Aug 09, 2023 Commissioners Court - Budget Workshop & Regular Meeting

[1. CALL TO ORDER]

[00:00:17]

IF YOU STAFFED FOR THE INVOCATION.

THE PASTOR AND THE PLEDGE AS WELL.

>> I WANT TO SAY WHAT AN HONOR AND PRIVILEGE TO BE BEFORE YOU.

IT IS A JOY. REALLY, IT IS A JOY.

I BELIEVE -- I HAVE THE BELIEF THAT EVERYTHING THAT AMERICA SHOULD BE RESIDES HERE IN OUR COUNTY.

AND I BELIEVE IT IS BECAUSE OF PEOPLE LIKE YOU WHO TAKE THE TIME TO LOOK FOR THE BEST WELFARE OF OUR COUNTY.

AND I REALLY APPRECIATE THAT. I APPRECIATE THAT.

POW YOUR HEADS. LET'S PRAY.

FATHER GOD, YOU ARE SO GOOD AND FAITHFUL AND THANK YOU FOR THIS WONDERFUL OPPORTUNITY TO ALLOW US TO GET TOGETHER.

THE BIBLE TELLS US WISDOM AND COUNSEL OF MANY.

FATHER, I PRAY TODAY THAT IN THIS ASSEMBLY THAT WISDOM -- THAT WISDOM MAY BE BEFORE US. WE PRAY THE SAME THING THAT MOSES PRAYS. WE DON'T WANT TO DO ANYTHING WITHOUT YOUR PRESENCE GOING BEFORE US.

FATHER, I PRAY TODAY THAT YOU GIVE THEM STRENGTH AND YOU GIVE THEM ENDURANCE AND THE CAPACITY TO MAKE WISE DECISIONS TODAY FOR THE FUTURE OF NUECES COUNTY. LORD, I PRAY TODAY, I SPEAK CONTINUED SUCCESS TO EVERYTHING THAT IS TO COME TO OUR COUNTRY AND EVERYTHING THAT IS TO COME TO OUR COUNTY.

GOD, I PRAY THAT YOU -- THAT YOUR WISDOM, YOUR MERCY AND YOUR GRACE DWELL WITH US TODAY, FATHER.

WE THANK YOU. YOU ARE GOING TO GIVE GLORY FROM WHAT HAPPENS HERE TODAY. WE LOVE YOU.

IN THE NAME OF JESUS WE PRAY, AM AMEN. JU

. >> HONOR THE TEXAS FLAG.

I PLEDGE ALLEGIANCE TO BE THEE, TEXAS, ONE STATE UNDER GOD, ONE

AND INDIVISIBLE. >>JUDGE SCOTT: IT IS 9:07 NOW AND WE ARE WEDNESDAY, AUGUST 9, 091 LEOPARD, THE NUECES COUNTY COURT ROOM AND WE HAVE A QUORUM OF MEMBERS PRESENT.

PLEASE SHOW THAT COMMISSIONER GONZALEZ STEPPED OUT AND HE IS

[D. ANNOUNCEMENT ON DISCLOSURE OF CONFLICTS OF INTEREST: Any Conflicts of Interest or Appearance of a Conflict of Interest with items on this agenda shall be declared at this time. Members with conflicts will refrain from voting and are asked to refrain from discussion on such items. Conflicts discovered later in the meeting shall be disclosed at that time.]

ANNOUNCEMENTS OF DISCLOSURES OR CONFLICTS OF INTEREST.

AND IF ANYONE HAS LATER, YOU CAN ALSO DISCLOSE IT AT THAT TIME.

[E. BUDGET WORKSHOP WILL BEGIN AT 9:00 A.M. The Court will discuss matters related to the 2023-2024 Budget. CLOSE BUDGET WORKSHOP AND CONVENE REGULAR MEETING AT 11:00 A.M.]

AND I WILL TURN THIS OVER TO LI

LISA. >> GOOD MORNING, COMMISSIONERS.

GOOD MORNING, JUDGE. I PLACED ON EVERYONE'S DESK -- THERE WAS A LAST MINUTE REVISION WE RECEIVED FROM THE APPRAISAL DISTRICT ON FRIDAY AT 11:15 A.M. I WAS IN A RAP BID HURRY TO GET THOSE CALCULATIONS RECALCULATED WITH THOSE REVISIONS.

AND I HAD A TYPO. IT'S ON ME.

AND I OWN THAT. I HAD A TYPO IN MY HAYES TO RECALCULATE. AND SO WHAT WAS ATTACHED TO THE AGENDA HAD A MINOR -- AND I DO MEAN MINOR, A VERY SMALL CHANGE, BUT I DID GIVE YOU THE REVISED, AND THEY ARE ALL IN FRONT OF YO YOU.

>>COMMISSIONER CHESNEY: THAT'S THIS?

>> YES, SIR, THAT IS THAT. OKAY.

SO FIRST, WE ARE GOING TO DISCUSS THE -- AND THEY WERE IN THE CORRECT ORDER FOR YOU TOO. THE COMPARISON OF NET TAXABLE VALUE. CAN YOU SEE THAT ON THE SCREEN? DO YOU NEED TO ZOOM OUT A LITTLE BIT.

>>JUDGE SCOTT: SO WE GET THE WHOLE SCREEN.

YES, WE HAVE IT IN FRONT OF US AS WELL.

>> GOING THROUGHOUT COMPARISON OF THE NET TAXABLE VALUE.

THE VERY TOP CALCULATION THAT YOU WILL SEE IS THE GENERAL FUND, M&O AND DEBT SERVICE --M ANDO IS MAINTENANCE AND OPERATION AND THE DEBT CALCULATION RATE AND THOSE TWO ARE COMBINED TOGETHER. WHENEVER YOU ARE CALCULATING FOR THE GENERAL FUND. YOU WILL SEE THE COMPARISON OF THE 2022 TO THE 2023 TAX YEAR. AS YOU CAN SEE, OUR TAXABLE VALUE THAT WAS CERTIFIED BY THE APPRAISAL DISTRICT HAS INCREASED BY 21.14%. THAT IS -- THAT IS THE

[00:05:05]

THE MAJORITY OF THAT $8.1 BILLION INCREASE ARE THE REFINERIES THAT WILL -- THAT WE ARE ANTICIPATING TO BE DISPUTED VIA LAWSUIT. I DON'T KNOW THE STATUS OF THAT CURRENTLY, BUT I BELIEVE THAT IS OUR ANTICIPATION.

AND IT IS AN EDUCATED ANTICI ANTICIPATION. CHEST COMMITTEES LISA, THE NEW DMM WHERE IT AGE INCALLY WENT FROM $6.2 MILLION TO $5.5

BILLION OR SOMETHING LIKE THAT. >> OUR UNDERSTANDING THAT THE APPRAISAL DISTRICT AFTER EVALUATION TO RE-EVALUATE THEIR ORIGINAL ASSESSMENT. THEY ORIGINALLY ASSESS AND THE THEY CERTIFIED BOTH REFINERIES AT ABOUT 6.5 -- OVER $6.5 BILLION AND PREVIOUSLY ABOUT $1 BILLION TO $172 BILLION.

AN INCREASE OF APPROXIMATELY 500%.

THEY THEN CAME BACK AND LOWERED THOSE APPRAISED VALUES DOWN TO

2.5. >>COMMISSIONER CHESNEY: THOSE

NUMBERS ARE REFLECTED IN HERE? >> THAT'S CORRECT.

WITH THE REDUCED VALUES. HAD THEY REMAINED AT THE 6, IT WOULD HAVE BEEN EVEN HIGHER. AND THE WAY THAT THE PROPERTY TAX RATE IS CALCULATED, VERY SIMPLY PUT, I MEAN THERE IS A LOT OF -- A LOT OF OTHER FACTORS BUT WHENEVER YOUR APPRAISED VALUE GOES UP, YOUR TAX RATE GOES DOWN, BECAUSE THE NO NEW -- THE NO NEW REVENUE RATE CALCULATES THE -- ESSENTIALLY THE SAME REVENUES. IF YOU LOOK AT THE PROPERTY IN ONE TAX YEAR AND LOOK AT THOSE EXACT SAME PROPERTIES IN THE FOLLOWING TAX YEAR EXCLUDING VALUE, THE NO NEW REVENUE RATE.

IF THOSE PROPERTIES GO UP, YOUR TAX RATE WILL GO DOWN SO YOU GET ESSENTIALLY THE SAME REVENUES FOR THE SAME PROPERTIES YEAR-OVER-YEAR. AND YOUR VOTER APPROVED TAX RATE ISN'T ACTUALLY A TAX RATE THAT INCLUDES VOTER APPROVAL.

AND A TAX RATE, IF YOU EXCEED IT, IT REQUIRES VOTER APPROVAL.

SO A LIMIT WITHOUT INITIATING THAT ELECTION.

GOING BACK TO THE -- WE WILL GET TO ALL THAT GOING FURTHER BACK.

THE ROLLING RAILROAD IT WENT UP BY $1.2 MILLION.

THE VALUES OF PROPERTY UNDER PROTEST.

THE REFINERIES ARE NOT REFLECTED IN THAT NUMBER.

THEY ARE REQUIRED BY LAW TO CERTIFY A CERTAIN PERCENTAGE AND THEY WANT BE ABLE TO CERTIFY THAT PERCENTAGE IF THE REFINERIES WERE IN THAT AMOUNT -- JUST A SECOND.

LET ME GET A DRINK. AND THEN YOUR TAX BILLING ARE THOSE PROPERTIES IN WHICH THEY SET THE CEILING FOR YOUR -- FOR YOUR OVER 65. YOUR DISABLED VETERANS.

THOSE PROPERTIES IN WHICH YOU CAN'T EXCEED A KNOWN THRESHOLD AND THAT THRESHOLD LIMIT. AND SO YOU ARE SUBTRACTING THAT EXCESS THAT YOU WOULDN'T BE ABLE TO COLLECT PAUSE OF THOSE THRESHOLDS. YOUR TOTAL TAXABLE VALUE WITH THE REFINERY'S EVALUATION, IS INCREASED BY 20.05%.

THAT IS A SIGNIFICANT INCREASE TO SAY THE LEAST.

YOUR FARM-TO-MARKET. THE DIFFERENCE BETWEEN YOUR FARM-TO-MARKET AND YOUR GENERAL FUND IS THAT THE GENERAL FUND.

IT IS NOT REFLECTED IN THIS NUMBER, BUT THE GENERAL FUND DEBT HAS TIFS THAT THE BOARD ASSERTS THAT THE FARM-TO-MARKET DOES NOT HAVE SO THOSE VALUES ARE GOING TO BE DIFFERENT.

THERE IS ALSO ADDITIONAL ITEMS THAT YOU HAVE TO ADD TO THE VOTER APPROVED TAX RATE THAT YOU CAN FOR THE GENERAL FUND RATES THAT YOU ARE NOT ABLE TO USE FOR THE FARM-TO-MARKET.

THEN THE THIRD -- THE THIRD TAXABLE VALUE.

IT IS FOR THE HOSPITAL DISTRICT. COMPARING YOUR 2022 TO YOUR 2023 YEAR AN INCREASE OF 19.85%. THE HOSPITAL DISTRICT DOES NOT PARTICIPATE IN ANY -- THEY DON'T HAVE ANY TAX BILLING.

THEY DON'T HAVE ANY FROZEN PROPERTIES.

THEY ALSO DON'T HAVE ANY CERTS OR TIFS.

AS RETURNING MEMBERS OF COMMISSIONERS COURT WILL REMEMBER, THEY ARE ALLOWED TO ADOPT UP TO THE 8% OVER THE NO

[00:10:04]

YES, SIR? >>COMMISSIONER CHESNEY: QUESTION BACK ON THE CERTIFIED APPRAISAL ROLE, IS IT YOUR UNDERSTANDING THAT IF THESE REFINERIES SOMEHOW RESOLVE THE 23 -- RESOLVE FIVE YEARS, 18 TO 22. BOLERO HAS SOME BIG MEDIATION TODAY. IF THEY WERE ABLE TO RESOLVE IT, IS IT TOO FAR PAST THE CERTIFIED TAX ROLL TO WHERE WE -- WE COULD GO BACK AND FIX THINGS IF THEY ARE NOT GOING TO DISPUTE THINGS? OR WHAT IS THE LAW ON THAT. OR DO YOU --

>> I WOULD DEFER TO THE COUNTY ATTORNEY REGARDING ANY LAWS.

I BELIEVE THAT AS FAR AS IF WE WERE TO GET NEW CERTIFIED NUMBERS WHICH IS CONSIDERED SUPPLEMENT FROM THE APPRAISAL DISSTWRAKT JUST LIKE I DID ON FRIDAY.

IF YOU GET ANY SUPPLEMENTAL INFORMATION, YOU CAN GO BACK AND RECALCULATE THE TAX RATES. YOU DO HAVE TO START OVER.

I WOULD THEN HAVE TO RESUBMIT THE TAX RATES TO COMMISSIONERS COURT. AND IT ALL DEPENDS ON FAR ALONG

IN THE PROCESS YOU ARE. >>COMMISSIONER CHESNEY: LIKE TODAY -- TODAY, WE ARE VOTING ON THIS TAX --

>> NO, NO VOTE TODAY. YOU ARE JUST RECEIVING THE CALCULATIONS OF THE NEW NEW REVENUE RATE.

ON THE 23RD, YOU WILL BE VOTING ON A PROPOSED TAX RATE FOR THE -- FOR NUECES COUNTY FARM-TO-MARKET AND HOSPITAL

DISTRICT. >>COMMISSIONER CHESNEY: BETWEEN NOW AND THE 23RD, WE CAN CERTAINLY MAKE ADJUSTMENTS AND A HASSELL AND COME FOR ANOTHER MEETING AND SO FORTH BECAUSE WE HAVE LEGAL GUIDELINES WE HAVE TO MAKE THE VOTES BY AND THE 23[L]R[L]D IS ONE OF THEM. AND I DON'T KNOW -- I THINK THERE IS A HIGH -- CERTAINLY A HIGH LIKELIHOOD THAT THESE MAGICALLY COME DOWN FROM 6.5 BILLION TO $5.25 BILLION.

THERE COULD BE VERY SOLVE THE GAP.

WE WOULD HAVE TO VOTE ON THE 23RD AND RESUBMIT AND START

OVER. >> I WOULD BE ABLE TO IF WE COULD SCHEDULE -- WE HAVE WORKSHOPS, I BELIEVE, SCHEDULED FOR MONDAY AND THURSDAY. I DON'T KNOW --

>>JUDGE SCOTT: 14TH AND 17TH. >> SPILL HAVE TO DEFER TO COUNTY ATTORNEY TO SEE IF THERE WAS A REQUIRED TIME PERIOD BETWEEN THOSE. I DON'T KNOW OFF THE TOP OF MY HEAD AND I DON'T WANT TO MAKE A MISTAKE.

>>COMMISSIONER CHESNEY: SOMEONE NEEDS TO HAVE THIS READY TO GO AND THE WHOLE HANDLING OF THE APPRAISAL DISTRICT WILL HAVE TO BE LOOKED AT CAREFULLY BY THE INDEPENDENT BOARD.

BACK AND FORTH, ALL AROUND, GOING FROM $2 BILLION TO $6 BILLION HAS BEEN RIDICULOUS THE AMOUNT OF WORK IT HAS PUT ALL THESE ENTITIES TOO, ALL THE PAIN AND SUFFERING AND TO GO ALL THE WAY THROUGH THAT THINKING WE WILL GO ONE THING 6.2 MILLION TO 557 CERTAINLY SMELLS A LITTLE FUNNY AND HOPEFULLY THAT APPRAISAL DISTRICT BOARD WILL LOOK CLOSELY AT THAT.

THE AMOUNT OF AGONY AND WORK THAT IT PUT NOT JUST NUECES COUNTY BUT THE DEL MAR AND THE HOSPITAL DISTRICT AND EVERYONE ELSE HAS BEEN A JOKE. AN ABSOLUTE JOKE IN THIS COMMUNITY AND SOMETHING NEEDS TO BE LOOKED AT.

WITH THAT SAID, WE REALLY NEED TO HAVE THIS PROCESS DOWN.

BECAUSE IF BY SOME MIRACLE THEY DO RESOLVE THIS AND SETTLE AND THESE NUMBERS COME BACK AND WE ARE ON AN EVEN TIGHTER TIME FRAME. WE HAVE TO SHOVE THIS INTO A BRIEF PERIOD OF TIME BECAUSE OF ALL THIS UNCERTAINTY CREATED BY THE APPRAISAL DISTRICT. SO I JUST MAKE SURE THAT WE GOT THIS DOWN SO WE KNOW WHAT WE HAVE GOT TO DO IF BY SOME

MAGICAL THING IT SETTLES. >>COMMISSIONER GONZALEZ: I AGREE WITH COMMISSIONER CHESNEY. EVEN FROM THE BEGINNING, YOU KNOW, I ALWAYS SAID -- OR WE SAID, YOU KNOW, THE SPREAD IS WAY -- FROM ONE EXTREME TO THE OTHER EXTREME AND WE DON'T KNOW HOW THEY CHIME UP WITH THAT. WE HAVE ACTUALLY TWO OPTIONS.

THE NO NEW REVENUE TEXT AND THE VOTER APPROVED 3.5 --

>> YOU ARE JUMPING WAY AHEAD. >>JUDGE SCOTT: SHE WILL GET TO

THAT IN A MOMENT. >>COMMISSIONER GONZALEZ: LET ME JUST MAKE MY CASE. THERE IS A DIFFERENCE OF $1

MILLION FROM BOTH OF THOSE. >> YES, SIR, I WILL GO OVER EXACTLY WHAT THAT DIFFERENCE IS, BUT YES, SIR.

>>JUDGE SCOTT: YOU ARE CORRECT. >>COMMISSIONER CHESNEY: YOU ARE GOING TO GET TO -- WE GOT AHEAD OF YOU.

[00:15:03]

I APPRECIATE THAT. NO, I AM BEING FUNNY.

YOU WILL TELL US AT THE END OF THIS SOMEWHERE BECAUSE I COULDN'T READ IT WHEN I WAS LOOKING AT IT, HOW MUCH OF A BUDGET DEFICIT WE ARE LOOKING AT BASED ON THE NUMBERS AS THEY ARE

TODAY. >> THE NUMBERS AS THEY ARE TODAY, YES. WE ARE -- BUDGET IS EXTREMELY IN THE VERY -- LET'S SAY PRIMITIVE STATE.

>>COMMISSIONER CHESNEY: SURE. >> WE ARE STILL GATHERING BUDGET INFO. WHEN LOOKING OVER THE BUDGET YESTERDAY, I FOUND THAT THERE WERE SOME ITEMS THAT HAVEN'T BEEN ACCOUNTED FOR THAT ARE CONTRACTUAL RATE INCREASES SO WE HAVE TO ADD THOSE TO THE BUDGET. SO LIKE I SAID, THE BUDGET RIGHT NOW IS VERY FLUID. VERY -- IT'S -- IT IS -- FOR EXPENSE PURPOSES, FOR REVENUE PURPOSES FOR THAT MATTER.

IT IS VERY, VERY FLUID UNTIL WE GET THAT PROPOSED, UNTIL WE GET SOME DIRECTION FROM COMMISSIONERS COURT, IT IS GOING TO STAY EXTREMELY FLUID. UNTIL WE ARE ABLE TO GET ALL THE

DATA INPUT INTO THE BUDGET. >>JUDGE SCOTT: WHAT YOU SAID WAS

CONTRACTUAL THAT WE HAVE TO. >> YES, WE HAVE TO.

FOR INSTANCE, THE -- THE RICO C COPIERS. IT WAS -- IT IS IN THE PROCESS OF GETTING ENTERED INTO RIGHT NOW.

THERE ARE A FEW OTHER THINGS THAT HAVE BEEN IDENTIFIED.

I AM GOING TO HAVE A LIST FOR YOU FROM EVERY ADJUST THAT WE ARE GOING -- THAT WE ARE GOING TO NEED TO MAKE BETWEEN THE ORIGINAL -- FROM THE ORIGINAL WORKSHOP NOTEBOOKS THAT YOU WILL BE GETTING. I AM HOPING TOMORROW OR FRIDAY, BUT I AM TRYING TO BE REALISTIC HERE, BUT FROM THE ORIGINAL WORKSHOP NOTEBOOKS THAT WE ARE GOING TO BE GIVING YOU FOR MONDAY'S MEETING ALL THE WAY THROUGH THE PROPOSED -- I AM GOING TO KEEP A LISTING OF ANYTHING THAT IS ADDED OR SUBTRACTED AT THE DIRECTION OF COMMISSIONERS COURT.

WE WOULD REALLY LOVE TO GET THAT FEEDBACK FROM YOU SO WE CAN HAVE A REALLY GOOD PROPOSED GOING IN. AND WE CAN SEE WHERE -- WHERE WE REALLY ARE AT THE PROPOSED AND THEN MAKE THE FINAL CHANGES NECESSARY AT THE VERY END AND HAVE A GOOD BASE.

>>JUDGE SCOTT: IF WE DON'T HAVE IT, HARD FOR US -- HAVE A HARD TIME BECAUSE I HAVE BEEN TOLD FIVE DIFFERENT NUMBERS IN MY MEANINGS IN THE WEEKENDS AND PLANS FOR TWO MONTHS IN ADVANCE.

>> CONSTANTLY CHANGING, YES. >>JUDGE SCOTT: THIS IS GOING TO BE A VERY RAPID CHANGE WHEN WE DO HAVE TO MAKE THESE DECISIONS SO WE NEED THE CONFIDENCE THAT WHAT WE ARE BEING PRESENTED IS GOING TO BE ACTUAL. THIS HAS BEEN A CRAZY YEAR.

I KNOW IT HAS BEEN FOR Y'ALL TOO.

IT HAS BEEN MY FIRST TIME, BUT THERE IS NO WAY FOR ME -- EVERY TIME I MOVE FORWARD, I THINK THIS IS THIS.

AND IT IS NOT AND THEN A CHANGE AND AN ADJUSTMENT.

>> WHICH IS WHY I WANTED TO LET YOU KNOW FIRST THING GOING FORWARD THAT WHILE REVIEWING THE NUMBERS JUST YESTERDAY, WE REALIZED, OH, WE ARE MISSING THIS.

OH, WE ARE MISSING -- THAT IS THE REASON WHY WE ARE STILL TRYING TO GET THOSE NOTEBOOKS TOGETHER.

WHENEVER WE GET THEM TO YOU, WE WANT TO GIVE GOOD NUMBERS.

>>JUDGE SCOTT: I DON'T KNOW IF I AM CONNECT AND IF I MIGHT BE WRONG OR SOMETHING, BUT WE ARE SUPPOSED TO GET THE MONTHLY REPORTS AT THE END OF THE YEAR. THE END OF THE YEAR WOULD BE FIGURED OUT A LOT SOONER WHERE WE KNOW THIS YEAR -- NEXT YEAR WILL BE CRAZY AND PART OF THE PROBLEM NOT GETTING ALL THE INFORMATION ON LAST YEAR'S STUFF.

>> THE CURRENT YEAR. >>JUDGE SCOTT: SIX MONTHS LATER.

I KNOW THE WORKDAY IS GOING ON. A LOT OF THINGS GOING ON.

THAT IS A REQUIREMENT AND THAT SHOULD BE CORRECTED, YES.

>> YES, MA'AM. >>COMMISSIONER CHESNEY: LET ME FOLLOW UP ON THAT. TODAY, I THOUGHT WHAT THIS WAS GOING TO PRODUCE -- YOU PRODUCED A TON OF GOOD DATA.

I APPRECIATE IT. YOU HAVE DONE A GREAT JOB ON THIS. A LOT OF OPTIONAL STUFF ON THIS BLUE LIST. WE HAVEN'T GOTTEN TO IT YET, BUT HARD TO UNDERSTAND IN A NICE SUCCINCT PACKAGE BECAUSE IT IS SO GIVE AS WE GO THROUGH THIS STUFF.

AND MY QUESTION IS FOR TODAY. AND I UNDERSTAND IT CAN CHANGE, BUT MY QUESTION IS FOR TODAY IS, EVERYTHING THAT IS CONTRACTUAL OR -- WE ARE OBLIGATED TO -- NOT THAT WE VOTED ON YET OR THERE ARE SOME THINGS IN HERE THAT -- I DON'T THINK WE NEED TO BE INCREASING ANYTHING AT ALL THIS YEAR UNTIL I SEE NUMBERS THAT AREN'T SHOWING US IN A HUGE HOLE.

SO I NEED TO KNOW TODAY WHERE YOU PROJECT THE BUDGET TO BE.

MEANING, IS IT -- TODAY. AND WE NEED TO PREFACE THAT BY

[00:20:01]

BUT TODAY IS TODAY. WE ARE IN AUGUST.

WE ARE NORMALLY WAY FARTHER THAN WE ARE.

NOT AT YOUR FAULT. AGAIN, POINTING BACK TO THE APPRAISAL DISTRICT AND HOW THIS WHOLE THING HAS BEEN HANDLED AND WHATEVER ROLE -- NOT JUST PICKING ON THE APPRAISAL DISTRICT ONLY. ALWAYS DISPUTE BETWEEN THE APPRAISAL DISTRICT AND THE TWO REFINERIES ON THIS.

THAT IS OKAY. THEY HAVE A RIGHT TO DISPUTE.

WE ARE HERE NOW. WE ARE GETTING REAL CLOSE WHEN WE NEED TO MAKE VOTES. I NEED FOR YOU TO TELL US IN THIS PRESENTATION WHAT THE AUDITOR'S OFFICE PROJECT OUR BUDGET TO LOOK LIKE. ARE WE IN THE HOLE OR NOT?

I HEARD ALL KIND OF NUMBERS. >> THERE IS -- THERE IS NO WAY THAT WE WILL NOT BE IN THE HOLE. THAT IS A GIVEN.

UNLESS YOU ARE GOING TO HAVE AN ELECTION TO EXCEED THE VOTER APPROVED TAX RATE, NUECES COUNTY IS GOING TO BE IN THE HOLE.

THERE IS NO WAY AROUND THAT. 37.

>>COMMISSIONER CHESNEY: AS OF TODAY, BECAUSE I AM GOING TO LISTEN TO EVERYTHING THAT YOU PRESENT, BUT AT THE END OF THE DAY, IT ALL BOILS DOWN TO, BECAUSE I AM GOING TO LOOK AT WHERE -- AND THIS COURT DOES. IF WE HAVE TO MAKE CUTS, WE GOT TO BE ABLE TO WORK ON WHERE THOSE CUTS ARE.

WE HAVE GOT TO GO BACK TO THE ELECTED OFFICIALS AND DEPARTMENT HEADS AND SAY WE ARE LOOKING AT A BLANK MILLION DOLLAR DEFICIT.

YOU NEED TO HELP US DEPARTMENT HEADS, ELECTED OFFICIALS.

YOU NEED TO HELP US BY SEEING WHERE YOU CAN LOOK AT THINGS.

I DON'T DON'T WANT TO TELL CAROL OR KEVIN WHAT TO DO.

I WANT TO LOOK AT THEM AS A PARTNER AND SAY WE ARE ALL IN THIS TOGETHER. THEY ALL RUN THEIR OFFICES VERY EFFICIENTLY, RIGHT. I KNOW THAT.

AS DO WE, BUT IF WE ARE GOING TO BE FIVE, SIX, EIGHT, WHATEVER IT MILLION IN THE HOLE, WE NEED TO KNOW THIS.

WHAT IS THAT NUMBER, BEST CASE FROM JENKS.

>>COMMISSIONER GONZALEZ: WILL HAVE TO START WITH US TOO.

WE HAVE PROJECTS THAT WE NEED -- >>COMMISSIONER CHESNEY: PROJECTS

AND WHATEVER. >>COMMISSIONER GONZALEZ: NOT JUST DEPARTMENT HEADS. WE HAVE TO BE -- OURSELVES, YOU KNOW, BE ABLE TO PUT SOMETHING ON THE TABLE AND SAY.

WHY ARE WE ASKING DEPARTMENT HEADS FOR EVERYTHING.

THE EMPLOYEES -- I WOULD NEVER CONSIDER EMPLOYEE REDUCTION.

THAT WILL BE THE LAST THING I WOULD EVEN CONSIDER.

I AM JUST SAYING, WE NEED TO START WITH US.

BECAUSE I THINK WE HAVE THE OPPORTUNITY THAT WE HAVE THE ABILITY TO GIVE THOSE MONIES FROM CERTAIN PROJECTS THAT WE HAVE WHETHER WE WANT TO OR NOT. I THINK THAT IS WHERE WE NEED TO

START. >>COMMISSIONER CHESNEY: I DON'T DISAGREE WITH ANY OF THAT BUT I NEED TO KNOW.

IF IT IS $1 MILLION, WE CAN DO THAT IN 15 MINUTES.

$10 MILLION, THAT IS GOING TO BE ROUGH.

AS TODAY -- I AM GOING TO ASK TODAY, BASE AND WHAT YOU SEE ONLY ON WHAT WE ARE OBLIGATED TO DO.

WE HAVEN'T DONE ANY COMMISSIONER OR JUDGE INPUT WHAT IS THE AUDITOR'S OFFICE IS LOOKING FOR THE DEFICIT AS OF AUGUST 9,

2023. >> IT IS EXTREME HARD TO TELL YOU WHAT THE BUDGET IS GOING TO LOOK LIKE WITHOUT ANY FEEDBACK AS TO WHAT YOU WANT FOR EXPENSES.

WE KNOW WHAT CONTRACT -- WHAT CONTRACTUALLY YOU ARE REQUIRED; HOWEVER, JUST BECAUSE THERE IS A CONTRACT DOES NOT MEAN THAT WE COULD NOT CHOOSE TO GET OUT OF SAID CONTRACT.

>>COMMISSIONER CHESNEY: THAT IS NOT MY QUESTION.

>> AND GO A DIFFERENT WAY. COMMISSIONERS COURT HAS A LOT OF

CHOICE THIS HE GET TO MAKE. >>COMMISSIONER CHESNEY: YOU NEED

TO TELL US WHERE WE ARE TODAY. >> THAT IS WHAT WE ARE WORKING ON GETTING FOR YOU. IF.

>>JUDGE SCOTT: YESTERDAY WE ARE UNDER A CONTRACT --

>>COMMISSIONER CHESNEY: THAT IS A VOTE FOR A LATER DAY.

I NEED TO KNOW WHAT THE AUDITOR IS PROJECTING AS OF TODAY, NO

CUTS, NO CONTRACTUAL GET OUTS. >> WE ARE A LITTLE OUT TOPIC.

>> MAY WANT TO SHOW K-2 WITH 100% EXPENSES WHAT THE

PROJECTION. >> LIKE I SAID, WE ARE GOING TO GET THERE. BUT I AM --

>>JUDGE SCOTT: WE WILL LET YOU DO YOUR PRESENTATION.

>>COMMISSIONER CHESNEY: I WANT TO KNOW -- THIS IS THE ONLY THING I WANT TO KNOW TODAY. THIS IS MY NUMBER ONE QUESTION.

DO YOU HAVE THE NUMBERS RIGHT NOW.

I'M GET THERE WILL NOW. YOU CAN GO THROUGH AURAL THE PRESENTATION, BUT I WANT TO KNOW WHAT WE ARE STARTING AT.

WE GOT TO START LOOKING AT THIS STUFF.

WHAT DO YOU PROJECT -- DALE AT ONE POINT SAID THREE TO SEVEN.

I HEARD 10, 14. A HUGE DIFFERENT.

>> VARIED A LOT -- WHENEVER YOU ARE TALKING THE DIFFERENCE BETWEEN AN A VALUE OF THE REFINERIES AT 6.5.

THAT GOES DOWN TO 2.5, THAT IS $4 BILLION IN VALUE.

>>COMMISSIONER CHESNEY: WE WERE TALKING ABOUT $25 MILLION OR $30

MILLION. >> EXACTLY.

THE REASON THE RANGE KEEPS CHANGING IS BECAUSE WE ARE -- WE HAVE BEEN TRYING TO GET A BULLS EYE ON A MOVING TARGET.

AND IT IS AN EXTREMELY CHALLENGING --

[00:25:03]

>>JUDGE SCOTT: ASKING FOR PAGE 6 AND PAGE 7.

>> IF YOU WERE WANTING JUST A REVENUE PROJECTION, YOU WILL

WANT TO GO -- >>JUDGE SCOTT: THE ANTICIPATED

LOSS. >>COMMISSIONER CHESNEY: DEFICIT PROJECTION. IF YOU WERE SAYING WE ARE IN A DEFICIT WITH NO INPUT, NO CUTS, WITH WHAT WE KNOW TODAY, NOT 2.5, NOT 6.2. WHAT DO YOU PROJECT TODAY, CHANGES TOMORROW, CHANGES THE NEXT DAY.

BUT WHAT DO YOU PROJECT TODAY WE ARE TALKING ABOUT AS A DEFICIT.

>> EXCLUDING EXPENSES, JUST LOOKING AT REVENUE, BECAUSE REVENUE VARIES BASED UPON WHAT A YOU ADOPT.

GOING TO PAGE 6 THAT SAYS. THERE YOU GO.

THAT'S IT. OKAY, SO GOING TO PAGE 6, IT IS ON THE SCREEN. YOUR NO NEW REVENUE TAX RATE.

WITH THE ADJUSTMENTS FOR THE ESTIMATED UNCOLLECTED LAWSUIT REFINERIES -- AND, AGAIN, WE DON'T KNOW HOW MUCH THEY ARE

GOING TO PAY. >>JUDGE SCOTT: THIS IS ANTICIPATED. JUST GO AHEAD AND SAY THE

NUMBER. >> WE ARE DOWN $6.694 MILLION ASSUMING THE NO NEW REVENUE RATE.

THAT IS BEFORE ANYBODY REQUESTS ANYTHING.

BEFORE THERE IS ANY CONTRACTUAL INCREASES, BEFORE THERE ARE ANY EXPENSES LOOKED AT. JUST A PROPERTY TAX TO PROPERTY TAX, YOU ARE DOWN 6.9694 MILLION.

>>COMMISSIONER CHESNEY: WE DO HAVE CONTRACTUAL THINGS THAT WE MADE NO INPUT ON AND THAT NUMBER HAS TO BE THROWN IN TOO.

>> THAT NUMBER HAS TO BE THROWN IN TOO AND FURTHER BACK.

HOLD ON, BEFORE WE GO FURTHER BACK SINCE WE ARE ALREADY RIGHT THERE, PAGE 7, THE FACING PAGE IS GOING TO BE THE VOTER APPROVED TAX RATE. SO I AM GIVING YOU THE MINIMUM AND THE MAXIMUM BECAUSE THAT IS WHAT I AM SUPPOSED TO BE SUBMITTING IN THIS WORK AUTHORIZATION AND COMMISSIONERS COURT TODAY. THE MINIMUM AND MAXIMUM.

THE MAXIMUM, WHICH WOULD BE YOUR VOTER-APPROVED TAX RATE THAT YOU CAN ADOPT WITHOUT AN ELECTION IS GOING -- WOULD RESULT IN A

DEFICIT OF $1.702 MILLION. >>JUDGE SCOTT: IF WE RAISE THE

3.5. >> IF WE GO TO THE 3.5 VOTER-APPROVED TAX RATE. AGAIN BEFORE THERE IS ANY ADJUSTMENT FOR ANY EXPENSES FOR KNOWN EXPENSES, FOR CHANGES YOU ALREADY MADE IN THE EXISTING BUDGET YEAR.

IT IS GOING TO IMPACT NEXT BUDGET YEAR BEFORE ANYTHING.

I AM LOOKING AT ONE REVENUE NUMBER OF PROPERTY TAX TO THE OTHER NUMBER OF REVENUE PROPERTY TAX.

>>COMMISSIONER CHESNEY: FOR EXAMPLE, THIS DOESN'T HAVE ANYTHING FOR COLLECTIVE BARGAINING.

>> THAT'S CORRECT. >>COMMISSIONER CHESNEY: TO CONTRACTUAL RESPONSIBILITIES. THOSE NUMBERS SUPER LOW IS WHAT

YOU ARE TELLING US. >> THEY ARE SUPER LOW.

THERE IS NO WAY UNLESS YOU EXCEED THE VOTER APPROVED TAX RATE THAT YOU ARE GOING TO BE ABLE TO START OFF ON AN EVEN PLAYING FIELD. IT IS IMPOSSIBLE.

>>COMMISSIONER CHESNEY: LIKE ALL THESE THINGS ON THE BLUE SHEET.

>> THAT IS A BELIEF FOR MONDAY'S WORKSHOP.

WE CAN TALK ABOUT THAT IN A MINUTE.

>>COMMISSIONER CHESNEY: I WILL LEAVE THAT ONE OUT THEN.

SO WHAT -- WHAT YOU HAVE DONE HERE IS NO COLLECTIVE BARGAINING -- WHEN YOU SAYS THERE NO CONTRACTUAL --

>> JUST THAT ONE PROPERTY TAX REVENUE NUMBER.

THAT IS THE MAJORITY OF YOUR REVENUE THAT YOU GET FOR THE GENERAL FUND. IT IS JUST THAT ONE NUMBER, YEAR-OVER-YEAR CHANGE. NO WAY THAT NUMBER IS NOT GOING TO GO DOWN $1.7 MILLION UNLESS YOU HAVE AN LEGISLATURE.

>>COMMISSIONER CHESNEY: INCLUDES NO ADDS.

THE EXPENSES. THE SAME EXPENSES FROM LAST

YEAR. >> NOT LOOKING FOR ANYTHING FOR EXPENSES. JUST LOOKING AT THAT ONE REVENUE NUMBER, WHICH IS 90% OF YOUR REVENUE THAT YOU HAVE FOR THE GENERAL FUND. JUST LOOKING AT THAT ONE REVENUE NUMBER. IT IS GOING DOWN BY $177

MILLION. >>COMMISSIONER CHESNEY: YOU ARE SAYING -- THIS IS NOT OUR DEFICIT.

THIS IS JUST THE LESS REVENUE NUMBER.

>> THAT IS JUST THE LESS REVENUE NUMBER.

>>COMMISSIONER CHESNEY: WILL BE WAY HIGHER THAN THIS.

THAT IS THE NUMBER I AM LOOKING FOR.

>>JUDGE SCOTT: THEY DON'T HAVE THAT.

>>COMMISSIONER CHESNEY: YOU ARE GOING TO GET ME THAT.

>> OOPS, I AM DROPPING STUFF OVER HERE.

>>COMMISSIONER CHESNEY: I NEED THAT NUMBER SHOWN WITH THE EXPENSES IN THERE. BECAUSE I THINK IT IS GOING TO

BE HUGE. >> COMING ON THE K.

OOPS. I AM COMING ON -- WHENEVER WE GO A LITTLE BIT FURTHER BACK. WE WILL KEEP GOING FURTHER BACK.

DO YOU WANT TO GET THE ESTIMATED ACTUAL FUND BALANCES? BECAUSE THAT ALSO -- KEEP GOING FURTHER BACK.

[00:30:02]

>>JUDGE SCOTT: OH, NO -- >>COMMISSIONER CHESNEY: I WANT THAT NUMBER OUT THERE SO WE START ON AUGUST 9.

>> THERE WE ARE. AFTER PAGE 13, A BLANK PAGE IN FRONT OF YOU AND YOU OPEN IT UP BECAUSE THEY ARE FACING PAGES.

IT WILL BE IN THE NEXT ATTACHMENT, CONNIE, SORRY.

WE ARE DOING A WHOLE LOT OF JUMPS HERE.

FOR THE NUMBERS ON COMMISSIONERS COURT.

YOU OPEN IT UP AND FACING FOR THE TWO ITEMS THAT GO TOGETHER WITHOUT HAVING TO FLIP BACK AND FORTH AND BACK AND FORTH.

THE NUMBER -- THE PAGE NUMBER IS K-1 AT THE BOTTOM IF YOU WERE TO LOOK AT IT. IF YOU LOOK AT THE TOP, THE ESTIMATED BEGINNING FUND WALL 10/1/23 WHAT YOU ALL JUST REQUESTED IS $28,30 6,935 WHAT THE DALE'S ACTUAL FUND BALANCE FOR A GENERAL FUND. YOUR REVENUES ESTIMATE WITH NO INCREASE FOR TAX REVENUE WILL BE $110 MILLION.

YOUR TRANSFERS IN WILL BE 2.2 MILLION.

TOTAL OF REVENUES AND TRANSFERS IN EXCLUDING PROPERTY TAX OF -- OR AT LAST YEAR'S RATE AT $1123,632,672.

THEN YOU HAVE TO ADD IN THE QUOTE, UNQUOTE, INCREASE IN TAXES AT THE NO NEW REVENUE RATE FOR THE NEW PROPERTY ONLY.

THAT BRINGS YOU DOWN TO THAT 1.9 MILLION.

THAT TIES TO PAGE 6 OF OUR CALCULATIONS THAT WE FLEW RIGHT THROUGH. THERE IS SOMETHING FOR DISCUSSION THAT WILL COME UP IN A FEW MINUTES WHENEVER WE COME BACK TO IT OF THE 140. SO YOU ARE LOOKING A AT NET CHANGE IN REVENUE OF $1.7 MILLION.

BRINGS YOU DOWN TO $110 MILLION. YOUR TOTAL AVAILABLE FUNDS IS $139 MILLION, THAT INCLUDES YOUR FUND BALANCE.

YOU HAVE PROPOSED EXPENSES OF $115,410,880.

THAT MOVING TARGET WE ARE WORKING ON FINALIZING FOR YOU.

AS I SAID THERE WILL BE SOME MINOR CHANGES.

WE ARE STILL -- WE ARE STILL GETTING THOSE WORKED OUT.

AND THEY ARE GOING TO CHANGE WHENEVER WE GET THOSE DEPARTMENT

HEADS AND IMPACT. >>COMMISSIONER CHESNEY: YOU HAVE EXPLAINED YOURSELF ALL DAY. KEEP GOING.

IT IS OKAY. IT IS ON THE RECORD.

>> I AM JUST DISCLOSING BECAUSE I DON'T WANT SOMEBODY TO COME BACK -- BUT LISA SAID BACK ON THIS DATE, THIS AMOUNT.

AND IT IS SO -- >>COMMISSIONER CHESNEY: FLUID.

WE GET IT. KEEP GOING.

>> EXPENSES AND TRANSFERS OUT. BEFORE ANYTHING THAT WE ALREADY KNOW AT $126,776,981. THEN WE ARE GOING TO TALK ABOUT THOSE ITEMS THAT COMMISSIONERS COURT KNOWS THAT ARE UPCOMING.

IT IS NOT INCLUDED IN THOSE ABOVE.

SO YOU HAVE GOT CONTINUANCE PAY FOR THREE ELECTED OFFICIALS, ONE DEPARTMENT HEAD, AND 153 EMPLOYEES.

IT'S APPROXIMATELY $219 MILLION. AND I AM DOING THAT OFF THE TOP OF MY HEAD. WE PUT IN SOMETHING FOR COLLECTIVE BARGAINING THAT HAS NOT BEEN PRESENTED TO COLLECTIVE BARGAINING AND NOT APPROVED BY COLLECTIVE BARGAINING.

IT IS JUST A NUMBER THAT IS -- TO GIVE COMMISSIONERS COURT SOME IDEA IF YOU DID THIS, THIS IS WHAT IT WOULD COST.

IF YOU DID A 2% INCREASE IN SALARY FOR THE 305 EMPLOYEES CURRENTLY IN THE NUECES COUNTY SHERIFF'S OFFICE AND CONSTABLE COLLECTIVE BARGAINING. THAT WILL BE AN INCREASE OF $340,000. THE MIDYEAR PERSONNEL, THESE ARE THOSE PRIOR YEAR POSITION CHANGES THAT HAPPEN DURING THE 2022-'23 BUDGET YEAR. AFTER THE BUDGET WAS ADOPTED BUT BEFORE WE MADE IT TO THIS BUDGET YEAR REQUEST, ALL THOSE CHANGES THAT HAVE ALREADY BEEN APPROVED BY COMMISSIONERS COURT TOTAL UP TO $158,399. YOUR RETIREMENT, THE NEW RATE WILL BE 12.64% WHICH IS AN INCREASE OF $156 156,000.

YOUR BONK. I DIDN'T NAME IT BONK OF MARK

[00:35:03]

THE ENERGY SAVINGS WE ARE SUPPOSED TO BE HAVING BUT UNTIL ALL OF THE -- UNTIL THE PROJECTS ARE FINISHED, THE BRIDGES THAT DO HAVE ENERGY SAVINGS START GENERATING THOSE ENERGY SAVINGS.

SHOULD WE ACTUALLY RECOGNIZE THOSE ENERGY SAVINGS, WE WOULD BE ABLE TO OFFSET THAT. AND FORTUNATELY, THERE IS OTHER INFORMATION TIED TO THAT THAT WILL NEED BE DISCUSSED AGAIN.

>>COMMISSIONER CHESNEY: DISCLAIM, DISCLAIM.

TELL ME WHAT THE BOTTOM LINE. >> BOTTOM LINE THE NO NEW REVENUE RATE, BALANCED BUDGET 30, 24.

ALL OF THE EXPENSES DISCUSSED LISTED ON THE PAGE RIGHT THERE

ON THE SCREEN -- >>COMMISSIONER CHESNEY: PLUS THE OTHER EXPENSES ALREADY THERE AND ONGOING.

>> PLUS THE OTHER EXPENSES THAT ARE, WILL.

END THE YEAR WITH A BUDGETED $2,549,000, WHICH IS A DECREASE AND THE LOSS IN YOUR FUND BALANCE OF $25 NOW, 755,503.

37 $25 MILLION DECREASE IN FUND BALANCE IF YOU DO THE NO NEW

REVENUE RATE. >>COMMISSIONER CHESNEY: OKAY.

LET'S SAY IF YOU GO TO THE. >> VOTER APPROVED TAX RATE.

GOING TO K-3. >>COMMISSIONER CHESNEY: DEFICIT COULD BE ANYWHERE FROM $25 MILLION TO --

>> LET'S GO A LITTLE ABOVE $25 MILLION BECAUSE THERE ARE A FEW THINGS WE ARE STILL ADDING ON. $26.5 MILLION.

>> COMMISSIONER CHESNEY:THAT COULD BE THE HIGH OF BECAUSE WOULD REDUCE OUR FUND BALANCE WHICH ARE RESERVES.

$28 MILLION IS OUR RESERVES, RIGHT?

>> THE $28 MILLION IS THE RESERVES, OUR FUND BALANCE.

>>COMMISSIONER CHESNEY: REPRESENT --

>>THE 225 IS WHAT YOUR ENDING FUND BALANCE WILL BE.

>>COMMISSIONER CHESNEY: WHICH WILL BE CATASTROPHIC.

>> EXTREMELY CATASTROPHIC, WILL DESTROY -- WE CAN'T DO THAT.

>>JUDGE SCOTT: SOME OF THAT MONEYED IN FUND BALANCE IS

DEDICATED. >>COMMISSIONER CHESNEY: WE EXPECT DO THAT. I AM NOT ADVOCATING THAT.

I AM SAYING, WHAT IS THE RANGE IF THE COURT DECIDED TO GO ALL THE WAY TO THE 3.5. GIVE ME THE NUMBER WITHOUT GOING

THROUGHOUT EXPENSES. >> THE EXACT SAME RANGE.

BUT NOW YOU ARE DOWN TO A DECREASE IN FUND BALANCE OF 20,765,764. AND BOTTOM OF K-3.

>>COMMISSIONER CHESNEY: K-3 OR K-2.

>> WE SKIPPED OVER K-2. K-2 IS WHAT IS FORMALLY KNOWN AS

STEVE'S MAGICAL WORKSHEET. >>COMMISSIONER CHESNEY: SO I WANT TO MAKE SURE I AM NOT MISSTATING.

WHAT YOU ARE TELLING ME, WITH THE CURRENT EXPENSES AND JUST

THE THINGS THAT -- >> YOU ARE LOOKING AT A DECREASE BETWEEN 20 -- LET'S GO $26 MILLION, $27 MILLION.

>>COMMISSIONER CHESNEY: $26 MILLION WE HAVE -- TO BASICALLY MAINTAIN OUR RESERVES AT A BALANCE THAT IS CURRENTLY $5 MILLION SHORT IF I AM NOT MISTAKEN BASED ON WHAT OUR FINANCIAL PLANNER BROUGHT TO US LAST MEANING.

$5 MILLION BELOW OUR RESERVES THAT WE SHOULD BE, WE WILL HAVE

TO BASICALLY CUT. >> $30 MILLION.

>>COMMISSIONER CHESNEY: $25 MILLION TO $30 MILLION JUST TO SAY EVEN WITH OUR RESERVES. A CORRECT STATEMENT?

>> A CORRECT STATEMENT. >>COMMISSIONER CHESNEY: AS OF AUGUST 9, ALL THE DISCLAIMERS. THIS COURT NEEDS TO HEAR THAT NUMBER. THE PUBLIC NEEDS TO HEAR THAT NUMBER. THIS IS NOT $1 MILLION TO $7 MILLION, THIS IS POTENTIALLY $20 MILLION TO $25 MILLION AS WE SIT

TODAY. >> THAT'S CORRECT, SIR.

>>COMMISSIONER CHESNEY: THERE IS NO -- THERE IS NO FAT THAT CAN BE IN THIS BUDGET. THIS IS GOING TO BE --

>> CUTTING THE BUDGET FOR YEARS AND YEARS AND YEARS.

BUT THE FAT IS GONE. >>COMMISSIONER GONZALEZ: WE DON'T HAVE ALL THE MEAT TO IT. COULD BE 20, 25.

BUT HE END OF THE DAY, IT COULD BE $8 OR $9 MILLION, OR $10

MILLION. >> YOU GO BACK TO K-2.

>>COMMISSIONER CHESNEY: I DON'T KNOW WHERE WE WILL FIND $25 MILLION IN CUTS MUCH LESS $10 MILLION.

>> GO TOBACCO TO K-2 -- I KNOW YOU SAID LISA WITH ALL YOUR DISCLOSURES. THAT IS BUDGET.

>>COMMISSIONER CHESNEY: YOU ANSWERED ME GOOD ENOUGH.

NOW YOU CAN GO BACK. >> I CAN AVERAGE ONE THING BUT BASED ON HOW I ACTUALLY RECEIVE AND SPEND MONEY, YOUR VALUES CHANGE. AND THAT IS WHAT STEVE'S MANAGE RICK WORKSHEET. STEVE'S MAGICAL WORKSHEET THAT THEY CREATED ALL THOSE YEARS AGO AND CONTINUED TO CARRY FORWARD BECAUSE IT IS A WONDERFUL WORKSHEET AND HAS WONDERFUL

[00:40:03]

ALLOW FOR IT AS NECESSARY. >>COMMISSIONER CHESNEY: I UNDERSTAND THE NUMBERS ARE STAGGERING.

>> IF THE NUMBERS COULD NUMBER AT 80%, YOU ARE LOOKING AT A DECREASE -- ON K-2, SORRY, FOR THE NO NEW REVENUE RATE.

YOU WILL BE LOOKING AT A DECREASE OF THE ESTIMATED ACTUAL THAT WE WOULD ANTICIPATE FOR THE '23-'24 YEAR OF THE $16 MILLION AND AT THAT 86%, WHICH AGAIN WOULD GIVE YOU.

IF WE ARE ONLY SPENDING -- IF DEPARTMENT HEADS ARE ABLE TO -- IT IS ONE THING TO BE ABLE TO BUDGET CUTS.

IT IS ANOTHER THING TO ACTUALLY CUT THE MONEY.

I CAN BUDGET WHATEVER I WANT TO BUDGET.

THAT IS A FIGMENT OF YOUR IMAGINATION.

IF YOU DO NOT CHANGE YOUR ACTUAL SPENDING.

>>COMMISSIONER GONZALEZ: IT'S REAL.

>> BUDGET IS REAL. >>JUDGE SCOTT: OPEN POSITIONS ARE ONE THING THAT THEY ARE BUDGETED IN THERE, BUT HOW MANY OF THEM ARE NOT FILLED. THAT IS A TOTAL NUMBER THAT CAN COME RIGHT QUICK. VACANCIES.

>> COMMISSIONERS COURT ALLOWS DEPARTMENTS TO USE THEIR SALARY SAVINGS FROM THOSE VACANCIES. SO YOU LOSE IT.

BUDGET IS A -- IS A FIGMENT OF YOUR IMAGINATION --

>>JUDGE SCOTT: DEPENDS ON HOW MANY OPENINGS YOU HAVE.

>> I CAN BUDGET TO RECEIVE $1 MILLION REVENUE, BUT UNLESS I WIN THE LOTTERY, IT IS NOT HAPPENING.

YOU CAN BUDGET WHATEVER WANT TO BUDGET FOR REVENUES.

YOU DON'T HAVE TO HAVE AN ACCURATE BUDGET REVENUE OR ACCURATE BUDGET EXPENSES. I CAN BUDGET REVENUES OF $1 MILLION. IF I DON'T GET IT, I CAN'T SPEND IT. RIGHT.

SAME THING FOR EXPENSES. I CAN BUDGET EXPENSES OF A MILLION DOLLARS. IF EVERYBODY SAYS I AM GOING TO CUT MY BUDGET AND THEY DON'T CHANGE THEIR SPENDING, THEY CONTINUE TO SPEND THE SAME WAY THEY HAVE ALREADY SPENT.

THEY -- EVERYBODY STAFFED AT 100%.

PEOPLE CONTINUE TO USE THEIR SALARY SAVINGS FREQUENTLY TO COVER OPERATING EXECUTIVE SESSION PENCES.

IF YOU DO NOT CHANGE THE WAY YOU ACTUAL SPEND MONEY, YOU ARE GOING TO STILL HAVE AN ACTUAL ISSUE.

>>COMMISSIONER CHESNEY: ABSOLUTELY.

AND THE SALARY SAVINGS NEEDS TO BE -- WE NEED TO BRING THAT UP AS A POLICY BECAUSE WE HAVE IN THE PAST INFORMALLY NOT ALLOW IT AND STARTED TO ALLOW IT AND NEED TO COME UP WITH A POLICY THAT IS CONSISTENT. WE NEED TO ALLOW OR NOT ALLOW IT AND FOR ANOTHER DAY AND THAT DEFINITELY NEEDS TO BE A COURT POLICY WE NEED TO DECIDE. IF IT IS AVAILABLE FOR SOME, IT NEEDS TO BE AVAILABLE FOR TOMORROW.

>>JUDGE SCOTT: IT IS ALREADY A POLICY AND WE DID IT AND IF WE HAVE TO ALLOW FOR ONE, IT IS HARD TO DO.

>>COMMISSIONER CHESNEY: I DON'T KNOW IT IS A POLICY.

>> IT STARTED OFF AS POLICY. AND I WOULDN'T LET -- BACK WHEN I WAS -- WHEN I WAS BUDGET ACCOUNTANT, I WOULD SAY, NOPE, YOU CAN'T USE YOUR SALARY SAVINGS.

NOPE, YOU CAN'T USE YOUR SALARY SAVINGS.

AND THEN, AGAIN, ONE OF THOSE THINGS IT WAS BOTH ME, COMMISSIONERS COURT -- I SAY ME, BUT OUR OFFICE, COMMISSIONERS COURT ADMIN. WE BOTH SATED YOU COULDN'T USE SALARY SAVINGS AND ADDED THE EXCEPTION FOR LAW ENFORCEMENT.

THEY WERE ALLOWED TO USE THEIR SALARY SAVINGS TO COVER THEIR OVERTIME WHENEVER THEY HAVE SALARY SAVINGS.

THEY WERE ALLOWED TO USE THEIR SALARY SAVINGS TO RECLASSIFY POSITIONS AND COVER THAT OVER TIME.

THEN THEY WERE ALLOWED TO USE THEIR SALARY SAVINGS TO HAVE OPERATING EXPENSES AND OVERTIME. THE AMOUNT YOU HAVE AVAILABLE FOR OVERTIME DECREASING BECAUSE WE KEPT USING SALARY SAVINGS FOR OTHER THINGS. AFTER IT HAPPENED WITH LAW ENFORCEMENT. WE ADDED IN DISTRICT ATTORNEY.

THEN WE ADDED IN MEDICAL EXAMINER.

THEN WE ADDED IN JUVENILE. THEN WE ADDED IN -- I CAN'T EVEN START TO TELL YOU. THE FLOODGATE OPENS.

>>COMMISSIONER CHESNEY: I DON'T BELIEVE THE COURT HAS VOTED ON

THAT. >> NEVER HAVE BEEN A FORMAL

POLICY. >>COMMISSIONER CHESNEY: WE NEED

TO ADOPT -- >>JUDGE SCOTT: I THOUGHT IT WAS

A BUDGETING POLICY. >> IT WAS A BUDGET POLICY.

>>JUDGE SCOTT: YOU CAN'T BY LAW CHANGE AFTER A BUDGET WAS ADOPTED. WE DON'T NEED A --

>> COMMISSIONER CHESNEY:THAT IS DIFFERENT.

YOU CAN'T INCREASE THE BUDGET. BUT USING SALARY SAVINGS, YOU ARE WITHIN THE LAW AS JENNY HAS TOLD US.

[00:45:02]

MAYBE A PERCENTAGE. MAYBE THE POLICY IS YOU CAN ONLY TAKE HALF OF YOUR SALARY SAVINGS OR 30%, SOMETHING, BUT WHERE HE NEED SOMETHING IN PLACE TO GIVE THE AUDITORS SOME BACKING WHEN THEY SAY THEY WERE NOT SUPPOSED TO DO THAT AND PUT IT ON THE COURT'S AGENDA AND LET THEM DECIDE.

A HARD THING FOR US. BECAUSE WE WANT TO HELP DEPARTMENTS AND ELECTED OFFICIALS AND WE DON'T WANT TO SAY NO PRUDENT WITH THEIR SALARY SAVINGS BUT DOES EFFECT -- AS SHE SAY RADARS LONG-TERM EFFECT AND WE NEED TO DISCUSS THAT.

>> THERE ARE EXPENSES THAT YOU CAN CUT THE BUDGET AND YOU -- I MEAN -- IF IT IS NOT FEASIBLE IF THE SHERIFF WAS TO RUN OF OF MONEY, YOU WOULD KICK EVERYBODY OUT OF THE JAIL.

SORRY, WE DON'T HAVE MONEY TO OPERATE THE JAIL GO OUT INTO THE PUBLIC. BE GOOD.

THAT IS NOT -- THAT IS NOT A POSSIBILITY.

SO IF THE COST TO OPERATE SAID JAIL, YOUR ELECTRICITY, YOUR WATER, YOUR MAINTENANCE AND REPAIR IN ORDER TO KEEP THE JAIL FUNCTIONS AND HOUSING INMATES GOES UP IN THE MIDDLE OF THE YEAR, WHETHER YOU BUDGETED IT OR NOT, YOU ARE GOING TO HAVE TO SPEND THAT ACTUAL MONEY. SO THE -- STATUTORILY THE BUDGET STATES -- AND I AM PARAPHRASING BASE ON WHAT I REMEMBER FROM YEARS AGO AND IT MAY OR MAY NOT HAVE VERBATIM CHANGED.

BUT ESPECIALLY ESSENTIALLY -- ONCE YOU ADOPT THE BUDGET -- THIS IS WHAT THE JUDGE WAS STATING.

ONCE YOU ADOPT A BUDGET, YOU CAN NOT EXCEED YOUR ACTUAL AMOUNT IN THE EXPENSES UNLESS TWO THINGS OCCUR.

THERE IS A STATE OF FINANCIAL -- A STATE OF DISASTER DECLARED BY COMMISSIONERS COURT. AND THEN TO WHICH PRUDENT FINANCIAL PLAN ASKING NOT FORESEE.

COVID WAS THE PERFECT EXAMPLE OF THIS.

PRUDENT FINANCIAL PLANNING COULD NOT PROJECT A PANDEMIC IN YEAR ONE. ONCE WE WERE IN THAT PANDEMIC, PRUDENT FINANCE COULD HAVE FORESEEN THAT THE PANDEMIC WAS GOING TO CONTINUE. SEEING HOW WE WERE IN THE BUDGET WE WERE STILL IN THE PANDEMIC. AND SO YOU COULD HAVE DECLARED THAT STATE OF DISASTER YEAR ONE AND HAVE BEEN BEEN ABLE TO INCREASE YOUR BUDGET BECAUSE OF STATE OF DISASTER IN YEAR ONE.

PRUDENT FINANCIAL PLANNING COULD NOT FORESEE AND A STATE OF DISASTER, RIGHT. BUT AFTER YEAR ONE, WHICH COVID, PRUDENT FINANCIAL PLANNING COULD HAVE SEEN THAT IT WOULD HAVE CONTINUED. SO WOULD YOU NO LONGER HAVE BEEN ABLE TO FILE AN EMERGENCY EXCEPTION TO INCREASE YOUR BUDGET. DOES THAT MAKE SENSE? I AM TRYING TO PUT REAL-LIFE SCENARIOS IN WITH THE REQUIREMENTS. OKAY.

SO WITH THAT SAID, ONCE ADOPT THE BUDGET, EVEN THOUGH IT IS A FIGMENT. IT IS A LEGAL LIMIT.

YOU CAN'T EXCEED THAT. SO UNLESS PRUDENT FINANCIAL PLANNING COULD NOT HAVE FORESEEN JAIL EXPENSES TO INCREASE.

IF YOU CUT THAT -- IF YOU CUT THE BUDGET WHERE THERE IS NO ROOM FOR ANY EXPENSE TO VARY BASED ON WHAT YOU HAVE CUT FROM THE BUDGET. YOU ARE GOING TO BE -- YOU ARE GOING TO PUT YOURSELF IN A PICKLE.

A LEGAL PICKLE, THAT THEN WE HAVE CAUSED NOT THE APPRAISAL DISTRICT BECAUSE PRUDENT FINANCIAL PLANNING COULD BE DISCUSSING ALL THE ISSUES WE ARE HAVING RIGHT NOW WHERE THE THE APPRAISAL DISTRICT. DOES THAT MAKE SENSE?

>>COMMISSIONER CHESNEY: PRUDENT FINANCIAL PLANNING IS IT WILL BE DISCUSSING THIS WITH THE APPRAISAL DISTRICT?

>> PRUDENT FINANCIAL PLANNING GIVEN THAT WE HAVE SIX YEARS WORTH OF LAWSUIT WITH VALERO. IT IS -- IT IS REASONABLE TO ASSUME THAT THERE COULD AND MOST LIKELY BE A SEVENTH YEAR.

IF WE BUDGET -- >>COMMISSIONER CHESNEY: NOT AT THESE RANGES. NOT AT THESE RANGES.

NOT AT $6 BILLION WHEN YOU GO FROM $1 BILLION TO $6 BILLION.

>>THE REASON WHY PRUDENT FINANCIAL PLANNING -- YOU CAN'T COME -- WHENEVER WE ARE IN THE MIDDLE OF '23 AND '24.

WE CAN'T COME MIDYEAR AND SAY STATE OF REFINERY BECAUSE THE REFINERIES DIDN'T PAY THEIR TANKSES.

>>COMMISSIONER CHESNEY: YOU ARE SAYING MIDYEAR.

>> ONCE THE BUDGET IS ADOPTED, YOU CAN'T CHANGE THAT --

>>COMMISSIONER CHESNEY: UNLESS SOMETHING NEW HAPPENS.

>> A STATE OF DISASTER HAS BEEN DECLARED.

>>COMMISSIONER CHESNEY: SURE. >> AND SOMETHING YOU COULD NOT

[00:50:01]

THE BUDGET. >>JUDGE SCOTT: WE ALREADY KNOW

THIS. >> WE KNOW THEY HAVE BEEN FILING LAWSUITS. CAN HE WANT SAY WE BUDGET THIS REVENUE AND WE STAY SUMD THEY TWO PAY EVEN THOUGH THEY HAVEN'T PAID AND TRY TO INCREASE -- OR MAKE BUDGET CHANGES MIDYEAR BECAUSE OF IT. SAME THING WITH EXPENSES.

YOU CUT THE BUDGET SO DRASTICALLY THAT YOU CAN'T LIVE WITHIN THE BUDGET THAT YOU CREATED, IT'S A -- IT IS A SELF-IMPOSED DISASTER. SO YOU ARE CAUSING FEW ISSUES.

THEREFORE, I WOULD RECOMMEND -- WHENEVER YOU DO MAKE CUTS, WE MAKE THOSE CUTS, BUT WE PUT FUNDS IN CONTINGENCY IN ORDER TO ALLOW FOR -- YES, WE DRASTICALLY CUT OUR BUDGET, LET'S SAY $10 MILLION. WE DRASTICALLY CUT OUR BUDGET $10 MILLION. WE ARE GOING TO PUT SOME ADDITIONAL FUNDING OF THAT $10 MILLION INTO CONTINGENCY IN CASE SOMETHING HAPPENS THAT WE HAD NOT PLANNED.

BUT IT WAS A FEASIBLE -- >>JUDGE SCOTT: YOU SAVE SOME OF THAT CONTINGENCY. WHY IT DOESN'T GET BUDGETED IN

EACH DEPARTMENT. >> WOULD NOT GO INTO EACH

BUDGET. >>JUDGE SCOTT: YOU WOULDN'T

REALLY SAVE ANYTHING. >> WE GO TO 1285.

>>COMMISSIONER CHESNEY: YOU ARE TALKING OVER.

>>JUDGE SCOTT: I THINK WHAT SHE WAS TRYING TO SAY.

IF WE BUDGET FOR ADDS 10 MILLION LOSS, WE STILL DON'T PUT THIS IN EVERY DEPARTMENT IN HERE. WE HAVE A CONTINGENCY DEPARTMENT. IF WE PUT IT INTO EACH PERSON'S BUDGET, DEPEND ON YOU TO NOT SPEND IT AND YOU TO NOT SPEND IT AND YOU TO NOT SPEND IT. PEOPLE HAVE MONEY IN THEIR ACCOUNT, IF THEY HAVE MONEY, THEY WILL SPEND IT.

PEOPLE ARE USED TO SPENDING. WE HAVE TO SET IT ASIDE IN CASE WE NEED IT BUT LET'S NOT GIVE IT TO AN INDIVIDUAL TO HAVE TO TAKE

CONTROL OF THAT. >> AND WE -- THE COURT -- THERE IS A HISTORIC PRECEDENCE FOR THAT.

WE CURRENTLY HAVE CONTINGENCY APPROPRIATION IN 1285.

NOBODY CAN SUCH 1258 -- >>COMMISSIONER CHESNEY: HOW CAN YOU SET ASIDE MONEY THAT YOU DON'T HAVE.

YOU HAVE TO SET ASIDE SOMETHING. >> BUDGET IS BUDGET.

BUT ACTUAL IS DIFFERENT. AND SO IF THE EXPENSES TO -- LET'S SEE THAT WE LITERALLY CUT BUDGET TO THE BARE MINIMUM.

AND THE ELEVATORS GO DOWN. AND THAT IS NOT SOMETHING THAT JUAN BUDGETED FOR. IN ORDER TO BE IN ADA COMPLIANCE, WE HAVE TO HAVE FOUR ELEVATORS.

IF ALL FOUR OF THEM GO DOWN, WE HAVE TO HAVE THOSE ELEVATORS OTHERWISE YOU CAN'T HAVE THE COURTS RUNNING AND BACK YOU UP

-- >>COMMISSIONER CHESNEY: HOW DO YOU -- YOU ARE SAYING YOU HAVE TO DO A COMBINATION.

YOU HAVE TO CUT -- >> YOU HAVE TO CUT AND PUT MONEY IN CONTINGENCY. A COMBINATION.

IF YOU DON'T USE IT, THEN YOU HAVE THAT SAVINGS.

IT IS ONLY THERE IN THE EVENT OF AN EMERGENCY.

AGAIN, PRUDENT FINANCIAL PLANNING CAN SAY IF YOU ARE GOING TO CUT 20 MILLION FROM A BUDGET, YOU SHOULD PUT SOME

MONEY ASIDE. >>COMMISSIONER CHESNEY: WHERE DO YOU GET THE MONEY. WHERE DO YOU GET THE MONEY?

>> YOU ARE CUTTING BUDGET. YOU ARE NOT CUTTING ACTUAL.

YOU ARE PUTTING A BUDGETED FIGURE ASIDE.

ANY MONEY THAT IS NOT -- GOES TO YOUR FUND BALANCE, THE END.

>>COMMISSIONER HERNANDEZ: WHAT YOU ARE TRYING TO SAY OR SAYING IS, WE SHOULD CONCENTRATE ON OUR NEEDS AND NOT OUR WANTS.

>> THAT IS 100%, COMMISSIONER. THE BEST ANALYSIS IN ONE SENTENCE. WHAT YOU NEED VERSUS WHAT DO YOU WANT. PEOPLE HAVE TO UNDERSTAND THE DIFFERENCE BETWEEN A NEED AND A WANT.

I NEED ELECTRICITY. I NEED INMATES IN A JAIL.

I WANT -- >>COMMISSIONER HERNANDEZ: I WANT AN EXPENSIVE PEN. I WANT A --

>> I WANT A -- I WANT TO RESO A BASEBALL FIELD NOT GETTING USED BY EVERYONE. THAT IS NOT A -- NOT DIRECTED AT ANYBODY. I WAS TRYING TO COME UP WITH

SOMETHING FRIVOLOUS. >>COMMISSIONER HERNANDEZ: LISA, PAY 100 ODD SOME NUMBERS TO GET SIX INCHES INSIDE THE COURT ROOM. I KNOW IT IS ADA, BUT HAVE GOT TO BE A BETTER WAY TO WORK THIS. THAT IS THE WAY I SEE THINGS.

>> I WANT TO REPAINT MY WALLS. I DON'T NEED TO.

I AM NOT TRYING TO PICK ON ANYBODY --

>>COMMISSIONER MAREZ: CAN WE MOVE THIS ALONG.

A LONG MEETING TO TALK IF I LOLLAPALOOZA LOSS FEE.

[00:55:02]

>> KEVIN WANTED TO SAY SOMETHING TOO.

>> IS THIS ON? TEST

TESTING. >> I THINK I GET WHERE YOU ARE GOING AND I WANT TO EXPLAIN WHAT WE ARE TALKING ABOUT WHEN TALKING OF CONTINGENCY GUYS. WITH THESE LOSSES WE ARE TALKING ABOUT CURRENTLY -- LET ME BACK UP A SECOND AND I WILL HAVE A REAL NUMBER FOR YOU GUYS HOPEFULLY BY TOMORROW AND I WILL REACH OUT TO BOTH REFINERIES AND ASK US TO GET WHAT THEIR UNCONTESTED VALUE PAYMENT WILL BE, AND WE WILL END THIS PING-PONG GAME OF GOING BACK AND FORTH AND THINK IT IS GOING TO BE THIS AND THAT. WE ARE GOING TO KNOW.

I REACHED OUT TO BOTH OF THEM AND TOLD THEM I AM GOING TO DO THIS. THE REASON I DON'T WANT TO WAIT TO DO THIS BECAUSE I DON'T WANT TO INTERFERE WITH THE CONVERSATION ONE OF THE REFINERIES WITH THE APPRAISAL DISTRICT. I WANT TO FORMALLY REACH OUT TO THEM WHAT THE UNCONTESTED AMOUNT WILL BE SO WE CAN GET AN ACCURATE BUDGETING AMOUNT FOR THE TAXING JURISDICTIONS AFFECTED BY THIS. NUMBER TWO, WHAT IS THE OTHER THING WE WILL BE LOOKING AT IN THIS CONTINGENCY SEE.

LEVY PRESENTATION IS WHAT THIS IS.

IF YOU CUT YOUR BUDGET, YOU WILL TAKE THOSE LOSSES FROM THE BUDGET CUTS. YOU HAVE GOT TO PUT THOSE MONIES INTO THE ANTICIPATED LOSS INTO SOME SPOTS FOR -- WHAT WAS THE NUMBER YOU USED TO -- TO -- CONTINGENCY FUND NOT GOING TO GET FUNDED AND WE ARE NOT GOING TO GET IT.

IF YOU DON'T PUT IT THERE, YOU LOST THAT LEVY AND TAKE THAT

WHAT YOU ADOPTED BEFORE HAND. >> NOT SETTING ASIDE REAL MONEY BUT CON I THINK IT AGAIN MONEY IN CASE YOU GET IT.

>> IN CASE YOU GET IT AND PRESERVING THE LEVY YOU ADOPT.

IF YOU DO NOT PUT IT IN THERE TAKE $5.1 MILLION -- I GUESS THAT IS WHAT THE NUMBER IS, $5.1 MILLION LOSS ON TOP OF WHAT YOU JUST BUDGETED AND INTRODUCING THAT EVEN FURTHER.

RATHER THAN ADOPT A FAKE BUDGET PUTTING STUFF IN THERE THAT YOU KNOW YOU ARE NOT GOING TO GET. YOU ADOPT WHAT YOU REALISTICALLY

-- >>COMMISSIONER CHESNEY: THINK

YOU ARE GOING TO GET. >> THINK YOU ARE GOING TO GET.

>>COMMISSIONER CHESNEY: PLUS THE CONTINGENCY.

DOES THAT MAKE MORE SENSE? HOPEFULLY THAT CLEAR IT IS OUT AND PUTS IT IN ENGLISH AND EVERYBODY UNDERSTANDS WHAT IS

GOING ON. >>JUDGE SCOTT: THANK YOU, KEVIN.

>>COMMISSIONER HERNANDEZ: THANKS, SIR.

>> SO THERE IS A CONTINGENT REVENUE AND A CONTINGENT EXPENSE

THAT OFFSET EACH OTHER. >>JUDGE SCOTT: NOW THAT WE

TOTALLIER. >> RUPTED YOU ARE IN PRESENTATION. DO YOU WANT TO GO.

>> WHERE ARE WE AT. WE STILL HAVE AN HOUR.

GO TO PAGE 2 WHERE I CAN SHOW YOU THE CALCULATIONS OR POSTPONE THAT UNTIL WE ACTUALLY DO THE AGENDA ITEM LATER ON.

I AM -- I AM OPEN. >>JUDGE SCOTT: DEFER TO ANY OF

YOU GUYS. >> I CAN GO OVER IT REAL QUICK.

HIT THE HIGHLIGHTS. OKAY, ON PAGE 2 OF THE INITIAL -- YES. THAT ONE.

SO PAGE 2 IS YOUR GENERAL FUND TAX RATE CALCULATION.

AGAIN, YOU ARE TAKING THAT TOTAL TAXABLE VALUE AS CERTIFIED BY THE ARB BOARD, AND I CROSS REFERENCED EACH LINE ON THE PROPERTY TAX CALCULATION WORKSHEETS SO SHOULD SOMEONE WANT TO COME IN AND VERIFY THAT BOTH CALCULATIONS TIE, THEY WILL BE ABLE TO DO SO. YOU TAKE THAT CERTIFIED APPRAISED VALUE OF $46,735,626. TAKE 85% OF THE PROPERTY THAT IS UNDER PROTEST WITH THE ARB BOARD.

THAT 85% NUMBER IS 1,061,917, 256.

ADD IN THAT ROLLING RAILROAD OF $14 MILLION,108,016.

SUBTRACT THE TAX FREEZE WHICH IS -- WHICH IS THE TAX, REFERRED TO AS BOTH, 2,THE 96,025,691 TO GET A NET TAXABLE VALUE OF $44 BILLION 816,244. THEN YOU HAVE TO FACTOR IN THE TAX INCREMENT FINANCING OR TAX INCREMENT INVESTMENT ZO

[01:00:06]

LAST YEAR'S LEVY GETS ADJUSTED FOR THE PROPERTY THAT IS UNDER LAWSUIT FOR THE SETTLEMENTS THAT HAVE HAPPENED THAT IS $101,847,339. AGAIN RATES A NO NEW REVENUE TAX RATE OF.237411. NOW IT SHOULD BE NOTED FOR ANYONE LISTENING TO THIS FOR THE FIRST TIME, THAT THE NO NEW REVENUE TAX RATE THAT IS REFLECTED IN THE PROPERTY TAX CALCULATION IS FOR BOTH YOUR GENERAL FUND M&O AND YOUR DEBT SERVICE. THAT ONE RATE IS CALCULATED TOGETHER. IT THEN WHENEVER YOU GO TO APPROVE YOUR VOTER APPROVED TAX RATE, IT SEPARATES OUT YOUR M &O FROM YOUR DEBT SERVICE. YOU GET ADDITIONAL ADD-INS FOR YOUR M&O, AND THE PROPERTY TAX CALCULATIONS AYOU TO ALWAYS FULLY FUND YOUR DEBT, NO MATTER -- THAT IS ON TOP OF THE 3.5%.

NO MATTER WHAT HAPPENS, IF YOU HAVE A HUGE BALLOON PAYMENT, THE PROPERTY TAX CALCULATION WILL ALLOW YOU TO FULL LEGAL FUND THAT DEBT. SO YOU WILL BE ABLE TO ADJUST THAT DEBT RATE INDEPENDENTLY OF YOUR M&O FOR THE VOTER APPROVED CALCULATION. THE GENERAL FUND VOTER APPROVED IS .212160. YOUR DEBT SERVICE RATE, FULLY FUNDED RATE IS .037 -- EXCUSE ME .037676.

NO UNUSED INCREMENT. WE USE IT ALL LAST YEAR.

VOTER APPROVED TAX RATE WITH ANY ADJUSTMENT THAT IS BOTH Y YOUR MVMM AND O IS .249836. THERE IS THE SAME CALCULATION ON PAGE 3 FOR YOUR FARM TO MARKET. THERE ARE VARIANCES THERE AS THERE ARE SOME ABATED PROPERTIES THAT ARE ON YOUR GENERAL FUND THAT ARE ON YOUR FARM-TO-MARKET. THERE ARE TIFS AS YOU CAN SEE.

THE TIF NUMBER IS DIFFERENT FROM YOUR GENERAL FUND AND YOUR FARM-TO-MARKET. THOSE TWO VARIANCES HAVE TO DO WITH THE PEDRO ISLAND TIF. THE FARM-TO-MARKET AND HOSPITAL DISTRICT RULED OFF THE PADRE ISLAND TIF AND APPROVED FOR ANOTHER 20 YEARS. SO WITHOUT READING ALL THE NUMBERS FOR THE FARM-TO-MARKET, YOUR NET TAXABLE VALUE IS $345,062,085, 037. YOUR ADJUSTED STACKSABLE VALUE THAT ADJUSTS FOR THAT NEW PROPERTY IS GOING TO BE $43,796,216,231. FARM-TO-MARKET IS .002482.

NO DEBT SERVICE. TO YOUR VOTER APPROVED RATE IS .002819. FOR PAGE 4, WITH THE HOSPITAL DISTRICT RATE, AGAIN, YOU DON'T HAVE YOUR TAX FREEZE AND YOU DON'T HAVE ANY TIF OR TIRS, SO YOUR NET TAXABLE VALUE IT

[01:05:13]

YOUR NO NEW REVENUE RATE FOR THE HOSPITAL DISTRICT IS .081936.

VOTER APPROVED TAX RATE I IS .08972.

THEY CURRENTLY DO NOT HAVE ANY DEBT SERVICE AT THIS TIME AND NO SEPARATE DEBT SERVICE TAX RATE. GOING TO PAGE 5, YOU ARE ABLE TO COMPARE LAST YEAR'S ADOPTED TAX RATE TO THE NO NEW REVENUE RATES AND THE VOTER APPROVED TAX RATE. I LEFT THE DEBT SERVICE FULLY FUNDED FOR ALL OF YOUR OPTIONS FOR '23-'24.

BECAUSE WE HAVE TO. WE HAVE GIVEN WHAT WE KNOW FOR THE REFINERIES. WE CAN NOT FULLY FUND OUR DEBT FOR -- WE NEED EVERY PENNY WE CAN HAVE.

NO FUND BALANCE FOR UNFUNDED SHORT AND IN THE DEBT SERVICE RATE. THE PROPERTY TAX RATE CALCULATION ADJUSTS FOR ANY FUND BALANCE.

SO YOU -- THERE IS NOT ANY SIGNIFICANT FUND BALANCE THAT YOU CAN OFFSET THAT DEBT SERVICE RATE BY, DUE TO THE CHANGES IN LEGISLATION THAT HAPPENED A COUPLE OF YEARS BACK.

SO IF YOU LOOK AT THE TOTAL, JUST NUECES COUNTY, RIGHT, YOUR GENERAL FUND, YOUR DEBT SERVICE AND YOUR FARM-TO-MARKET, LAST YEAR'S RATE WAS .291659. YOU CAN'T COME ANYWHERE CLOSE TO THAT RATE WITH THESE CALCULATIONS WITHOUT GOING ABOVE THE VOTER APPROVED TAX RATE. YOUR MAX VOTER APPROVED TAX RATE WITH A 3.5 IS STILL GOING TO BE $.04 LESS THAN THE CURRENT TAX RATE THAN THEY ARE PAYING. THE NO NEW REVENUE RATE IS ONE PENNY LESS THAN THE VOTER APPROVED TAX RATE.

YOUR COLLECTED NO NEW REVENUE RATE IS.240253 PER $100 EVALUATION. AND YOUR VOTER APPROVED TAX RATE IS .252755, YOUR MINIMUM AND MAXIMUM.

YOU CAN ALWAYS EXCEED THAT WITH AN ELECTION.

NO UNUSED INCREMENT SO THE FOURTH CALCULATION IS JUST JUST A REPEAT OF YOUR THIRD. GOING DOWN TO THE HOSPITAL DISTRICT, THEY SUFFERED A HUGE VARIANCE.

THEIR '22-'23 ADOPTED TAX RATE IS .098466.

THEIR NO NEW REVENUE RATE DROPS -- $.17, NO, .17 CENTS.

.09863. VOTER APPROVED .08897 WITH THE 8%. REMEMBER THEY GET 8%.

WHEREAS WE GET THREE AND A HALF BECAUSE OF THE WAY THE TEXAS LEGISLATION WORKS. WE USED TO GET THE 8% TOO.

BUT FOUR OR SO YEARS AGO, THEY CHANGED THAT.

SO THAT 8% FOR THEM STILL GIVES QUITE A SIGNIFICANT DECREASE FROM THE CURRENT YEARS TAX RATE. AGAIN, YOU CAN'T GET THIS YEAR'S TAX RATES WITHOUT ELECTIONS FOR ANY OF OUR ENTITIES.

AND IT SHOULD BE NOTED THAT THE SCHOOL DISTRICT'S TAX RATES WILL BE GOING DOWN THIS YEAR BECAUSE OF CHANGES IN LEGISLATION.

SO NO MATTER WHAT HAPPENS BY THIS COURT, THE TAXPAYER WILL PAY LESS PROPERTY TAXES ASSESSED BY NUECES -- UNLESS WE GO OUT FOR ELECTION, NUECES COUNTY PROPERTY TAXES YEAR-OVER-YEAR, TAKING OUT THEIR ASSESSED VALUE ARE GOING DOWN.

THEIR TOTAL PROPERTY TAXES THAT -- I MEAN, I GUESS THE CITY COULD GO OUT FOR ELECTION AND THEY CAN RAISE IS REALLY HIGH THAT WAY TOO, BUT BECAUSE OF THE SCHOOL DISTRICT'S CHANGES IN LEGISLATION, THEIR TAX RATES ARE GOING TO DROP DRASTICALLY.

IT IS WONDERFUL NEWS FOR THE PROPERTY TAXPAYER.

SCHOOL DISTRICTS WILL BE FUNDED MORE FROM STATE DOLLARS AND LESS FROM PROPERTY TAX, IS MY UNDERSTANDING.

BUT I AM NOT A LAWYER, SO I WILL LEAVE THAT TO THEM.

[01:10:05]

>>COMMISSIONER GONZALEZ: WE CAN PAY LESS.

>> NO MATTER WHAT COMMISSIONERS COURT DOES BECAUSE OF THE CHANGE IN LEGISLATION -- AND KEVIN CAN COME IN AND DISCUSS THIS, BECAUSE OF THE CHANGES OF LEGISLATION FOR THE SCHOOL DISTRICT, THE -- THE PROPERTY TAXPAYER, BOTH RESIDENTIAL AND COMMERCIAL, WILL BE PAYING LESS PROPERTY TAXES YEAR-OVER-YEAR BECAUSE OF THE CHANGE IN LEGISLATION WITH THE SCHOOL DISTRICT. BECAUSE THAT IS THE HIGH -- THAT IS THE LARGEST PIECE OF THE PROPERTY TAX RATE PIE.

WHENEVER YOU ARE LOOKING AT THE TOTAL AMOUNT PAID BY PROPERTY TAXES, THE SCHOOL DISTRICT IS BY FAR THE LARGEST PORTION OF THE TAXPAYERS PROPERTY TAX BILL. FOR THE GENERAL FUND, NO NEW REVENUE RATE, I GAVE THE HIGHLIGHTS BEFORE.

AND IF YOU FULLY FUND YOUR DEBT SERVICE BECAUSE OF THE WAY THAT THE NO NEW REVENUE RATE IS CALCULATED, TO FULLY FUND THE DEBT SERVICE MEANS YOU ARE DECREASING YOUR GENERAL FUND M&O. WE HAVE TO FULLY FUND OUR DEBT.

THERE IS NO WAY AROUND IT. SO WITH THAT SAID, IT WOULD DECREASE THE GENERAL FUND TAX RATE TO .199735.

THAT GIVES YOU AT A 95% COLLECTION RATE, 2023-2024 GENERAL FUND REVENUE OF $89,185,707.

BECAUSE THAT IS THAT HUGE CUT. WE WOULD -- BEFORE WE ADJUST FOR THE REFINERIES, WE ARE ACTUALLY LOSING MONEY.

1.9 MILLION OF NO NEW REVENUE RATE AGAIN HOW THE NEW PROPERTY RATES ARE CALCULATED. OUR NEW REVENUE DID NOT OFFSET THE HUGE JUMP IN. WE HAD ALMOST ONE BILLION IN NEW VALUE BUT WE HAD 20% INCREASE IN -- WE HAD 20% INCREASE IN TAXABLE VALUE AND SO BECAUSE OF THAT HUGE JUMP IN YOUR TAXABLE VALUE, OUR NO NEW REVENUE RATES. IT IS A NO NEW REVENUE RATE.

IT IS A NO NEW REVENUE LOSS OF $1.9 MILLION.

IF YOU ADJUST FOR THE ANTICIPATED AND COLLECTED DUE TO THE LAWSUITS, YOU ARE DOWN THAT 6.96720.

SO 6.694 MILLION, ALMOST $7 MILLION.

AND THAT IS JUST REVENUE PROPERTY TAX CURRENT COLLECTIONS REVENUE OVER PROPERTY TAX CURRENT COLLECTION REVENUE.

SO THAT IS YOU'RE 22-'23 -- TO '23 TO '24 CHANGE IT S A LOSS OF 6.694 MILLION. GOING TO THE NEXT PAGE, IF YOU USED THE VOTER APPROVED RATE SINCE THERE IS NO UNUSED INCREMENT. THAT IS THE MAXIMUM THAT YOU CAN ADOPT. WE WILL ONLY HAVE A GENERAL FUND -- ASSUMING THAT THE REFINERIES PAY EVERY PENNY OF THEIR ASSESSED VALUE. WE WILL HAVE AN INCREASE OF 3.387 MILLION YEAR-OVER-YEAR INCREASE; HOWEVER, WE ANTICIPATE THEY ARE NOT GOING TO PAY THAT. THERE WILL BE THAT DISPUTED VALUE. AND THAT DISPUTED VALUE EXCEEDS THE $3.5% ABOVE THE NO NEW REVENUE PLUS THE LOSS WE ALREADY HAVE IN NO NEW REVENUE. SO YOUR ANTICIPATED LOSS, AGAIN, JUST LOOKING AT THE TAX RATE -- THE TAX REVENUE IS $1,702,893.

THAT IS BEFORE ANY EXPENSES. THAT IS BEFORE ANYTHING ELSE THAT HAPPENS TO THE BUDGET. FOR THE DEBT SERVICE ON PAGE 8.

THE ONLY ONE THAT HAS RED -- THERE YOU GO.

I WANTED TO ABLE TO TELL THAT YOU THE ANTICIPATED REVENUES TO BE RECEIVED BASED ON THIS TAX RATE.

FOR DEBT SERVICE, YOU ARE TRYING TO FUND A REQUIREMENT -- OH, THERE WAS SUPPOSED TO BE SOMETHING OVER HERE THAT IS NOT THERE. YOU ARE TRYING TO FUND A REQUIREMENT VERSUS TRYING TO FUND A -- A -- A BUDGETED NUMBER. WE KNOW HOW MUCH WE HAVE TO PAY FOR OUR DEBT SERVICE REQUIREMENTS LET ME SEE IF I

[01:15:02]

THE DEBT SERVICE -- IT IS NOT ON THAT ONE EITHER.

OKAY, THE DEBT SERVICE REVENUS -- THE DEBT SERVICE PAYMENTS ARE AT $15,900 -- I DON'T HAVE THAT EXACT NUMBER.

I KNOW THAT IT IS A BUDGETED SHORTFALL OF -- OF $9973 ASSUMING, AGAIN, THAT THE REFINERIES PAY THE SAME AMOUNT AS LAST YEAR. I CAN GET YOU THAT DEBT SERVICE REQUIREMENT AMOUNT. ACTUALLY I HAVE IT RIGHT HERE.

MAYBE I HAVE TO RIGHT HERE. OKAY.

THE TOTAL DEBT SERVICE REQUIREMENT FOR THE '23, '24 YEAR IS GOING TO BE $15,937,621. AND, AGAIN, WE WILL BE COLLECTING $15,926,845, ASSUMING THAT EVERYBODY -- THAT WE HAVE THE SAME COLLECTION RATE AS LAST YEAR OF THE 95%.

AND THAT THE REFINERIES PAY THE EXACT SAME AMOUNT THAT THEY PAID LAST YEAR. GOING FORWARD TO THE FARM-TO-MARKET NO NEW REVENUE RATE.

THE FARM TO MARKET NO NEW REVENUE RATE OF .002842.

AFTER YOU ADJUST FOR THE ANTICIPATED LAWSUITS, A SHORTFALL OF $19,149. THE INCREASE -- THE YEAR-OVER-YEAR INCREASE WOULD HAVE GENERATED THE -- THE NO NEW REVENUE RATE WOULD HAVE GENERATED IF NOT THE REFINERIES DISPUTE AND A NO NEW REVENUE OF $49,036.

BUT WE HAVE TO ADJUST $168,000 FOR THAT ANTICIPATED LOSS.

ON PAGE 10, THE VOTER APPROVED TAX RATE, THE VOTER APPROVED TAX RATE WILL GENERATE AN INCREASE IN FARM-TO-MARKET REVENUE YEAR-OVER-YEAR OF $81,999 WHENEVER YOU ADJUST FOR THE ANTICIPATED AND COLLECT FOR THE REFINERIES LAWSUIT WHICH WILL BE A SHORTFALL OF $70,032. YOU WOULD BE ABLE TO END THAT -- THAT RATE WILL HAVE A POSITIVE ENDING YEAR-OVER-YEAR OF $11,967. FOR THE HOSPITAL DISTRICT ON PAGE 11, YOU ARE TAKING THE TAXABLE VALUE OF $48,156,9 -- EXCUSE ME $760,931. MULTIPLYING IT BY THE -- BY THE TAX RATE. DIVIDED BY 100.

TO GENERATE YOUR LEVY. TOTAL LEV FOR THE '23-'24 YEAR FOR THE NO NEW REVENUE TAX RATE WOULD BE $39,470,726 WITH A COLLECTION RATE OF 95% WILL GIVE YOU A '23-'24 BUDGETED REVENUE OF $37,497,190. THAT IS ACTUALLY GOING TO BE A DECREASE YEAR-OVER-YEAR IN THEIR BUDGETED REVENUES OF $233,720.

YOU ADD TO THAT THE ANTICIPATED UNCOLLECTED DUE TO THE REFINERIES LAWSUIT OF $1.9 MILLION.

YOU ARE NOW AT AN ANTICIPATED SHORTFALL OF 2,2,151.

AGAIN THAT IS REVENUE OVER REVENUE.

[01:20:03]

THAT STILL LEAVES POSITIVE $968,282.

ANY QUESTIONS? ALL RIGHT.

WITH THAT SAID, ON PAGE 13, WE ARE GOING TO YOUR ESTIMATED ACTUAL FUND BALANCES, WHICH IS WHAT YOU WERE JUST ASKING ME FOR. WHERE ARE WE AT IN THE CURRENT YEAR. WHAT WE ANTICIPATE TO HAVE AT THE END OF THE YEAR. CURRENTLY WE BEGAN THE '22-'23 FISCAL YEAR FOR A FUND BALANCE OF THE GENERAL FUND OF $25,765 NOW, 044. WE ARE ANTICIPATING AN INCREASE OF $2,541,891. FOR AN ANTICIPATED ENDING GENERAL FUND BALANCE OF $28,306,935.

AND THAT INCREASE CAN PRETTY MUCH BE SUMMED UP AS FUND RATES WENT UP, AND WE EARNED MORE INTEREST.

THAT OFFSET ALL THE OTHER EXPENSESES THAT WE HAD THROUGHOUT THE YEAR THAT EXCEEDED OUR ORIGINAL ANTICIPATED. WE HAVE BEEN AT SUCH LOW INTEREST RATES FOR SO LONG. WHENEVER WE STARTED GETTING INTEREST, IT WAS BENEFICIAL, PLUS THE -- THE -- THE STATUTES PROVIDE THAT THE INTEREST EARNED ON THE ARPA FUNDS DOESN'T HAVE TO STAY IN THE ARPA FUNDS. THIS THEY ARE ABLE TO BE MOVED OVER TO THE GENERAL FUNDS. NOT ONLY ARE YOU EARNING THE INTEREST ON YOUR GENERAL FUND INVESTMENTS, BUT YOU ARE ALSO EARNING INTEREST ON YOUR ARPA INVESTMENTS.

SO THAT INTEREST RATE IS GOING TO DECREASE DRASTICALLY AS THE ARPA FUNDS CONTINUE TO BE SPENT, BUT WHILE WE HAVE IT, WE ARE BENEFITING VERY FAVORABLY FROM THE ARPA FUNDS INTEREST EARNINGS. BECAUSE WE GO TO THE GENERAL F FUND, WE HAVE BEEN MOVING IT TO THE GENERAL FUND AS IS ALLOWABLE BY LAW.

>>COMMISSIONER CHESNEY: A 40 INTEREST RATE?

>> THE INTEREST RATE VARIES PACED UPON THE INVESTMENTS AND THE BANK DEPOSITOR TEE AGREEMENT.

CONTRACTUAL RATES. >>COMMISSIONER CHESNEY: AS WE SPEND IT, IT GOES AWAY. OBVIOUSLY WE DON'T HAVE IT.

MY QUESTION ON THE FLOATING IS, DO WE HAVE IT IN SOME SORT OF CD WHERE IT IS FIXED FOR TWO YEARS OR A RATE THAT GOES UP AND DOWN.

IS KIND OF A ONE-TIME THING, RIGHT?

>> NO, IT IS NOT A ONE-TIME THING.

BUT AS YOU SPEND DOWN THE ARPA FUNDS, YOUR INTEREST EARNINGS WILL DRESS AT THISCALLY DECREASE.

WE HAVE FUNDS THAT ARE IN -- QUARTERLY INVESTMENT REPORT THAT COMES BEFORE COURT. IT IS PREPARED TOGETHER WITH THE COUNTY CLERK'S OFFICE. SOME COUNTY CLERK, TREASURER AND OUR OFFICE TOGETHER PREPARE WITH THE INVESTMENT COMMITTEE, THE

INVESTMENT FUNDS. >>COMMISSIONER CHESNEY: I AM SAYING DOES IT FLOAT OR IS IT FIXED?

THAT IS WHAT I AM ASKING. >> DIFFERENT COMPONENTS FOR

EACH. >> IN THE BANK RIGHT NOW FOR ARPA, ABOUT $5 MILLION -- IT IS ALL OF IT.

>>COMMISSIONER CHESNEY: WAIT, STAY WITH US.

>> ALL OF US TOGETHER RIGHT NOW -- WE ARE TALKING OF ALL THE FUND, THE ARPA, EVERYTHING, $5 MILLION INTEREST TOTAL SO FAR, BUT JUST THE INVESTMENT FUND, LIKE OUR INVESTMENT, ASIDE FROM WHAT IS IN THE BANKS ARE FOR ARPA AND EVERYTHING ELSE.

SPECIAL FUNDS A LITTLE OVER 800,000, I BELIEVE.

>>COMMISSIONER CHESNEY: MY POINT IS THIS IS HERE THIS YEAR.

THIS IS ALL GOING AWAY. >>JUDGE SCOTT: YOU NEED THE TH

>>COMMISSIONER CHESNEY: AND SO -- WE -- YOU SAY YOU HAVE BEEN PUTTING IN THE GENERAL FUND AS APPLICABLE MEANING THE GENERAL -- LIKE THE RESERVES? HOW DOES THAT --

>> GETS CALCULATED AS REVENUES FOR THE GENERAL FUND.

>>COMMISSIONER CHESNEY: HOW DID THAT GET DECIDED.

DIDN'T VOTE ON THAT. I WOULD HAVE SAID -- I WOULD HAVE SAID, HEY, PUT SOME IN RESERVES BECAUSE WE ARE $5

MILLION DOWN ON RESERVES. >>JUDGE SCOTT: EVERYTHING IS

[01:25:08]

>>COMMISSIONER CHESNEY: NOT IF WE ARE SPENDING IT THOUGH.

IF WE WERE TO SAY SPECIFIC LIKE THAT NEEDS TO GO IN THE GENERAL FUND RESERVES, WOULDN'T THAT EVEN BE MORE OF A DESIGNATION?

>> IT IS GOING -- THE RESERVES ARE CALCULATED.

THE FUND BALANCE IS CALCULATED BY TAKING THE BEGINNING FUND BALANCE, PLUS REVENUES MINUS EXPENSES.

WHEN YOU ADD IT IN THE REVENUE, YOU ARE PUTTING IT IN THE

RESERVES. >>COMMISSIONER CHESNEY: UNLESS WE ARE SPENDING IT. UNLESS WE ARE USING FOR OTHER

THINGS. >> AGAIN, WE ARE NOT EXCEEDING THE ADOPTED '23-'24 -- OH MY GOSH -- '22-'23 BUDGET.

WE ARE WITHIN THE PARAMETERS OF THE '22-'23 BUDGET.

>>JUDGE SCOTT: NOT SPENDING MONEY THAT, IS THE BEEN

AUTHORIZED. >> WE ARE NOT SPENDING MONEY

THAT HAVEN'T BEEN AUTHORIZED. >> IT WOULD HAVE BEEN UNDERBUDGET -- SORRY, OVERBUDGET, BECAUSE YOU ARE

SPENDING MONEY -- >> YOU NEED TO GET ON THE

MICROPHONE. >> SPENDING MONEY THAT WE DIDN'T REALIZE THAT WE WERE GETTING. OH, THANK YOU FOR THE BONUS $4 MILLION. OTHERWISE YOU WOULD HAVE BEEN OVER OVERBUDGET.

>> OTHERWISE WE WOULD BE IN A DEFICIT BECAUSE WHENEVER WE GO TO K. WHENEVER --

>> IT IS COVERING ALL THE OVERSPENDING.

>> IT IS COULD COVERING -- SO IS THE EXPENSES EXCEEDED REVENUES LAST -- BUDGETED EXPENSES EXCEEDED BUDGETED REVENUES LAST YEAR AND WHENEVER PEOPLE ARE SPENDING BUDGETED FUNDS, THEN -- THEN THEY ARE STILL WITHIN THE PARAMETERS SET BY COMMISSIONERS COURT, BUT IT IS DECREASING YOUR FUND BALANCE.

>>COMMISSIONER CHESNEY: THE FACT I DON'T REMEMBER A YEAR WHERE WE OVERSPENT ON EXPENSES COMPARED TO WHAT WE WERE SUPPOSED TO BE.

>> THAT'S CORRECT. >>COMMISSIONER CHESNEY: SO THAT IS A PROBLEM, RIGHT. THAT IS WHERE WE HAVE TO ADJUST THAT FROM A POLICY STANDPOINT ON SALARY SAVINGS AND OTHER THINGS

WE NEED TO LOOK AT. >> THAT IS EXACTLY WHAT HAPPENS,

SIR. >>COMMISSIONER CHESNEY: LAST YEAR WASN'T -- IT WASN'T A GOOD YEAR.

>>COMMISSIONER HERNANDEZ: EXECUTION ME, THIS IS WHERE WE ARE FINDING BUCKETS OF MONEY THAT WE THOUGHT WE DIDN'T HAVE

IN? >> YES.

>> THEY ARE THE BUCKETS THAT YOU HAD THAT YOU DIDN'T HAVE.

>>COMMISSIONER HERNANDEZ: EXACTLY.

>> AND Y'ALL DID A BUDGET BASED ON EMPTY BUCKETS.

SO WHAT HAS HAPPENED OVER MULTIPLE YEARS OF COMMISSIONERS COURT'S ACTION IS WE CUT ALL THE FAT IN THE BUDGET.

BUT SPENDING HAVEN'T CHANGED. SO THE DEPARTMENTS ARE STILL SPENDING THE WAY THEY PREVIOUSLY HAVE SPENT AND THEIR BUDGETS BECAME CLOSER TO THEIR ACTUALS. IT IS A COLLECTIVE WHOLE.

I AM NOT SAYING ANYBODY IN PARTICULAR.

IT IS A COLLECTIVE WHOLE. FOR INSTANCE --

>> FROM THE AUDITOR'S OFFICE WHAT YOU VISIT COURT.

YOU ARE TRYING TO LAY BLAME ALL ACROSS THE COUNTRY, BUT WE WERE

SPEND WHAT WE WERE BUDGETED. >>JUDGE SCOTT: COME ON, GUYS, LET'S MOVE FORWARD. WE ARE NOT HERE -- CONTINUE, LET'S JUST MOVE ON. THIS ISN'T THE TIME --

>>COMMISSIONER GONZALEZ: ANOTHER TIME.

>>JUDGE SCOTT: WE WILL ADDRESS THAT, ABSOLUTELY LATER, YEAH.

WE ARE ALMOST DONE WITH THIS PRESENTATION.

AND SHE HAS ANOTHER PAGE TO GO TLUP, SO LET'S JUST MOVE ON.

THERE WILL BE PLENTY OF TIME FOR THIS KIND OF DISCUSSION.

IT IS WHAT IT IS. IT IS GOING TO BE A LOT OF THE ANTICIPATED CONVERSATIONS JUST LIKE THIS.

YES. >> THE ROAD AND BRIDGE IS HAVING A SLIGHT INCREASE TO THEIR FUND BALANCE THE -- THE FAIRGROUNDS -- ALL OF THE DEPARTMENTS ARE HAVING A POTENTIALLY SLIGHT INCREASE. THE LAW LIBRARY ENDED 9/20/22 IN A DEFICIT AND CONTINUES TO HAVE A DEFICIT; HOWEVER, THAT DEFICIT IS $725 LESS THAN IT WAS THE PREVIOUS YEAR.

AGAIN, YOU CAN'T CONTINUE TO OPERATE ON A DEFICIT.

SO WE ARE GOING TO -- EITHER THE GENERAL FUND WILL NEED TO FUND THE ADDITIONAL DOLLARS OR ADDITIONAL CUTS WILL BE NECESSARY IN ORDER TO OFFSET THAT KNOWN ANTICIPATED DEFICIT IN THE LAW LIBRARY OF 64,127. THE COASTAL PARK ALSO HAVE A SLIGHTLY LARGER INCREASE IN ENDING FUND BALANCE OF $235,090.

[01:30:03]

>>JUDGE SCOTT: 10:35. >> YOU LOOK AT THE NO NEW REVENUE TAX RATE CARING FOR THAT ESTIMATED BEGINNING FUND BALANCE OF $28 MILLION, 306,935. AND THE ANTICIPATED REVENUES WITH THE NO NEW REVENUE RATE OF A TOTAL OF $110,869,932.

THAT GIVES YOU THE TOTAL AVAILABLE FUNDS, REVENUES PLUS YOUR BEGINNING FUND BALANCE OF $139,176,867.

>>JUDGE SCOTT: YOU KIND OF ALREADY WENT THROUGH THIS PAGE

SO WE CAN SKIP IT. >> IF WE GO OVER TO K-2, WHICH IS AGAIN -- AGAIN I AM GOING TO CALL IT STEVE'S MAGICAL WORKSHEET. THE NO NEW REVENUE RATE.

IT SHOWS YOU WHAT -- STARTING AT THE BOTTOM OF K-2, YOU CAN SEE THE 1920, WE BUDGET REVENUES OF -- WE BUDGETED REVENUES OF $99 MILLION. BE ACTUALLY HAD REVENUES OF $97 MILLION, WHICH IS 98.1% OF BUDGETED REVENUES.

SO REVENUES CAME IN AT 98.1. EXPENDITURES -- BUDGETED EX- INTURES CAME IN AT 91.9. TRANSFERS OUT WENT OUT AT 93.

SO THE BUDGET ANTICIPATED AS SHORTFALL OF 4.497 MILLION IN ACTUALITY BECAUSE WE SPENT LESS THAN WE BUDGETED AS WE ALWAYS DO, BECAUSE WE ARE BEING PRUDENT WITH THOSE FUNDS.

THE ACTUAL -- THERE WAS A YEAR-OVER-YEAR INCREASE IN YOUR FUND BALANCE OF $2.3 MILLION. THEN IN 2020, 2021, A YEAR-OVER-YEAR INCREASE OF $939,000.

'21-'22, THAT WAS THE YEAR THAT COMMISSIONERS COURT DECIDED TO MAKE CHANGES WITH -- WITH BUDGET.

AND IT WAS COVID. THERE WERE DIFFERENT THINGS COMING IN. WE CAME IN UNDER.

SO WE BUDGETED A DECREASE, $9.2 MILLION.

AND WE ACTUALLY CAME IN WITH AN ACTUAL DECREASED FUND BALANCE OF $17 $175,523.

THIS YEAR WITH OUR ESTIMATED ACTUALS, 101% OF BUDGETED REVENUES COME IN. WE ARE OPENING THAT EXPENSES ARE GOING TO BE AT 89.2% OF BUDGETED EXPEN EXPENDITURES. WHICH WILL GENERATE A POSITIVE INCREASE IN YOUR FUND BALANCE OF 2.541 MILLION ESTIMATED ACTUAL INCREASE. WE HAVE BUDGETED A DECREASE OF $10 MILLION. SO, AGAIN, FAVORABLE TO THE COUNTY. AND AS I STATED BEFORE, YOU WANT YOUR BUDGET TO HAVE THE ABILITY TO ABSORB THINGS THAT YOU CAN FINANCIALLY PLAN FOR. YOU WANT TO OVERBUDGET YOUR EXPENSES AND YOU WANT TO UNDER BUDGET YOUR REVENUE IN ORDER TO IT BE FISCALLY CONSERVATIVE. SO FOR USING THAT NO NEW REVENUE BASE AND THE ESTIMATED ACTUAL BEGINNING FUND BALANCE IN 9 SLR/30/23. IF WE BUDGET $1 08,669,000.

THERE IS A NUMBER THAT IS CUT OFF THERE.

IF WE BUDGET THE REVENUES THERE IS AND ANTICIPATING THAT WE RECEIVE -- BECAUSE IT AS VERY -- THE BUDGETED REVENUES ARE PRETTY RIGHT ON. IF WE RECEIVE 99% OF THOSE, WE WOULD HAVE A COLLECTION OF $107,528, 4020 SOMETHING.

THAT LINE IS CUT OFF. I APOLOGIZE FOR THAT.

YOUR AVAILABLE RESOURCES BETWEEN BUDGET AND ESTIMATED ACTUAL WOOP

[01:35:06]

YOU WOULD BE BUDGETING MORE THAN WHAT WE HAVE COMING IN BECAUSE OF THE REFINERIES. WE ARE GOING TO FULLY BUDGET THE REVENUE. IT WILL JUST BE IN CONTINGENCY.

>>JUDGE SCOTT: ANSWER A QUESTION FOR ME REAL QUICK.

BUDGET AND ACTUALS IF YOU WENT BACK ALL YOU HAVE THESE YEARS, OUR FUND BALANCE IS OUR GENERAL FUND AFTER EVERYTHING.

THIS SAYS THE AMOUNT WE ANTICIPATED, THE AMOUNT WE ACTUALLY COLLECTED, THE AMOUNT WE ANTICIPATED SPEND, THE AMOUNT THAT WE COLLECTED. IF YOU WENT WANT TO ALL OF THE FUND BALANCE, OUR GENERAL FUND AND 19 THIS IS THE AMOUNT AND WE SHOULD BE ABLE TO GET OUR GENERAL FUND BALANCE MOVING

FORWARD. >> THAT'S CORRECT.

IF YOU LOOK AT THE ACTUAL LINE WHERE IT IS 22,694 SIX ZERO SOMETHING. THE LAST LINE IS CUT OFF.

YOUR BEGINNING FUND BALANCE. THE $25 MILLION.

THAT IS YOUR ACTUAL. >>JUDGE SCOTT: A CHECK AND BALANCE IN WHAT WE HAVE EVERY YEAR AND IF WE INCREASE OUR FUND

BALANCE OR WHEN. >> THAT IS WHAT THIS IS SHOWING -- THIS IS WHAT YOU BUDGETED. THIS IS WHAT ACTUALLY HAPPENED.

THIS IS WHAT YOU BUDGETED -- >>JUDGE SCOTT: YOU GO BACK ALL THESE YEARS AND START BACK IN 2019, WE HAD $24 MILLION IN OUR FUND BALANCE. THEN GOING INTO 2020, WE SHOULD HAVE $26 MILLION, IF WE ADDED IN PRESIDENT END OF THE YEAR THE $ MILLION. THAT IS WHAT I AM ASKING SMP.

>> NO, IF YOU WERE LOOKING AT THE ACTUALS FOR 9/30/21.

T >>JUDGE SCOTT: IN THE MIDDLE OF

THE PAGE? >> IF YOU GO TO -- ON 2020-2021, THE -- THE $939,463 INCREASE IS THE DIFFERENCE BETWEEN THE BEGINNING FUND BALANCE AND THE ENDING FUND BALANCE.

YOU ARE NOT ADDING THAT ON TOP OF THAT NUMBER.

>>JUDGE SCOTT: JUST THE FINAL NUMBER.

>> THAT IS YOUR NET CHANGE. YOUR YEAR-OVER-YEAR INCREASE.

>>JUDGE SCOTT: I WAS THINKING A WAY TO CHECK BACK FOR ACTUAL NUMBERS. SOME WAY FOR US TO FEEL THIS IS INFORMATION GIVEN US TO OR SOMETHING.

>> YES, THESE ALL TIE TO OUR AUDITED FINANCIALS.

>>JUDGE SCOTT: SOMETHING SIMPLE TO LOOK AT TO KNOW -- I KNOW YOU

WERE ASKING. >> LIKE BANK STATES STATES.

I THOUGHT IT WAS SOMETHING ELSE. NEVER MIND.

>> SO THESE ARE YOUR ACTUAL -- YOUR ACTUAL FUND BALANCES.

AGAIN, IF WE -- ASSUMING THAT WE REDUCE OUR EXPENDITURES, THAT -- OF THE BUDGETED EXPENDITURES THAT WE HAVE, ACTUAL SPENDING IS CURTAILED -- WE NOT ONLY CUT BUDGET, BUT THEN WE ACTUALLY REDUCE SPENDING ON TOP OF THOSE C CUTS. THAT WOULD GIVE YOU THE ESTIMATE -- THE 86%. SO WE -- OF THE BUDGETED REVENUE WE ONLY SPEND 86 OF WHAT WE BUDGET AND COME IN AT EXPENSES OF -- FOR THE NO NEW REVENUE RATE OF $103,612,244.

THAT WOULD GIVE US, AGAIN, THAT DEFICIT -- BUDGETED DEFICIT OF $20,965,522. WE HAVE NEVER PREVIOUSLY AS YOU CAN LOOK AT THE PREVIOUS FOUR YEARS HIT 86% OF BUDGETED EXPENDITURES. 86 IS EXTREMELY --

>>COMMISSIONER CHESNEY: LOW. >> -- LOW.

>>COMMISSIONER CHESNEY: WHY PROJECT IT LIKE THAT? I AM JUST CURIOUS. WHY NOT PROJECT IT AS THE

AVERAGE OF THE FOUR YEARS. >> BECAUSE DALE IS ASSUMING THAT GIVEN THE STATE OF THE NUECES COUNTY, THAT ACTUAL EXPENDITURES WILL REDUCE WITH ACTUAL BUDGET CUTS.

REFINERIES. >> THE REFINERIES ARE IN THAT

NUMBER, THAT'S CORRECT. >>COMMISSIONER CHESNEY: IF WE ARE -- IF YOU -- IF YOU BUDGETED -- IF YOU BUDGETED YOUR EXPENDITURES AT THE AVERAGE PERCENTAGE, LET'S JUST SAY, OF

[01:40:02]

>> THAT'S CORRECT, SIR. >>COMMISSIONER CHESNEY: THIS IS

CONSERVATIVE. >> YOUR ESTIMATED ACTUAL.

WHAT YOU THINK YOU MAY BE ABLE TO COME IN AT NEXT YEAR WOULD CHANGE. LET ME GET THAT FOR YOU.

>> COMMISSIONER CHESNEY:THAT REAL LEGAL IS.

>> THE ESTIMATED ACTUAL NUMBER THAT WILL CHANGE BASED ON THE

TWO YELLOW HIGHLIGHTED NUMBERS. >>COMMISSIONER CHESNEY: AGAIN, IF YOU JUST -- I AM NOT -- IF I -- IF I JUST TOOK THE FOUR-YEAR AVERAGE, ONE, TWO, THREE, FOUR OF THE OTHER TWO BUDGETED YEARS AND SAID INSTEAD OF 86%. IT WAS 89%, WHICH IS -- MAYBE 90, WE ARE LOOKING AT MORE. WE ARE LOOKING AT A HIGHER BUDGET DEFICIT. THE 86 --

>> THE BUDGET DEFICIT WILL BE THE ACTUAL SAME.

THE ACTUAL DEFICIT WILL BE DIFFERENT.

THE STIRMENTED ACTUAL. >>COMMISSIONER CHESNEY: RIGHT.

IT WOULD GO UP. >> INSTEAD OF IT BEING THE 5.185104. IT WILL BE A -- IT WOULD BE

HIGHER I CAN -- >>COMMISSIONER CHESNEY: IN OTHER WORDS, I HAVEN'T SEEN AN 86 NUMBER.

THAT IS WHAT I AM GETTING TO. SO IF WE PUT IN THE ACTUAL NUMBER OF THE AVERAGE OF THE LAST FOUR YEARS, OUR PROJECTED DEFICIT WILL BE EVEN BIGGER, RIGHT.

BECAUSE THAT 103 NUMBER WILL DOWN.

AND AGAIN THIS IS WHERE THE COURT IS GOING TO DIG INTO THAT.

WHAT KEVIN'S NUMBER IS LOST REVENUE.

THE BOTTOM LINE IS THE LOSS REVENUE PLUS, PLUS, PLUS.

AUGUST 9 AT 86% WHICH IS TOO LOW FOR MME WHICH IS TOO LOW FOR ME I GET IT. DALE HAS REASONING HERE.

THAT IS FINE LOOKING AT A POTENTIAL DEFICIT OF 20 MILLION PLUS. NOT FIVE OR SEVEN OR TEN.

20. IF WE DO NOTHING AND WE DO EVERYTHING WE ARE ABLE GATED RIGHT NOW AS WE SIT WE ARE LOOK CAN AT 20 TO 25 MILLION ON A DEFICIT.

>> THAT'S CORRECT. >> I JUST -- THAT IS A BIG, BIG NUMBER. AND IT IS NOT JUST THE LOSS IN REVENUE, BUT ALSO THE INCREASE IN EXPENSES AND EVERYTHING ELSE THAT YOU HAVE TO FACTOR IN. SO ALL WE HAVE BEEN TALKING ABOUT IN PREVIOUS -- AND TOOK ME A WHILE FOR THIS TO CLICK.

ALL THE NUMBERS HAVE BEEN LOST REVENUE POTENTIAL.

WE HAVEN'T TALKED ABOUT INCREASED EXPENSES THAT GO ALONG WITH THAT AND EVERYTHING ELSE THAT HAPPENS WHERE THIS NUMBER IS -- I DON'T KNOW WHAT WE WOULD HAVE DONE IF THAT $6 MILLION WOULD HAVE BEEN IN PLACE. WE WOULD BE LOOKING AT 50 MILLION. WOULD HAVE BEEN UNREAL.

NOT JUST THE LOST REVENUE. AND EVERYBODY HALVES GOT TO GET THIS. 20 TO 25 MILLION AS WE GET HERE TOD TODAY.

>> AND I HAVE THE SPREADSHEET CHANGE THAT 86 TO 91.

LOOKING AT BUDGETING AT THE 19% OF THE $121 MILLION BUDGET BRING YOU IN AN ESTIMATED ACTUAL OF $1 09 MILLION,636,211 WHICH WILL BE AN INCREASE IN YOUR FUND BA BALANCE.

>>COMMISSIONER CHESNEY: IT IS WHAT IT IS.

AND AS WE SIT YOUR NUMBER IS AND CAN CHANGE IN 15 MINUTES, I GET IT. IF WE DO EVERYTHING ON YOUR LIST 20, 25 MILLION WE WILL COME UP WITH MAGIC WILL HERE.

ALL RIGHT. THANK YOU.

GOING FORWARD TO THE K-4 REALLY QUICK.

WHENEVER YOU CHANGE TO THE VOTER APPROVED, THE REVENUES GO UP AND THE LOST DUE TO THE REFIVE FINERY ALSO GO UP.

SO NOT JUST -- NOT THE BUDGETED REVENUE.

BUT BUDGETED EXPENSETURE ISSUE THAT YOU ARE GOING TO HAVE YOU ARE STILL AT A BUDGET DEFICIT BECAUSE YOUR EXPENSE IS NOT

[01:45:05]

DEFICIT OF 10,064,016 FOR THE ESTIMATED ACTUAL.

YOUR BUDGET WILL BE CORRECT AS IT IS SHOWN ON THE SHEET BASED UPON WHAT WE WILL ACTUALLY SPEND.

THE BUDGET WE ADOPT AND HOW ACTUAL SPENDING COMES IN BASED ON THAT BUDGET THIS IS MORE OF A REVENUE AND WE WILL GET INTO THE NITTY GREATY. BRAINSTORMED FOR COMMISSIONERS COURT CONSIDERATION AND THAT THAT LIST YOU WERE TALKING ABOUT IN ALL I SEE IS INCLUDE AND INCLUDE AND INCLUDE.

>> WE SHOULD HAVE TIGHTENED OUR BELTS BEFORE WE GET TO THIS POINT. AND THE REST OF US COULD NOT ANTICIPATED. AND AS COMMISSIONER CHESNEY STATED IT WOULD HAVE BEEN MUCH WORSE AT THE 6.5 BILLION AND CATASTROPHICALLY WORSE. THE APPRAISED DISTRICT DID NOT DISCLOSE THOSE TO THE ENTITIES EFFECTED AND WE COULD HAVE A POTENTIAL LEGISLATIVE FIX I DON'T AGREE THAT THERE WAS SPENDING DONE IN PREVIOUS THAT WE DIDN'T HAVE A LOT OF CONTROL OVER. YOU WOULD THINK WE WOULD HAVE.

AND -- THIS IS THE IMPERFECT STORM.

THIS IS DEFINITELY. >> OH, NO, THE PERFECT STORM.

ALL THE HURRICANES OUT IN THE OCEAN AND WITH GEORGE CLOONEY.

THEY ALL MERGED PLUS A COUPLE OF EXTRA THAT WEREN'T IN THE MOVIE.

THEY ALL MERGED TOGETHER HERE IN NUECES COUNTY.

THE PERFECT STORM OF. >>COMMISSIONER CHESNEY: EMPER EMPERFECTION.

>> OF BUDGET DISASTERS. >> WELCOME TO NUECES COUNTY,

JUDGE SCOTT. >>JUDGE SCOTT: THANK YOU, LISA, AND WE WILL BE HAVING MORE OF THIS.

DOES ANYONE NEED FOR US TO TAKE A BREAK BEFORE WE GO INTO REGULAR -- 10:54. FIVE MINUTES IF YOU WANT TO TAKE A BREAK. 10:54.

LET'S DO TEN MINUTES .

[01:50:11]

>>JUDGE SCOTT: IT IS 11:10, AND COMING BACK FROM APPEAR SHORT

[1. Recognizing the Calallen Lady Cats Softball Team as the 2023 3A State Champions!]

>>COMMISSIONER HERNANDEZ: MAKE THE MOTION.

>>JUDGE SCOTT: I WILL SECOND THAT.

THAT IS MY AREA AS WELL. MISS KING READ ON OUR CALALLEN SOFTBALL TEAM. GLAD TO HAVE YOU LADIES HERE

TODAY. >> YES, JUDGE COMMISSIONERS COURT REPRESENTING CALALLEN HIGH SCHOOL, LADY CATS SOFT BALL TEAM AS 2023 STATE CHAMPIONS. WHEREAS, THE CALALLEN LADY CATS IS HEAD BY HEAD COACH TERESA LENZ, ASSISTANT COACH LAMAR LOPEZ, J.V. HEAD COACH MARK BRASEL.

AND ANJELICA. AND MANAGER AND STUDENT COACH.

WHEREAS, THE CALALLEN LADY CATS SOFTBALL TEAM CONSISTS OF MEGAN GEAR AND ANGELINA VILA, CAITLYN TAGLEY, MIRA FLOREZ, JORDAN THIBODEAU, GABBY CADERON, MAGEE HERERA, BRAYLON BAILEY, BROOKLYN MADOR. I AM SORRY IF I BUTCHER ANY OF Y'ALL'S NAMES. I APOLOGIZE.

LADY CATS SOFT BALL TEAM FINISHED THE YEAR WITH 31-6-2 OVERALL RECORD AND AMAZING 10-0 RECORD IN THE STATE PLAYOFFS.

CATS OPENLY DEFEATED TWO-TIME CHAMPION LIBERTY IN THE STATE FINAL BY A SCORE OF 9-7. THE CHAMPIONSHIP THE FIRST CALALLEN HISTORY. THE FIRST CHAMPIONSHIP IN SOFTBALL TO BE WON BY A TEAM FROM CORPUS CHRISTI.

SOME OF THE LADY CATS STATE CHAMPIONSHIP TEAM MEMBERS RECEIVED ACCOLADES FROM NATIONAL AND STATE ORGANIZATIONS WHICH INCLUDE NFCA THCA TGCA SCORE BOARD LIVE, TSWA, CALLER TIMES AND RIO SPORTS LIVE. THEREFORE BE IT RESOLVED BY THE NUECES COUNTY COMMISSIONERS COURT THAT THE COURT HEARBY RECOGNIZES THE CALALLEN LADY CATS SOFTBALL AS THE 2023 STATE

CHAMPIONS. >>JUDGE SCOTT: THANK YOU, MISS KING. WE HAVE A MOTION AND A SECOND ALWAYS THOSE IN FAVOR, SAY AYE. OPPOSED, SAME SIGN.

THE MOTION PASSES. I KNOW COMMISSIONER HERNANDEZ,

YOU PUT THIS ON THE AGENDA. >>COMMISSIONER HERNANDEZ: YES, I DID, JUDGE. I WANT TO THANK THIS GROUP OF YOUNG LADIES FOR TACKING THE TIME THE FIRST-EVER SOFTBALL TEAM FROM CORPUS CHRISTI TO ACCOMPLISH WHAT THEY HAVE DONE.

YOU PUT CORPUS CHRISTI ON THE MAP NOT THAT IT HAVEN'T BEEN PUT ON BEFORE, BUT TO BE THE FIRST WILD CATS SOFTBALL TEAM TO ACCOMPLISH THIS. THANK YOU ALL FOR WHAT YOU HAVE DONE. AND FIRST THINGS FIRST, KEEP YOUR SCHOOL ACADEMICS HIGH. SO THANK YOU, COACHES.

THANK YOU VERY MUCH. >>JUDGE SCOTT: AND I JUST WANT TO ALSO SAY THE SAME. THIS IS MY AREA, MY CHILDREN AND MY GRANDCHILDREN HAVE GONE AND DO GO TO THIS SCHOOL.

WE ARE SUPER, SUPER PROUD OF YOU GUYS.

SORRY WE HAD TO POSTPONE THIS A LITTLE BIT.

I THINK SCHEDULES -- GOT US HARD TO GET IN HERE AT THE SAME TIME.

BUT WE ARE EXTREMELY PROUD OF YOU AND EXTREMELY GRATEFUL AND I KNOW YOUR ACADEMICS ARE JUST AS IMPORTANT.

YOU WOULDN'T BE PLAYING IF THEY WEREN'T.

WE LOOK FORWARD TO NEXT YEAR. LET'S DO THIS AGAIN.

WE HAVE A PROCLAMATION FOR YOU. >>COMMISSIONER HERNANDEZ:

CONGRATULATIONS. >>JUDGE SCOTT: WE WOULD LIKE TO BRING YOU UP AND TAKE A PHOTO WITH US IF YOU WOULD LIKE TO.

WE WOULD LOVE TO DO THAT. >>COMMISSIONER CHESNEY: WOULD

THE COACH LIKE TO SAY ANYTHING? >>JUDGE SCOTT: YES, WOULD YOU

[01:55:03]

>> GOOD MORNING. I WANT TO SAY THANK YOU FOR HAVING US HERE. I KNOW IT MEANS A LOT TO THESE YOUNG LADIES. I AM THANKFUL THAT WE WERE FINALLY ABLE TO GET HERE. AND I JUST WANTED TO SAY THAT WE REALLY APPRECIATE Y'ALL'S SUPPORT.

YOU APPRECIATE THE LOVE THE COMMUNITY HAS GIVEN US.

YOU KNOW TO DO SOMETHING THAT THESE YOUNG LEADERS ACCOMPLISHED WAS -- WAS VERY, VERY, VERY DIFFICULT AND THEY PUT A LOT OF BLOOD, SWEAT AND TEARS INTO MAKING SURE THAT THEY ACCOMPLISHED THAT GOAL 37 AND NOBODY WAS GOING TO STOP THEM FROM DOING THAT. AND I THINK WE DESPERATELY WANT TO TRY TO DO IT THIS YEAR. BUT THESE YOUNG LADIES THEY LOVE. THEY LOVE TO BATTLE.

THEY LOVE COMPETITION. AND I AM EXCITED.

WE ARE EXCITED. HOPEFULLY THE COMMUNITY IS EXCITED TO SEE WHAT THEY WILL DO THIS YEAR.

THE EXPERIENCE THEY TOOK THIS PAST SEASON IS ONLY GOING TO MAKE THEM THAT MUCH BETTER. NOW THEY KNOW THEY CAN DO IT -- NOT THAT THEY DIDN'T KNOW THEY DID BEFORE, BUT THEY REALLY HAVE THAT BEHIND THEM, NOTHING SHOULD BE STOPPING THEM.

IT IS THEIRS IF THEY WANT IT. I WANTED TO SAY THANK YOU TO EVERYONE. WE REALLY APPRECIATE THIS.

MEANS A LOT TO THEM AND A LOT TO US.

AND THANK YOU. >>JUDGE SCOTT: THANK YOU.

>>COMMISSIONER HERNANDEZ: THANK YOU, COACH.

>> YOU WANT A PICTURE.

.

>>JUDGE SCOTT: PUBLIC COMMENT. MOVING ON TO ITEM G.

PUBLIC COMMENT. WE HAVE A COUPLE OF PEOPLE SIGNED UP. SORRY.

[G. PUBLIC COMMENT: This section provides the public the opportunity to address the Commissioners Court on any issues within its jurisdiction. The Commissioners Court may not take formal action on any requests made during the Public Comment period which are not on the Agenda, but can refer such requests to County staff for review if appropriate.]

JOE ORTIZ. COME UP FIRST.

HOW ARE YOU THIS MORNING. YES, AND WE CAN NOT RESPOND.

[02:00:06]

>> GOOD MORNING, JUDGE, COMMISSIONERS.

THANK YOU FOR HAVING ME OVER OR GIVING US THE OPPORTUNITY TO SPEAK PUBLICLY HERE I LIVE AT 3718 MENDENHALL, CORPUS CHRISTI, TEXAS. ONE OF THE REASONS WHY I'M HERE BECAUSE OF THE PROCESS THAT YOU HAD ON THE ORDINANCE.

I DON'T KNOW IF IT IS AN ORDINANCE ON THE GAME ROOMS. YOU KNOW, ONE OF THE PROCESSES IS THAT YOU MUST MAINTAIN A C.O.

CERTIFICATE OF OCCUPANCY FROM THE CITY OF CORPUS CHRISTI.

AND, OF COURSE, IN THE PROCESS, WE DO THAT.