* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] ALL RIGHT. IT'S 9 30, 6 30. IT'S NINE 30 SOMEWHERE, BUT NOT HERE. IT IS SIX 30. UH, I'M GONNA CALL THE MEETING TO ORDER. I'M MAYOR MICHAEL WATSON, MAYOR OF THE TOWN OF CHEVROLET. IT IS 6:30 PM UH, ON THE 19TH OF MARCH. THIS IS A, UH, SPECIAL MEETING AND BUDGET, AND THE FIRST OF THE TOWN'S FY 27 BUDGET MEETINGS. UH, JOINING US ARE THE TOWN TREASURER, DIANE MOCK, THE TOWN ADMINISTRATOR, DELAINE GALLOWAY, UH, FROM THE PUBLIC WORKS DEPARTMENT. UH, I SEE MR. CARDENAS, UH, AND FROM THE POLICE DEPARTMENT. I SEE, UH, CHIEF MORRIS. UM, I WILL NOW CALL THE ROLE FOR THE COUNCIL MEMBERS IS THE COUNCIL MEMBER FROM WARD ONE ONLINE. ALL RIGHT. WE WILL WAIT TO COME BACK TO HIM. WARD TWO, JOHN, PRESENT. OKAY. SORRY, I DIDN'T HEAR YOU. UH, ALL RIGHT. THREE PRESENT, FOUR PRESENT. FIVE, SIX PRESENT. ALRIGHT, I SEE TWO ABSENCES CURRENTLY. THAT IS COUNCIL MEMBER WADE AND COUNCIL MEMBER GARCI. WE WILL WAIT TO SEE, UH, AND ANNOUNCE THEIR ARRIVAL WHEN IT HAPPENS. A QUORUM OF FIVE ELECTED OFFICIALS BEING PRESENT TO CONDUCT BUSINESS. WE ARE IN BUSINESS. ON THE FIRST ITEM IS THE PLEDGE OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. [2. Approval of Agenda] COUNSEL, THERE'S ONLY TWO, UH, SUBSTANTIVE ITEMS ON THE AGENDA TONIGHT. THE FIRST IS THE HILL LETTER BY WHICH THE TOWN WILL RESPOND TO PPS 20 23 0 3 9. UH, AND THEN THE SECOND ITEM ON THE AGENDA IS THE BUDGET REVIEW, WHICH MR. GALLOWAY AND MS. MOCK WILL LEAD US THROUGH. ARE THERE ANY CHANGES TO THE AGENDA THAT ANY COUNCIL MEMBER WOULD LIKE? SEEING NONE. IS THERE A MOTION TO APPROVE THE AGENDA AS PRINTED? MOTION TO APPROVE THE AGENDA? SECOND, IT'S BEEN MOTIONED BY VICE MAYOR BRINER AND SECONDED BY COUNCIL MEMBER TANZI. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? ANY ABSTENTIONS? THE MOTION PASSES. FIVE ZERO, UH, SORRY. FOUR ZERO. BARRY? I'M, I'M HERE. COUNCIL MEMBER WADE, I'M HERE. AH, OKAY. ARE YOU VOTING YES. ON THE AGENDA? YES. OKAY. THANK YOU, SIR. GOOD TO HAVE YOU. UH, MR. COUNCIL MEMBER WADE IS HERE. THAT IS A FIVE ZERO AFFIRMATIVE VOTE. THE AGENDA IS ADOPTED. WE ARE ON TO [3. PPS-2023-039 –Cheverly Hill*] ITEM THREE, WHICH IS THE LETTER, UH, THAT HAS BEEN SHARED WITH THE PUBLIC AND THE COUNCIL. IT IS THREE PAGES. IT IS THE TOWN'S OFFICIAL RESPONSE TO THE PRELIMINARY PLAN OF SUBDIVISION, UH, WHICH ITSELF HAD BEEN ACCEPTED BY PARK AND PLANNING, AND WAS SUBMITTED BY THE DEVELOPMENT TEAM FOR THE CH HILL DEVELOPMENT. UM, WE WILL BE SENDING THE THREE PAGE LETTER TO THE PRINCE GEORGE'S COUNTY PLANNING BOARD, UH, AND APPENDING TO IT, OR ATTACHING TO IT. THE, UH, COMMENTS PROVIDED TO THE CH TOWN COUNCIL BY THE CH PLANNING BOARD AND THE CH GREEN INFRASTRUCTURE COMMITTEE. UH, LET ME AGAIN SAY HOW GRATEFUL ALL OF THE ELECTED OFFICIALS ARE TO THE PLANNING BOARD AND THE GIC FOR THEIR, UH, COMMENTS. UM, A LOT OF THEM YOU WILL FIND INTEGRATED INTO THE LETTER AND YOU WILL FIND THEM, UH, VERBATIM ATTACHED TO THE LETTER. UH, COUNSEL, DO YOU HAVE ANY, UH, COMMENTS AT THIS TIME ON THE SUBMISSION OR THE PPS? SO, UH, IN THE PARAGRAPH STARTING FOURTH, IT SAYS, BUILDING SHOULD BE CONSTRUCTED TO THE HIGHEST GREEN STANDARDS. UM, WE HAD TALKED ABOUT THAT A LITTLE BIT WITH LEAD PLATINUM AND ALL THAT STUFF, AND I HAD THE SENSE THAT WE WERE GONNA MODERATE THAT LANGUAGE, SOME SINCE HIGHEST REQUIRES WHATEVER THE, THE TOP IS, BUT WHICH MIGHT BE IMPOSSIBLE FOR SOME OF OUR, FOR THE EXISTING STRUCTURES, UM, BUT ALSO MIGHT BE PROHIBITED. [00:05:01] SO I THINK GREEN STANDARDS IS IMPORTANT. I WORRY THAT JUST SAYING GREEN STANDARDS IS A LITTLE BIT OF A GIVEAWAY, BUT I'M NOT SURE WHAT, WHAT THE RIGHT WORD IS. UM, MAYBE IT COULD EVEN BE THAT THE TOWN WANTS TO, UH, CONTINUE TO WORK WITH THE DEVELOPER ON ESTABLISHING THE GREEN STANDARDS OR SOMETHING, SOMETHING ELSE THAT SHOWS THAT THAT IS A PRIORITY OF OURS WITHOUT IT BEING A CLEAR CONDITION. UNDERSTOOD. ANY OTHER COMMENTS FROM COUNSEL AT THIS TIME? HEARING NONE. ARE THERE ANY PUBLIC COMMENTS, UH, ON THE LETTER OR THE PPS? YOU WOULD HAVE TO RAISE YOUR HAND, I BELIEVE, AND YOU WOULD HAVE THREE MINUTES, UH, AT THE END OF PUBLIC INPUT. THEN WE WILL TAKE A MOTION FROM THE COUNCIL AND THEN, UH, MOVE BACK INTO DEBATE ON THAT MOTION. IS THERE ANY PUBLIC INPUT? OH, I SEE THAT MS. SLO HAS HER HAND RAISED. SO CAN WE MAKE HER, UH, SPEAKABLE MAYOR? MR. PARI ALSO HAD HIS HAND RAISED AND WAS ALREADY OH, VOTED. DID. I DON'T KNOW WHAT ORDER YOU WANNA TAKE THEM IN. OH. UH, LET'S GO WITH MR. PARI AND THEN WE'LL GET, UH, MS. SALLOW, UH, ELEVATED. MR. PARI, UM, YES, PLEASE PROVIDE YOUR NAME, UH, AND YOUR WARD, WHICH IS ONE. AND, UH, YOU HAVE THREE MINUTES. THANK YOU. UH, CHUCK POCA AWARD WON HOME TEAM FIVE AND THANKS TO THE MAYOR COUNCIL, UH, THE PLANNING BOARD AND, UH, GREEN INFRASTRUCTURE COMMITTEE FOR ALL, ALL YOUR HARD WORK. UM, I JUST WANTED TO POINT OUT VERY BRIEFLY THAT, UM, WRITTEN INTO OUR MASTER DEVELOPMENT AGREEMENT WITH THE COUNTY, UH, IS, UH, PROVISIONED FOR THE, UH, SELF-CERTIFIED, UM, EGCC OR LEAD GOLD STANDARD FOR OUR BUILDINGS. SO, UM, TH THAT, SO THAT IS THE LEAD PART IS ACTUALLY, YOU KNOW, IN OUR DNA AS WE SPEAK. SO I JUST WANNA MAKE SURE THE MAYOR AND COUNCIL WERE, WERE, WERE AWARE OF THAT. UM, THE, UH, EGCC IS THE ENTERPRISE GREEN COMMUNITIES CRITERIA. UM, AND WHAT WE WILL DO, WHAT WE WERE PLANNING ON DOING IS WE WILL HIRE A THIRD PARTY ENVIRONMENTAL CONSULTANTS TO, UM, OBSERVE THE ENTIRE BUILDING PROCESS AND TO MAKE SURE THAT THESE STANDARDS ARE MET AND THEY WILL REPORT DIRECTLY TO THE COUNTY. AH, INTERESTING. OKAY. I DID NOT KNOW THAT. SORRY, I DIDN'T WANNA INTERRUPT YOU. DID YOU HAVE MORE? THAT'S ALL. THANK YOU. APPRECIATE THE, THE APPRECIATE YOUR TIME AND EFFORT ON THIS. THANK YOU, UH, FOR THOSE COMMENTS AND FOR, AND, AND OUR THANKS TO THE DEVELOPMENT TEAM FOR, UH, CONTINUING TO WORK WITH THE TOWN. UM, OKAY, GREAT. MS. SLO, ARE YOU ABLE TO COME ON? MICROPHONE? THOUGHT I HAD UNMUTED ALREADY ONCE. UM, I DON'T, I JUST WANNA SAY THANK YOU TO EVERYBODY WHO'S BEEN WORKING SO HARD ON THIS. SO THAT'S IT, . THANK YOU. EXCELLENT. OKAY. IS THERE ANY OTHER PUBLIC INPUT ON THIS AGENDA ITEM? THE LETTER TO THE COUNTY PLANNING BOARD, UM, I WILL SAY, UM, I WILL JUST, UH, LET FOLKS KNOW THAT, UH, WE DO INTEND TO APPEAR IN PERSON AT THE PLANNING BOARD HEARING, UM, WHENEVER IT IS, WE ARE TRYING TO MONITOR THAT. UH, I SUSPECT IT WILL BE AT THIS POINT, UH, EITHER IN THE SECOND HALF OF APRIL OR THE FIRST HALF OF MAY, BUT WE'LL WATCH THAT DATE. AND, UH, I EXPECT THE TOWN WILL HAVE A FORMAL REPRESENTATIVE PRESENT, UM, AS MUCH AS POSSIBLE AT THE COUNTY PLANNING BOARD. HEARING. COUNSEL, I DON'T SEE ANY FURTHER PUBLIC INPUT. SO IS THERE A MOTION FROM THE COUNCIL MOTION TO APPROVE, UH, THE DRAFTED LETTER, UM, TO BE SUBMITTED, UH, AS FORMAL COMMENT FOR THE PPS SECOND. EXCELLENT, THANK YOU. IT'S BEEN, UH, MOTION BY VICE MAYOR BRINER AND SECONDED BY COUNCIL MEMBER TANZI. UH, COUNSEL. IS IT, DO YOU HAVE ANY DEBATE ON THE MOTION WHICH YOU COULD USE TO MAKE ANY OTHER POINTS THAT YOU WOULD LIKE TO MAKE ABOUT THE PPS OR THE LETTER? UH, THIS IS COUNCIL MEMBER WADE. UM, JUST WANT TO MAKE SURE THAT, AS I'VE SAID IT STATED, UM, THERE IS A GOOD PORTION OF RESIDENTS WHO HAVE CONCERNS REGARDING, UM, THE OPENING OF THE STREETS. SO I WANNA MAKE SURE [00:10:01] THAT WE ARE STILL COGNITIVE OF THAT AND, UH, NOT SAYING THAT WE ARE NOT, BUT, UH, JUST WANT TO MAKE SURE THAT AT THAT POINT IS, UM, IS LOUD AND CLEAR REGARDING, BASED ON THE COMMUNITY ENGAGEMENT, AS WELL AS THE INPUT OF THE RESIDENTS, AND PARTICULARLY THE RESIDENTS WARD ONE, THE YIELD BACK. YEAH. THANK YOU FOR THAT. UH, COUNSEL, ANY OTHER, UH, POINTS YOU WOULD LIKE TO MAKE DURING DEBATE ON THE MOTION VICE MAYOR? UM, YEAH, I AGREE WITH COUNCIL MEMBER WADE, THAT WE WANNA ACKNOWLEDGE THAT THERE IS CONCERN ABOUT THE TRAFFIC. AND I DO THINK THAT THE LETTER DOES A GOOD JOB OF MAKING IT CLEAR THAT WHAT WE WANNA BUILD IN HERE IS FLEXIBILITY IN ORDER TO MAKE THE BEST CHOICES FOR THE TOWN ONCE THE DEVELOPMENT IS OPEN AND THE ROADS ARE THERE. YEAH. THANK YOU FOR THAT. I, I, YOU KNOW, I I, I ACTUALLY STRUGGLE WITH THIS IDEA A LITTLE BIT MYSELF. I HAD A, NOT JUST SPECIFIC TO THE ROADS, BUT I'VE HAD RESIDENTS ASKING FOR SOME KIND OF VOTE, UM, ON, AND I, I'LL INTERPRET WHAT THEY'RE SAYING AS LIKE, ON THE TOWN'S PRINCIPLES OR STANCES OR STANDARDS OR EXPECTATIONS FOR THE DEVELOPMENT. UM, I THINK THIS LETTER GOES INTO A LOT OF THAT. I THINK THAT THIS LETTER COULD BE THE BASIS OF SOME KIND OF DOCUMENT IF WE WANTED TO GO, IF YOU ALL WANTED TO GO DOWN THAT ROAD. UM, I THINK MOST OF IT'S ALREADY HERE, RIGHT? BUT I DO THINK, I WANNA SAY FOR THE RECORD, I THINK THERE'S PROBABLY 10 OR 12 BIG ISSUES. UH, AND AT THE TOP OF THE LIST MIGHT BE THE, WE'RE THE ROADS, BUT IT'S NOT THE WHOLE LIST. AND WE'VE NEVER SAT DOWN. UM, YOU KNOW, AND, AND, UH, WE'VE NEVER SAT DOWN AND, AND, AND GONE OVER WHAT THOSE 12 ARE. AND, AND I'M SPIT BALLING HERE, BUT, BUT WHAT THOSE 12 ARE AND WHAT WE THINK ABOUT THEM, UM, SOME OF THEM ARE REALLY OBVIOUS AND WILL ALWAYS BE TRUE. LIKE, WE DON'T WANT A PA, WE DON'T WANT A PAWN SHOP ON THE HILL, RIGHT? I WAS THINKING ABOUT THIS TODAY ON THE METRO, LIKE, WE DON'T WANT A PAWN SHOP. THAT'S TRUE. NOW IT'S GONNA BE TRUE IN 2035, WHICH IS SOMEHOW ONLY FIVE YEARS AWAY. UH, DO WE WANT THE ROADS OPEN? I MEAN, WE HA WE MIGHT, WE MIGHT, YOU KNOW, WE MIGHT HAVE A STANCE NOW WE MIGHT HAVE A DIFFERENT ST LIKE A, THE COUNCIL THEN MIGHT HAVE A DIFFERENT STANCE, RIGHT? SO THERE'S GONNA BE THINGS THAT ARE IN THAT TOP TIER BUCKET THAT ARE NOT KNOWABLE IN 2026 FULLY. AND IF WE WERE TO TAKE A STANCE NOW, I THINK IT WOULD BE A SNAPSHOT. I FEEL COMFORTABLE TAKING A STANCE NOW ON PAWN SHOPS AS ONE EXTREME EXAMPLE. RIGHT? UM, A LOT OF OTHER THINGS WOULD BE, I THINK WE COULD TAKE A, YOU KNOW, IF IF IF YOU, IF WE WANNA DO THAT, WE CAN. IT'S JUST THAT A LOT OF THE OTHERS, I HAVE A LOT, I FEEL A LOT LESS CERTAIN ABOUT WHAT I WOULD WANNA BE DIALING THAT 20, 31, 20 32 MAYOR AND COUNCIL INTO. THAT'S MY, THAT'S, I KNOW THAT'S, UH, THAT'S, THAT'S MY, UH, PONTIFICATION ON THAT POINT. COUNSEL, DO YOU HAVE ANY OTHER DEBATE ON VICE MAYOR BRENNER'S MOTION? HEARING NONE? I'LL CALL FOR A VOTE. ALL THOSE IN FAVOR SAY AYE. YOUR AYE AYE. AYE. ALL THOSE OPPOSED? ANY ABSTENTIONS? ALL RIGHT. WE'RE GONNA PUT THIS DOWN AS A FIVE ZERO AFFIRMATIVE VOTE. UM, I WILL, UH, I WILL WORK WITH MS. RICHARDS TO GET THE LETTER AND THE TWO ATTACHMENTS SUBMITTED, UM, UH, IN A TIMELY MANNER. AND THEN I WILL BE IN TOUCH WITH THE COUNCIL ABOUT WHO IS AVAILABLE TO ATTEND THE PLANNING, THE COUNTY PLANNING BOARD HEARING WHEN IT IS, UH, SCHEDULED COUNSEL. MOVING [4. Budget Review] ON TO ITEM FOUR ON THE AGENDA, UH, THE BUDGET REVIEW. I'M GONNA HAND THIS OVER TO MR. GALLOWAY AND MS. MOCK TO LEAD US THROUGH. THANK YOU MAYOR. AND THANK YOU MAYOR AND COUNCIL. I AM HAVING SOME TECHNICAL DIFFICULTIES THIS EVENING, SO PLEASE BEAR WITH ME AS WE GO THROUGH. UM, UM, ALSO HAVE MS. JONES THAT WILL BE ASSISTING WITH SCREEN SHARING, SO JUST TO MAKE SURE THAT SHE CAN DO THAT AS WELL. OKAY. AGAIN, GOOD EVENING, MAYOR AND COUNCILMAN. WELCOME TO THE FIRST BUDGET MEETING FOR FISCAL YEAR 2027. UH, TONIGHT WE WILL BE FOCUSING ON REVENUE. [00:15:02] I'M EXCITED ABOUT THIS YEAR'S BUDGET. UH, THOUGH I RECOGNIZE WE WILL HAVE TO MAKE SOME TOUGH DECISIONS TOGETHER, UH, THE TOWN STAFF AND DEPARTMENT HEADS HAVE BEEN WORKING COLLABORATIVELY TO ENSURE OUR PRESENTATIONS ARE CLEAR, CONCISE, AND FOCUSED ON USING OUR RESOURCES AS EFFECTIVELY AND EFFICIENTLY AS POSSIBLE. ON BEHALF OF THE TAXPAYERS OF THE TOWN OF CHEVROLET, COUNCIL MEMBER GARCES IS HERE AT 6:45 PM MAYOR. UM, TO BEGIN, THANK YOU. I WILL PROVIDE AN OVERVIEW OF REVENUE, UH, THROUGHOUT A POWERPOINT PRESENTATION FOLLOWED BY AN EXCEL DOCUMENT. I DO NOT ANTICIPATE THIS BEING A LONG MEETING , UH, BUT PLEASE FEEL FREE TO ASK ANY QUESTIONS AFTER EACH SECTION OF THE POWERPOINT. UM, AND THE TOWN TREASURER, MS. DIANE MOCK AND MYSELF, UH, WILL BE GLADLY TO ANSWER ANY OF THE QUESTIONS. UM, BUT LOOKING AHEAD, WE ARE ALSO EXPLORING SOME CREATIVE APPROACHES ON THE EXPENDITURE SIDE, JUST GIVING YOU FOREWARNING, UM, TO BETTER FORECAST COSTS. ONE EXAMPLE IS A FLEET MANAGEMENT SYSTEM, WHICH CAN HELP IMPROVE EFFICIENCY AND REDUCING LONG-TERM EXPENSES. AT NEXT WEEK'S WORK SESSION, I PLAN ON HAVING A REPRESENTATIVE COME IN AND DO A BRIEF PRESENTATION TO THE MAYOR AND COUNCIL, JUST SO THAT YOU CAN HAVE A BETTER UNDERSTANDING OF WHAT, UH, WILL BE PROVIDED TO YOU ALL AT A FUTURE DATE. UM, SO WE'LL GO AHEAD AND GET STARTED WITH THE POWERPOINT. AND I DIDN'T REALIZE THAT MY, YEAH, JUST PLEASE BEAR WITH ME AS MY COMPUTER IS DOING SOMETHING FUNKY. OKAY. SO WHAT IS REVENUE? UH, REVENUE IS THE MONEY THAT THE TOWN EXPECTS TO RECEIVE DURING THE FISCAL YEAR. OKAY. UM, IT'S A ANTICIPATED REVENUES, UH, MEANS THAT WE ANTICIPATE RECEIVING MONEY FROM REAL ESTATE TAX HIGHWAY USER, AND WE'LL GO INTO MORE OF THESE IN MORE DETAIL, BUT, UM, THE TAXES IS THE BIGGEST PORTION OF REVENUE FOR THE TOWN. AS IT RELATES TO GRANTS, THE TOWN DO RECEIVE A LOT OF GRANTS, UM, EITHER IT BEING STATE, FEDERAL, OR EARMARKS. THOSE GRANTS ARE MOSTLY EXPENDITURE GRANTS THAT WE GET REIMBURSED FOR. AND AUTOMOTIVE ENFORCEMENT HAS BEEN ANOTHER MAJOR, UH, PIECE OF REVENUE THAT WE'LL DIVE INTO LATER ON. NEXT SLIDE, PLEASE. SO, AND THE BUDGET OF FISCAL YEAR 25, 60% OF OUR REVENUE CAME FROM TAXES. 28% OF THE REVENUE CAME FROM INTERGOVERNMENT REVENUE. 12% WERE GENERATED THROUGH PERMITS, FEES, AND SERVICES. MR. GALLOWAY, AM I LOOKING AT YOUR, I'M LOOKING AT THE PACKET, WHICH HAS THE REVENUE LIST ON IT. IS THERE, AM I SUPPOSED TO BE LOOKING AT A SLIDESHOW? YEAH, THERE'S A SLIDESHOW THAT HAS BEEN SHARED. I CAN'T SEE IT ON MY SCREEN. MAYBE I'M ON THE WRONG SCREEN. I CAN SEE IT. ALL RIGHT, I'LL FIND IT. GO ON. OKAY. NOW, JUST ABOUT CONSTANT YIELD, BECAUSE SOMETIMES THERE'S SOME QUESTIONS ABOUT CONSTANT YIELD, AND I JUST WANTED TO GO THROUGH THIS. CONSTANT YIELD REFERS TO THE PROPERTY TAX RATE THAT GENERATE THE SAME TOTAL REVENUE IN THE UPCOMING FISCAL YEAR AS WE COLLECTED IN THE CURRENT YEAR. EVEN IF PROPERTY VALUES HAVE CHANGED, IT IS USED AS A BENCHMARK TO SHOW WHAT TAX RATE WOULD KEEP REVENUES STABLE DESPITE FLUCTUATIONS AND THE ACCESSIBLE BASE. WHEN PROPERTY VALUES INCREASE THE CONSTANT YIELD TAX RATE DECREASE TO OFFSET THE HIGHER VALUES, AND WHEN PROPERTY RATE DECREASES THE RATE INCREASE TO MAINTAIN THE SAME LEVEL OF REVENUE. I'M GONNA SHOW YOU AN EXAMPLE ABOUT THAT IN [00:20:01] A FEW MINUTES. UH, THE CONCEPT IS IMPORTANT FOR TRANSPARENCY AS IT ALLOWS RESIDENTS AND ELECTED OFFICIALS TO CLEARLY SEE WHETHER A PROPOSED TAX RATE REPRESENTS AN INCREASE, OUR DECREASE, OR NO CHANGE IN TAX REVENUE AT ALL. UM, A PUBLIC HEARING IS ONLY REQUIRED WHEN A TAX AND AUTHORITY PROPOSES TO SET A REAL PROPERTY TAX RATE THAT IS HIGHER THAN THE CURRENT YEAR'S TAX RATE. UM, THIS LAW WAS CHANGED IN 2023 AND MODIFIED IN 24. ALRIGHT, NEXT SLIDE PLEASE. AND SO, MAYOR AND COUNCIL, WHAT YOU SEE HERE ARE THE 2026 CONSTANT YIELD TAX RATE CERTIFICATION. OKAY? AND I DO WANT TO BREAK THIS DOWN JUST FOR A SECOND. AS YOU CAN SEE, AS OF JULY 1ST, 2025, THE ACCESSIBLE BASE OF THE TOWN OF SHERIFF LEE WAS, AND THIS IS EXCLUDING THE APARTMENT 896 MILLION, OKAY? ON LINE 10, THE PROPOSED OR THE PROJECTED ACCESSIBLE BASE WILL BE 940 MILLION. THAT'S ABOUT A $41 MILLION DIFFERENCE. SO, UH, THE, THE ASSESSED VALUES OF THE ENTIRE TOWN HAVE WENT UP $41 MILLION, OKAY? WHICH MEANS FOR US TO RECEIVE THE SAME AMOUNT OF REVENUE, UM, AS WE HAVE RECEIVED THIS YEAR. AND LINE 13, THEY'RE SAYING THAT OUR TAX RATE COULD BE AT 0.5518, SO WE WOULD HAVE TO LOWER OUR TAX TO RECEIVE THE SAME AMOUNT OF MONEY, OR YOU FOLLOW ME. ANY QUESTIONS WITH THAT RIGHT NOW? YES, SIR. OR DIANE? WOULD, WOULD YOU LIKE TO, UM, INTERVENE? OKAY, JOHN? UH, NO. SOUNDS GOOD. DELAINE. OKAY. C COUNCILOR, ER, SO MY, MY QUESTION WOULD BE, IS THAT, HOW, HOW DID THEY COME UP WITH THAT INCREASE? HOW DID THEY IDENTIFY THAT INCREASE? UM, MS. MOCK, DO YOU KNOW THE DECIDING FACTORS OF HOW THE STATE DOES THIS? THIS IS BASED ON THE ACCESSIBLE VALUE OF THE REAL PROPERTY IN YOUR TOWN AND EVERY, UH, THREE YEARS. UM, REAL ESTATE IS REASSESSED ON LIKE A, A, A REVOLVING BASIS. SO THIS IS BASED ON THE ADDITIONAL ASSESSED VALUE. SO AS PROPERTY, THESE, THIS IS INDICATING THAT THE PROPERTY VALUES HAVE INCREASED, AS MR. GALLOWAY JUST MENTIONED, ABOUT 40, UM, 45, UH, MILLION DOLLARS FROM FY 20, UH, FIVE TO FY 26. OKAY. THANK YOU. AND THIS IS THE THIRD YEAR. SO IN 2026, THIS IS THE YEAR OF THE ASSESSMENT OF THE, OF THE REASSESSMENT. OKAY. SO THIS IS THE CONS. THIS IS THE, UH, THE PROPOSED RATE FOR, FOR, FOR CONSTANT YIELD FOR US TO MEET CONSTANT YIELD. ALRIGHT, NEXT LOT. SO THIS IS THE CONSTANT YIELD TAX RATE, UH, CERTIFICATION FOR THE APARTMENTS. AND I DO WANT TO POINT OUT THAT THIS HAS A, A DIFFERENT EFFECT. OKAY? IF YOU LOOK AT SLIDE ONE, THE APARTMENTS, I'M, I'M SORRY, LINE NUMBER ONE, UH, THE APARTMENTS OR, OR HAS AN ACCESSIBLE REAL PROPERTY BASE RATE OF 57 MILLION. IF YOU LOOK AT SLIDE 10, IT'S 43 MILLION. SO THE VALUE OF THE APARTMENTS ACTUALLY DECREASED A LOT. UM, WHICH MEANS THAT FOR THE TOWN TO RECEIVE THE SAME LEVEL OF REVENUE THAT WE WILL RECEIVE THIS YEAR, OR ARE, ARE EXPECTED TO RECEIVE THIS YEAR, THEN WE WOULD HAVE TO RAISE THE TAX RATE FROM 0.75 TO 0.9835 TO RECEIVE THAT SAME TYPE OF [00:25:01] FUNDING QUESTIONS. YEAH. UM, THANK YOU FOR THAT. IT, IT'S, THAT'S VERY SHOCKING. I, I DON'T THINK I'VE EVER SEEN THAT IN 13 OR 14 YEARS OF WATCHING THIS MS. MOCK. DO YOU HAVE ANY IDEA WHY THE COMPTROLLER THINKS THAT THE, THAT THAT REAL PROPERTY IS WORTH 14 MILLION LESS THAN SHE THOUGHT IT WAS WORTH A YEAR AGO? WE JUST GOT NOTIFIED TODAY, MAYOR AND I, I, I'M, I'M GOING TO YIELD TO MS. M, BUT YES, WE JUST GOT NOTIFIED TODAY. UH, WE'VE, MR. GALLOWAY AND I HAVE BEEN LOOKING INTO THIS BECAUSE IT, THE REAL PROPERTY TAXES FOR FY FOR THE YEAR ENDED 6 30 26, IS NOT KEEPING UP WITH WHAT WE ANTICIPATED. AND WHAT HAS OCCURRED IS THE COUNTY HAS REASSESSED THE PAR, UH, THE APARTMENTS, THEY HAVE REASSESSED THEM DURING FY 26 AND HAVE REDUCED THE ASSESSABLE BASIS AS THEY'RE SHOWING HERE. SO IT'S, UM, GONE FROM 57 MILLION TO 43 MILLION. SO THEY ACTUALLY DID AN ABATEMENT IN THE YEAR ENDED FOR THE YEAR ENDED JUNE 30TH, 26. AND THEY'VE ACTUALLY REFUNDED FOR THE YEAR ENDED 6 30, 25, 100,000. IT'S, IN TERMS OF DOLLARS, IT WORKS OUT TO BE IN A HUNDRED THOUSAND DOLLARS. SO THE APARTMENTS, REAL ESTATE, REAL PROPERTY TAX WAS REDUCED IN FY 25 BY A HUNDRED THOUSAND, AND THEY RECEIVED A REFUND. AND THEN THE 26 ASSESSMENT WAS REDUCED BY THIS. SO WE, THEY, IN EFFECT, WE WENT FROM, UH, UM, REVENUE OF 432,000 FROM THE APARTMENTS TO 300. I'M GONNA ROUND 332,000. SO THIS EFFECT IS GOING FORWARD INTO FY 27 ALSO. BUT YOU'VE ACTUALLY BEEN HIT IN THE ARREARS IN ADDITION TO GOING FORWARD, MR. GALLOWAY GOT A LETTER FROM THE, WAS THAT FROM THE PRINCE GEORGE'S COUNTY OR THE STATE? THAT WAS FROM THE STATE? FROM THE STATE. AND I THINK HE'S GONNA SHARE THAT LETTER THAT GOES THROUGH THEIR DESCRIPTION OF WHY THE ACCESSIBLE BASIS OF THE APARTMENTS HAS REDUCED SO SIGNIFICANTLY. SO I DO KNOW THAT THERE ARE QUESTIONS ABOUT THIS RIGHT NOW. THIS WAS NOTHING THAT WE COULD HAVE FORECAST MAYOR AND COUNSEL. OKAY. AND I DO WANT TO MAKE YOU ALL AWARE OF THAT. UM, BUT I KNOW COUNCIL MEMBER TANZI AND COUNCIL MEMBER GARCE HAS THEIR QUESTION UP. I DO WANT TO LET MS. JONES KNOW THAT I JUST FORWARD YOU AN EMAIL, UM, THAT HAS THE EXPLANATION AND A WORD DOCUMENT. IF YOU CAN BRING THAT UP JUST SO THAT WE CAN MAKE IT AVAILABLE TO THE MAYOR AND COUNCIL, UH, THAT WOULD BE GREAT. BUT WE CAN CONTINUE TO ANSWER YOUR QUESTIONS, UM, AS WE GO THROUGH THIS. DO YOU WANT DAVID TO ASK HIS QUESTION NOW? I'M SORRY. YEAH, YEAH, THAT'S FINE. YEAH. SORRY. UH, CHARLIE, I IS HAND UP EARLIER. UM, BUT I GUESS IT'S DOWN NOW. SO, UH, SIMPLE QUESTION. UH, ARE WE ABLE TO DO CONSTANT YIELD FOR THE APARTMENTS, BUT NOT FOR THE REST OF THE, UM, TOWN? IS THERE SOME RULE SAYING WE HAVE TO PICK ONE OR THE OTHER? NO, BECAUSE WE SET THE TAX RATES SEPARATELY. OKAY, GOOD. OKAY, COOL. UM, CHARLIE, GO AHEAD. YEAH, MR. GALLOWAY. SO YOU, UM, SO WHAT'S THE, UM, WHAT, UM, UH, HOW GONNA SAY IT? WHAT, WHAT DO, WHAT, HOW MUCH SHOULD, DO WE NEED TO, UM, OR I THINK YOU SAID THAT ALREADY. UM, HOW MUCH DO YOU NEED? WE NEED TO RAISE THE TAXES ON THE, ON THE, UM, ON THE APARTMENTS IN ORDER FOR US TO US TO AT LEAST TRY TO CUT EVEN, OR AT LEAST CLOSE TO WHAT WE HAD. SO WE WOULD HAVE TO RAISE TAXES FROM 0.75 TO 0.9835. OKAY. AND THEN, UM, ALSO, I BELIEVE THEY STILL, IN THE COUNTY, WE STILL, THEY STILL HAVE THE, THE RENT CAP, RIGHT? [00:30:01] YES. AND THAT'S GOING TO BE YOU, YOU'LL SEE IN A, IN A FEW MOMENTS, THAT'S GOING TO BE CITED AS ONE OF THE REASONS WHY, UM, THIS WAS AN ISSUE. SO, UM, MAYOR AND COUNSEL, OF COURSE, I, I WILL SEND THIS DOCUMENT, BUT FOR THE PURPOSES OF TRANSPARENCY AND JUST MAKE SURE THAT THIS IS THERE, I DON'T MIND SHARING THIS DOCUMENT, JUST SO THAT YOU ALL CAN SEE WHAT WE JUST RECEIVED TODAY. WE'RE JUST WHAT MS. JONES. THANK YOU. AND IT SEEMED LIKE MS. JONES MADE ME HAVING SOME COMPUTER ISSUES AS WELL. WE MAY NEED TO UTILIZE OUR CURRENT IT FUNDS TO GET TO UPGRADE OUR COMPUTERS. BUT, UM, UH, MAYOR AND COUNSEL, THIS IS THE, UH, THE LETTER THAT WE RECEIVED TODAY. SO IT'S THERE FOR YOU TO REVIEW. SO, MR. GALLOWAY, DO YOU INTERPRET THIS TO MEAN, OR AS, AS A WAY OF EXPLAINING THAT IT'S, THIS IS JUST A DIFFICULT TIME TO OWN AN APARTMENT BUILDING AS AN INVESTMENT? IN OTHER WORDS, THAT IT'S NOT AS VALUABLE OF A, OF A REAL ESTATE ASSET AS IT WAS A YEAR OR TWO, THREE AGO YES. WITH FELONY INFRASTRUCTURE, BECAUSE THEY DID CITE THAT, UM, THE INFRASTRUCTURE AND THE, I GUESS THE, YEAH, ABSOLUTELY. SO I FEEL THAT, I FEEL THAT IN SOME WAY THEY'RE THEIR, I MEAN, 'CAUSE I'M PRETTY SURE THAT THEY, WELL, THEY HAD RECEIVED, UH, THIS TYPE OF LETTER AS WELL, LETTING THEM KNOW THAT THIS IS WHAT'S GOING ON WITH THE PROPERTY AND HOW, AND, UM, HOW MUCH IT, UH, I GUESS THE VALUE OF IT DECREASED BECAUSE, UH, MY, MY CONCERN IS, UM, IF THEY DID OR THEY KNOW OF THIS, THEN I'M JUST, I GUESS JUST THROWING IT OUT THERE, RIGHT? UM, THEY'RE PROBABLY, THEY'RE PROBABLY GONNA PUSH 'EM TO SELL THE PROPERTY, RIGHT? IF THEY'RE NOT REALLY MAKING ANY MONEY, UH, THIS IS INDICATING THEY'RE NOT MAKING MONEY. THIS IS INDICATING THAT THE STRUCTURE OR THE ASSESSED VALUE OF THE STRUCTURE HAS DECREASED. IT, IT'S NOT, IT IS STILL COULD BE POSSIBLY MAKING MONEY. WHAT THEY'RE SAYING IS IT'S NOT MAKING AS MUCH AND DUE TO THE FACT THERE'S BEEN, UM, EMPLOYMENT ISSUES. UM, THE OTHER THING IS, I, AND I DON'T KNOW THIS FOR SURE, BUT I AM, I'M, I'M WILLING TO BET THAT THE APARTMENTS COMPLEX POSSIBLY, UH, APPLIED TO THE COUNTY TO DO A REASSESSMENT OF THE VALUE OF THEIR PROPERTY. AND THAT'S WHAT GENERATED OR PROMPTED THIS. BUT I, I DON'T KNOW THAT FOR A FACT, BUT THAT WOULD BE MY, MY GUESS IS THE PROPERTY OWNERS ARE, UH, ASKED THE COUNTY TO THERE TO APPEAL THEIR PROPERTY TAXES AND RE-LOOKED AT AND REASSESSED. THANK YOU. UH, VICE MAYOR, DID YOU WANT TO COME IN? YEAH, I JUST WANTED TO, UM, POINT OUT LIKE THE LETTER, UH, RIGHT UP FRONT IS TALKING ABOUT, UM, SOME OF THE DECISION MAKING THAT HAS BEEN HAPPENING ON THE FEDERAL LEVEL. AND, UM, I KNOW WE WERE ALL CONCERNED AND CONTINUE TO BE CONCERNED ABOUT, UM, FEDERAL LAYOFFS AND, AND, AND FEDERAL WORKERS LOSING THEIR JOBS. AND I THINK WE DON'T ALWAYS APPRECIATE THE RIPPLE EFFECTS OF THOSE THINGS AND SORT OF, IT, IT'S NOT FRONT OF MIND AND, AND FRONT, IN FRONT IN THE MEDIA RIGHT NOW. SO IT'S EASY TO SORT OF FORGET. BUT THESE ARE DECISIONS THAT CONTINUE TO IMPACT US MM-HMM . UM, QUITE A BIT AND WILL CONTINUE TO IMPACT US QUITE A BIT, NOT JUST, UM, OUR INDIVIDUAL RESIDENTS, BUT TOWN WIDE AS WELL. [00:35:03] ALRIGHT. BACK TO YOU. UM, MR. GALLOWAY, YOU WEREN'T LOOKING FOR ANY DIRECTION FROM US AT THIS POINT, WERE YOU? NO, NO, NOT AT ALL. NO. ALL RIGHT. BACK TO YOU, SIR. SO WE CAN GO TO THE NEXT SLIDE, PLEASE. SO WHAT DOES A PENNY MEAN? A PENNY INCREASE IN PROPERTY TAX MEANS ADDING 0.01 TO THE TAX RATE FOR EVERY $100 A PROPERTY ASSESSED VALUE. OKAY. UM, FOR AN EXAMPLE, IF THE CURRENT, THE CURRENT TAX RATE IS 0.5799 PER $100 OF ITS INCREASE, YOU KNOW, IF WE INCREASE IT TO 0.5899, THEN THAT'S A 1 CENT INCREASE FOR A HOMEOWNER WITH A $500,000 PROPERTY. IF YOU DIVIDE THE VALUE BY 100, WHICH EQUALS FIVE, THEN MULTIPLY THAT BY POINT 0.01, THAT'S GONNA RESULT IN AN ADDITIONAL $50 PER YEAR. SO IN SIMPLE TERMS, EACH 1 CENT INCREASE AND THE TAX RATE WILL COST THE HOMEOWNER IF THE HOUSE IS VALUED AT $500,000 $50 ANNUALLY. AT THE SAME TIME, EACH PENNY INCREASE IN THE TAX RATE WOULD GENERATE APPROXIMATELY $94,000 IN ADDITIONAL REVENUE PER YEAR. SO A PENNY MEANS A $50 INCREASE PER HOUSE THAT'S VALUED AT 500,000, AND IT ALSO MEANS $94,000 INCREASE IN REVENUE PER YEAR. UM, AND THE TOTAL ASSESSED VALUE, UM, DI UH, MS MOCK, DO YOU HAVE THAT, I HAD IT EARLIER AND SOMETHING WENT WONKY WITH MY COMPUTER. IF MY MEMORY SERVES CORRECT. THE TOTAL ASSESSED VALUE WAS AROUND 984 MILLION, IS THAT CORRECT? IT'S, UH, THE, THE TOTAL ASSESSED VALUE GOING FORWARD IS 940 MILLION. NO, I'M TALKING ABOUT INCLUDING THE APARTMENTS AS WELL. OH, INCLUDING THE APARTMENTS. THE OVERALL IT WOULD BE, UM, UH, 984 MILLION. OKAY. SO ANY QUESTIONS BEFORE WE JUMP INTO THE EXCEL DOCUMENT QUESTIONS? OKAY. UH, MS. JONES, IF YOU CAN SHARE THE EXCEL DOCUMENT. SO THIS EVENING, I WILL NOT BE MAKING A RECOMMENDATION FOR A TAX INCREASE OR TAX DECREASE. I'M KEEPING THE RATE THE SAME FOR RIGHT NOW. I WILL MAKE THE RECOMMENDATION AT THE VERY LAST MEETING. UH, WE DO THIS INCREMENTALLY SO THAT YOU CAN UNDERSTAND THE BUDGET IN ITS TOTALITY, BUT ALSO, UM, THERE ARE STILL, UH, FACTORS THAT ARE BEING CONSIDERED HERE THROUGHOUT THE BUDGET PROCESS. UM, SO, UH, THE RATE THAT WE HAVE HERE IN BUDGET YEAR, FISCAL YEAR 27 FOR REAL ESTATE TAXES IS FACTORED AT THE 0.75 AND THE 0.5799. SO IF WE'RE LOOKING AT, UH, THE, THE VERY FIRST SECTION, REAL ESTATE TAXES, UM, WE'RE , WORST CASE SCENARIO, UH, WE ARE PROJECTED TO BRING IN $5,000,781. OKAY. THAT, THOSE ARE OUR PROJECTIONS RIGHT NOW. AND THAT IS WITHOUT, UM, TAX IN, THAT'S WITHOUT GOING BEYOND CONSTANT YIELD. HOW ABOUT THAT? THAT'S 'CAUSE WE KNOW, WE KNOW THAT THERE WILL BE A TAX INCREASE IF WE WANT TO REMAIN AT CONSTANT YIELD FOR THE APARTMENTS, BUT TO, TO, TO KEEP THE SAME REVENUE. BUT THAT'S WHERE WE ARE RIGHT NOW. I'M SORRY, MS. MOCK, WERE YOU SAYING SOMETHING? NO, I, YOU, I DIDN'T MEAN TO TALK OVER TOP OF YOU. OKAY, NO PROBLEM. THIS, YOU'RE ABSOLUTELY RIGHT. IT'S, THIS IS THE, AT THE CURRENT RATE THAT IT'S BASED ON THE CURRENT, UH, THE ASSESSED VALUE THAT WE'VE BEEN PROVIDED AT YOUR CURRENT [00:40:01] RATE OF 57, UH, 0.5799 AND 75 CENTS, UM, FOR THE APARTMENTS. OKAY. SO WE'LL GO DOWN TOT PP UTILITIES. IT'S A GALLOWAY. YES, YES. UH, I'M, I'M SORRY, I I DIDN'T CATCH THE FIRST PORTION AFTER YOU, UM, AFTER MS. MARK WENT, WENT ON, WENT ON, ON, ON, UM, WENT ON. CAN YOU REPEAT WHAT YOU SAID BEFORE THAT? I DUNNO IF YOU QUITE REMEMBER THAT. I JUST, I JUST LIST KIND OF WENT BY ME QUICK. SURE, NO PROBLEM. I SAID, UM, THE PROJECTED REVENUE THAT'S HERE AND ITEM LINE ITEM 400.1 HUNDRED FOR REAL ESTATE TAXES, IT'S AT THE CURRENT RATES OF 0.5799 AND 0.75. SO IF WE KEEP THE TAX RATE THE SAME, THIS WOULD BE THE AMOUNT OF MONEY THAT WE FORECAST RECEIVING AND THAT WOULD BE $5,000,781. THANK YOU MR. GALLOWAY. YES. SO, UM, WE HAVE TPP UTILITIES AND TPP BUSINESSES. ALRIGHT, SO THIS IS AL PERSONAL PROPERTY. THE UTILITIES. ARE ANY OF THE UTILITIES LIKE A VERIZON OR COMCAST, A PEPCO, A-W-S-S-C, UH, THEY HAVE A UTILITY TAX RATE THAT'S SET. AND THIS IS WHAT THEY PAY THE TOWN AS IT RELATE TO BUSINESSES, UH, TPP BUSINESSES, UH, WOULD BE THE BUSINESS RATE THAT WE, UM, CHARGE ANY AND ALL OF THE BUSINESSES. UM, SO WE'RE SAYING THAT TPP UTILITIES, WE THINK THAT WE CAN RECEIVE 200,000 FOR TPP BUSINESSES. WE BELIEVE THAT BASED OFF OF PREVIOUS PROJECTIONS, UM, THAT WE'LL BE ABLE TO RECEIVE $350,000. NOW WHEN WE GO DOWN TO 400.1 15, AND THAT'S THE LOCAL INCOME TAXES. AS YOU ALL KNOW THAT LIVE IN CHEVROLET, THERE'S A SECTION ON YOUR INCOME TAX. WHEN YOU GO TO FOUL, YOU HAVE TO PUT THAT YOU LIVE IN THAT JURISDICTION. WELL, THANK YOU FOR LIVING IN THE TOWN OF CHEVROLET BECAUSE THIS IS PART OF THE MONEY THAT WE RECEIVE. UH, AND THIS IS WHAT WE'RE PROJECTING FOR FISCAL YEAR 27, WHICH WOULD BE 1.3, UM, HOTEL MOTEL TAX. UM, I CAN'T WAIT UNTIL WE, UH, BUILD HOSPITAL HILL AND THAT OFFICIALLY HAPPENS BECAUSE WE ARE GOING TO BE ABLE TO EXPOUND THAT. BUT RIGHT NOW, UH, OUR HOTEL MOTEL TAX IS GONNA STAY, UH, EVEN AT 110,000 HIGHWAY USER REVENUE. UH, WE'RE SUPPOSED TO RECEIVE 363,000. THIS NUMBER WAS PROVIDED TO THE TOWN BY THE STATE. AND IF YOU REMEMBER BACK IN DECEMBER, I IN INFORMED THE TOWN OF A SLIGHT MODIFICATION OF $13,000 THAT WE WERE PROJECTED TO RECEIVE, UM, THAT THAT WILL, WE WILL NOT BE RECEIVING IN THE CURRENT FISCAL YEAR. AND THAT WAS A SLIGHT ADJUSTMENT MADE FOR THIS YEAR. UM, SO THE $363,000 NUMBER IS THE AMOUNT THAT WE ARE ANTICIPATING RECEIVING. AND THAT PRETTY MUCH CON CONCLUDES THAT SECTION. UH, MAYOR AND COUNCIL, I'LL OPEN THE FLOOR UP FOR QUESTIONS AS IT RELATE TO TAXES. COUNCIL MEMBER, WADE, I THINK I SAW YOU WITH YOUR HAND UP EARLIER. NO, I HAD A QUESTION, BUT, WELL, I'LL, I'LL ASK ANYWAY. JUST WANNA MAKE SURE. BASED ON THE CONSTANT YIELD ASSESSMENT FOR THE HOMES, WE WOULD HAVE TO LOWER THE CON, WE WOULD HAVE TO LOWER IT TO REACH THE CONSTANT YIELD. IS THAT CORRECT? I MEAN, YES, WE'D HAVE TO LOWER THE RATES. UH, IF WE REALLY DO BRING IN 5.582 MILLION THIS YEAR, AND I'M NOT SURE WE, I THINK WE WILL, RIGHT? BUT IF WE REALLY WANNA BRING IN 5, 5, 8 2, AGAIN, WE WILL HAVE TO LOWER THE RATES. UNDERSTOOD. IF WE DON'T LOWER THE RATES, WE SHOULD BRING IN, YOU KNOW, SOMEWHERE AROUND 200,000 MORE THAN WE DID IN 26. RIGHT? COPY THAT. OKAY. MS. MOCK, ANY ADDITIONAL COMMENTS THERE? UM, YES. IT WOULD JUST BE THAT FOR THE CONSTANT YIELD, YOU WOULD LOWER THE RATE FOR THE REAL PROPERTY, UH, FOR, FOR RESIDENCES. AND YOU WOULD HAVE TO RAISE [00:45:01] THE RATE FOR THE APARTMENT TO MEET, UM, THE PRIOR YEAR TO GET TO THE CONSTANT YIELD. THE APARTMENT RATE WOULD RI RISE UP AND THE SINGLE FAMILY HOMES WOULD, UH, DECREASE IN RATE. SO, MAYOR AND COUNCIL, JUST SO THAT I'M GONNA PREEMPTIVELY TALK WITH THE TOWN CLERK TO TRY TO SCHEDULE A CONSTANT YIELD PUBLIC HEARING. UH, 'CAUSE I THINK THAT WE'RE GOING TO HAVE TO HAVE ONE JUST BASED OFF OF THE APARTMENT NUMBER. BUT, UM, YES, WE CAN HAVE THAT DISCUSSION, UH, CLOSER TO THE END OF THE BUDGET PRESENTATIONS. UM, BUT YEAH, WE WILL BE, UH, SCHEDULING A MEETING AND I THINK WE ALREADY HAVE A MEETING SCHEDULED. UM, BUT WE'LL MAKE SURE THAT ALL THE REQUIREMENTS ARE PUT IN IN THOSE DOCUMENTS. SO AS WE GO, AS WE GO DOWN TO LICENSE AND PERMITS, UM, THE BUILDING PERMITS, UH, WE RECEIVE ABOUT $1,500. TOWN BUSINESS LICENSE. WE RECEIVE ABOUT $1,500. THE RENTAL HOUSING LICENSE, UM, THAT'S FOR ALL THE HOUSES THAT RENT. UM, THAT'S $65,000. WE'RE GONNA REMAIN FLAT AT JUST ABOUT EVERY LINE ITEM HERE EXCEPT FOR CABLE TELEVISION PEG, WHICH, UM, WE DID GO DOWN $2,000 TO, UH, 28,000. ANY QUESTIONS? OKAY. SO AS WE CONTINUE TO MOVE FORWARD THROUGH THE INTERGOVERNMENTAL, YOU KNOW, I I, I DO WANT TO SAY THAT A LOT OF THE GRANTS AND EARMARKS THAT WE RECEIVE ARE REIMBURSABLE ME, MEANING THAT IT'S GREAT THAT WE GET 'EM AND I'M GLAD THAT WE GET 'EM. BUT THE THING THAT WE HAVE TO KEEP INTO CONSIDERATION IS THEY'RE, THEY'RE, THEY'RE REIMBURSABLE. SO WE HAVE TO PAY UPFRONT AND THEN GET REIMBURSED. OKAY? SO WITH PROGRAM OPEN SPACE, THAT'S A, A SIMILAR TYPE OF GRANT. UM, THE POLICE PROTECTION GRANT IS THE ONLY ONE THAT'S NOT REIMBURSABLE. THEY'LL GIVE US, UM, A, A A HUGE AMOUNT OF CASH, UH, TO, TO MOVE FORWARD WITH, UH, WHATEVER WE'VE APPLIED FOR IT FOR. AND WE JUST HAVE TO CLOSE OUT THE GRANT WITH THE PROPER DOCUMENTATION. BUT AS FAR AS, UH, THE GENERAL ASSEMBLY BOND BILL, THE FEDERAL ARAMARK, THE STATE ARAMARK, THOSE ARE ALL REIMBURSABLE. UM, SO JUST TO MAKE SURE THAT WE DON'T INFLATE THE BUDGET EVEN MORE WHENEVER WE START RECEIVING OUR, OUR PAYING FOR SOME OF THIS STUFF WILL SHOW THAT THERE IF NECESSARY. BUT I DO ANTICIPATE CLOSING OUT THE GENERAL ASSEMBLY BOND BILL FOR 1,400,000 AND THIS CURRENT FISCAL YEAR. SO THAT WOULDN'T BE ANYTHING THAT WOULD TRANSFER OVER ANYWAY FOR THE, FOR THE FEDERAL ARAMARK. WE'RE STILL TRYING TO WORK OUT SOME KINKS WITH THE INSURANCE REQUIREMENTS BEFORE WE CAN EVEN GET ACCESS TO THAT MONEY. UM, AND THEN WITH THE STATE ARAMARK, AS WE CONTINUE TO TO WORK THAT DOWN, WE'LL DO BUDGET AMENDMENTS IF NECESSARY. BUT THIS IS WHERE WE ARE RIGHT NOW. ANY QUESTIONS ABOUT THE INTERGOVERNMENTAL? ALRIGHT, WE'LL GO AHEAD AND CONTINUE TO MOVE FORWARD. SO THESE ARE SERVICE CHARGES, RESIDENTIAL PARKING. UM, WE MAKE ABOUT $300. I KNOW THAT THIS, THIS WAS BROUGHT UP BEFORE AND A MEETING AS FAR AS WE MAY NEED TO LOOK AT REEXAMINING THE, UH, UH, YOU KNOW, UH, THE FEES FOR THIS, AND THIS IS SOMETHING THAT I WILL WORK WITH CODE AND, AND THE POLICE DEPARTMENT ON BECAUSE, UM, OF THE FEES BEING, UH, REALLY LOW COMPARED TO THE AMOUNT OF TIME IT TAKES TO PROCESS, UH, RESIDENTIAL APPLICATIONS. UM, SPECIAL TRASH APPLIANCES, WE'LL [00:50:01] KEEP THERE AT 500. THE LOT MAINTENANCE PROPERTY WE WILL, UH, PUT THERE AT A THOUSAND. WE'VE ONLY SPENT $130 AT CURRENTLY AT THIS FISCAL YEAR. UM, PARK PAVILION FEES, UM, WE'RE GOING TO KEEP AROUND A THOUSAND DOLLARS. AND THEN MOST DELIVERY FEES, UM, WE WILL BE ZEROING THAT COMPLETELY OUT AND DISCARDING THAT IN THE FUTURE. QUESTIONS. ALRIGHT, IF WE CAN GO TO FINES AND FORFEITURES. SO AS WE MOVE FORWARD, UM, I DO ANTICIPATE PARKING TICKETS INCREASING NOW THAT, UH, THERE'S BEEN TRAINING ACROSS THE BOARD. SO, UH, WE DO HAVE $200 THERE. UM, SO, UH, I DO ANTICIPATE GOING OVER THAT JUST A LITTLE BIT. UM, AS IT RELATES TO THE RED LIGHT CAMERAS, WE, UM, STAYED FLAT AT $620,000 OF REVENUE THAT WE ARE ANTICIPATING RECEIVING. AND WITH THE SPEED CAMERAS, UM, WE'RE ESTIMATING TO RECEIVE 1,300,000. UM, NOW I DO KNOW THE CHIEF IS ON AND MS. MOCK, UM, SO I'LL DEFER TO THEM TO SEE IF THEY HAVE ANY ADDITIONAL COMMENTS OR QUESTIONS THAT, UH, YOU ALL MAY HAVE FOR EITHER MS. MOCK OR CHIEF MORRIS. THE, THE SPEED CAMERA, UM, LINE ITEM IS TRENDING HIGHER AND I, I BELIEVE IT WILL, UH, GO OVER, UH, THE, THE BUDGET, WE, THE BUDGET WAS A 1,240,000, BUT SO FAR THROUGH FEBRUARY YOU'VE GOTTEN IN 1 MILLION, 100,000. SO IT, IT'S LIKELY THAT NUMBER WILL COME IN, UM, PRETTY SIGNIFICANTLY HIGHER THAN THE BUDGET. BUT FOR FY 27, UH, YOU KNOW, JUST USE THE 1.3 MILLION JUST TO START OFF WITH A, A NUMBER THAT WE'RE JUST ANTICIPATING. AND IT'S BEEN, THAT PARTICULAR LINE ITEM HAS FLUCTUATED FROM YEAR TO YEAR, SO IT'S REALLY DIFFICULT TO KNOW FOR SURE, AND I'M SURE THE, I'M SURE CHIEF HAS MORE TO SAY ON THAT. CHIEF, ANYTHING TO ADD OR DEPUTY CHIEF? OKAY. GOOD EVENING, MAYOR COUNCIL. SO AT THE NEXT WORK SESSION, WE'LL BE PRESENTING, PRESENTING A HIGH LEVEL PLAN FOR A REQUEST FOR PROPOSAL FOR CONSIDERATION OF TAKING PROPOSALS FOR OPERATING OUR AUTOMATED ENFORCEMENT SYSTEM FROM OUR CURRENT PROVIDERS AS WELL AS FROM OTHER PROVIDERS. UH, MY CONCERN, FRANKLY IS THE, AS I MENTIONED EARLIER TO THE AMERICAN COUNCIL, IS THE QUALITY OF THE IMAGES, UH, FOR THE POLICE DEPARTMENT. THIS IS ABOUT PUBLIC SAFETY AND MODIFYING DRIVER BEHAVIOR. SO WHEN WE'RE SEEING LESSER QUALITY IMAGES IN LESS, UH, IN LOW LIGHT CONDITIONS, THAT RESULTS IN OUR HAVING TO DISMISS CITATIONS THAT OTHERWISE, IF THEY WERE BETTER QUALITY, UH, COULD BE SENT TO THE VIOLATORS AND SUBSEQUENTLY, UH, WITH THE INTENT OF MODIFYING OR DRIVING YOUR BEHAVIOR. SO THAT'S, THAT'S FORTHCOMING. UH, I DID SPEAK WITH MS. MOCK EARLIER TODAY, AND WE HAVE TO, IF, IF THE DECISION IS TO MOVE TO ANOTHER PROVIDER, AND THAT'S A DECISION THAT'LL BE MADE IN CONCERT WITH MR. GALLOWAY IN AN OPEN, UH, UH, OPEN AND TRANSPARENT WAY, UH, IF THAT OCCURS, THAT WE WILL HAVE TO BE PREPARED FOR A TRANSITION PERIOD, UH, WHICH MAY MEAN THAT OUR CAMERA SYSTEMS WILL NOT BE OPERATING AT LEAST FOR A PERIOD OF TIME. SO I, I JUST WANT THE MAYOR AND COUNCIL TO BE AWARE OF THAT. BUT ULTIMATELY, OUR GOAL FOR THE POLICE DEPARTMENT IS TO, UH, NOT LOOKING AT THE REVENUE AS MUCH AS LOOKING AT THE QUALITY OF THE SERVICE, THE, AND THE EFFECTIVENESS OF THIS, OF THE SERVICE THAT'S PROVIDED, AND SUBSEQUENTLY THE EFFICIENCY. SO, UM, CERTAINLY OPEN TO ANY QUESTIONS OR SUGGESTIONS. COUNSEL, ANY QUESTIONS WHO, YOU KNOW, I KNOW SOME OF OUR CAMERAS ARE JOINT OPERATIONS WITH, YOU KNOW, THIRD PARTIES. UM, I'M NOT SURE WHICH IS WHICH, [00:55:01] YOU KNOW, RED LIGHT CAMERAS, SPEED CAMERAS, ET CETERA. SO IF WE'RE NOT HAVING HIGH ENOUGH QUALITY IMAGES, HOW MUCH OF THAT IS, UH, OUR UPGRADE TO MAKE? AND HOW MUCH OF THAT IS BUGGING OUR CONTRACTOR? WELL, SO LET ME ANSWER THE, UH, I THINK THERE ARE MULTIPLE PARTS OF THAT QUESTION. SO, UH, WE HAVE TWO PROVIDERS. WE HAVE ONE, UH, AUTOMATED ENFORCEMENT PROVIDER FOR THE RED LIGHT CAMERAS AT 2 0 2 AND CHEVROLET AND 2 0 2 AT KILMER. WE HAVE A SEPARATE PROVIDER FOR OUR AUTOMATED SPEED ENFORCEMENT AND THE RED LIGHT CAMERA ON COLUMBIA PARK. UH, AT THE END OF THE DAY, IT'S ABOUT THE TECHNOLOGY, UH, TECHNOLOGY IMPROVES TO THE DEGREE THAT, TO USE YOUR WORDS, BUGGING OUR PROVIDERS. WE'VE HAD CONVERSATIONS AD NAUSEUM, UH, WITH REGARDS TO THE QUALITY OF THE IMAGES. AND FRANKLY, WHAT WE HEAR IS THAT THIS IS THE PEST TECHNOLOGY THAT WE HAVE. AND I'M NOT, I'M INTENTIONALLY NOT IDENTIFYING WHICH PROVIDER. UH, BUT, UH, SO WE'RE LOOKING AT, UH, OTHER PROVIDERS THAT HAVE TECHNOLOGY THAT MAY BE, UH, MORE IMPROVED, MORE ADVANCED, AND WOULD PROVIDE A BETTER SERVICE TO THE TOWN AS IT RELATES TO OUR ABILITY TO MAKE SURE THAT THE, THOSE INDIVIDUALS THAT ARE VIOLATING THE AUTOMATED ENFORCEMENT AREAS ARE RECEIVING THE APPROPRIATE CITATIONS. DOES THAT ANSWER YOUR QUESTION, COUNCIL MEMBER? YES. THANK YOU. ANY OTHER QUESTIONS? OKAY, WE'LL CONTINUE, UH, TO, UM, LINE ITEM FOUR 50.1 HUNDRED INTEREST IN DIVIDENDS. UM, WE'RE PROJECTED TO RECEIVE $85,000, UM, JUST BASED OFF OF THE PROJECTIONS OF THIS CURRENT YEAR. MS. MOCK, WOULD YOU LIKE TO EXPLAIN THAT A LITTLE BIT MORE? UM, YES. UH, YOU KNOW, IF INTEREST RATES HAVE, UM, FLATTENED, UM, SOMEWHAT, UH, YOUR INVESTMENTS, UM, IN 20, IN FY 25, YOUR, YOUR INTEREST WAS THAT YOU RECEIVED THAT YEAR WAS 107,000. SO FAR THIS YEAR WE'VE RECEIVED 47. THE, THE REAL DIFFERENCE IS IN FY 25, YOU STILL HAD QUITE A BIT OF ARPA MONEY THAT HAD NOT BEEN SPENT, THAT YOU WERE EARNING INTEREST ON. WE DON'T HAVE THAT MONEY ANYMORE. THAT PROGRAM IS COMPLETED. SO, UH, I DROPPED THE BUDGET DOWN TO 85,000, UH, FOR FY 27. ANY QUESTIONS? OKAY. SO WE'LL CONTINUE ON UNDER THE MISCELLANEOUS CATEGORY AND, UH, THE SALE OF FIXED ASSETS. UM, WE PUT $500 MISCELLANEOUS. UM, WE PUT $500, UM, RAIN BARRELS, WE PUT AT $500 OTHER POLICE REVENUE. UH, WE PUT $10,000 INSURANCE REIMBURSEMENT, AND THIS IS TYPICALLY THE LEGIT INSURANCE REIMBURSEMENT. UH, WE PUT AT $50,000 DONATIONS, WE PUT AT $1,000 AND THE ADA OVERTIME FOR REVENUE, WE PUT $100,000, UM, WHICH BRINGS THE TOTAL REVENUE RIGHT NOW AT 10,585,735. UM, AND THIS IS THE, THE REVENUE. UM, ANY QUESTIONS AS IT RELATES TO MISCELLANEOUS? NO, MR. GALLOWAY, I WAS JUST, UM, UNLESS ANYONE HAS QUESTIONS ABOUT MISCELLANEOUS, I WAS JUST GONNA ASK, DO YOU, HOW, AND THIS I THINK IS A MISS MOCK QUESTION, ARE HOW DO YOU FEEL ABOUT THE 14,000,147 ESTIMATE? UM, OR THE, THE, SORRY, NOT THE ESTIMATE, THE APPROVED BUDGET AMOUNT? UM, THAT, OKAY, SO THERE'S A COUPLE THINGS THERE IN THAT 14 MILLION THAT IF YOU GO BACK UP TO THE SECTION OF INTERGOVERNMENTAL MM-HMM . IN THERE, YOU HAVE 1,000,004 THAT NEEDS TO COME OUT. YEAH. WE ACTUALLY COLLECTED THE MILLION FOUR AND RECOGNIZED IT [01:00:01] IN THE YEAR ENDED JUNE 30TH OF 25. SO AGAIN, UH, THAT, THAT, THAT NEEDS TO COME OUT. WELL, THE, AND SO WILL THE EXPENSE. SO IT'S, IT'S NEUTRAL ON THE BOTTOM LINE, BUT IT COMES OUT OF THE REVENUE NUMBER, UH, THE FEDERAL EARMARK OF 1,000,688, I DON'T KNOW IF THAT'S COMING IN OR NOT. UH, MR. GALLOWAY'S WORKING ON THAT. THE SAME THING WITH THE STATE 500. BUT AGAIN, THOSE THINGS ALSO HAVE BOTH OF THOSE LINE ITEMS HAVE EXPENDITURES BUDGETED FOR ON THE OTHER SIDE. SO IF YOU TOOK JUST THOSE THREE NUMBERS OUT, ONE FOUR, IT'S 3.5 MILLION. THANK YOU. SO YOU CAN SEE THAT WOULD DROP YOUR TOTAL REVENUE DOWN TO BE COMPARABLE TO WHAT WE'RE LOOKING AT NOW. UM, THAT'S, YEAH. NO, THAT'S A LOT CLEARER. YEAH, THANK YOU. THAT'S WHY THIS YEAR WE DIDN'T PUT, UH, MUCH IN THE INTERGOVERNMENTAL. UH, YOU KNOW, IT WOULD BE SOMETHING THAT WE WILL ADD AS, UH, THESE, IF, IF GRANTS COME IN OR, UH, PROJECTS COME IN THAT, UM, YOU KNOW, WE'RE JUST NOT AWARE OF YET, UH, BUDGET FOR THEM WHEN THEY COME IN. NOW, I WILL CAUTION AGAIN, WE, WE, WE HAVE THIS ISSUE WITH THE REAL PROPERTY TAXES, UM, WHERE YOU'RE TAKING A $200,000 HIT ON THE VERY FIRST LINE WITH THE REAL PROPERTY TAX BECAUSE YOU'RE TAKING A HUNDRED THOUSAND DOLLARS HIT FROM THE REFUNDS FROM THE PRIOR YEAR, WHICH IS FY FOR THE YEAR INTO JUNE 30TH, UM, 25, AND YOU'RE TAKING A HIT FOR THE YEAR ENDED JUNE 30TH OF 26, THE A HUNDRED THOUSAND THAT THEY REFUNDED TO THEM IN CASH. AND THEN THE A HUNDRED THOUSAND REDUCTION IN TAXES THAT WERE NEVER BILLED TO THEM, OR EXCUSE ME, THEY WERE BILLED, BUT WHERE THEY WERE ABATED. SO REAL. SO THERE ISN'T THAT ISSUE RIGHT THERE ON THE VERY FIRST LINE, UM, THAT THE 5.5 MILLION 582,000 IS GOING TO BE CLOSER TO 5,382,000. MM-HMM . THE REST OF THE NUMBERS, I THINK WILL BE, BUT I THINK YOU'LL PICK UP ON, UM, AS I MENTIONED BEFORE, SPEED CAMERA. I THINK SPEED CAMERA'S GONNA COME IN HIGHER THAN THE BUDGET AMOUNT. COUNSEL, ANY QUESTIONS ABOUT THE, ANY PART OF THE $10.5 MILLION REVENUE ESTIMATE FOR 27? I DON'T SEE ANY QUESTIONS, MR. GALLOWAY. ANY OTHER, ANYTHING ELSE THAT YOU WOULD LIKE TO SAY BEFORE I ASK FOR PUBLIC INPUT? NO, THAT, THAT, THAT CONCLUDES THE, THE, THE REVENUE, UH, PROJECTION, UH, MAYOR AND COUNCIL. UH, ONE THING THAT I DO ANTICIPATE DOING AND THE UPCOMING FISCAL YEAR, AND WE'VE ALREADY GOTTEN STARTED WITH IT, IS CONTINUE TO BUILD STRONGER RELATIONSHIPS WITH OUR BUSINESSES. OKAY. AND WITH BUSINESSES THAT CAN POTENTIALLY BE A PART OF CHEVROLET, WE DO SEE THE IMPACT THAT BUSINESS MAKE ON OUR BUDGET, BUT ALSO JUST WANTED TO MAKE SURE THAT, YOU KNOW, THEY STAY IN BUSINESS AND WE CAN SUPPORT THEM IN DOING THAT. MM-HMM . IF WE HAVE A FEW BUSINESSES THAT GO OUT OF BUSINESS AND THE INDUSTRIAL PARK, THAT WILL HAVE DEVASTATING IMPACTS TO OUR BUDGET. SO JUST WANTED TO MAKE SURE THAT WE CONTINUE TO BUILD THOSE RELATIONSHIPS AND KEEP THEM, YOU KNOW, STRONG SO THAT WE CAN ADVOCATE ON, BE ON, ON BEHALF OF THEM IF NECESSARY. SO THAT'S WHAT WE'RE GOING TO CONTINUE TO DO IN FISCAL YEAR 27. UM, AND THAT'S IT. THANK YOU SO MUCH. ALRIGHT. ARE THERE ANY, THANK YOU FOR THAT. ARE THERE ANY MEMBERS OF THE PUBLIC WHO WOULD LIKE TO OFFER UP TO THREE MINUTES OF COMMENTS? UH, GERMANE TO THE TOPIC OF 2027 FISCAL YEAR REVENUE. I ONLY SEE THREE ATTENDEES. UM, I DON'T KNOW WHO WASHINGTON AREA VILLAGES EXCHANGE IS, BUT IF WE CAN UNMUTE THEM. NOPE. THEN THEY LEFT. OKAY. [01:05:04] PERHAPS THEY'RE REJOINING. COUNCIL, ANYTHING YOU WOULD LIKE ANYONE ON COUNCIL? I'M, I'M HERE. OH, YOU'RE HERE. OKAY. YOU'RE, AND THIS, AND THIS IS LEILA ZI, WARD ONE. I'M SORRY. IT PICKED UP UNDER, UH, ANOTHER . THAT'S FINE. ANOTHER IDENTITY I'VE WORKED WITH, MY SECRET IDENTITY. UM, I JUST, A COUPLE OF THINGS. THERE'LL BE THINGS IN, UM, FURTHER SESSIONS. ONE, THERE WAS THE CONVERSATION ABOUT THE, UM, CHEVROLET STATION APARTMENTS AND, UM, WHAT YOU WERE GOING OVER IN THE, IN THE BEGINNING. UM, IT IS QUITE LIKELY AND TO BE ANTICIPATED. AND, UM, AND I WOULD DO THE SAME THAT THEY ARE, UH, APPEALING THEIR ASSESSMENT. SO, AND THAT'S REALLY HOW I WOULD TAKE A LOOK AT THAT. IT WOULD BE FOOLISH OF THEM NOT TO GIVEN WHAT THEY'VE OUTLINED, UM, IN THE DOCUMENT. SO JUST, YOU KNOW, JUST JUST TO KNOW. THE OTHER THING IS JUST A VERY, UH, VERY MINOR, BUT VERY, UM, DEAR TO ME ITEM THAT I WOULD LIKE TO HEAR MORE ABOUT, WHICH IS THE ZEROING OUT OF MULCH DELIVERY. AND I'LL HAVE MORE QUESTIONS LATER, BUT LET'S START OUT EASY. UH, WELL, I DON'T, I MEAN, I THINK WE'RE GONNA, I'M SURE THAT THAT MULCH DELIVERY WOULD BE ADDRESSED IN THE, UM, YOU KNOW, IN THE PUBLIC WORKS OPERATIONAL DISCUSSION UNDER THE PUBLIC IN THE PUBLIC WORKS MEETING. SO NOTHING GO AHEAD NOW. NOTHING NOW THAT ANYBODY'S ABLE TO SHARE. UH, GO AHEAD. JUST BECAUSE THERE'VE BEEN SO MANY YEARS OF, OF CONSTRUCTION, UH, WITH THIS, WE'VE ZEROED IT OUT FOR, UM, THE F SINCE THEN. FOR THE REVENUE. YEAH, FOR THE REVENUE. HOWEVER, UM, WE WILL PICK THAT UP AT A LATER DATE, BUT RIGHT NOW IT'S ZEROED OUT. I I DO SEE MR. BRAMAN HERE, UM, IF HE WANTED TO PROVIDE SOME ADDITIONAL COMMENTS. THANK YOU, MR. GALLOWAY. GOOD EVENING. UM, WELL, WE CURRENTLY HAVE BEEN TAKING OUR LEAVES TO THE MES UH, UH, FACILITY. SO, UM, USUALLY TAKES ABOUT A YEAR, SIX MONTHS OF, OF, UH, COOKING THE LEAVES IN ORDER TO DISTRIBUTE MULCH. SO I WOULD ANTICIPATE THAT, UM, UH, POTENTIALLY WE COULD HAVE SOME REVENUE NEXT YEAR, BUT I WOULD CONCUR WITH YOU, MR. GALLOWAY. LET'S, LET'S, UM, UM, LET'S HAVE THAT ZEROED OUT AND LET'S GET THE OPERATION BACK ON AND THEN BRING IT BACK INTO THE BUDGET IN THE FOLLOWING YEAR. IT'S A SMALL AMOUNT. IF WE WERE ABLE TO GENERATE SOME REVENUE NEXT YEAR, IT'LL JUST, UH, NEXT CALENDAR YEAR, THAT WOULD HELP. ALL RIGHT. THANK YOU, MS. BRIZI, YOU HAVE A, A MINUTE OR SO A HALF LEFT. GO AHEAD. CAN YOU HEAR ME? UH, YOU APPEAR TO HAVE MUTED YOURSELF. GO AHEAD. UM, THE, I WAS NO LONGER A PANELIST, SO THEY BROUGHT ME BACK IN. SO THAT'S, THAT'S WHAT IT WAS. UM, MY ONLY RESPONSE WOULD BE TO SAY, UM, THANK YOU AND I LOOK FORWARD TO FUTURE MEETINGS. OH, OKAY. YOU DON'T HAVE ANY MORE COMMENTS BEYOND THAT? NOT AT THIS TIME. ALRIGHT, GREAT. THANK YOU. UM, ALRIGHT. SEEING NO OTHER, UH, MEMBER OF THE PUBLIC WITH THEIR HAND UP COUNSEL, DO YOU HAVE ANY, UH, COMMENTS YOU WOULD LIKE TO MAKE REGARDING THE REVENUE PROJECTIONS? I GUESS I HAVE A SIMPLE ONE FOR, AS A NEWBIE. SO I SEE WHAT THE BUTCHES HAVE LOOKED LIKE THE PAST COUPLE YEARS. I KNOW WE HAVEN'T GONE THROUGH COST YET, BUT IS THERE A, A GENERAL SENSE OF HOW MUCH THEY GO UP YEAR OVER YEAR? A PERCENTAGE THAT THEY GO UP KIND OF NATURALLY YEAR OVER YEAR? OR I GUESS MAYBE THE MORE DIRECT WAY TO SAY THAT IS, DO THESE LOOK GOOD? LIKE THEY COULD BE REALISTIC FOR WHAT OUR BUDGET IS IN, UH, FISCAL YEAR 27? OR SHOULD WE BE THINKING ABOUT, UH, HOW TO FIND SOME SUBSTANTIAL AMOUNT OF MONEY, UH, TO, YOU KNOW, TO EITHER ADD TO THE REVENUES OR REMOVE FROM THE EXPENDITURES? MR. GALLOWAY, DO YOU WANNA ADDRESS THAT MS. MOCK, DO YOU, I WANT TO ADDRESS SOME OF THAT AND THEN I'LL FINISH IT. SURE. UM, THIS, I FEEL LIKE IS THE FIRST PASS THROUGH THE REVENUES. AND AS MR. GALLOWAY POINTED OUT IN THE BEGINNING, UH, EACH DEPARTMENT IS WORKING ON THEIR EXPENDITURES. SO ONCE WE SEE THOSE ITEMS, THEN I THINK THAT REALLY CLARIFIES WHAT YOU NEED TO DO WITH REAL ESTATE TAX, [01:10:01] WHETHER YOU'RE GOING TO NEED TO DO AN INCREASE. UM, IN TERMS OF EXPENDITURES, YOU ALL HAD A STUDY DONE, UH, WHILE AGO ON THE SALARY. SO THE SALARIES, SO THE SALARIES DO HAVE INFLATION BUILT INTO THEM. SO THERE IS A NATURAL INCREASE IN EXPENDITURES EACH YEAR ON THE SALARIES. AND I KNOW THE POLICE DEPARTMENTS, UH, IS GEARING UP TO BE FULLY STAFFED. SO I BELIEVE THAT'S GONNA SHOW A SIGNIFICANT INCREASE THERE OVER THE OVER, UH, 26 BUDGET. SO I, I THINK IT'S A LITTLE PREMATURE YET TO SAY, UM, YOU KNOW, THAT THIS IS GONNA BE YOUR FINAL NUMBERS FOR REVENUE BECAUSE I DON'T THINK IT IS. BUT, UH, I THINK WE HAVE TO WAIT FOR THE EXPENDITURES. UM, AND I THINK THE ANSWER, YOU KNOW, MOST, LIKE MOST BUSINESSES AND MOST INDUSTRIES, THERE'S A, THERE'S GONNA BE AN INCREASE. LIKE FOR EXAMPLE, JUST IN YOUR PROPERTY TAXES, THE INCREASE IN, UH, THE REAL PROPERTY TAXES WAS 5.9% FROM THE ASSESSMENT VALUE. THAT'S HOW MUCH IT INCREASED OVER THE YEAR BEFORE. SO YOU HA CAN ANTICIPATE YOUR EXPENDITURES JUST AS WE'VE ALL SEEN GAS, WHAT GASOLINE PRICES ARE, ARE DOING ALONE. SO, UM, I I DO THINK YOU'RE GONNA HAVE AT LEAST A 5% OR BETTER ON SOME OF YOUR LINE ITEMS AND EXPENDITURES. OKAY. THANK YOU. UHHUH? ? YEAH, I'LL JUST ADD, I THINK, UM, I AGREE WITH ALL OF THAT. I THINK 10.5 MILLION, UH, SOUNDS LIKE A BIG NUMBER, BUT IT'S, THERE'S NOT A LOT OF EXTRA ROOM IN THERE, RIGHT? SO THERE'S TWO THINGS THAT I, WELL, AND COMBINED WITH THAT, WE HAVE FEWER VACANCIES, ESPECIALLY IN OUR POLICE DEPARTMENT, WHICH IS GREAT NEWS, BUT, YOU KNOW, VACANT POSITIONS YIELD A LOT OF UNSPENT MONEY, RIGHT? FILLED POSITIONS YOU HAVE TO PAY FOR. UH, AND SO THERE WILL BE LESS KIND OF WINDFALL SAVINGS FROM VACANT POSITIONS. 10.5 IS NOT A LOT OF MONEY, UM, TO RUN WHAT WE'RE RUNNING HERE. SO, YOU KNOW, THERE WILL BE, UH, AT THAT LEVEL WE WOULD NEED, NEED TO MAKE SOME TOUGH DECISIONS, INCLUDING IN THE CAPITAL IMPROVEMENT PROGRAM, UH, AS WE MOVE INTO THOSE DISCUSSIONS IN THE COMING WEEKS. I THINK THAT THE OTHER THING THAT I'M TRYING TO UNDERSTAND IS, IS $10.5 MILLION IN REVENUE IN FY 27, EVEN IF IT'S GOOD ENOUGH TO PAY OUR BILLS, DOES IT PUT US IN THE POSITION TO SUCCEED ON HILL WHEN, UH, WE HAVE YEARS AHEAD OF US THAT WHERE WE HAVE KIND OF WEIRD EXPENDITURES AND INCOMPLETE REVENUES? UM, I THINK WE'RE GONNA BE IN A VERY GOOD FINANCIAL POSITION WHEN BEVERLY HILL IS COMPLETELY OPEN, COMPLETELY SOLD, COMPLETELY OCCUPIED, AND ALL OF THE TAXES ARE COMING IN AT FULL RATE UP THERE. BUT THAT IS SOME TIME IN THE FUTURE, PROBABLY THE MIDDLE OF THE EARLIEST, THE MIDDLE OF THE NEXT DECADE. THE INTERVENING YEARS I THINK ARE, ARE WHAT, AND PREPARING FOR THOSE ARE WHAT KEEP ME UP AT NIGHT AND KEEP ME LOOKING BACK AT THE 10.5 MILLION TO SAY, IS THIS REALLY THE SMART MOVE THIS YEAR? IS THIS OKAY TO DO THIS YEAR TO PREPARE US FOR 2037 AND 2039, UH, IN ORDER TO GET TO THAT POINT WHERE WE'RE, YOU KNOW, RECEIVING FULL REVENUE AND PROVIDING THE SERVICES THAT WE'RE GONNA PROVIDE UP ON THE HILL. VERY GOOD. I APPRECIATE THAT. THANK YOU. AND IF I CAN JUST PIGGYBACK A LITTLE BIT OFF OF THE MAYOR'S COMMENT AS FAR AS IT RELATES TO CAPITAL IMPROVEMENT PLANS. UM, ONE THING THAT I WANT TO DO IS JUST REASSESS THE OVERALL CAPITAL IMPROVEMENT BUDGET. AND I'LL, I'LL BE MEETING WITH THE MAYOR NEXT WEEK AND THEN AT A LATER DATE, OF COURSE, BE MAKING THE PRESENTATION TO YOU ALL, BUT ENSURING THAT WE PROPERLY PLAN STRATEGICALLY FOR, UH, THE USE OF CAPITAL EQUIPMENT, MEANING THE FLEET MANAGEMENT PROGRAM THAT WE'RE GOING TO PRESENT TO YOU ALL THAT'S GOING TO HELP STABILIZE EXPENDITURES. OKAY. SOME OF THE THINGS THAT WE NEED TO MAKE UPGRADE ZONE, IF WE MAKE 'EM TOO EARLY, THEN WE'RE WASTING TAXPAYER MONEY. IF WE MAKE 'EM TOO LATE, THEN WE'RE OVERLY SPENDING. SO IT'S BEEN, IT'S ABOUT BEING MORE STRATEGIC IN HOW WE PLAN FOR THESE CAPITAL IMPROVEMENTS. KNOWING AND UNDERSTANDING, I'M NOT AN ELECTED [01:15:01] OFFICIAL. UH, YOU ALL CAN JUST SAY, HEY, THIS IS WHAT WE'RE GOING TO DO, BUT I DO WANT A LITTLE BIT MORE STRATEGY BEHIND THE ACTUAL CAPITAL IMPROVEMENT BUDGET RATHER THAN JUST THROWING CASH AT A CERTAIN ITEM JUST BECAUSE IT'S, IT'S A FEEL GOOD ITEM. IF, IF THAT MAKES SENSE. SO, UH, THE MAYOR AND I WILL BE MEETING NEXT WEEK JUST TO KIND OF GO OVER THAT. UM, AND THEN THAT'LL BE PRESENTED TO THE MAYOR AND COUNCIL AT A LATER DATE. SO, UH, THANK YOU FOR THAT, MAYOR AND COUNCIL MEMBERS. ANYTHING ELSE, UH, YOU'D LIKE TO ADD AT THIS POINT? HEARING NONE. IS THERE A MOTION FROM THE COUNCIL? MOTION TO ADJOURN? MOTION TO ADJOURN MADE BY COUNCIL MEMBER GARCE. IS THERE A SECOND? SECOND. SECONDED BY VICE MAYOR BRIER. IS THERE ANY DISCUSSION? HEARING NONE? ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? ANY ABSTENTIONS? THE MOTION PASSES SIX ZERO. UH, WE ARE GOING TO MEET A WEEK FROM TONIGHT, UH, AT SEVEN 30 FOR THE REGULAR WORK SESSION, AND THEN WE WILL BRIEF THE PUBLIC ON THE RE UH, REMAINING BUDGET MEETINGS AT THAT TIME. HAVE A GOOD WEEK AND BE SAFE OUT THERE. SOUNDS GOOD. THANK YOU EVERYBODY. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.