE'VE DETERMINED THAT THE BEST WAY TO DO THIS IS THROUGH OUR STORAGE RECOVERY. NOW, IN ORDER TO GET THAT PROJECT OFF THE GROUND, WE NEED TO HIRE AN ADDITIONAL. WE THINK WE NEED TO HIRE AN ADDITIONAL ENGINEER. SO LOOKING AT THAT SCENARIO AGAIN WE'RE SAYING, OKAY, THIS WOULD BE INCREASING OUR RESILIENCY, BUT IT'S NOT AN ABSOLUTE MUST HAVE RIGHT NOW. THIS IS A LONGER RANGE PROJECT THAT WE KNOW WE WANT TO DO IN THE FUTURE. BUT IN TERMS OF LOOKING AT IT THIS YEAR OR THIS YEAR, ONE OF THIS PLAN. WE'RE GOING TO SAY THAT THAT'S A, THAT'S, SO THAT'S KIND OF HOW WE'RE NOW LOOKING AT AND. SO THE NEXT PART OF THE PROCESS IS WHEN WE ACTUALLY INTAKE ALL OF THE REQUESTS FOR RESOURCES THAT COME IN FROM OUR PROGRAM. NEXT SLIDE. WE DO THAT VIA OUR STAFFING PLANNING SYSTEM. AGAIN, THIS IS KIND OF JUST A QUICK VISUAL ON THE DIGITAL TOOL THAT WE'RE USING. IT'S A POWER APP. IT'S ON MICROSOFT 365. OUR IT GROUP HELPS US BUILD AND MAINTAIN THIS, BUT THIS IS ESSENTIALLY OUR INTAKE FOR ANY NEW STAFFING REQUEST PROGRAM AREAS. WE ASK FOR INFORMATION ABOUT THE POSITION, TITLE, JOB DESCRIPTION, PURPOSE CONSEQUENCES TO NOT GETTING IT. YOU KNOW, FUNDING INFORMATION. WHERE IS THIS POSITION GOING TO LIVE, WHAT TEAM DOES THIS REPORT TO, ETC.. AND THEN NEXT SLIDE. THIS THEN TRANSLATES INTO ESSENTIALLY OUR ARCHIVE OF INFORMATION. IT'S NOT ONLY DATA GOING BACK SEVERAL YEARS, BUT IT'S ALSO WHAT WE HAVE PLANNED OUT AND INTO THE FUTURE. SO YEAH, THIS SYSTEM ALLOWS US TO GO IN AND MAKE EDITS, CHANGE, CHANGE YEARS, CHANGE PRESCRIPTIONS, CHANGE FUNDING, OR EVEN IF WE NO LONGER THINK WE NEED IT, WE CAN EITHER MOVE IT OUT TO A FUTURE YEAR OR REMOVE IT. SO IT'S JUST, AGAIN, UTILIZING DIGITAL TOOLS TO HELP US TRACK AND MAINTAIN ALL OF OUR STAFFING. SO NEXT SLIDE. FROM THERE, WE TAKE INFORMATION OUT OF THE STAFFING PLANNING SYSTEM AND VISUALIZE IT. SO WHAT WE TAKE OUT OF THE PLANNING SYSTEM IS REALLY ABOUT ROLLING FIVE YEAR FORECAST. SO RIGHT NOW OUR STAFFING PLAN SPANS FROM FY 27 TO FY 30 ONE QUARTER ONE. THIS NEW FISCAL YEAR WILL BE FOCUSING ON 2028 THROUGH 32. SO EVERY YEAR WE'RE GOING TO BE ADDING AN ADDITIONAL YEAR OUT. AND BUILDING OUT THAT FIVE YEARS ON A ROLLING BASIS. SO WITHIN EVERY REQUEST THAT COMES INTO THE PLANNING SYSTEM EACH POSITION GETS A UNIQUE IDENTIFIER IDENTIFIER. KIND OF FOLLOWS THAT TITLE IN THAT POSITION THROUGHOUT THE PROCESS THROUGH HR. SO EVENTUALLY WE KNOW, HEY, WE HIRED THIS POSITION. YOU REQUESTED IT THIS YEAR. AND FOLLOWING ON FROM ITS JOURNEY TO HIRE IT INTO SO ALSO TELLS US ALL OF OUR TOTALS. WE HAVE THEN TWO VERSIONS OF OUR STAFFING PLAN. [00:50:03] WE HAVE AN ORGANIZATIONAL VIEW AND ALSO A PROGRAM AREA VIEW. AND OUR ORGANIZATIONAL VIEW IS ALL OF OUR POSITIONS. SO EVERYTHING THAT WE HAVE DEEMED THIS IS A NICE TO HAVE GOES INTO OUR ENHANCEMENT DASHBOARD. SO YOU CAN KIND OF SEE EVERYTHING THAT WE HAVE ACCORDING TO OUR STRATEGIC GOALS PROGRAM AREAS IN EACH FISCAL YEAR THOSE WILL FALL ON. AND THEN WE HAVE OUR MAINTAINED BATCH, WHICH IS OUR PROGRAMING. SO THAT SHOWS US AGAIN TOGETHER BY A TEAM, BY DIVISION, BY TITLE. ALL OF THE DIFFERENT ITEMS THAT HAVE BEEN REQUESTED. SO THAT REALLY HELPS US WITHIN THE DASHBOARD WE KNOW AS WELL AS A FULL TIME EMPLOYEE. IS THIS A TEMPORARY OR CONTRACT VERSION? IS THIS A NEW ROLE OR AN EMERGING OPPORTUNITY? AND SO THAT GIVES US THE VISUAL OF, OF ALL THE REQUESTS LAID OUT. AND THAT'S AN INCREDIBLE, INCREDIBLY USEFUL TOOL TO HAVE. BUT ANOTHER PIECE OF DATA THAT WE'VE INTRODUCED IS REALLY TAKING A LOOK AT OUR HISTORICAL DATA AS WELL AS OUR GROWTH RATE AS AN ENTERPRISE MOVING THROUGH THE YEARS. SO NEXT SLIDE. SO ONE OF THE THINGS THAT WE ALSO INTRODUCE AND LOOK AT ON AN ANNUAL BASIS GOING INTO THE CYCLE IN Q1 IS REALLY LOOKING AT PRIOR STAFFING CYCLES AND HOW MANY POSITIONS WE'VE ADDED EACH YEAR TYPE OR CATEGORY OF POSITION AND THEN GROWTH RATE, HOW HOW IT ADJUSTED ADJUST OUR GROWTH RATE. TOTAL OF EMPLOYEES. SO ON THE LEFT HAND SIDE, WE HAVE OUR TOTAL NUMBER OF APPROVED FULL TIME EMPLOYEES BY FISCAL YEAR. SO YOU CAN KIND OF SEE IT GOES BACK THREE ISH CYCLES. BECAUSE WE DO TWO YEARS AT A TIME INTO OUR BUDGET. SO FROM 2024 TO NOW OR 28, WE HAVE SORRY. 2628 THAT'S VERY SMALL BUILT OUT, BUT YOU CAN SEE HOW MANY FULL TIME EMPLOYEES WE REQUESTED THAT YEAR AND WERE APPROVED, HOW MANY VERSIONS WE MAY HAVE HAD, AND HOW MANY POSITIONS WE BROUGHT IN UNDER COST BASIS OR OVER TIME. THE RIGHT HAND GRAPH IS OUR HISTORICAL GROWTH RATE. SO AGAIN, AS A PERCENTAGE OF OUR TOTAL STAFF, WE'RE LOOKING AT, OKAY, HOW MUCH DOES THE ACTUAL TOTAL ORGANIZATION GROW THAT YEAR. SO YOU CAN KIND OF SEE MY YEAR BASED ON HOW MANY POSITIONS WE BROUGHT IN HOW THAT IMPACTS OUR GROWTH. THIS IS A NUMBER THAT'S AGAIN HELPFUL IN DECISION MAKING. TYPICALLY, WE'LL, WE'LL GO IN AND KIND OF LOOK AND SET A BALLPARK NUMBER OF WHERE WE KIND OF WANT TO LAND BY THE END OF THE PLAN. AND IT'S JUST A GREAT WAY TO PUT SOME GUARDRAILS ON THE PLAN. AS WE'RE KEEPING IN MIND LIKE HOW WE'RE GROWING AND HOW FAST WE'RE DOING IT, RIGHT. SO THAT'S SOME OF THE HISTORICAL DATA AND GROWTH INFORMATION THAT WE ARE LOOKING AT ANNUALLY AS PART OF THIS PROCESS. THE NEXT SLIDE HAS OUR TOTALS FOR FY 27. SO YOU CAN SEE BY ORGANIZED BY OUR STRATEGIC GOAL, OUR COUNT OF THE FEES THAT ARE COMING IN. WE ALSO HAVE THEM BROKEN DOWN BY POSITION TYPE. SO COST NEUTRAL, THOSE THAT ARE COMING IN UNDER BUDGET IMPACTS, THEY'RE REDUCING OVER TIME. WE HAVE OUR CONTRACT CONVERSION. SO PHYSICIANS THAT WE'VE DECIDED WE NEED TO ACTUALLY BRING THESE IN-HOUSE LONG TERM BENEFICIAL FOR US AND THE EMPLOYEE TO BRING THEM IN. AND THEN JUST OUR NEW BRAND NEW ORGANIZATION. SO AT A GLANCE, THIS TELLS US, OKAY, WE'RE REQUESTING 44 POSITIONS, 27 AND STRATEGICALLY WE'RE LOOKING AT, YOU CAN SEE, HEY, WE'RE PUTTING IN A LARGE NUMBER OF RESOURCES UNDER PROACTIVE INFRASTRUCTURE. SO WE CAN KIND OF SEE WHERE WE ARE RESOURCING IN TERMS OF STRATEGIC ROLE AS WELL. ON THE NEXT SLIDE, WE ALSO HAVE A PREVIEW OF FY 28. THIS PLAN THIS FISCAL YEAR IS ABOUT 95%. WE'LL HAVE A CHANCE THIS FALL. WE'LL BE LOOKING AT ME AND. 29 IN TERMS OF OUR TWO YEAR PLAN. SO THAT WILL GIVE TO THE CITY BUDGET. SO AGAIN, YOU CAN LOOK AT TYPES OF POSITIONS AS BROKEN DOWN THE STRATEGIC GOAL AREA THAT THEY ALIGN TO AND THEN THE TOTAL DEBT. AND SO AGAIN, YOU KIND OF SEE WE'RE STRATEGICALLY REPLACING RESOURCES IN 28 AS WELL. NEXT SLIDE. THE FINAL STEP IN OUR PROCESS IS REALLY THE FORECASTING PART OF THAT. AND THAT'S THE WORK THAT WE DO WITH OUR EXECUTIVE TEAM AND LEADERSHIP TEAM. IN QUARTER ONE EACH YEAR. NEXT SLIDE. WE HAVE A SERIES OF MEETINGS. LIKE I SAID, WE USUALLY START AROUND THIS TIME IN THE SUMMER GIVING OUR AWARDING, LIKE STAFFING IS COMING. LET'S GET YOUR INFORMATION TOGETHER. BUT USUALLY IN ABOUT OCTOBER, WE START A SERIES OF MEETINGS. EVERY MEETING WE START GOING THROUGH. [00:55:02] OKAY, HERE'S ONE. THIS IS WE LEFT LAST YEAR'S PROCESS AT 95% COMPLETE. LET'S GET IT TO 100. AND THEN WE BUILD OUT EACH YEAR FROM THERE, EVERY MEETING WE WORK THROUGH THAT FORECAST. NEXT SLIDE. SO JUST A COUPLE OF THINGS THAT OUR EXECUTIVE TEAM COMES TOGETHER AND REVIEWS IN TERMS OF THIS PLAN. I MENTIONED IT'S A ROLLING FIVE YEAR YEAR ONE. WE GET TO 100%. THAT'S GOING INTO THE BUDGET YEAR TWO. WE TRY TO GET TO 95% AND LEAVE A LITTLE BIT OF WIGGLE ROOM SHOULD SOMETHING HAPPEN IN THE YEAR THAT FOLLOWS THAT WE NEED TO MAKE SOME ADJUSTMENTS TO AND THEN YEARS THREE THROUGH FIVE REALLY ACT AS KIND OF OUR PLACEHOLDER DRAFT, RIGHT? WE CAN KIND OF VISUALIZE AND SEE WHAT'S COMING DOWN THE LINE. AND THAT HELPS INFORM DECISIONS IN YEAR 1 OR 2. FOR EXAMPLE, A GREAT EXAMPLE IS, YOU KNOW, OUR WALNUT CREEK WASTEWATER TREATMENT PLANT EXPANSION. WE KNOW THAT THAT'S GOING TO BE A LONG TERM PROJECT, BUT WE NEED TO BRING OUR RESOURCES NOW. SO IT'S NOT ONE LUMP SUM IN 30, BUT WE'RE BRINGING ON STAFF RESPONSIBLY AND TRAINING THEM. AND BY THE TIME OUR TREATMENT PLANT IS READY TO GO YOU KNOW, WE HAVE IT FULLY STAFFED AND READY TO GO AS WELL. SO THAT'S AN EXAMPLE OF WHY IT'S SO HARD TO BE A FIGHTER PLANE. WE ALSO REVIEW PRIORITIES WITH THESE POSITIONS. ARE THESE POSITIONS OR REQUESTS CRITICAL OR ENHANCEMENTS? NICE TO HAVE. WE LOOK AT OUR GROWTH CATEGORY. WE LOOK AT RIGHTSIZING TEAMS. IT'S A GREAT TIME ANNUALLY TO KIND OF LOOK AT THE ORGANIZATION AS A WHOLE. LOOK AT THE WORK CHART. WHAT TEAMS YOU KNOW, HAVE PROGRAMS THAT MIGHT BE WINDING DOWN OR TEAMS THAT ARE PROGRAMS THAT ARE WINDING UP AND KIND OF RIGHTSIZING STAFFING IN THAT WAY. WE MIGHT BE EXPANDING PROGRAMS. AND THEN AGAIN, WE REALLY LOOK AT THE TYPE OF POSITION THAT WE'RE BRINGING IN. IS THIS PROJECT BEING RESOURCED BY A TEMPORARY EMPLOYEE? BUT WE HAVE THIS PROJECT OR PROGRAM IS GOING TO BE A LONG TERM. LET'S START THINKING ABOUT BRINGING THAT ROLE IN. SO THAT'S JUST SOME OF THE DECISION MAKING THAT HAPPENS WHEN YOU'RE. SO NEXT SLIDE. SO LIKE I SAID, THERE'S NO OFF SEASON THAT'S HAPPENING ANYMORE. WE ARE PRETTY MUCH FULL TIME. EVERY QUARTER WE HAVE SOME SORT OF TOUCH POINT ON EITHER THE STAFFING PLAN OR BUDGET OR ALIGNMENT OF RESOURCES STRATEGICALLY, RIGHT? SO LIKE I SAID BEFORE, WE'RE GETTING READY TO GO INTO OUR FALL PROCESS. WE'LL BE FOCUSING IN YEAR ONE WILL BE OUR 28 YEAR TWO WILL BE 29. AND WITH THAT, THAT IS EVERYTHING THAT I HAVE. THE NEXT SLIDE. SO THAT'S EVERYTHING THAT I HAVE. AND WE'RE, WE'RE LITERALLY BUILDING OUR FUTURE WITH OUR RESOURCES. SO THAT'S EVERYTHING I HAVE. IF YOU GUYS HAVE ANY QUESTIONS. THANK YOU. ALLISON. I'LL KICK OFF THE QUESTIONS. I THINK MAYBE IN YOUR PRESENTATION OR SOMETHING, YOU MIGHT HAVE INCLUDED THIS, BUT LIKE, IS IT CALLED VACANCY RATE? TURNOVER RATE? YOU KNOW, WHAT IS THAT? AND IS THAT USED AS A, YOU KNOW, WHEN YOU THINK OF LIKE PEOPLE FIRST PLACE TO WORK THAT YOU DO THAT USE THAT AS A METRIC. SO WHAT IS POSSIBLE AND HOW DOES THAT PLAY INTO IT? YEAH. WELL, FIRST OF ALL, THANK YOU FOR KNOWING OUR GOAL. THAT WAS GREAT. PEOPLE FIRST. YEAH. SO VACANCY RATE IS ONE OF OUR KPIS FOR OUR ORGANIZATION. WE HAVE ONE KPI HIGHEST LEVEL MEASUREMENT FOR STRATEGIC GOALS. SO FOR OUR THRIVING TEAM GOAL WE HAVE VACANCY RATE ALIVE. SO THROUGH THIS PROCESS YOU KNOW, BY INVOLVING OUR HUMAN RESOURCES DEPARTMENT, IT REALLY HELPS US REALLY MANAGE OUR VACANCIES THROUGHOUT THE YEAR BECAUSE THEY CAN PLAN OUT THEIR RECRUITMENT THROUGHOUT THE YEAR BASED ON THE NUMBER AND TYPE OF POSITIONS THAT ARE COMING IN EACH YEAR. SO THAT DIRECTLY IMPACTS OUR VACANCY RATE. AND THEN I CAN BRING UP, I DON'T WANT TO QUOTE IT WRONG, BUT I CAN BRING UP OUR, I KNOW WHAT IT IS. BECAUSE I WAS JUST LOOKING AT THE VICTIMS HERE. WE HAVE 103 VACANCIES. SEVERAL OF WHICH ARE OFFERS IN PROGRESS OR FILLED. SO, BUT ARE ARE ON THE VACANCY RATE IS A LITTLE BIT LESS THAN SEVEN AND A HALF. SO THAT'S, THAT'S REALLY EXCELLENT. WE'VE DONE A LOT OF WORK IN THE LAST FIVE YEARS TO REALLY DRIVE DOWN VACANCY RATE, PARTICULARLY COMING OUT OF THE PANDEMIC AND THE VARIOUS YOU KNOW, JUST THE REALLY CHALLENGING TIMES THAT WE WENT THROUGH. WE'RE AT ABOUT 14% NOW DOWN ABOUT 7.5%. IT'S REALLY GREAT. SO I'LL SAY TO OUR TARGET IS 9%. SO THE FACT THAT WE'RE 2% UNDER. TARGET IS GOING DOWN. LIKE OTHER WATER UTILITIES AND YEAH. [01:00:07] UTILITIES. RIGHT. YEAH. LEARNING THAT WAY. BUT THEN ALSO CITYWIDE FOR ALL CITY OF AUSTIN APARTMENTS AS WELL. AND THEN YEAH, WE HAVE SLOWLY ADJUSTED OUR TARGET EVERY YEAR, LIKE COMING OUT OF COVID, RIGHT? WE WERE AT A PRETTY HIGH VACANCY RATE. SO EVERY YEAR WE'RE LOOKING AT TARGET NOW BECAUSE WE'RE PERFORMING SO WELL, WE NEED TO, YOU KNOW, MAKE IT MORE ASPIRATIONAL. SO IT PREVIOUSLY WAS A HIGHER NUMBER. AND SO WE DO EVALUATE THAT AS WELL, ESPECIALLY FOR OUR QUARTERLY PERFORMANCE. THANK YOU. COMMISSIONERS. OTHER QUESTIONS. CAN YOU HAVE ONE QUESTION. HOW FLEXIBLE IS THE PROCESS. FOR EXAMPLE, IF THERE'S A NEED THAT'S IDENTIFIED IN A YEAR, NOT DURING THAT PERIOD WHERE YOU'RE ASKING STAFF TO PROVIDE THEIR. YEAH. THAT IS ONE CHALLENGE OF THE OF THE PROCESS WHERE WE GET ALL OF OUR NEW FTE AT THE BEGINNING OF THE FISCAL YEAR. AND IT'S CHALLENGING. A COUPLE OF INTERESTING WAYS. ONE IS THAT WE'RE WE HAVE A LOT OF RECRUITING TO DO RIGHT AWAY BECAUSE THOSE POSITIONS IMMEDIATELY BEGIN AGING. AND THAT IS ONE OF OUR METRICS IS THE AGE OF THE VACANCY. AND ALSO AS YOU, AS YOU KNOW, COMMISSIONER, THE, WE MAY HAVE URGENT NEEDS COME UP OVER THE COURSE OF THE YEAR. AND SO WE, WE CAN ADDRESS THOSE IN A COUPLE OF DIFFERENT WAYS. ONE IS WE CAN LOOK AT THE VACANCIES THAT WE HAVE. IF WE HAVE SOME FLEXIBILITY TO MOVE, WE WITHIN OUR DEPARTMENT CAN MOVE POSITIONS, WE CAN MOVE VACANCIES IF WE NEED TO. WE CAN ALSO RECLASSIFY THEM INTO DIFFERENT TITLES IN ORDER TO, TO MEET THAT IMMEDIATE NEED IN, IN COLLABORATION WITH HUMAN RESOURCES DEPARTMENT. AND LIKE, FOR EXAMPLE WHEN PROJECT CONNECT WAS JUST GETTING STARTED. WE SAW THAT COMING. WE KNEW WE NEEDED TO GET READY FOR IT. WE ACTUALLY HIRED TEMPORARY EMPLOYEES IN THE MIDDLE OF THE YEAR, AND THEN WE IMPLEMENTED NEW FULL TIME EMPLOYEES AT THE BEGINNING OF THE NEXT FISCAL YEAR AND THEN COMPETE IN THOSE POSITIONS. AND SO THOSE ARE SOME OF THE STRATEGIES THAT WE USED TO ADJUST OVER THE COURSE OF THE YEAR. THANK YOU. ANY OTHER QUESTIONS, COMMISSIONERS. OKAY. THANK YOU VERY MUCH. ALLISON. THANK YOU ALL. SO NOW WE'LL MOVE TO THE STAFF BRIEFING ON THE PROPOSED FISCAL YEAR 2020 627 OPERATING [7. Staff briefing on Austin Water’s Proposed Fiscal Year 2026-2027 Operating Budget, Capital Budget, new appropriations, rates, and fees, and 5-Year Capital Improvement (CIP) spending plan - Joseph Gonzales, Deputy Director, Business Services] BUDGET, CAPITAL BUDGET, NEW APPROPRIATIONS RATES AND FEES, AND FIVE YEAR CAPITAL IMPROVEMENT SPENDING PLAN. YEAH. GOOD AFTERNOON COMMISSIONERS. I AM TINA ROMERO AND I'M THE ACTING ASSISTANT DIRECTOR FOR FINANCE. AND TODAY I HAVE WITH ME DEPUTY DIRECTOR JOSEPH GONZALEZ, DIVISION MANAGER AND DIVISION MANAGER. AND FIRST OFF, I WOULD LIKE TO PROVIDE OUR SPECIAL THANKS TO THE BUDGET COMMITTEE CHAIR AND VICE CHAIR, MAXWELL GAINES, COMMISSIONER AND COMMISSIONER. FOR JUST PARTICIPATING, REVIEWING OUR FORECAST AND BUDGET THOROUGHLY ASKING GREAT QUESTIONS AND PARTICIPATING OVER FIVE MEETINGS THAT TODAY BEING OUR LAST FISCAL YEAR. AND TODAY WE PRESENT TO YOU THE PROPOSED BUDGET FOR FISCAL YEAR 2027. NEXT SLIDE. SO THE AGENDA TODAY IS GOING TO COVER OUR PROPOSED BUDGET OVERVIEW, OUR SOURCES AND USES OF FUNDS, OUR CAPITAL IMPROVEMENT PROGRAM DEBT MANAGEMENT MINIMIZING BILL IMPACTS IN OUR ONGOING BUDGET CONSIDERATIONS. NEXT SLIDE. NEXT SLIDE. OKAY. SO THIS BUDGET OVERVIEW HIGHLIGHTS AUSTIN WATERS PROPOSED 2027 BUDGET PRIORITIES. OUR SERVICE RELIABILITY, LONG TERM INFRASTRUCTURE IMPROVEMENTS, FINANCIAL STABILITY AND AFFORDABILITY. AUSTIN WATER OPERATES AS AN ENTERPRISE FUND OF THE CITY, [01:05:03] WHICH MEANS AUSTIN WATER DOES NOT RECEIVE TAX DOLLARS AND IS FUNDED SOLELY THROUGH OUR SERVICE RATES AND FACILITY FEES. IN 2024, WE HAD A COST OF SERVICE STUDY, WHICH WE DID IN DESIGNING RATES FOR EQUITABLE COST RECOVERY BY OUR CUSTOMERS. ADDITIONALLY, THESE RATES ARE SELF-SUSTAINING. WE HAD A PUBLIC INVOLVEMENT COMMITTEE, WHICH WAS MADE UP OF ALL DIFFERENT CLASSES OF OUR CUSTOMERS. WE HAD A RESIDENTIAL RATE ADVOCATE, A RESIDENTIAL MEMBER, COMMERCIAL MEMBERS, LARGE VOLUME MEMBERS AND MULTI-FAMILY MEMBERS ON THAT COMMITTEE. WE HAD EXTENSIVE COMMUNITY ENGAGEMENT. WE HELD OPEN HOUSES, ONE IN EACH COUNCIL DISTRICT AS WELL AS HAVING ONE VIRTUAL OPEN HOUSE. WE ALSO HAD FOCUS GROUPS AS WELL, AND WE HAD ONLINE SURVEYS ON SPEED UP AUSTIN AND PROVIDED ALL OF OUR INFORMATION THERE. AUSTIN WATER AND COMMUNITY PRIORITIES. WE CAME OUT OF THAT COST OF SERVICE STUDY WITH A PHASED RATE INCREASES FROM 25 TO 30. AND SO THOSE PROPOSED RETAIL RATE INCREASES FOR 27 ARE PART OF THAT PHASED IN APPROACH, THAT AGREEMENT FROM OUR COST OF SERVICE WITH MAKING SURE THAT WE ARE KEEPING UP WITH OUR INCREASING OPERATING AND CAPITAL RELATED COSTS, INCLUDING INVESTMENTS IN RENEWING AGING INFRASTRUCTURE, AS WELL AS OUR GENERATIONAL PROJECT OF WALNUT CREEK WASTEWATER TREATMENT PLANT. AS WE PREPARE FOR THE FUTURE, AUSTIN WATER'S PROPOSED OPERATING BUDGET FOR FISCAL YEAR 27 ALSO INCLUDES NECESSARY INCREASES TO COVER ALL THE COSTS OF PROVIDING SERVICE. AND SO THE RATE IMPACTS FOR 27 IS THE PROPOSED AVERAGE MONTHLY RESIDENTIAL BILL INCREASE OF $7.76 PER MONTH. CUSTOMER ASSISTANCE PROGRAM IS JUST AS MENTIONED EARLIER, IS GETTING A 49% DISCOUNT OFF THE AVERAGE NON BILL. AND SO THE CUSTOMER BILL IS EXPECTED TO INCREASE $6.96 PER MONTH. NEXT SLIDE PLEASE. SO THIS SLIDE REPRESENTS OUR FUND SUMMARY. AND SO AS YOU CAN SEE ON THE SLIDE WE HAVE WE'RE SHOWING YOU THE 26 AMENDED BUDGET THE 26 ESTIMATED BUDGET OF WHERE WE THINK WE'RE GOING TO END UP, AS WELL AS OUR 27 PROPOSED BUDGET. WE HAD A HEALTHY BEGINNING BALANCE AND ENDING BALANCE ESTIMATED FOR FY 26, LEADING US INTO FY 27 AGAIN WITH A HEALTHY AND STRONG BALANCE. AND ALTHOUGH THE PROPOSED RETAIL RATE INCREASES, THEY ARE ANTICIPATED TO GENERATE AROUND 51.3 MILLION IN ADDITIONAL SERVICE REVENUE IN 27 PROPOSED 27 BUDGET STILL RESULTS IN A $16.8 MILLION BUDGET DEFICIT. AND THIS IS DUE TO OUR PHASED IN RATE INCREASE APPROACH AS CUSTOMER ALSO DRAWS SOME OF OUR FUND BALANCE DOWN TO HELP BALANCE THE AFFORDABILITY. NEXT SLIDE PLEASE. NOW I'LL TURN IT OVER TO JOHN. THANK YOU. I'LL WALK THROUGH THE SECTION FOR YOU TO MAKE SENSE. SO FIRST OF ALL, TOTAL FY 27 PROPOSED SERVICE REVENUE IS AT $816.1 MILLION. THAT IS 54.3 MILLION INCREASE COMPARED TO FISCAL YEAR 26. THE WATER SERVICE REVENUE IS INCREASING 23.2 MILLION AND WASTEWATER IS INCREASING 29.1 MILLION. THIS SERVICE REVENUE INCREASES IS RELATED TO THE RATE INCREASE THAT BASED ON THE CUSTOMER SERVICE RESULTS, AS WELL AS CUSTOMER COUNT INCREASE AND CUSTOMER COUNT AND THE CONSUMPTION. NOW, RECLAIMED WATER SERVICE REVENUE STAYED THE SAME AND THE MISCELLANEOUS REVENUE INCREASED MAINLY DUE TO INTEREST RATE, WHICH IS CONNECTED OR CONNECTED TO THE HIGHER INTEREST RATE. NEXT SLIDE PLEASE. SO TOTAL WATER SEVEN PROPOSED DEPARTMENT REQUIREMENT IS 99.8 MILLION. THIS COMPARED TO THE CURRENT FISCAL YEAR INCREASE OF $35.9 MILLION AND THE ANOTHER INCREASE IN PROGRAM REQUIREMENTS ARE MOSTLY DUE TO NEW FTE COSTS AS WELL AS THE [01:10:03] PROPOSED CITY WIDE. INCREASE IS MOSTLY DUE TO THE PLANNED CITY WIDE MARKET. AND THEN WE HAVE A STRING OF DISAPPOINTMENTS, BUT WE HAVE $11.8 MILLION INCREASE IN BOTH SERVICES COST AND TRANSFER. WE DO HAVE SOME A FEW MORE SLIDES FOLLOWING THAT WILL EXPLAIN MORE A LITTLE MORE DETAIL ON THE VARIANCES. SO NEXT SLIDE PLEASE. THIS SLIDE LISTED OUT OUR SIGNIFICANT INCREASES AND CHANGES IN OUR REQUIREMENTS. SO THE FIRST SECTION IS THE CITY WIDE WAGES AND BENEFITS AS WELL AS THE NEW EMPLOYEE COST. SO WE HAVE A $4.3 MILLION INCREASE IN CITY WIDE PROPOSED FY 2027 WHICH ADJUSTMENT COST. AND WE HAVE A $2.4 MILLION. AGAIN IT'S A CITY PLAN ADJUSTMENT. AND THEN WE HAVE $1.2 MILLION FOR EMPLOYEE HEALTH INSURANCE COSTS. AND THEN ULTIMATELY, WE'RE PROPOSING, AS I MENTIONED EARLIER, 44 FOR 2027. AND THIS HAS AN ASSOCIATED COST OF. I JUST ADD ON THE COST ASSOCIATED WITH THE NEW FTE THAT. 19 AS ALISON MENTIONED EARLIER. 19 A NEW FTA, WITH THE REMAINDER BEING EITHER CONVERSIONS OF EXISTING TEMPORARY CONTRACT POSITIONS AS WELL AS NEW EFFORTS TO REDUCE OVERTIME. AND SO FOR THE 1980S, THE ADDITIONAL COST ROUGHLY ABOUT 2.5 MILLION. SO THIS IS THE GROSS UP NUMBER. IT DOESN'T INCLUDE ANY SAVINGS OR REDUCTIONS IN TEMPORARY EMPLOYEES OR REDUCTIONS IN OVERTIME. THE OVERTIME REDUCTION WILL TAKE A LITTLE WHILE TO TAKE INTO EFFECT. WE HAVE TO HIRE AND TRAIN UP PEOPLE. BUT THAT'S BECAUSE. WE DO HAVE A $26 MILLION DECREASE IN. COST AND THIS IS MOSTLY DUE TO THE DECREASE IN THE. AND THEN ON THE COMMODITY SIDE ALSO HAVE THE WORK CREW TO HELP ADDRESS THE WORKLOAD AND BACKLOGS FOR OUR CURRENT ACTIVITIES. SO WE ARE PROPOSING A $2.4 MILLION INCREASE IN COST FOR 27. AND THEN DURING THIS FISCAL YEAR'S BUDGET DEVELOPMENT CYCLE, AGENCY DEPARTMENT WENT THROUGH A ENHANCEMENT AS WELL AS A PRIVATIZATION REVIEW. AND DURING THIS PROCESS, WE'VE IDENTIFIED AREAS THAT WE CAN REDUCE COST THROUGH BOTH THE HISTORICAL ANALYSIS AND UTILIZATION REVIEW. SO NEXT REVIEW NUMBERS THAT YOU SEE ARE WHAT WE HAVE IDENTIFIED THROUGH THE REVIEW PROCESS. $1.1 MILLION INCREASE FOR WATER CONSERVATION AND THE CAMPAIGN COST $1.3 MILLION. DECREASE FOR WATER CONSERVATION. COMMERCIAL INCENTIVE, $2.1 MILLION INCREASE FOR CONSULTANT AND CONTRACTS AND OTHER SERVICES, AND THEN $7.4 MILLION DECREASE FOR UTILITY ONE. AND THEN WE ALSO HAVE SOME INCREASES IN BOTH THEIR SERVICES REQUIREMENT AND THE CFP. FUNDING. SO IT'S. 11 INCREASE IN THEIR SERVICES AND THE CFP. SO THIS SLIDE PROVIDES AN OVERVIEW OF ALL OF THE TRANSFER OUT THAT WE PROVIDE TO THE CITY DEPARTMENT TO. CENTRAL CITY. [01:15:08] NOW THE FIRST ONE IS GENERAL FUND TRANSFER, WHICH IS RELATED TO THE FUND TRANSFER USING PAST TWO HISTORICAL YEARS. AS WELL AS THE CURRENT YEAR. SO WE TOOK THE AVERAGE AND APPLIED 8.2% TO COME UP WITH. SO AS A REVENUE INCREASE, THE AMOUNT OF INCREASE. SO WE ARE SEEING A $3.34 MILLION, INCREASE THE TOTAL INCREASE FOR 2017. AND THEN I DON'T WANT TO GO THROUGH ONE BY ONE. SO I'M GOING TO HIGHLIGHT A FEW OF THESE. CITY OF COURSE IS GOING THROUGH A CENTRALIZING PROCESS. THEY ARE STILL VERY BEGINNING OF THEIR PROCESS FOR THE TECHNOLOGY SERVICES FOR CITY. AND SO THEY HAVE A NEW ALLOCATION METHODOLOGY FOR THIS CAR RELATED COSTS. AND WHEN WE RECEIVED THE ALLOCATION UNFORTUNATELY, WE HAVEN'T RECEIVED MUCH DETAIL BEHIND IT, BUT WE DID RECEIVE AN INCREASE OF $2.95 MILLION. AND THEN THERE IS A DECREASE I DO WANT TO BRING UP IS THE DECREASE IN CAPITAL DELIVERY SERVICES TRANSFER. SO THIS YEAR IS MUCH MORE INVOLVED IN REVIEWING EVEN EVEN DEVELOPING THE VALIDATION METHODS FOR DIFFERENT DIFFERENT TRANSPARENCY. AND THEN THIS IS ONE OF THE TRANSFERS THAT THEY SPEND TIME REVIEWING AND THE REDESIGN. SO ONE OF THE THINGS THEY DECIDE TO DO IS THEY SAW THIS AS HAVING AN IMBALANCE. SO THEY DECIDED TO THROW UP AN IMBALANCE FOR 2627. SO THAT RESULTED IN ACTUALLY A DECREASED TRANSFER PROPOSED AMOUNT PLUS ONE. SO IT'S A DECREASE OF 1.2 MILLION. AND THAT IS THE CITY TYPEKIT OFFICE OF EXCELLENCE AND WHO WE WORK WITH IS OUR CENTRAL BUDGET DEPARTMENT. NEXT SLIDE PLEASE. SO THIS SLIDE IS ACTUALLY VERY SIMILAR TO THE ONE THAT ALLISON SHOWED EARLIER. SO THIS SHOWS A TOTAL PROPOSED THAT WE HAVE IN THE WORK FOR 27. WE GROUPED THEM INTO THE STRATEGIC GOALS THEY ALIGN OR SUPPORT. SO YOU CAN SEE THAT DRIVING TEAM SERVICE EXCELLENCE PROACTIVE INFRASTRUCTURE AND COMMUNITY LEVEL. SO ALL OF EACH OF THESE HAS A STAFFING THAT IS PROPOSED STAFFING THAT'S SUPPORTING THEM. AND THEN LIKE I MENTIONED EARLIER. WE ALSO CAN CATEGORIZE THEM INTO EITHER THEY ARE A LITTLE OVER TIME REDUCTION RELATED. ESSENTIALLY, WE'RE GOING TO SEE THAT OVER TIME RELATED TO THESE OPERATIONAL WORKFLOW. AND THEN WE ALSO HAVE TEMP AND CONTRACT RELATED CONVERSION FEES. AND THEN WE ALSO HAVE THE NEW NEW ENTITY. SO WE ALSO HAVE THAT ESSENTIALLY ADDITIONAL FEES. SO ALL OF THESE WILL COME UP WITH. THAT IN MY SECTION. THANK YOU. SO I'D LIKE TO TALK BRIEFLY ABOUT THE CAPITAL IMPROVEMENT PLAN BECAUSE WE ALREADY HAVE A VERY INTENSIVE PRESENTATION. SO THIS SLIDE JUST EMPHASIZES WHAT WE PRESENTED EARLIER. SO WE HAVE A REALLY GROWING CAPITAL PLAN WITH SEVERAL LARGE PROJECTS, ESPECIALLY THE WALNUT CREEK WASTEWATER TREATMENT PLANT EXPANSION PROJECT. [01:20:02] SO WITH THIS FIVE YEAR CURRENT BUDGET, CURRENT FISCAL YEAR OF 2.7 BILLION, WE'LL HAVE BUDGETED FOR THE NEXT FIVE YEARS. 20 1721 CAPITAL PLAN IS 3.2 BILLION. SO AUSTIN WATER FUNDS CAPITAL PLAN FUNDING, THE ISSUANCE OF COMMERCIAL PAPER AND THE LOANS FROM TEXAS WATER DEVELOPMENT BOARD, AND ALSO ANTICIPATE A LOAN FROM THE EPA FOR ALMOST $1 BILLION. THAT'S SET TO CLOSE IN OCTOBER. AND WE ALSO WANT TO HIGHLIGHT THE CAPITAL PLAN FUND, WHICH WITH MAJOR PROJECTS LIKE WASTEWATER TREATMENT, PLANT EXPANSION, RECLAIMED WATER SYSTEM IMPROVEMENTS WILL SEND WASTEWATER INTERCEPTOR OR WATER. DISINFECTION IN SOUTHWEST PARKWAY, ELEVATED STORAGE. SO FOR THIS, WE ANTICIPATE A PEAK IN THIS COMMUNITY. AND I ALSO LIKE TO PRESENT THE DEBT MANAGEMENT PLAN. NEXT SLIDE PLEASE. SO THE UTILITY CONTINUES TO USE CAPITAL RECOVERY CREATES REVENUE FOR TECHNICAL REASONS WITH BUDGET AT 30,000,000 IN 2010. THE GAP MANAGEMENT EFFORTS REPRESENT BOTH HISTORICAL DATA AND FUTURE PROJECTIONS REGARDING THE DEBT SERVICE REQUIREMENTS. IT SHOWCASES THE REMARKABLE NET PRESENT VALUE SAVINGS OF 740 MILLION, WHICH SERVES AS A STATEMENT TO THE EFFECTIVENESS OF OUR DEBT MANAGEMENT STRATEGIES. SO EACH ADDITIONAL DOLLAR DEBT REQUIRES A DEBT SERVICE REQUIREMENTS OF $1.75 FROM OUR CUSTOMERS. AS YOU CAN SEE, THE BLUE BARS REPRESENT THE CURRENT DEBT SERVICE REQUIREMENTS. THE GREEN BAR REPRESENTS THE DEBT SERVICE SAVINGS, AND THE BLUE LINE REPRESENTS THE AVERAGE SAVINGS. SO IN FISCAL YEAR 26, WE SAY 8.21 ON AN AVERAGE DEBT TRANSACTIONS AND BUDGETED TO SAVE ABOUT $4 PER MONTH FOR FISCAL YEAR 26. AND I'LL ADD TO THAT AS WE SEE THE DEBT SERVICING OUR DEBT SERVICE SAVINGS ON AUSTIN WATER REVENUE BONDS. SO AUSTIN WATER IS FUNDED SOLELY BY REVENUE BASED ON OUR SERVICE THAT WE PROVIDE. AND SO WE ARE NOT FUNDED BY TAXPAYER DOLLARS, WHICH MEANS WE DO NOT ISSUE GENERAL OBLIGATION BONDS THAT YOU OFTEN HEAR ABOUT IN THE NEWS THAT THE CITY'S GENERAL FUND USUALLY ISSUE. SO WHAT WE DO IS WE USE OUR COMMERCIAL PAPER PROGRAM, WHICH OPERATES A LINE OF CREDIT, AND WE USE THAT TO REIMBURSE THE EXPENSES IN EACH OF OUR PROJECTS ON A MONTHLY BASIS. AND THEN WHEN WE GET TO A LIMIT CLOSE TO ABOUT $400 MILLION, WE'LL GO OUT TO MARKET FOR A REVENUE BOND TO TURN THAT SHORT TERM COMMERCIAL PAPER INTO A LONG TERM DEBT INSTRUMENT. AND SO WHAT THAT MEANS IS WE GENERALLY DON'T HAVE ANY UNSPENT BOND PROCEEDS AT ANY TIME. THE COMMERCIAL PAPER PROGRAM IS SHARED BETWEEN AUSTIN WATER AND AUSTIN AUSTIN ENERGY, AND IT FUNCTIONS DIFFERENTLY THAN A GENERAL TRANSPORTATION PROJECTS. GENERAL PROJECTS, WHICH YOU KNOW, WHERE BONDS ISSUED UP FRONT AND THEN PROCEEDS TO BE SPENT DOWN OVER TIME. WE, WE INCUR CAPITAL COSTS AS WE GO. WE FINANCE SHORT TERM SHORT TERM COMMERCIAL PAPER BORROWINGS. AND THEN WHEN WE GET CLOSE TO OUR COMMERCIAL PAPER LIMIT, WHICH IS CURRENTLY AROUND 400 MILLION, WE WILL REFINANCE THAT COMMERCIAL PAPER BALLOTS TO 30 YEAR DEBT. I, I. OH, SORRY. CAN I JUST ASK A CLARIFYING QUESTION ON THAT? OR SHOULD I WAIT TILL THE END? NO. GO AHEAD. THANKS, JOSEPH. NO, IT'S JUST ON THE BONDS. IF AUSTIN WATER DOESN'T TEND TO FINANCE THAT WAY, OR AT LEAST WITH TAXPAYER DOLLARS, I KNOW RIGHT NOW AT COUNCIL LEVEL. AND HONESTLY, THE COUNCIL MEMBER WHO APPOINTED ME IN GENERAL IS LOOKING AT KIND OF UNSPENT BOND FUNDS FROM THE PAST DECADE. [01:25:02] BUT SO BUT SINCE AUSTIN WATER WOULDN'T BE IMPLICATED IN THOSE, THEN THERE'S NOT LIKE FUNDS THAT COULD POTENTIALLY BE REDIRECTED FROM THAT SOURCE. IS THAT CORRECT? OR COULD YOU HELP ME UNDERSTAND THAT A BIT? WE GENERALLY DON'T USE ANY GEO DEBT GENERAL OBLIGATION THAT ALTHOUGH WE HAVE AT TIMES HISTORICALLY, FOR EXAMPLE, FOR WATER QUALITY PROTECTION PLANS. BUT IT'S BEEN A WHILE SINCE, SINCE WE'VE HAD ANY GENERAL OBLIGATION DEBT ISSUE. AND I'M NOT AWARE OF ANY TRUSTEES THAT ARE RELATED TO WATER QUALITY PROTECTION LANDS OR ANY OTHER WATER PROGRAM. PERFECT. THANK YOU. NEXT SLIDE. AND THIS SLIDE SHOWS METRICS. THE RATIO OF WATER IS IS WAY ABOVE POLICY THRESHOLD INDICATING A HEALTHY FINANCIAL POSITION. FOR FISCAL YEAR 27 THE DEBT SERVICE COVERAGE IS EXPECTED TO EXCEED THE POLICY THRESHOLD OF 1.85 ENSURING OUR ABILITY TO STEADILY INCREASE DEBT OBLIGATIONS. CASH ON HAND TO SHOWCASE CASH EXCEEDING OUR FINANCIAL POLICY OF 180 DAYS AND OUR INTERNAL TARGET OF 225 DAYS. AND AUSTIN WATER HAS A VERY ROBUST CAPITAL PLAN THAT INCLUDES SEVERAL MAJOR PROJECTS IN DEVELOPMENT. WE ANTICIPATE STEADY FINANCING FOR PAYGO IN THE FORECAST PERIOD, EMPHASIZING CUSTOMER AFFORDABILITY. AUSTIN WATER HAS ALSO ALIGNED CASH FINANCING POLICY FOR FISCAL YEAR 27 WITH 2024 COST OF SERVICE. COMMUNITY FEEDBACK TO FUND THE LAST GENERATION OF PROJECTS AT 25% BY 20%, AND ALL OTHER PROJECTS AT 35 TO 50%. ALTHOUGH OUR 27 PROPOSED BUDGET IS BELOW THE DESIRED TARGET OF 29.9% AND STILL REPRESENT A SUBSTANTIAL AMOUNT OF CASH FUNDING TOTAL 151 MILLION. AND THIS IS ONE OF THE WAYS THAT WE REALLY TRY AND TARGET AFFORDABILITY IN TERMS OF HOW WE PAY FOR OUR CAPITAL PROJECTS. RIGHT. SO IT'S A CASH FINANCING IS MUCH LIKE, YOU KNOW, THE DOWN PAYMENT ON A NEW CAR OR, OR ON A HOME MORTGAGE PAYMENT. BUT THE LOWER YOUR, YOUR LOAN PAYMENTS. SO FINANCING WORKS THE SAME WAY FOR US. OUR PREVIOUS FINANCE FINANCIAL POLICY FOR CASH FINANCING WAS TO TARGET BETWEEN 35 AND 50%. BUT ONE OF THE THINGS THAT WE TALKED TO THE COMMUNITY AND CUSTOMER REPRESENTATIVES THROUGH OUR SERVICE STUDY YOU KNOW, WE TALK TO THEM ABOUT THE IMPACT THAT 35% MINIMUM THRESHOLD HAS ON AFFORDABILITY. PARTICULARLY WHEN YOU HAVE LARGE PROJECTS LIKE THE WALNUT CREEK PROJECT. SO MAINTAINING THAT 35% LEVEL FOR LARGE PROJECTS AND THE IMPACT OF HAVING TODAY'S CUSTOMERS PAY FOR MORE THAN A THIRD OF THOSE REALLY LARGE PROJECTS, EVEN THOUGH THE PROJECT WILL SERVE CUSTOMERS FOR THE NEXT 50 YEARS. SO THAT'S ONE OF THE REASONS THAT WE ARRIVED AT A LOWER THRESHOLD FOR THOSE LARGE GENERATIONAL PROJECTS. AND THE 29.9% REPRESENTS THE BLENDED RATE BASED ON THAT FORMULA. BUT AGAIN, WE'RE PHASING IN RATE INCREASES TO, TO REACH UP TO PEAK LEVEL OF CAPITAL SPENDING OVER THE NEXT FEW YEARS. AND WE'RE SLOWLY RAMPING THAT UP. AND SO 23.2% ESTIMATED AMOUNT FOR NEXT YEAR REPRESENTS THE WAY IN WHICH WE YOU HAVEN'T GONE ALL THE WAY UP TO 29 JUST TO NOT SHIFT THAT BURDEN TO HONOR CUSTOMERS SO QUICKLY. SO AUSTIN WATER IMPACTS FEES, ALSO KNOWN AS CAPITAL RECOVERY FEES OR CHARGES ON NEW DEVELOPMENT ON WATER, WASTEWATER AND WATER SYSTEM INFRASTRUCTURE UPDATED VIA CDI FOLLOWING STATE LAW MANDATES EVERY FIVE YEARS CAPITAL RECOVERY FEES TO PAY FOR ITSELF. SO CAPITAL RECOVERY REVENUE IS DECLINING DUE TO DEVELOPMENT RECENTLY. [01:30:05] NET REVENUE FOR FISCAL YEAR 25 WAS 29.5 MILLION. AND AS OF JUNE OF 26, IT WAS ONLY 17 MILLION. CAPITAL RECOVERY FEE REVENUE REVENUES TO BE USED FOR DEBT, WHICH HAS GROWN BY 16, REDUCE DEBT SERVICE REQUIREMENTS AND ALLOW FOR AUSTIN WATER TO BE ABLE TO BRING ON NEW DEBT AND BALANCE AFFORDABILITY SO THAT TODAY'S CUSTOMER SUBMISSIONS. I WANT TO COME BACK TO, WELL, JUST JUST REAL QUICK. THIS REPRESENTS AN AREA WHERE WE DO HAVE SOME RISK. YOU MENTIONED EARLIER THAT WE ARE IN THE BUDGET PLANNING FOR $30 MILLION DEBT NEXT YEAR, BUT WITH TWO MONTHS TO GO IN THE CURRENT YEAR THROUGH JUNE 50 MILLION OF CAPITAL WILL CONTINUE TO COME IN BELOW ROUGHLY 30 MILLION LAST FEW YEARS. IT DOES REPRESENT SOME RISK IN TERMS OF ABILITY TO CONTINUE TO DEFEAT DEATH AROUND $30 MILLION. NOW, WE DO HAVE SOME BALANCES THAT WE CAN USE FOR NEXT YEAR IF WE COME IN A LITTLE BIT LIGHTER THIS YEAR, BUT WE MAY HAVE TO ADJUST OUR STRATEGY NEXT YEAR IF THINGS CONTINUE TO COME IN A LITTLE BIT SLOWER THAN WE'VE SEEN OVER THE LAST FEW YEARS. THANK YOU JUSTIN. SO NOW I'M GOING TO GO OVER MINIMIZING IMPACTS. NEXT SLIDE PLEASE. SO OUR AVERAGE RESIDENTIAL BILL IMPACT AS MENTIONED AUSTIN WATER'S PROPOSED RATE INCREASE. IT CONTINUES TO IMPLEMENT A PHASED APPROACH FOR RETAIL CUSTOMERS OVER THE COMING FISCAL YEARS TO ALIGN SERVICE RATES WITH OUR INCREASING CAPITAL RELATED EXPENSES AND OPERATING COSTS NECESSARY TO MAINTAIN SERVICE LEVELS AND DIVERSIFY OUR WATER SUPPLY. SO AS YOU CAN SEE, THE AVERAGE BILL IS PROPOSED TO BE FROM CURRENTLY FROM $99.91 TO $107.67, WHICH IS AN INCREASE OF $7.76 FOR THE AVERAGE RESIDENTIAL BILL. AND THIS IS BASED ON 5800 GALLONS OF WATER AND 4000 GALLONS OF WASTEWATER. ADDITIONALLY, THESE PROPOSED RATES, THE COST PER GALLON OF WATER IS LESS THAN $0.01 AND WASTEWATER IS SLIGHTLY MORE AT A LITTLE OVER $0.01. NEXT SLIDE PLEASE. SO THIS IS OUR CUSTOMER ASSISTANCE PROGRAM OVERVIEW. AS MENTIONED PREVIOUSLY, OUR FY 27 DISCOUNT FOR THE CUSTOMER IS 49% AND THE AVERAGE BILL WOULD INCREASE TO $6. BUY $0.96. FROM 26. ADDITIONALLY, WE HAVE OVER 26,000 RESIDENTIAL PARTICIPANTS, BY FAR THE MOST. WE HAVE. ADDITIONALLY, WE DO HAVE A MULTIFAMILY CAP PROGRAM AS WELL, AND THAT REACHES OVER 39,000 CUSTOMERS. SO A COMBINED CUSTOMER ACCOUNTS OVER 65,000 CUSTOMERS THAT WE ARE HELPING WITH THEIR BILLS. THOSE ARE OUR MOST VULNERABLE CUSTOMERS WHO ARE RECEIVING THESE DISCOUNTS. I WOULD JUST ADD, THIS IS ONE OF THE WAYS WHERE THE CITY HAD A MUNICIPALLY OWNED ELECTRIC UTILITY HELPS US REACH CUSTOMERS WHO WOULDN'T OTHERWISE BE ABLE TO REACH. SO BECAUSE OUR MULTIFAMILY CUSTOMERS ARE ALL SERVED THROUGH MASTER METERS, THEY DON'T HAVE INDIVIDUAL ACCOUNTS WITH US. SO WHEREAS A RESIDENTIAL CUSTOMER, WE CAN GIVE THEM THIS BILL, WE DON'T HAVE THAT SAME ABILITY BECAUSE WE DON'T HAVE A RELATIONSHIP WITH MULTI-FAMILY CUSTOMERS, BUT BECAUSE WE HAVE THIS HISTORY WITH ENERGY. AUSTIN ENERGY PROVIDES A MONTHLY DISCOUNT TO OUR SHARED CUSTOMER. OUR SHARED CUSTOMERS DIRECTLY ON THE ELECTRIC PORTION OF THE BILL SO THEY DON'T GET A BILL WALKER. THANK YOU. NEXT SLIDE PLEASE. CAN I JUMP IN HERE? SORRY. THIS IS. THIS IS WHERE? YES. CAN WE GO BACK TO THE CAP? SO DO WE KNOW HOW MUCH THE CAP? WELL, A COUPLE OF QUESTIONS. DO WE KNOW HOW MUCH THE CAP CUSTOMERS RATE? IT WILL INCREASE $7. AND IS THERE ANY KIND OF ASSESSMENT OF EQUITY OR FAIRNESS THAT THEIR RATES GO UP BY 696. AND THE NON CAP GO UP BY 776. [01:35:03] EVEN RECOGNIZING JUST THE SUPPORT THAT THEY GET. LIKE, HOW WAS THAT NUMBER DETERMINED? AND CAN WE SAY THAT IT'S THAT THAT REPRESENTS SOME KIND OF EQUITABLE OR FAIR BURDEN IN ALIGNMENT WITH SOME DEFINED AFFORDABILITY? RIGHT. I'M JUST LOOKING FOR KIND OF DEFINITIONS AND SYSTEMS SYSTEMIC APPROACHES. ABSOLUTELY. YOU KNOW, THE BURDEN OBVIOUSLY FOR CUSTOMERS IS ALMOST THE ADDITIONAL INCREASE IS ALMOST AS LARGE FOR CUSTOMERS AS IT IS FOR CUSTOMERS. AND, AND REALLY WE, WE WENT UP HIGHER ON CAP THIS YEAR THAN WE HAVE HISTORICALLY PRIMARILY BECAUSE THE FUNDS THAT WE USE TO PROVIDE THAT DISCOUNT, EVERY RETAIL, EVERY NON CAP RETAIL CUSTOMER PAYS $0.30 PER THOUSAND GALLONS OF WATER AND WASTEWATER SERVICE INTO OUR COMMUNITY BENEFIT FUND TO PROVIDE THOSE BENEFITS. WE'VE SEEN SIGNIFICANT GROWTH IN THE NUMBER OF CUSTOMERS, BOTH RESIDENTIAL AND MULTIFAMILY PERSPECTIVE AND THEN PUTTING A BIGGER BURDEN ON THE COMMUNITY. REVENUES THAT WE'RE RECEIVING. SO THE FY 27 COMMUNITY BENEFIT CHARGE FUND REVENUES FOR CAP BENEFITS ARE GOING TO BE ROUGHLY 22, 22 MILLION. WE'RE ESTIMATING BENEFITS PROVIDED WILL BE MORE THAN 25MG. SO THERE'S ABOUT $3 MILLION DELTA. WE'RE GOING TO USE EXISTING FUND BALANCE TO MAINTAIN THE 50%, ROUGHLY 50% DISCOUNT THAT WE'VE HAD OVER TIME. I WOULD SAY YOU KNOW, 50% DISCOUNT IS, IS THE LARGEST DISCOUNT PROGRAM IN THE COUNTRY. NOW WHAT WE DO INTEND TO DO IS CONTINUE TO MONITOR THE ENROLLMENT. AND IF WE CONTINUE TO SEE CAPITAL EXPENSE AND BENEFITS EXCEEDING REVENUES, THEN WE'RE GOING TO HAVE TO SCREW THAT UP. BUT WE WE WANT TO HAVE A LITTLE BIT MORE TIME TO EVALUATE THE BECAUSE THERE IS A LOT OF FLUCTUATION IN THE ROOM. AND SOMETIMES IT PULLS BACK SOME BUT THIS TIME NEXT YEAR IF WE'RE STILL IN A DEFICIT SITUATION FROM YOU KNOW, OUR REVENUES AND THE DISCOUNTS AT THESE LEVELS, THEN WE'LL HAVE TO MAKE A DECISION AS TO WHETHER OR NOT WE REDUCE THE DISCOUNT, OR WE ASK OUR RETAIL CUSTOMERS TO PAY A LITTLE BIT MORE, MORE REVENUES TO, TO GET BACK TO 50%. THANK YOU. AND I THINK WHAT KIND OF LOOKING MEDIUM AND LONG TERM, WE KNOW THE INEQUITY IS GROWING, WHICH MEANS THAT WE WILL PROBABLY GET. AND OUR NUMBERS ARE ALREADY SHOWING, IF I'M UNDERSTANDING CORRECTLY, THAT MORE AND MORE PEOPLE ARE SUBSCRIBING TO CAP. AND SO IT FEELS LIKE THE STRESS IS REALLY NOT GOING TO GO AWAY ANYTIME SOON. AND WE'RE HITTING THESE DECISIONS THAT YOU'RE OUTLINING. YEAH. AND I JUST AND IT'S, AGAIN, IT'S NOT FOR TODAY, LIKE, LET'S GET THE BUDGET APPROVED. RIGHT? BUT I REALLY, I THINK THIS IS THE, THE HEART OF IT. HOW ARE WE GOING TO KEEP FINANCING IT? CAN WE KEEP FINANCING IT? HOW DO WE DETERMINE WHAT'S FAIR IN SOME KIND OF CONSISTENT WAY? AND IT'S BEYOND WHAT I KNOW. IT'S WHAT, YOU KNOW, KIND OF WHY I'M ASKING YOU ALL, BUT I, I CAN'T HELP BUT WANT KIND A MORE CONSISTENT UNDERSTANDING OR APPROACH, THOUGH I APPRECIATE THAT YOU'VE. I MEAN, I VERY MUCH UNDERSTAND THE STRAIN, YOU KNOW, ON ON THE SYSTEM OF CAP AND HOW WE'RE GOING TO FINANCE IT. BUT AGAIN, THE STRAIN IS GOING TO ONLY GET MORE TENSE AS INCOME INEQUALITY WIDENS IN OUR CITY, WHICH IS THE WAY IT'S GOING. RIGHT. AND THIS WAS ANOTHER BIG TOPIC OF DISCUSSION DURING OUR 2024 CROSSOVER STUDY. YOU KNOW, WE TALKED A LOT ABOUT HOW WE FINANCE THE CUSTOMER ASSISTANCE PROGRAM. AND, AND SO FOR FISCAL YEAR 25, WE ACTUALLY DOUBLED THE CAP RATE, THE RATE FROM $0.15 PER THOUSAND GALLONS TO $0.30 PER THOUSAND, WHICH IS WHY WE WANT TO TAKE A LITTLE BIT MORE OF A WAIT AND SEE APPROACH TO, TO SEE HOW HOW ENROLLMENT STABILIZES SO THAT WE CAN MAKE A MORE INFORMED DECISION ABOUT [01:40:01] WHAT'S THE RIGHT LEVEL OF DISCOUNT AND HOW MUCH MORE COULD OR SHOULD WE DO IN TERMS OF THE COMMUNITY BENEFIT CHARGE OR EVERYBODY ELSE? AND ARE WE TRACKING AS PRICES GO DOWN, THERE IS GOING TO THERE MIGHT BE AN INEVITABLE PEOPLE FALL OFF EVEN WITH DISCOUNTS. THEY CAN'T PAY THEIR WATER BILLS. AND DO THEY GET CUT OFF? LIKE, HOW ARE WE TRACKING THEM LIKE THAT IMPACT OR WHAT ACTUALLY HAPPENS? LIKE, DO WE JUST DO WE CUT SERVICE? SO WITH THAT QUESTION AUSTIN ENERGY WORKS THROUGH OUR CUSTOMER CARE BILLING SYSTEM THERE, OVERSEE THAT THEY MANAGE OUR CUSTOMER ASSISTANCE PROGRAM AS WELL AND OTHERS FOR THE CITY. AND THEY WILL ATTEMPT TO WORK WITH THE CUSTOMER IN SO MANY DIFFERENT WAYS. WE ALSO HAVE A PROGRAM IN WHICH WE WILL HELP THOSE WHO HAVE FALLEN BEHIND ON THEIR BILLS. WE HAVE A PLUS ONE PROGRAM THAT HELPS THOSE WHO GO OUT. WE PARTNER WITH OVER 50 SOCIAL SERVICE AGENCIES IN WHICH WE WILL. THEY WILL MAKE SURE THAT THE APPLICANTS QUALIFY. IF THEY QUALIFY FOR THE PROGRAM, THEY'LL GET UP TO A $1,500 ASSISTANCE IN ONE YEAR TO HELP THEM CATCH UP ON THEIR UTILITY BILL. SO THERE'S DIFFERENT WAYS WE ATTEMPT TO WORK WITH CUSTOMERS SO THAT THEY DON'T SEE COMING. THANK YOU. AND I WOULD STILL COME BACK AND SAY, IS THERE DATA ABOUT CUSTOMERS WHO GET CUT? LIKE, EVEN WITH ALL OF THAT AND I APPRECIATE, I REALLY DO. I ACTUALLY JUST DON'T KNOW. AND I THINK THAT'S, THAT'S THE PROOF OF THE PUDDING, RIGHT? FOR THE THOSE WHO CAN'T PAY AND THEN TRACKING THAT LIKE THE WORST OUTCOME, RIGHT? A FAMILY GETS CUT FROM SERVICE AND THEY'RE LIVING WITHOUT WATER. I MEAN, DOES IT HAPPEN? WE DO CUT SERVICE AND I DON'T HAVE THAT DATA. WE DON'T HAVE THAT DATA TODAY, BUT WE CAN WE CAN CERTAINLY PULL DATA RELATED TO THE FREQUENCY OF CUSTOMERS SERVICE BEING CUT OFF VERSUS VERSUS NON CUSTOMERS. I WOULD EXPECT THAT IF OUR CUSTOMER FREQUENCY IS HIGHER, BUT WE DON'T. WE WOULD BE HAPPY TO DIG INTO THAT MORE WITH YOU. COMMISSIONER. AND I JUST WANT TO REITERATE JUST HOW HOW HARD WE WORK WITH AUSTIN ENERGY AND WITH OUR CUSTOMERS TO AVOID CUTTING ANYONE OFF. AND THERE ARE TIMES OF YEAR WHEN AUSTIN PEOPLE DO DISCONNECTS. SO THERE'S, THERE IS A LOT OF EFFORT THAT GOES INTO THAT. AND I DON'T, I ALSO DON'T HAVE THE DATA AT MY FINGERTIPS, BUT WE'D BE HAPPY TO TALK ABOUT THAT. YEP. AND, AND JUST JUMPING. OH. EXCUSE ME. GO AHEAD. WELL, I JUST WANTED TO ALONG THOSE LINES TO ALSO SAY THAT THIS IS A MULTI CITY DEPARTMENT COORDINATED EFFORT AND, AND THAT'S HOW IT SHOULD BE. SO THE KINDS OF DECISIONS THAT WE'RE MAKING HERE ON OUR RATES AND HOW WE HANDLE THESE PROGRAMS CAN AND SHOULD BE DONE IN CONJUNCTION WITH WITH OTHER CITY DEPARTMENTS, INCLUDING AUSTIN ENERGY, BUT ALSO THE CITY MANAGER'S OFFICE AND OUR ELECTED OFFICIALS TO, TO TO REALLY BE THOUGHTFUL ABOUT MEETING BASIC NEEDS OF OUR, OF OUR MOST VULNERABLE CUSTOMERS. YEP. AND I WAS JUST GOING TO SUGGEST WHENEVER WE GET TO THE, ANY OTHER BUSINESS IS LIKE, MAYBE WE CAN FIND A TIME TO LIKE, DIG IN AND UNDERSTAND MORE AND, AND LOOK AT THESE NUMBERS THAT WAY WE DON'T KEEP DERAILING TODAY. BECAUSE I AGAIN, APPRECIATE WE WANT TO GET A BUDGET IN FRONT OF COUNCIL WITH THE RECOMMENDATION. BUT I THINK, YOU KNOW, JUST TO CLOSE THE POINT, THE NUMBER OF PEOPLE WE LOSE OR WHO I MEAN, THE THAT'S TO ME THE ULTIMATE AFFORDABILITY METRIC, LIKE WHO CAN'T AFFORD IT LITERALLY. AND SO WORKING FROM THERE, EVEN IN ADDITION TO ALL THE GREAT WORK WE'RE DOING TO MINIMIZE AND I APPRECIATE AND HEAR ALL OF IT, I REALLY DO. AND I THINK LET'S LOOK AT JUST THE DATA. THE DATA IS SUPER HELPFUL TO TELL THE STORY OF AFFORDABILITY. I THINK WITH THE METRIC OF, AGAIN, WHO'S WHO CAN'T EVEN WITH ALL THE SUPPORT. SO BUT AGAIN, I, I THINK TO NOT KEEP COMING BACK TO THIS, WE CAN MAYBE I'LL ASK IF WE CAN HAVE LIKE A SPECIAL SESSION OR MEETING WHERE WE AS A COMMISSION MAYBE CAN DIG IN TO ALL OF THIS. IF THAT'S OKAY. BUT THANK YOU SO FAR FOR ALL THE RESPONSES TO MY INQUIRIES. THANK YOU. I ACTUALLY HAD A QUICK QUESTION, WHICH WAS ABOUT THE [01:45:02] $0.30 PER THOUSAND GALLONS. IS THERE ANYTHING PREVENTING AUSTIN WATER FROM BUYING THE AMOUNT TO USAGE, LIKE FOR SO MANY GALLONS BEYOND THE AVERAGE HOUSEHOLD SIZE OR SOMETHING LIKE THAT? I THINK I MIGHT JUST IMMEDIATELY. IS THERE ANY WAY TO CHARLIE'S POINT, FINDING A WAY TO MAKE SURE THAT WE'RE. WE'RE BEING AS EQUITABLE AS WE CAN SO THAT. YEAH, THAT'S THAT'S $0.30 PER THOUSAND GALLONS APPLIED ACROSS ALL NON RETAIL CUSTOMERS. SO, YOU KNOW. LARGER RESIDENTS, CUSTOMERS WHO WHO GET UP INTO TIER FIVE OF OUR RATE STRUCTURE, WHICH IS OVER 20,000, AND THEY PAY $0.30 FOR ALL 20,000 GALLONS. BUT IT'S ALSO FOR COMMERCIAL MULTIFAMILY. AND, AND SO OUR LARGE INDUSTRIAL CUSTOMERS PAY $0.30 PER THOUSAND GALLONS. SO, YOU KNOW, SAMSUNG CONTRIBUTES, FOR EXAMPLE 30,000 GALLONS. SO IN, IN THAT WAY, OUR LARGEST USERS CONTRIBUTE MORE TO PROVIDING ASSISTANCE FOR OUR MOST VULNERABLE CUSTOMERS THAN, THAN A HOUSEHOLD USES 3000 GALLONS A MONTH. BUT AGAIN, WITH WATER RATES, VOLUNTEER BASIS. I MEAN, THERE'S, YOU KNOW, AGAIN, BACK TO COMMISSIONERS POINT ABOUT IN THE FUTURE THIS GAP. THERE COULD BE A PROPOSAL FOR A TIERED. QUALITY ON THE 31ST, YOU KNOW, AS IT GOES UP, YOU KNOW, NOT DRAMATIC, BUT YOU COULD CONCEIVABLY HAVE SOMETHING LIKE THAT. RICH, THANK YOU FOR SAYING THAT. THAT WAS KIND OF WHAT I WAS WONDERING. I REALLY APPRECIATE THIS CONVERSATION. AND THIS IS ONE OF THE REASONS THAT WE DO A COST OF SERVICE STUDY EVERY 5 TO 7 YEARS. AND SO WE THAT'S THE TIME DURING WHICH WE UNPACK ALL OF THIS AND REALLY EXAMINE IT AND DO A LOT OF OUTREACH TO OUR COMMUNITY. THE PUBLIC INVOLVEMENT COMMITTEE, WHERE WE HAVE REPRESENTATIVES FROM EVERY AREA OF OUR CUSTOMER BASE, AND WE SPECIFICALLY HAVE A RESIDENTIAL RATE ADVOCATE. REALLY GIVES US THE OPPORTUNITY TO UNDERSTAND WHAT THE BOTH INTENDED AND UNINTENDED CONSEQUENCES OF CHANGES MIGHT BE. AND THEN WE SPEND THE NEXT 5 OR 6 YEARS ESSENTIALLY PHASING THOSE CHANGES IN. AND SO RIGHT NOW, WE'RE IN THE MIDDLE OF PHASING IN THE CHANGES THAT WE MADE IN FISCAL YEAR 2425. AND, AND AS WE DO THAT, THESE CONVERSATIONS ARE HELPING US SEE OUT WHAT WILL GO INTO THAT ROBUST PROCESS. NEXT SLIDE PLEASE. NEXT SLIDE. SO THIS IS ONGOING BUDGET CONSIDERATIONS. SO JUST TO WRAP UP OUR PRESENTATION JUST INDICATING AGAIN WE HAVE A GROWING CAPITAL IMPROVEMENT PLAN. SEVERAL LARGE STRATEGIC PROJECTS THAT ARE ON THE HORIZON. CONSTRUCTION COSTS CONTINUE TO RISE. OUR DEBT MANAGEMENT EFFORTS WILL CONTINUE AS WE WILL CONTINUE LOOKING AT WAYS TO FUND CAPITAL PROJECTS AS WELL AS DEBT DEFEASANCE TRANSACTIONS. WE HAVE THE CAPITAL RECOVERY FEE, AS JOSEPH MENTIONED, THAT WE CONTINUE TO MONITOR AND THEN OUR WATER RESOURCES MANAGEMENT. SO THE LAKES ARE FULL. THAT'S SUPER EXCITING FOR ALL OF US. BUT THAT MEANS PLANNING STILL NEEDS TO CONTINUE. AND SO WE WILL CONTINUE TO MONITOR LAKE LEVELS AS WE ALWAYS DO, AND THE INFLOWS. WE CONTINUE OUR INVESTMENT INTO OUR RECLAIMED STRATEGIES AS WELL AS WAYS TO REDUCE DEMAND. AND OUR RATE DESIGN WILL CONTINUE WITH CONSERVATION FOCUS AS WELL AS WATER SUPPLY STRATEGIES THAT WILL CONTINUE THAT ARE ALSO INCLUDED IN OUR FIVE YEAR CAPITAL PLAN. NEXT SLIDE PLEASE. AND YOU'VE SEEN OUR MOTTO SEVERAL TIMES ALREADY THROUGHOUT THE DAY. AND SO I'LL LEAVE YOU WITH THIS. WE CONTINUE TO WORK ON BUILDING A FUTURE TOGETHER. AND THANK YOU SO MUCH FOR ALLOWING US TO PRESENT TO YOU TONIGHT. THANK YOU. THANK YOU. AWESOME TEAM. A LOT OF WORK PUTTING THIS TOGETHER. SO WE APPRECIATE THAT AND APPRECIATE WALKING US THROUGH ALL OF THIS. [01:50:03] AND SO COMMISSIONERS, ARE THERE ANY QUESTIONS BEFORE WE MOVE ON. COMMISSIONER. THANK YOU FOR THAT PRESENTATION. I THINK YOU GUYS ARE GETTING AHEAD OF THIS, BUT I THINK THE CAPITAL RECOVERY FEE REVENUE, THAT'S SOMETHING THAT THERE'S A CAUSE AND EFFECT, RIGHT? YOU KNOW IT'S INTERESTING TO SEE A DECREASE WITH THERE HAS BEEN LESS DEVELOPMENT, BUT THERE'S STILL DEVELOPMENT GOING ON. SO I GUESS MY QUESTION IS, HAVE YOU GUYS. I'M SURE YOU HAVE, BUT WHAT PERCENTAGE OF THIS OR DO YOU HAVE A NUMBER ON IMPACT FEES THAT ARE WAIVED? YES, WE DO HAVE THE NUMBER THAT WE PRODUCE A SEMIANNUAL IMPACT FEE REPORT, AND WE CAN DEFINITELY PROVIDE THAT. WE PRESENT TO THE IMPACT FEE COMMITTEE. WE DO HAVE A STANDING COMMITTEE THAT WE HAVE TO REPORT TO. AND SO THAT INCLUDES THE AMOUNT OF WAIVERS THAT WE PROVIDE AND HOW THEY ALIGN WITH DIFFERENT LOCAL GOVERNMENT CODES AS WELL. IT'S, IT'S ALSO INCLUDED IN OUR FINANCIAL STATUS, OUR QUARTERLY FINANCIAL STATUS REPORT THAT WE SEND OUT TO COMMISSIONERS. SO TOWARDS THE END, BUT IF THERE'S A CHART THAT SHOWS IMPACT THE REVENUES AS WELL AS WAGES. YES. YOU'RE CORRECT. THERE'S OUR REPORT. AND JOSEPH IS CORRECT. THAT IS, I BELIEVE, ON THE VERY LAST TWO PAGES OF THAT REPORT. I BELIEVE THIS IS AT THE END. RIGHT. AND I GUESS ANOTHER QUESTION IS YOU KNOW, POLICIES HAVE CHANGED SO MUCH, RIGHT. ARE THERE CERTAIN YOU KNOW, CERTAINLY DON'T WANT TO TRY TO RECAPTURE ADDITIONAL IMPACT FEES WHEN THEY'VE BEEN WAIVED. BUT IS THERE A CONSIDERATION IN CHANGING POLICIES OF SAYING CERTAIN DEVELOPMENTS THAT HAVE THIS IMPACT, YOU SAY WAIVED IS THEIR ABILITY TO KIND OF CAPTURE SOMETHING. THE PRIMARY REASON THE MOST PREDOMINANT REASON THAT A WAY FOR AFFORDABLE HOUSING PROJECTS. THE CITY AREA. WE HAVE HAD SITUATIONS WHERE DEVELOPER SAYS THEY'RE GOING TO BUILD X AMOUNT OF AFFORDABLE HOUSING. AND IF ON FOLLOW UP THEY DID NOT BUILD, WE DON'T HAVE THE ABILITY TO RECAPTURE. THAT'S PRECISELY WHAT WE'RE TRYING TO DO IS, YOU KNOW, THERE'S AND I'M IN DEVELOPMENT, I LOVE, I LOVE IT SO, BUT, YOU KNOW, THERE'S BEEN A LOT OF PROMISES, BUT FOR WHATEVER REASONS, IT JUST DOESN'T COME TO FRUITION. AND THEY HAVE THESE WAYS. SO IT'D BE INTERESTING TO SEE WHICH DEVELOPMENTS THEY DIDN'T COME THROUGH WITH THAT. AND YOU KNOW, HOW THAT FEE WAS ASSESSED OR RECOVERED. I'M NOT AWARE OF ANY RECENTLY. I KNOW 2017, 2018. WE HAD A SIGNIFICANT REVIEW IMPACT FEE OR WAIVERS THAT WERE PROVIDED AND FOUND THAT THERE WERE SIGNIFICANT NUMBER OF DEVELOPMENTS THAT DID NOT REACH THE ANTICIPATED LEVEL. AND WE HAD SIGNIFICANT AMOUNT OF RECAPTURE. I'M NOT AWARE OF ANY BIG ONES SINCE THEN, BUT I THINK WE DO HAVE SOME PERIODICALLY, AND I'M SORRY, I'M ASSUMING THAT IT HAPPENS LIKE EVERY THREE YEARS OR WHAT IS THAT SCHEDULE LOOK LIKE? YES. SO NOW WITH THE NEW STATE LAW PASSED BY OUR LAST LEGISLATIVE SESSION, WE WILL BE UNDERGOING AN AUDIT IN WHICH RIGHT NOW WE'RE WORKING TO DO A SCOPE OF WORK IN ORDER TO GO OUT AND SOLICIT FOR AN AUDITOR TO DO OUR NEXT IMPACT FEE, DO OUR FIRST IMPACT FEE AUDIT ON OUR NEXT IMPACT FEE STUDY, WHICH IS NOW STARTING TO KICK OFF THE PLANNING. AND SO WE ANTICIPATE OUR STUDY TO BE COMPLETED IN FISCAL YEAR 2829. AWESOME. AND THEN LAST QUESTION I THINK IT WAS A GREAT JOB TO LOOK AT BUDGETS AND IT LOOKS LIKE YOU GUYS HAVE PROBABLY A $12 MILLION DECREASE ON CONTRACTUAL COMMODITIES. AS THAT DECREASE THEN ALLOCATED TO OTHER STRESS POINTS. I THINK YOU GUYS TOUCHED ON STREET REPAIRS GAME, [01:55:04] A HIGH STRESS POINT. IS THAT BEING ALLOCATED ELSEWHERE OR ARE YOU GUYS UTILIZING THAT DECREASE TO THE ADVANTAGE OF THE BENEFIT OF BOSTON GENTLEMEN? THAT'S, THAT'S THE GOAL. AND THAT'S HOW WE COMMUNICATE WITH, WITH OUR PROGRAM. YOU KNOW WHEN WE FIRST STARTED TALKING ABOUT, YOU KNOW, WHAT THE UTILIZATION, LOOKING AT PARTICULARLY WHEN PEOPLE ARE ASKING FOR SOMETHING NEW AND WE SAY, WELL, WE'RE NOT FULLY UTILIZING YOUR CURRENT BUDGET. YOU KNOW THE CONVERSATION WE HAVE IS REALLY, YOU KNOW, ABOUT YOU KNOW, IF ONE AREA ISN'T FULLY UTILIZING THEIR BUDGET, IT IMPACTS OUR ABILITY TO IMPLEMENT ANOTHER PROCESS SOMEWHERE ELSE OR, OR, YOU KNOW, ANOTHER INITIATIVE. AND, AND I THINK IN THAT WAY, THE, THE UTILITY IS REALLY UNDERSTANDABLE, CAN UNDERSTAND WHAT WE'RE TRYING TO DO. AND IS SUPPORTIVE OF IT. BECAUSE AT THE END OF THE DAY, IT COULD BE THEIR INITIATIVE THAT WE'RE ABLE TO FUND WHEN, WHEN WE'RE, WHEN WE'RE MAKING CUTS ELSEWHERE IN AREAS THAT AREN'T BEING FULLY UTILIZED. I WANT TO GIVE CREDIT TO JOSEPH AND HIS TEAM FOR HAVING GAINED THE TRUST OF THE ORGANIZATION THAT WE'RE TELLING DIVISION MANAGERS, YOU DON'T NEED TO HOLD ON TO THAT EXTRA MONEY IN YOUR BUDGET, AND IF YOU FREE THAT UP, THAT GIVES US THE ABILITY TO DO FOR OTHER DIVISIONS TO DO IMPORTANT WORK. AND IF YOU NEED IT AT THE END OF THE YEAR, IF YOU NEED IT, WE WILL FIGURE IT OUT. AND THEY HAVE CONSISTENTLY COME THROUGH THE HEALTH DIVISIONS WHO DID NEED THAT EXTRA MONEY. AND THAT HAS REALLY BUILT UP A LOT OF TRUST IN OUR ORGANIZATION WHERE, WHERE WE UNDERSTAND WE'RE GOING TO HOLD THE CONTINGENCY AT THE, AT THE ENTERPRISE LEVEL AT THE TOP OF THE ORGANIZATION SO THAT WE CAN REALLY MOVE THE FUNDS TO WHERE THEY DO THE MOST GOOD FOR THE ORGANIZATION, FOR OUR CUSTOMERS. AND SO I JUST HAVE TO BRAG A LITTLE BIT FOR HAVING REALLY DONE A GOOD JOB WITH THAT AND BROUGHT THE ORGANIZATION ALONG WITH US. THANK YOU. MORE QUESTIONS? COMMISSIONERS ON THE OTHER. OKAY. THANK YOU ALL SO MUCH. NOW WE WILL MOVE TO THE COMMITTEE UPDATES. AND JUST A LITTLE BIT OF AGENDA CLEANUP NUMBER TWO, NUMBER SEVEN. SO UNDER THE COMMITTEE UPDATES. AND NUMBER NINE FOR THE RECORD. SO NUMBER EIGHT ITEM NUMBER EIGHT UPDATE FROM THE SUSTAINABILITY COMMITTEE. [8. Update from the Joint Sustainability Committee July 22, 2026 meeting regarding conservation and sustainability initiatives. – Chair Chris Maxwell-Gaines] JULY 22ND MEETING. I WAS NOT ABLE TO ATTEND THE MEETING SO I DO NOT HAVE AN UPDATE FOR THEM. NOW WE'LL MOVE ON TO ITEM NUMBER NINE, WHICH IS THE UPDATE OF THE MEETING HELD BY [7. Update on meetings held by the Budget Committee regarding a review of Austin Water’s Fiscal Years 2027-2031 Financial Forecast and Capital Spending Plan and FY 2026-2027 Proposed Budget – Vice Chair Marcela Tuñón] THE BUDGET COMMITTEE REGARDING THE REVIEW OF FISCAL YEAR 27 TO 31, FINANCIAL FORECAST AND CAPITAL SPENDING PLAN, FISCAL YEAR 2627 PROPOSED BUDGET. AND I'LL TURN IT OVER TO VICE CHAIR TO UPDATE. THANK YOU CHAIR. I WON'T REGURGITATE, BUT AS AN OVERVIEW, WE DISCUSSED THIS TODAY AT LENGTH. STAFF PRESENTED THE BUDGET COMMITTEE OVER FIVE MEETINGS BETWEEN MAY AND JULY LAST MONTH. THIS AFTERNOON. THEY PRESENTED ON ALL THE TOPICS TODAY IN GREAT DETAIL. I WANT TO THANK THEM FOR BREAKING DOWN SUCH DETAILED AND CONVOLUTED METHODS AND DATA IN A CLEAR AND CONCISE WAY. THE PROFESSIONAL, KNOWLEDGEABLE AND. WE APPRECIATE ALL THE TIME AND EFFORT THAT THEY PUT INTO DEVELOPING A HOME FOR US AND FOR US TO UNDERSTAND. I ALSO WANT TO THANK THE COMMISSIONERS WHO SERVED ON THE COMMITTEE CHAIRMAN, JAMES COMMISSIONER WOLSTENCROFT, AND COMMISSIONER HENRY, THE GREAT GROUP OF VERY SPIRITED CONVERSATIONS, LOTS OF GOOD DISCUSSION. IT WAS A GREAT EXPERIENCE FOR ALL OF US. THANK YOU. I FORGOT OUR ARRANGEMENT. [02:00:03] THANK YOU FOR THAT UPDATE TO YOU. OKAY. SO NOW WE'LL MOVE TO THE DISCUSSION AND ACTION ITEMS. [2. Approve a recommendation to Council on Austin Water’s Fiscal Year 2026-2027 Proposed Operating Budget, Capital Budget, new appropriations, rates, and fees, and 5-Year Capital Improvement (CIP) spending plan.] SO ITEM NUMBER TWO IS TO APPROVE A RECOMMENDATION TO THE COUNCIL ON FISCAL YEAR 2020 627. OPERATING BUDGET, CAPITAL BUDGET, APPROPRIATIONS RATES AND FEES. THE FIVE YEAR CAPITAL IMPROVEMENT SPENDING PLANS WILL NOW TURN IT BACK TO YOU. THANK YOU. THANK YOU. SO WHAT I WILL READ NOW IS THE RECOMMENDATION LANGUAGE THAT THE BUDGET COMMITTEE PROPOSES FOR APPROVAL OF THIS GREAT COMMISSION. FOR THIS BUDGET RECOMMENDATION TO COUNCIL. SO I'LL LEAVE THAT NOW. AUSTIN WATER MAINTAINS A STABLE FINANCIAL OUTLOOK. THIS OUTLOOK IS SUPPORTED BY STRONG BOND RATINGS, INCLUDING RECENT UPGRADES TO AA ONE, AS WELL AS A FIVE YEAR FORECAST THAT COMPLIES WITH COUNCIL APPROVED FINANCIAL POLICIES. THE KEY EXCEPTION TO THESE POLICIES IS REDUCED CASH FINANCING FOR MAJOR PROJECTS SUCH AS THE WALNUT CREEK WASTEWATER TREATMENT PLANT EXPANSION PROJECT FINANCING ALLOWS FUTURE CUSTOMERS TO SHARE THE COST OF LARGE CAPITAL IMPROVEMENTS FROM WHICH THEY WILL BENEFIT. THE BUDGET COMMITTEE RECOMMENDS APPROVAL OF THE PROPOSED FISCAL YEAR 2027 CONSTANT WATER. IT'S IMPORTANT THAT RECOMMENDATION. THE COMMITTEE ENCOURAGES FUTURE BUDGET PROCESSES TO CONTINUE PRIORITIZING OUTREACH AND EDUCATION TO WATER CUSTOMERS. ABOUT WATER CONSERVATION BEFORE WATER BOSTON WATER DECREASES PROGRAM FUNDING FOR OUTREACH AND EDUCATION ABOUT CONSERVATION. OTHER COST REDUCTION STRATEGIES SHOULD BE EVALUATED. ALTHOUGH RECENT RAINFALL AND FLOODING HAVE IMPROVED WATER QUALITY AND WATER SUPPLY CONDITIONS, DEMAND SIDE STRATEGIES THAT CONSERVATION MUST REMAIN AN IMPORTANT COMPONENT OF BOSTON WATER'S APPROACH. ALONGSIDE WATER FORWARD SUPPLY SIDE EFFORTS SUCH AS INDIRECT PATHWAYS AND AQUIFER STORAGE AND RECOVERY. AS AUSTIN PREPARES FOR CONTINUED GROWTH, CLIMATE VARIABILITY AND FUTURE RECOMMENDATIONS. THANK YOU, VICE CHAIR. OKAY. SO BASICALLY NOW IT'S UP FOR DO WE HAVE A MOTION TO APPROVE OR ARE THERE ANY OTHER QUESTIONS OR COMMENTS ABOUT THE APPROVAL OF THE BUDGET? COUNCIL. ARE THERE ANY OTHER COMMENTS OR QUESTIONS? IF NOT, DO I HAVE A MOTION TO APPROVE A MOTION TO APPROVE COMMISSIONER. A MOTION TO APPROVE. SECOND. I'LL SECOND. THANK YOU COMMISSIONER. 10S EVERYONE VOTING IN FAVOR, PLEASE RAISE YOUR HAND. GREAT. THE RECOMMENDATION WAS VOTED UNANIMOUSLY. THANK YOU. COMMISSIONERS. SO SO NOW WE'LL MOVE ON TO ITEM NUMBER THREE. [3. Discussion and approval of the Water and Wastewater Commission’s 2025 Annual Internal Review and Report.] AND ACTUALLY WE WILL JUST REMOVE THIS ITEM. THE ANNUAL INTERNAL REVIEW REPORT REALLY DOESN'T NEED AN ACTION ITEM FROM THE OTHER CONDITIONS. SO WE'LL REMOVE THAT FROM THE AGENDA. AND THEN THE ACTION ITEM NUMBER FOUR IS APPROVED. [4. Approve the nomination of members of the Water and Wastewater Commission to the Joint Sustainability Committee for a primary and alternate.] THE NOMINATION OF MEMBERS WATER WASTEWATER COMMISSION TO THE JOINT SUSTAINABILITY COMMITTEE FOR A PRIMARY AND ALTERNATIVE, LIKE I MENTIONED IN THE PREVIOUS COMMISSION MEETING. I WAS GOING TO STEP DOWN AND SERVING ON THE JSC FOR THREE YEARS NOW. SO YEAH, SO WE WANT TO OPEN THIS UP TO ANYONE WHO WOULD LIKE TO. SELF NOMINATE THEMSELVES. AND AGAIN, THE JSC, THEY DO LIKE TO HAVE A, AN ALTERNATIVE. SO THERE'S AN OPPORTUNITY FOR THE PRIMARY. CAN'T MAKE IT THEN THE OPPORTUNITY FOR THE ALTERNATE TO MAKE THE MEETING. SO. I'D BE INTERESTED IN NOMINATING MYSELF TO SERVE AS THE PRIMARY. COMMISSIONER. YOU HAVE SOMEONE WHO WOULD LIKE TO NOMINATE AS A PRIMARY OR NOMINATE THEMSELVES. ALL. RIGHT. THANK YOU. OKAY. AND WE HAVE BOTH NOMINATIONS. I DON'T THINK WE HAVE TO. IT'D BE GOOD TO VOTE AND CHECK IF THERE ARE ANY OTHER NOMINATIONS. OKAY. ANY OTHER NOMINATIONS? [02:05:01] SEEING NONE, THEN DO I DO THIS? MOVE TO DO I HAVE A MOTION TO APPROVE THE PRIMARY AS COMMISSIONER ORTIZ AND ALL FOR IT COMMISSIONER TO THE JOINT SUSTAINABILITY I MOVE TO APPROVE. COMMISSIONER NAVARRO SECONDS. EVERYONE IN FAVOR OF THE NOMINATIONS, PLEASE RAISE YOUR HAND. OKAY. THANK YOU VERY MUCH. AND I THINK HEATHER, VICKI WILL FOLLOW UP WITH JUST KIND OF GET YOU LINED UP WITH THOSE SCHEDULES AND THANK YOU VERY MUCH. ALL RIGHT. SO I THINK WE'LL MOVE ON TO IF THERE'S ANY FUTURE AGENDA ITEMS. [FUTURE AGENDA ITEMS] I KNOW DURING THE DISCUSSION, THERE WAS SOME IDEAS OF FUTURE AGENDA ITEMS AND CITY STAFF WAS WRITING THIS DOWN FOR US TO PROVIDE THAT IN THE FUTURE. SO BUT ARE THERE ANY OTHER FUTURE AGENDA ITEMS? COMMISSIONERS. I HAVE ONE LEGISLATIVE SESSION IS APPROACHING. I'M JUST CURIOUS TO HEAR IF THERE ARE ANY PARTICULAR THINGS THAT THE CITY IS WATCHING OR. THAT THEY KNOW THEY'RE ACTIVELY ANTICIPATING. IF THEIR ANSWER IS YES. ANY OTHER I. I ALSO WANTED TO JUST ECHO COMMISSIONER REQUEST FOR A DISCUSSION ABOUT CUSTOMER DISCONNECTS. AND IF POSSIBLE, TO ALSO DISCUSS SORT OF THE DISCONNECTION PROCESS. I RECENTLY HAD SORT OF A NIGHTMARE SITUATION WHERE POWER WAS DISCONNECTED TO MY HOUSE, BUT IT WAS BECAUSE A NEIGHBOR WAS CONFUSED ABOUT HER ADDRESS AND OPENED A POWER, AN AUSTIN ENERGY ACCOUNT IN MY ADDRESS AND THEN SHUT OFF POWER TO MY ADDRESS. AND AT NO POINT IN TIME DID I RECEIVE NOTICE THAT THIS HAD HAPPENED. AND IT'S NOT SOMETHING THAT WOULD NORMALLY OCCUR TO ME TO HAVE HAPPENED. SO I'M WORRIED THAT THERE MIGHT NOT BE ENOUGH CHECKS AND BALANCES IN PLACE. OKAY. YEAH, THAT SOUNDS PRETTY SERIOUS. SO YEAH. ANY OTHER ITEMS? OKAY. WELL, SEEING NONE, I WANT TO THANK ALL THE COMMISSIONERS FOR BEARING WITH US. I WANT TO THANK THE STAFF FOR GETTING ALL THE TECHNICAL ISSUES IRONED OUT AND ALLOW US TO HAVE OUR COMMISSION MEETING TONIGHT. AND SO I WILL ADJOURN THE MEETING AT 756. THANK YOU VERY MUCH. THANK YOU EVERYONE. THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.