[00:00:02]
[A. CALL TO ORDER]
MORNING EVERYONE.UH, WE'LL CALL THIS MEETING TO ORDER THE FINANCE COMMITTEE MEETING TUESDAY, JUNE 24TH, 9:00 AM IN THE BOARD OFFICES OF THE COURT OF TON.
UH, ANGIE, MAY WE HAVE A ROLL CALL, PLEASE? CHAIR SHEILA LUON HERE, VICE CHAIR WILL GONZALEZ HERE, COMMITTEE MEMBER JIM BOROUGH HERE.
ALSO IN ATTENDANCE, WE HAVE CHAIRMAN DICK PEARSON.
TRUSTEE MAYOR BROWN IS NOT HERE.
TRUSTEE RICHARD MOORE, ROGER REESE, AND NATHAN BROWN.
UM, THE INVITATION WILL BE PRESENTED TODAY BY ELLIE BYRAM.
YOU ALL BY YOUR HEADS WITH PLEASE GRACIOUS GOD.
WE COME BEFORE YOU TODAY WITH HUMBLE AND GRATEFUL HEARTS.
AS WE GATHER IN THE SERVICE OF OUR COMMUNITY, WE ASK FOR YOUR PRESENCE AMONG US HERE, GRANT US WISDOM AND DISCERNMENT BEYOND OUR OWN.
HELP US TO LISTEN DEEPLY TO ONE ANOTHER, TO THE COMMUNITY WE REPRESENT.
AND TO THE QUIET VOICE OF CONSCIOUS WITHIN US ALL.
MAY OUR WORDS BE THOUGHTFUL, OUR DECISIONS BE GUIDED BY INTEGRITY AND OUR ACTIONS ROOTED IN THE COMMON GOOD.
BLESS THE WORK OF OUR HANDS AND OUR MINDS.
AND MAY IT BE MARKED BY UNITY, RESPECT, AND A SHARED PURPOSE.
UM, ITEM A FOUR, DECLARATION OF CONFLICTS.
ANYONE WANT TO DECLARE CONFLICT THIS MORNING? ANYTHING ON THE AGENDA? DOES IT WORKS? HUNDRED PERCENT.
[B.1 Approval of Minutes of the Finance Committee Meeting]
NEXT, WE'LL MOVE ON TO THE APPROVAL OF THE MINUTES OF THE FINANCE COMMITTEE FROM THE LAST MEETING.SO WILL MAKES THE MOTION AND JIM SECONDS IT.
UH, ANY QUESTIONS, COMMENTS? ALL THOSE IN FAVOR SAY AYE.
UH, COMMENTS FROM THE PUBLIC? I DON'T HAVE ANY HERE.
[C.1 CFO REPORT/CONSENT AGENDA]
C IS BUSINESS ITEM C.ONE IS THE CFO REPORT, CONSENT AGENDA, MR. ME.
GOOD MORNING TO THE RIGHT PAGE.
FOR THE MONTH OF, OF MAY, MAY, WE HAD $8.6 MILLION IN, UH, NET INCOME.
NOW, THAT'S, UH, WE ALSO HAD, UH, 6.3 IN OPERATING INCOME AND 3.3 IN OPERATING EXPENSES.
OUR CASH FLOW FOR THE MONTH WAS, UH, 1.5.
THAT'S CASH FLOW FROM OPERATIONS.
REVENUES WERE WITHIN A HUNDRED THOUSAND DOLLARS OF BUDGET.
UM, THEY WERE SLIGHTLY ABOVE BUDGET.
THE OPERATING EXPENSES BEFORE DEPRECIATION WERE A HUNDRED THOUSAND BELOW BUDGET.
NON-OPERATING INCOME FOR THE MONTH WAS THREE, 3.2 MILLION OVER BUDGET, PRIMARILY DRIVEN BY A TECH, BY THE TECH STOCK.
THE TIMING OF THE TECH STOCK GRANT, UM, SO THAT'S ANOTHER, ANOTHER DRAW AGAINST THE T STOCK GRANT.
YOU KNOW, WHEN WE BUDGET IT, WE TRY TO GET THE RIGHT MONTH, BUT WE DON'T ALWAYS GET THERE.
HERE IS A, UH, QUICK, UH, SUMMARY OF MONTH TO DATE OF IF LIKE TO SEE THAT NOTE DOWN HERE, THAT FOR THE MONTH OF, UH, MAY OUR CAPITAL EXPENDITURES, $19.3 MILLION, UH, IN CAPITAL, WE, WE, OUR CONSTRUCTION PROJECTS ARE GOING STRONG RIGHT NOW.
NOW I JUST MAKE A COMMENT OR AN OBSERVATION.
AND JUST FROM LONG YEARS OF EXPERIENCE, IT'S, IT'S HARD TO SPEND CAPITAL MONEY.
I MEAN, IT, IT'S A LOT HARDER TO GET THE WORK DONE.
THE WORK ENGINEERED, THE WORK CONSTRUCTED THE BILL TO THE CONTRACTOR, THE MONEY PAID.
YOU KNOW, BEING BEHIND IN CASH FLOW IS NOT A, NOT AN UNUSUAL PHENOMENON INDUSTRY, RIGHT? IT'S, IT'S HARD TO PROJECT BECAUSE IT ALWAYS TAKES LONGER TO GET THE WORK TO THE POINT WHERE YOU GET THE MONEY ACTUALLY GOES OUT THE DOOR FROM THE CONTRACTOR.
IN OTHER WORDS, I DON'T, I DON'T SEE THAT AS A, I MEAN, IT'S, YOU KNOW, $10 MILLION DIFFERENCE FROM BUDGET.
BUT IT'S JUST, TO ME, THAT'S PART OF THE NATURE OF THE BEAST OF, OF DOING CAPITAL PROJECTS.
[00:05:05]
OKAY.CONTINUING ON REVENUES FOR THE MONTH, UH, IS A LISTING OF THE REVENUES.
THE, THE BIGGEST VARIANCE REALLY IS IN SWITCHING.
UH, WE, WE HAD 56,000 BUDGETED, AND WE HAVE A, A TOTAL OF 9,000 IN, UH, REVENUES.
OVERALL, OUR TOTAL INCOME FROM OPERATIONS WERE HIGHER THAN WHAT WE HAD BUDGETED BY 2.4%.
UH, FINANCIAL EXPENSES YEAR TO, UH, FOR THE MONTH.
THERE AGAIN, UM, IT'S SCATTERED.
IT'S SOME HIGHER, SOME ARE LOWER.
UM, OVERALL, OUR TOTAL OPERATING EXPENSES WE'RE, WE'RE 3.3% UNDER BUDGET.
OUR YEAR TO DATE NET INCOME IS $24.2 MILLION.
THAT'S 7.1 MILLION UNDER BUDGET.
LET'S TALK ABOUT WHAT'S DRIVING THAT.
REVENUES ARE A HUNDRED THOUSAND DOLLARS UNDER BUDGET AT THIS POINT.
UH, THAT'S DRIVEN BY LAY DOCKAGE IS THE LARGEST PIECE THAT'S UNDER BUDGET AND LAY DOCKAGE.
WE KNEW WE WERE GONNA BE DOWN ON LAY DOCKAGE, UH, WHILE WE DID THIS CONSTRUCTION ON THE WEST END.
AND THAT'S BEING REFLECTED HERE.
UH, BUT IT'S A LITTLE LESS THAN WHAT WE EXPECTED.
BUT STILL THAT COULD ONLY, THAT COULD BE JUST A COUPLE OF SHIPS.
OPERATING EXPENSES BEFORE DEPRECIATION, OR HALF A MILLION DOLLARS UNDER BUDGET, NOT NON-OPERATING INCOME IS 7.6 MILLION UNDER BUDGET.
NOW, WE, WE ARE GOING TO A LITTLE LATER TODAY TALK ABOUT 6.1 MILLION THAT WAS RECEIVED IN 2025.
WELL, THE INVOICES WERE RECEIVED IN 2025.
SO WE HAD TO, UH, RECORD THE EXPENDITURE.
WE RECORD THE LIABILITY IN 2025.
WAS THAT TAKEN OUT? WE'RE 1.5 MILLION ON GOT IT.
I SAID 25, DIDN'T I? MARK'S A VISIONARY.
I'M ALREADY THINKING ABOUT 26.
I'M ALREADY THINKING ABOUT 26.
UH, MOVING FORWARD FINANCIAL SUMMARY.
YEAR TO DATE NOTICE HERE THAT OUR CASH FLOW FROM OPERATIONS ARE, UH, LET'S LOOK FIRST AT NON-OPERATING INCOME AFTER DEPRECIATION.
WE'RE 4% ABOVE BUDGET THERE ON NET OPERATING INCOME AFTER DEPRECIATION.
THE CASH FLOWS FROM OPERATIONS YEAR TO DATE, 11.7 MILLION.
AND YEAR TO DATE, AS OF MAY, WE'VE HAD EXPENDITURES OF CAPITAL EXPENDITURES OF $82.8 MILLION.
SO IT, WE'VE BEEN VERY BUSY WITH ALL THESE CAPITAL PROJECTS COMING ON, AND WE'RE, WE'RE MARCHING FORWARD TO GET THAT TERMINAL OPEN AND, UH, GET THE WEST END BACK IN OPERATION.
I GUESS, MARK, IT'S THE DIFFERENCE IN THE CASH FLOW MEAN THAT THE OP THE GRANT THAT AFFECTS THAT, RIGHT? THE IT DOES.
THAT'S YOUR BIG, THAT'S YOUR BIG DELTA THERE, RIGHT? IT DOES WELL, THE GRANT AND THEN CASH FLOW FROM OPERATIONS, IT DOESN'T, IT DOESN'T AFFECT ANYTHING FROM, UH, CASH FLOW FROM OPERATIONS.
IT'S NOT, 'CAUSE THAT'S NOT IN OPERATIONS THAT, THAT GRANT IS IN NON-OPERATING INCOME.
SO THAT'S, THAT'S BELOW THE, UH, BELOW THE LINE.
SO THAT DELTA IS, THAT'S REALLY, IS THAT PRIMARILY JUST, AGAIN, TIMING OF THINGS OR WHAT WAS, WHAT'S REALLY DRIVING THAT $7 MILLION DIFFERENCE IN THE BUDGET? WELL, LET'S SEE.
IT'S BUDGETS COMPARISON, RIGHT? DRIVING RIGHT, JUST IN REALITY.
AND THAT'S WHAT WE'RE ADJUSTING AT TODAY.
SO THAT, THAT'LL BRING CLOSER BUDGET.
BUT THAT'S, THAT'S, THAT'S IN THE, UH, THAT'S ON THE VERY BOTTOM LINE.
HERE'S THE FINANCIAL REVENUES.
YOU'LL NOTICE THAT TOTAL INCOME FROM OPERATIONS ARE WITHIN, UH, 0.2% OF OUR BUDGET.
A NON-OPERATING INCOME, THAT'S FOR 34.8%.
THAT'S WHERE THAT $6.1 MILLION
[00:10:01]
IS, IS IN THE NON-OPERATING INCOME.BUT THE INCOME FROM, FROM OPERATIONS WE'RE EXTREMELY CLOSE.
YOU'RE LOOKING AT, UH, TWO TENTHS OF A PERCENT.
HERE'S THE PIE CHART OF OUR REVENUES A YEAR TO DATE.
TOTAL OPERATING EXPENSES WE'RE UNDER ON OUR TOTAL OPERATING EXPENSES, 2.8%.
OUR NON-OPERATING EXPENSES ARE 1% OVER WHAT WE HAD BUDGETED.
THAT'S THE, THAT'S THE EXPENSE SIDE.
YEAR TO DATE EXPENSES, YOUR GRAPHICAL PRESENTATION OF THAT.
ANYONE HAS ANY QUESTIONS? HAPPY TO ANSWER? NO.
WE'LL MOVE ON TO THE PRODUCT LINE SUMMARY.
I'LL CALL YOUR ATTENTION TO THE NON-OPERATING INCOME BEFORE ALLOCATION AND DEPRECIATION.
YOU'LL, THAT SHOWS YOU, BEFORE WE DO OUR OVERHEAD ALLOCATION, WHICH IS BASED UPON REVENUE, THAT'S WHAT EACH OF THE, UH, MAJOR LINES OF BUSINESS ARE, UM, CONTRIBUTING.
THEN WE, WE ALLOCATE THE, UH, OVERHEADS AND COME DOWN.
THE VERY BOTTOM LINE IS WHAT EACH, EACH LINE OF BUSINESS IS CONTRIBUTING AFTER ALLOCATION OF OVERHEADS.
UM, I I, I HAVEN'T DONE A CALCULATION ON THIS, BUT IF MEMORY SERVES ME, THE REVENUE, WHEN YOU SAY THE ALLOCATION'S DONE ON, IT'S DONE ON REVENUE, THE AMOUNT OF REVENUE GENERATED, IS THAT CORRECT? BASED ON GROSS REVENUES.
SO IT SEEMS TO ME THAT, UH, CREWS AND PARKING ARE VERY, VERY CLOSE IN THE REVENUE CONTRIBUTION.
BUT BASED ON THIS, IT SEEMS TO ME THAT PARKING'S TAKING A PROPORTIONATELY HIGHER SHARE OF THE ALLOCATION.
AM AM I CORRECT FIRST, UH, TO TELL YOU THE TRUTH, I WOULD HAVE TO GO LOOK AT THE ALLOCATION TABLE.
WE HAVE, WE BUILT THE ALLOCATION TABLE SEVERAL YEARS AGO.
WELL HERE, MARK, I MEAN, JUST TO SIMPLIFY THE ALLOCATION TO PARKING'S TWICE AS MUCH AS THE ALLOCATION TO CREWS AND THE, AND THE REVENUE IS VERY SIMILAR.
WE'LL HAVE TO, WE'LL HAVE TO LOOK AT THAT AND WE WILL LOOK AT THAT AND GIVE YOU, AND I CANNOT GIVE YOU AN ANSWER UNDERSTAND TO THAT RIGHT NOW.
BUT WE WILL LOOK AT THAT AND SEE IF THERE'S, THERE'S SOME SHIFTING IN THE, IN THE ALLOCATION.
I MEAN, JUST THINK ABOUT, I MEAN, THOSE ARE UNALLOCATED EXPENSES, RIGHT? THAT YOU JUST, YOU WOULD THINK THERE'S A LOT MORE MOVING PARTS WITH CREWS THAN THERE IS WITH PARKING.
SO YOU THINK WOULD, THINK CREWS WOULD PROBABLY BUY RIGHTS, EAT UP MORE OF THAT THAN THE PARKING? I DON'T, YEAH, BUT, BUT YOUR ALLOCATION METHODOLOGY WOULD, WOULD REFLECT.
IT WOULD BE GOOD TO CHECK THAT.
THAT SEEMS LIKE A WE UNFAIR AMOUNT OR NOT A APPROPRIATE ALLOCATION TO PARKING.
AND THERE AGAIN, WE'RE, WE'RE USING REVENUES.
WE, WE, WHEN WE FIRST DECIDED TO USE TO BASE IT ON THAT ALLOCATION AND SET UP THAT ALLOCATION TABLE, WE LOOKED AT A LOT OF DIFFERENT WAYS.
AND THE BOARD AT THAT TIME RECOMMENDED THAT WE USE THE ALLOCATION TABLE THAT WE'RE CURRENTLY USING.
I, I THINK THAT'S PROBABLY A PRETTY FAIR ALLOCATION METHOD.
AND WE COULD, I COULD GET REAL COMPLEX WITH THIS.
AS TO HOW MANY DECIMAL POINTS.
DO YOU CARRY OUT A WRONG ANSWER BEFORE IT BECOMES A RIGHT ANSWER? THAT'S CORRECT, MR. HARPER.
UM, I WAS WONDERING WHEN THE LAST TIME WE LOOKED AT THE FORMULA OF PATIENT ON REVENUE WAS, BUT WE HAVEN'T LOOKED AT IT THIS YEAR.
I CAN TELL YOU THAT, BUT WE'LL, WE WILL TAKE, WE'LL TAKE A LOOK AT THE ALLOCATION, BUT THAT'S, THAT'S, BUT IT'S, IT'S, UH, THAT'S JUST AN ALLOCATION FOR US TO, WE'LL GIVE YOU AN ANSWER WHY THE LOCATION CORRECT.
JUST INTUITIVELY IT SEEMS LIKE ULA HEAVY TOWARDS BACKWARDS 16 MILLION AS OPPOSED TO 12 MILLION.
AND THEN YOU'VE GOT, UH, YOUR OPERATING EXPENSES, WHICH ARE DIRECT EXPENSES, AND THEN, THEN YOU'VE GOT AN ALLOCATION OF PARKING OF TWICE AS MUCH AS CRUISES, EVEN THOUGH YOUR CRUISE REVENUES ARE HIGHER THAN.
SO IT DOES LOOK LIKE SOMETHING'S AMISS.
WE WILL, WE WILL LOOK AT THAT AND HAVE, GIVE YOU AN ANSWER.
EITHER WE'LL GET AN ANSWER TO YOU.
YEAH, WE SHOULD GET THAT TODAY.
[00:15:04]
OKAY.OTHER QUESTIONS ON THE PRODUCT, UH, SUMMARY.
YEAR TO DATE, TRAVEL TRAINING AND DEVELOPMENT, WE'RE STILL UNDER BUDGET.
I KNOW MY GROUP HAS A LITTLE TRAVEL COMING UP, BUT, UH, SOME OF THAT IS TRIPS THAT WERE BUDGETED, WE HAVE FOUND THAT WE COULD DO ON, PEOPLE HAVE FOUND THEY COULD DO ONLINE, THUS IT WAS LESS, OR THEY FOUND TRAINING LOCALLY INSTEAD OF HAVING TO GO OUT OF TOWN.
OUR TOTAL CASH POSITION, UH, TOTAL CASH IS 125 MILLION.
AND THEN OUR EARNED INTERNALLY RESTRICTED IS 12.2.
UH, WE, WE HAVE A, A TABLE HERE, WE'LL GO OVER AND YOU CAN SEE THAT A LITTLE CLEAR IN A MINUTE.
CHECKS TO LOCAL VENDORS, 1.3 MILLION, THAT'S SIX PEN.
ORDINARY OPERATING PAYMENTS, NON-LOCAL VENDORS IS 21.3 ACCOUNTS OVER 90 DAYS.
WHEN WE DID THIS REPORT, IT WAS AT 145,000.
WE HAVE SUBSEQUENTLY COLLECTED, AND NOW IT STANDS AT $75,487.
AND HERE'S THE, UH, THIS WAS AS OF MAY 31ST.
AGAIN, THE OVER 90 DAYS, AS WE, WE'VE COLLECTED OVER $50,000 OF THAT 75,000 CASH POSITION HERE.
THIS IS A BREAKDOWN OF IT ARE LEGALLY RESTRICTED.
THEN OUR UNRESTRICTED OR INTERNALLY RESTRICTED THE SINKING FUNDS.
WE'VE GOT 6.1 MILLION IN THERE RIGHT NOW AT THE END OF MAY IN LEGAL, IN THE RESERVE FUND, WE HAVE 17.6 MILLION.
AND THEN THE BOND PROCEEDS, WE STILL HAVE 73 MILLION IN THERE.
I ASKED A QUESTION, OR I, I HAMMER ON IT EVERY MONTH.
UH, MAYBE WE AS A BOARD OUGHT TO CONSIDER, YOU KNOW, SO MUCH OF THIS IS PROJECTIONS AND TIMING AND ET CETERA, ET CETERA, AND THAT CAUSES POTENTIAL SWING, YOU KNOW, MAYBE IT WOULD BEHOOVE US THAT WHEN WE APPROVE A CONTRACT AT THE BOARD LEVEL, THAT ENTIRE CONTRACT GOES UP TO INTERNALLY RESTRICTED ACCOUNT AS OPPOSED TO THAT $8 MILLION FIGURE, WHICH IS AN ESTIMATE OF THREE MONTHS OUT OR WHATEVER WE'VE BEEN TOLD IN THE PAST, AND MOVE THE MONEY FROM UP INTO THAT INTERNALLY RESTRICTED.
AND THAT WILL GIVE YOU A PROPER VIEW OF WHAT IS QUOTE UNRESTRICTED, IF ANY.
SO MAY WANNA THINK ABOUT THAT.
I, I, I, I, I AGREE WITH THAT.
THE ONLY, THE ONLY CONUNDRUM I HAVE IS THAT THIS IS TECHNICALLY YOUR CURRENT CASH POSITION, UH, THAT THAT WOULD CHANGE IT TO BE YOUR CA MAYBE IT'S CA CASH AND OBLIGATIONS FOR SOMETHING, BUT MAYBE KIND OF THINK ABOUT IT A LITTLE DIFFERENTLY.
BUT YOU, YOU ALSO, YEAH, I GUESS YOU'VE ALSO GOT IT'S DEBT FUNDED VERSUS I GUESS THAT THAT'S INCLUDED IN THERE, RIGHT? SO THE DEBT FUNDED IS, IS AN ITEM TO ITSELF.
YEAH, I JUST, I'M JUST THINKING WITH RICHARD, IF YOU, YOU KNOW, WE APPROVE A CONTRACT AND IT'S DEBT, IT'S, IT'S DEBT FUNDED, THEN THAT'D TO GO IN A DIFFERENT BUCKET.
I DON'T THINK IT WOULD BE A, JUST, JUST ANOTHER THOUGHT ON APPROACHING IT.
UH, ASTERISK, ASTERISK, ASTERISK AS ASTERISK AND INDICATE DOWN HERE THAT, UM, BOARD APPROVED CAPITAL IMPROVEMENTS, FUNDED ACTUAL AMOUNT, SOMETHING LIKE THAT.
UH, AND THERE'S A NUMBER OF WAYS.
I THINK YOU, AND WE TALKED ABOUT SOME DESCRIBE IT, AND I THINK IT MAKE, IT LOOKS LIKE OUR, OUR CASH POSITIONS AND THAT, THAT, THAT $8 MILLION UP IN THE GREEN SECTION, THAT'S JUST A PROJECTION.
THAT'S JUST GUESSING WHEN THE CASH IS GONNA BE NEEDED FOR THE NEXT 90 DAYS.
IS IT 90 DAYS MARK? ABOUT 90 DAYS,
[00:20:01]
YES.IT'S JUST AN ESTIMATE OR A GUESS.
AND IT'S NOT OF FOR CERTAIN, BUT WE, IT'S NOT ACTUAL CASH.
AND SO IF WE, IF WE KNOW WE APPROVED A HUNDRED THOUSAND CONTRACT, INSTEAD OF PUTTING 10,000 UP THERE, THAT'S GONNA BE DUE IN THE NEXT 90 DAYS.
WELL, ONE OF THE THINGS WE DO, IT IS RESTRICTED.
WE CAN'T THEORETICALLY USE THAT MONEY BECAUSE IT'S COMMITTED BY CONTRACT.
IF IT'S SMALL DOLLAR AMOUNT, WE GO AHEAD AND RESTRICT IT.
I MEAN, IF IT'S LIKE, FOR EXAMPLE, WE MAY BE BUYING PICKUPS, SO I'LL JUST USE THAT AS EXAMPLE.
WE'LL, WE'LL RESTRICT THE ENTIRE AMOUNT FOR THOSE PICKUPS.
IT'S THESE LARGE CAPITAL PROJECTS LIKE THE WEST END THAT WE HAVEN'T RESTRICTED A HUNDRED PERCENT OF.
I GUESS THE REASON I KEEP HAMMERING ON IT IS TWOFOLD.
ONE IS I NEED TO TRY TO PICTURE TO THE PUBLIC WHAT OUR ACTUAL CURRENT CONDITION IS.
TION TWO IS, AS A BOARD MEMBER, AS AN INDIVIDUAL, WHICH IS NEVER THE CASE.
IF I GOT $15 MILLION IN MY CHECKING ACCOUNT AND I SAY IT'S UNRESTRICTED, I'M NOT GONNA BUY A NEW CAR.
BUT IF I SEE A NUMBER THAT'S NEGATIVE, I'M GONNA BE MORE JUDICIOUS ON WHETHER WE APPROVE A CONTRACT NOW OR WHETHER WE DELAY THAT CONTRACT TILL NEXT YEAR.
IN THINKING ABOUT IT, HAVING IT BE NEGATIVE ISN'T, YEAH, IT DIDN'T, THE END OF THE WORLD, TO ME, IT'S JUST MORE REFLECTIVE OF REALITY.
TRYING TO HIDE THE BALL OR ANYTHING OF IT.
JUST TRYING TO KEEP AN AWARENESS HERE.
JUST, AND THEN WE, YEAH, WE, I MEAN WE'VE HAD GOOD DISCUSSIONS ON THIS TRYING TO COME 2 MILLION
I MEAN, IT, IT'S A GOOD DISCUSSION, BUT SOMEHOW, YOU KNOW, LIKE THE CASH FLOW SHEET WHERE YOU'RE, YOU KNOW, WE SHOWED 24.8 MILLION OR 24.9 MILLION OUT OF OPS, YOU KNOW, FUNDING FOR 2025 REMAINING AND 16.2 FOR, WELL THAT'S, THAT'S FOR 20 MINUTES.
BUT SOMEHOW THOSE NUMBERS, INTEGRATING THOSE NUMBERS INTO THAT SHEET, I THINK IS WHAT THE DISCUSSION AND HOW BEST TO DO THAT, RIGHT? BECAUSE WE DO HAVE OBLIGATIONS.
SHOULD WE, WE DO HAVE ONGOING CASH FLOW.
YOU'RE SETTING THAT ASIDE AND SAYING THAT'S PIECE, HOW MUCH DO WE OWE? RIGHT.
REGARDLESS OF WHAT WE'RE EARNING.
I THINK THAT'S THE ALWAYS THE, THE POINT IS WHAT, WHAT'S THAT OB WHAT HAVE WE ALREADY COMMITTED TO? AND PART OF THAT SOLUTION, I MEAN, PART OF THE ANSWER IS CASH.
THAT'S, TO ME, I THINK THAT'S WHY YOU HAVE TO CONTINUE TO PROJECT IT.
I MEAN, AND HERE AGAIN, IF EVERYTHING STOPS NEXT WEEK, IT IS A DIFFERENT STORY.
BUT THE BOTTOM LINE IS, IS IT'S NOT FAIR.
IF YOU WANT TO MAKE SURE THE PUBLIC UNDERSTANDS THAT NUMBER.
'CAUSE YOU KNOW, I MEAN, SOMEBODY THAT JUST TAKES THAT NUMBER AND ISOLATES IT, BOY, THESE GUYS ARE IN TROUBLE.
RIGHT? BUT THE BOTTOM LINE IS, YOU'VE GOTTA TAKE INTO ACCOUNT THE FACT THAT WE'RE GONNA EARN MORE REVENUE IN THE FUTURE.
THAT THIS IS WHERE THIS IS COMING FROM.
AND THAT'S WHAT WE ATTEMPT TO DO, YOU KNOW, IN OUR CASH FLOW PROJECTIONS.
'CAUSE WE, WE DO, WE DO SHOW THE OVERALL PICTURE, RIGHT? AND NOT JUST THE FACT THAT WE HAVE CONTRACTS OUT THERE THAT ARE MORE THAN THE CASH WE'RE SITTING ON TODAY.
AND I MEAN, YOU CAN, I MEAN, NOTING THAT IS ONE, MAYBE ONE THING IS THE NOTE IN THERE OR SOMETHING LIKE THAT, MAYOR? NO, IT'S THE MAYOR POSTED ALL RISE.
SO, I MEAN, I MEAN THAT'S JUST THAT, JUST FOR, YOU KNOW, YEAH.
MY 2 CENTS WORTH IS, I GUESS FUTURE REVENUES COMING INTO, I GUESS THE, THE BELIEF IN ACCOUNTING CIRCLES IS THAT CURRENT CASH POSITION IS GONNA BE CASH ON HAND.
WELL, TECHNICALLY FOR US AS A GOVERNMENTAL, AS A GOVERNMENTAL, PURE GOVERNMENTAL ENTERPRISE, NOT A TAXING, BUT NO TAXING AUTHORITY.
WE HAVE RESTRICTED, LEGALLY RESTRICTED CASH AND NON-RESTRICTED CASH.
IT'S EITHER LEGALLY RESTRICTED OR NON-RESTRICTED.
UH, WE, WE FALL UNDER A DIFFERENT SET OF RULES.
NOW, IF WE STARTED, IF WE AT ANY TIME STARTED GETTING, HAD TAXING ABILITY AND STARTED TAXING, WE'D HAVE TO FOLLOW A WHOLE DIFFERENT SET OF RULES.
NOW, WE DO TAKE INTO CONSIDERATION IN OUR CASH FLOW, THE ACTUAL EXPENDITURE THAN WHEN THEY'RE GOING TO OCCUR OR WHEN WE PROJECT, THEY'RE GOING TO OCCUR.
NOW, THIS IS A SNAPSHOT OF THIS IS A ONE DAY SNAPSHOT.
THIS IT'S, I MEAN, BEFORE IT EVEN GETS THROWN ON THIS, IT'S ALREADY OUTDATED.
UH, THAT'S WHY WE DO THIS UNDER TAB FIVE, UNDER THE CONSENT AGENDA, WE DO THIS, UH, CASH FLOW.
NOW, THE PRACTICE HAS BEEN, BECAUSE WE ONLY HAVE A BUDGET FOR, UH, ONE YEAR BUDGET THAT WE'RE, UH,
[00:25:01]
CASH FLOWING.WE GO OUT THROUGH DECEMBER FEATURE.
BUT WE, WE DO CA WE DO DO A CASH FLOW OUT THROUGH DECEMBER.
THEN ON THE OTHER CAPITAL PROJECTS, WE'RE GOING OUT SEVERAL YEARS, RIGHT? AND THAT'S THE CAPITAL SHEET WE WILL HERE JUST SHORT.
BUT WE'RE, WE'RE NOT BOOKING A, UM, TOTAL CON.
WE GOT A $50 MILLION GARAGE OUT HERE.
UM, WE'RE NOT PUTTING THAT ON BALANCE SHEET AND OFFSETTING IT WITH THE CAPITAL ACCOUNTS, RIGHT? IN OTHER WORDS, WHEN WE GO OUT AND INCUR THIS $54 MILLION LIABILITY, THEN, UH, YOU KNOW, THE, THE FLIP SIDE OF THAT IS THAT'S NOT REQUIRED BY THE AUDITORS TO DO THAT.
YOU, I MEAN THIS, I'M, I'M LOOKING FOR A SOLUTION.
ONE SOLUTION COULD BE THAT YOU BOOK THE $54 MILLION LIABILITY, WHERE THE OFFSET IS GONNA BE TO AN ASSET ACCOUNT.
SO IT'S, IT IS REALLY STRICTLY, UH, A BALANCE SHEET ITEM.
WHICH, WHICH IS WHAT WE DO TODAY WAS, FOR EXAMPLE, WHEN WE ISSUED THE BONDS, WE RECORDED A LIABILITY FOR BONDS AND WE RECORD EXCEPT FOR THE, UH, AND THEN WE RECORD THE CASH RECEIVED FROM THE BONDS.
AND AS THE PROJECT PROGRESSES, WE DRAW DOWN THE CASH FROM THE BONDS AND IT GOES TO A CAPITAL ACCOUNT.
IT GOES IN, IT GOES INTO A CONSTRUCTION PROGRESS IN PROGRESS ACCOUNT, CASH ACCOUNT UNTIL IT'S USED AND USEFUL, USED OR USEFUL.
THEN SHORTLY THEREAFTER, WE'LL CAPITALIZE IT AND THERE'LL BE SOME TRAILING COSTS BEHIND FALLING BEHIND THAT.
BUT WE, WE DO WITH THE CASH FLOW SHEETS REPRESENT, AND WE'VE TAKEN THAT OUT THREE YEARS, YOU KNOW, NOW WE DO REPRESENT THE TOTAL LIABILITIES AND WHERE, WHAT OUR, WHERE THE ANTICIPATED SOURCE OF THOSE MONIES ARE.
WE PRODUCE A, UH, STATEMENT OF CASH FLOWS.
AND THAT'S, AND WHEN WE REPORT CASH, IT'S REPORTED AS RESTRICTED.
OR LEGALLY RESTRICTED, OR NOT LEGALLY RESTRICTED AND OR UNRESTRICTED.
UNRESTRICTED WOULD BE, THAT'S THE ONLY TWO THING.
THE INTERNALLY RESTRICTED IS THAT'S IN THE, IT'S IN THE, UH, NOTES.
IN OTHER WORDS, THE ACTUAL, THEY DO, THE ACTUAL CONTRACTS THAT WE HAVE UNDER ARE, ARE SHOWN IN THE NOTES.
SO THERE'S, THERE'S A, THERE'S A, THERE'S A, SO THE PUBLIC CAN SEE WHEN THEY READ THE NOTES, RIGHT? IF YOU EVER SEE A FINANCIAL STATEMENT SAYS, YOU KNOW, THESE FINANCIAL STATEMENTS NEED TO BE READ WITH THE ACCOMPANYING NOTES.
THAT'S THE FIRST THING YOU SHOULD LOOK AT.
READ THE NOTES BEFORE YOU EVEN LOOK, LOOK AT THE STATEMENT STATEMENTS.
OKAY, GENTLEMEN, HOW WOULD YOU LIKE TO PROCEED? IT'S FAVORING THE BOARD.
IF THIS IS FINE, THAT'S FINE, BUT I JUST THINK IT NEEDS TO BE BETTER DESCRIBED OR, I APPRECIATE WHAT ROGER SAYS.
BUT THE CONTRACTS WE SIGNED ARE CONTRACTS WE SIGNED.
THAT IS A, FOR CERTAIN FUTURE CASH FLOWS ARE HYPOTHETICAL.
WE HOPE IT'S OUR BEST ESTIMATE.
BUT THINGS HAPPEN WHERE THAT NUMBER WILL CHANGE PRETTY, PRETTY QUICKLY.
I WOULD THINK THAT A NOTE THAT SAID, IN ADDITION TO THIS, THE, THE PORT HAS ONGOING COMMITMENTS OR OUTSTANDING COMMITMENTS OF EXITING THE, THE, WHICH WOULD BE THE DIFFERENCE BETWEEN WHAT THE TOTAL COMMITMENTS WERE FOR CAPITAL CALLING ON THESE AND WHAT'S ACTUALLY HERE.
IS IT BASICALLY, IS IT BASICALLY THE NUMBERS MARK? YOU, YOU HAVE ON 20, ON THE CAPITAL PROJECT SHEETS, YOU HAVE THE 2025 NUMBERS OF WHAT, WHAT WE'VE GOT LEFT TO SPEND, RIGHT? THAT'S CORRECT.
AND THEN ALSO 2026, THERE'S JUST, AND THAT'S 24 FOR, FOR, IS IT 24 FOR LOCAL? IT'S LIKE 20, ALMOST 25 FOR OUT OF OPERATIONS.
SO IT WOULD SAY SIX NINE OUT OF DEBT.
IT WOULD SAY THAT THERE'S 12 MILLION IN ADDITION TO THIS, THE PORT HAS $12 MILLION IN COMMITTED OBLIGATIONS.
IF YOU GO TO TAB FOUR ON THE CONSENT.
VERY LAST PAGE, NOT THE LAST PAGE, PAGE FIVE OF THAT REPORT.
[00:30:07]
THIS IS A PRETTY RECENT ADDITION OF THIS REPORT.WE HAD, SO WHAT THIS IS TELLING ME IS ON OPERATIONS, WE'VE GOT $29 MILLION IN APPROVED CONTRACT REMAINING BALLOTS.
AND OF THAT WE'VE GOT TIES BACK TO THIS 8 MILLION ON THE GREEN SHADED AREA ON THE CASH FLOW CASH PAYMENT.
SO WE'RE, WE'VE GOT $21 MILLION LEFT TO FUND AND WE'VE GOT $15 MILLION TO DO IT BASED ON A SNAPSHOT OF TODAY OR MAY 31ST.
WOULD THAT BE ACCURATE? WELL, I MEAN YOU COULD, YOU COULD TAKE IT ONE MORE STEP AND SAY THAT, OKAY, THERE'S A CATASTROPHIC EVENT, WHICH IS WHAT WE NEED BE TALKING ABOUT HERE IS AN EVENT THAT STOPS CASH FLOW.
BECAUSE I MEAN, I, YOU CAN'T IGNORE THE FACT THAT WE HAVE AN ONGOING BUSINESS CASH FLOW COMING IN.
UH, BUT YOU KNOW, THE, THE, THE FLIP SIDE OF IT IS, IS CATASTROPHIC EVENT WE STOP CONSTRUCTION.
I MEAN, NOBODY LIKES TO HEAR THAT.
BUT THE BOTTOM LINE IS IF YOU HAVE A CATALYST TRAFFIC EVENT, NO MORE CRUISE REVENUES, YOU KNOW, THIS THING IS TOTALLY DESTROYED, WE'RE CERTAINLY GONNA STOP CONSTRUCTION.
RIGHT? AND THOSE LIABILITIES, AND I DON'T KNOW, I COULDN'T TELL YOU LEGALLY WHAT THAT LIABILITY IS IF WE HAD TO DO SOMETHING LIKE THAT, RIGHT? I MEAN, WE DO HAVE PROVISIONS IN THOSE CONTRACTS FOR
UM, YOU KNOW, SO I THINK THAT'S SOMETHING THAT ALSO NEEDS TO BE RECOGNIZED, RIGHT? ABSOLUTE RECOGNIZED.
I'M NOT, I'M NOT CRITICIZING ANYTHING.
I I THINK WE'RE TRYING TO GET TO THE SOLUTION OF OF WHAT DISCLOSURE.
AND, AND AGAIN, TONY HAS TOLD US THAT WHEN WE SIGN A CONTRACT, EVEN WITHOUT FORCED MEASURE, THERE'S OTHER WAYS FOR US TO YES.
AND I, I HAVEN'T READ THAT THOSE SECTION APPROPRIATED REVENUE IN THE LAST YEAH.
I JUST WANNA MAKE SURE THAT THAT'S STILL THE CASE.
BUT MAYBE IF WE JUST PUT THAT ONE, I'M CONCERNED WITH HIS OPERATIONS, THE DEBT AND THE GRANTS.
I'M ASSUMING THAT THEY'RE HANDLED CORRECTLY AND WASH.
THEY ARE WHERE THEY ARE AND THEY'RE GONNA WASH EVENTUALLY IT SHOULD BE A WASH, BUT IT'S THAT WE JUST HAD THAT TOP LINE TYPE RIGHT ACROSS HERE THAT WOULD AT LEAST PUT IT IN ONE SPOT INSTEAD OF HAVING TO GO THROUGH FOUR TABS TO FIND SOMETHING IN THIS THICK PACKET.
IS IT, AND THAT PAGE FIVE, IS THAT A NEW PAGE MARK? OR IS THAT BEEN IT'S FAIRLY NEW.
THAT WAS KIND OF OUR SOLUTION TO THIS BACK HERE.
DESIGN THAT PAGE FOR US ON THE FLY.
BUT MAYBE IT'S, MAYBE IT'S JUST TAKING THAT TOP LINE OF OPERATIONS AND PUTTING IT ON THAT, ON THIS CHART, ON THAT PAGE WHERE IT'S MORE VISIBLE.
TAKE IT ONE MORE STEP AND TAKE THAT, THAT INFORMATION OF OPERATION BECAUSE I, I DON'T, YEAH, I DON'T REMEMBER SEEING THAT IN THE PAST.
WE PROBABLY HAVE DID THAT ONCE WE PROBABLY, AND THEN WE DIDN'T DO IT AGAIN.
BUT I THINK MAYBE ROGER, MAYBE ROGER'S JUST TAKING THAT OPERATIONS LINE.
'CAUSE THAT SHOWS YOU WE'VE GOT A REMAINING BALANCE.
I MEAN, TO YOUR POINT, IT'S A REMAINING BALANCE OF $29.2 MILLION COMMITTED OUT OF OPERATIONS, WHICH QUITE A BIT OF THAT WILL, MOST OF THAT WILL COME OUTTA CASH FLOW.
BUT IT'S, IT PUTS IT, IT PAINTS A DIS, THE 29 POINT PUT ABOUT SIX PARAGRAPHS.
EXPLAIN
29.2 IS BEFORE THE INTERNAL AND RESTRICTED BALANCE OF 8.8.
AND THAT'S THE, SO TECHNICALLY WE'RE BANKING ON 7 MILLION OF INCOME BETWEEN OVER THE NEXT SEVEN MONTHS TO FUND THE REST OF THE I'LL ACCEPT THAT.
THE CAPITAL FOR THIS YEAR, ALONG WITH OUR OPERATING COST.
AND WHEN YOU LOOK AT OUR CASH FLOW, YOU SEE THAT ON THE NEXT TAB.
YOU SEE THAT AT THE END OF THE YEAR, WE'RE EXPECTED TO HAVE MET THE CAPITAL EXPENDITURE FOR THIS YEAR AND STILL HAVE 4.8 MILLION IN UNRESTRICTED CASH.
WE DO HAVE, I'LL MAKE, I'LL MAKE A PROMISE TO THE BOARD.
I'LL ONLY CONGRATULATE MARK AND STAFF FOR DOING A GOOD JOB.
AND WE'LL MENTION THAT WITH THE BALANCE OF MY TIME.
HE'S SHAKING THE SENSE AND WE HAVE IT.
[00:35:01]
VERY GOOD.SHOULD I, DID I SAY THE WRONG NUMBER ON SAID FOUR? FOUR? I DON'T LIKE THAT.
I THOUGHT I SAID ROGER STARTED IT.
I, I DID 20 HOURS OF CPE LAST NIGHT ON, ON MEDICARE.
SO I FINISH UP MY, UH, ANNUAL, UH, CPE REQUIREMENTS.
SO A LITTLE GROGGY THIS MORNING.
UH, NEXT SLIDE IS STAFFING LEVELS.
STAFFING LEVELS AT THE LAST PAY PERIOD, ENDING SIX.
WELL, THE PAY DATE JUNE 6TH, WE HAVE A TOTAL OF 144, A HUNDRED, EXCUSE ME, 135 EMPLOYEES.
WE HAD BUDGETED 144 FOR THE YEAR.
WE'RE STILL DOWN NINE EMPLOYEES NOW FROM WHERE WE WERE AT THIS TIME LAST YEAR.
UH, YOU, YOU LOOK AT THE VERY LAST LINE, IT'S, WE'RE UP FOUR IN CONSTRUCTION MAINTENANCE, ONE IN CREWS, TWO IN ENGINEERING.
UH, I'M STILL DOWN ONE IN FINANCE.
I THINK THAT WILL, THAT WILL BE FILLED SOON.
AND, UH, PARKING AND GROUND TRANSPORTATION'S UP FIVE AND THEN SECURITY IS UP EIGHT.
A LOT OF THAT IS, WE'RE GETTING READY FOR THIS TERMINAL TO OPEN, GETTING PEOPLE TRAINED AND UH, IT'S JUST, WE'RE GEARING UP.
YEAH, I WOULD JUST ADD MY COMPLIMENTS TO STAFF ON THE, LIKE YOU GUYS HAVE BEEN WORKING HARD TO GET THE STAFFING POSITIONS STILL, WHICH I KNOW IS NOT, NOT EASY.
'CAUSE SOMETIMES IT'S TWO STEPS FORWARD AND A STEP OR TWO BACK.
SO IT'S, IT'S ALL DONE GUYS TO GET THE, BE WORKING ON GETTING PEOPLE IN.
IT'S HARD TO FIND GOOD PEOPLE RIGHT THERE.
HEY MR. TO THE CITY OF GALVESTON, WE OUGHT TO RENAME MAYOR BROWN.
ALRIGHT, TOTAL PAYMENTS HERE TODAY.
UH, 1.5 MILLION IN TOTAL, ALL OF WHICH FOR 40,624 GOES TO THE SCHOOL DISTRICT.
AND 1,000,490 3000 WENT HAS GONE TO THE CITY.
AND THAT'S AS OF THE END OF MAY.
SO HERE ARE OUR DOCKAGE DISCOUNTS THAT WE HAD FOR, UH, TO SEE THAT EACH MONTH.
AND THEN, UH, LET'S TALK ABOUT THE CONSENT AGENDA ITEM CHANGES.
THAT WAS A REQUEST THAT WE HAD AS TO WHAT ALL HAVE WE CHANGED IN THE CONSENT AGENDA ON THE STAFF.
JUST, JUST RUN THROUGH IT REAL QUICK.
WE INCLUDE THE FIRST TWO PAGES AND THEN THE TOP PAGE OF THE EXPENSE REPORT.
WE SCAN ALL THE DE ALL THE DETAILS SO YOU CAN SEE IT ONLINE, FINANCIAL STATEMENTS.
WE DIDN'T MAKE ANY CHANGES TO WHAT WE INCLUDED IN TAB TWO INVESTMENT REPORT.
WE DIDN'T MAKE ANY CHANGES TO THE INVESTMENT REPORT.
THAT'S WHERE ROGER AND I SIGN OFF ON EACH MONTH'S THINK, OR IS IT JUST BY, I THINK I SIGN OFF ON IT EACH MONTH.
THAT'S SAYING THESE ARE THAT T THAT SAYS THESE ARE OUR INVESTMENTS.
THE BANK RECONCILIATION REPORT AND SCHEDULE RESTRICTED FUND BALANCES.
CASH FLOW PROJECTIONS, NO CHANGES AT THIS TIME.
UH, TAB SIX CFO REPORT DELINQUENT ACCOUNTS, PROVIDE DELINQUENT ACCOUNTS.
DETAIL THE BOARD TWICE A YEAR.
UM, I THINK THAT, THAT THIS MONTH YOU HAVE THE DELINQUENT ACCOUNTS SHOWING ALL THE ACCOUNTS THAT ARE IN THERE OR INCLUDED THIS MONTH.
OTHERWISE IT'S JUST GONNA BE THE, THE SUMMARY PAGES AND, BUT ALL OF IT WILL BE SCANNED IN THE CHECK VENDOR REPORT.
UH, WE'VE ELIMINATED SOME OF THE PAGES AND WE INCLUDE, UH, THE CREDIT CARD STATEMENTS AND THE, UH, COURT DIRECTOR'S CREDIT CARD STATEMENT AND TRAVEL EXPENSES ARE, UM, ALL INCLUDED IN ONLINE.
BUT WE DO INCLUDE THE COPY, THE TOP COPY OF ALL THE, ALL THE CREDIT CARD EXPENSES.
AND THEN IN TAB EIGHT, THERE WERE NO CHANGES MADE TO THE CURRENT REPORT.
[00:40:01]
HELPFUL.ALRIGHT, ANY QUESTIONS ON THE, ON THE CONSENT AGENDA FOR MARK? ANY OTHER QUESTIONS BEFORE WE MOVE ON? QUICK QUESTION.
GOING BACK TO THAT $29 MILLION FIGURE MARK ON THIS FELLOW REPORT MM-HMM
WHERE IS THAT TIED TO IN ALL OF THESE PAPERS? I'M GONNA LOOK OVER AT ROBERT.
IT'S ON THAT SAME TAB, FOUR 10 TAB.
IT'S IN THAT SAME REPORT ABOVE IT.
THIS TYPE IS PULLING ANYTHING THAT'S OPERATIONS, INCLUDING THE, THE GRANT PORTIONS THAT WERE OBLIGATED.
OUR PORTIONS WERE THE KIND OF GRANTS SUMMING ALL OF IT UP.
WHAT YOU DON'T, IT IS NOT, IT'S NOT A SUBTOTAL DOWN HERE FOR HIM TO SEE CLEAR.
IT'S JUST A FORMULA'S PICKING UP ANYTHING.
LET ME, OUR, OUR PORTION INCLUDING THE GRANT PORTION OF, AND I THINK THAT'S WHAT YOU WERE LOOKING FOR WAS A SUBT UP.
AND, AND, AND AGAIN, I WANT TO, THIS ONE JUST POPPED IN BECAUSE I GOT A QUESTION FOR DR. BROWN IN A MINUTE.
UH, FALCON ISLAND BRIDGE, $2 MILLION.
IS THAT IN THIS? I WOULD'VE TO, I'M NOT SURE IF THAT'S ITS OWN PROJECT OR NOT.
OR NOT THAT THAT LOOKED THAT UP.
SEE IF IT'S ITS OWN, IF IT'S ITS OWN PROJECT, IT HAS A PROJECT NUMBER ASSOCIATED WITH IT, THEN IT WOULD BE ON THAT SHEET.
MY, I BELIEVE PRETTY SURE P PI WITH PI ONE ON THIS REPORT HERE.
I MEAN I, YEAH, THAT'S THE, THAT'S ITS MAIN AND AND THE ONLY QUESTION ON THAT IS IF THAT $2 MILLION IS NOT PART OF THAT 29, THEN THAT 29 OUGHT TO BE 31.
WE GOTTA PICK UP ALL THE LOOSE ENDS THAT ARE WE MADE COMMITMENTS FOR.
IT SHOULD BE IN THERE BECAUSE IT'S ON THIS.
I'LL DOUBLE, I'LL DOUBLE CHECK, SEE IF IT'S ON THERE.
AND MY QUESTION DR. BROWN, IS, IS THE PE ISLAND BRIDGE AT A FA, EVERYTHING'S SIGNED UP.
EVERYTHING'S GOING, YOU, WHEN'S THE CITY GOING? WHAT? ARE WE GONNA SEND THE CITY OUR MONEY OR HAVE WE DONE IT? WE'VE GOT ON OUR AGENDA FOR THURSDAY.
WE HAVEN'T RECEIVED THE MONEY AS YET.
IT'S ON OUR AGENDA THURSDAY TO APPROVE THE, UH, PAPERWORK AND THE DOCUMENTS INTER INTERLOCAL TO SUPPORT THAT.
UH, THE, WHERE WE ARE ON THE PELICAN ISLAND BRIDGE, THE LOCAL, UH, INVOLVEMENT IS 36.2 MILLION.
UH, THAT'S ALL BEEN COMMITTED.
WE'RE WORKING OUT ALL THE INTERLOCALS WITH THE PARTICIPANTS.
THEY'VE ALL, UH, A AND M IS, UH, ON BOARD.
UH, WE'RE WORKING OUT THE DETAILS WITH
UH, SO WE'LL HAVE THAT MONEY COMING HERE SHORTLY.
WE'RE WAITING FOR TEX STOCK TO GET THEIR DEFICIT PENDING AND I'M NOT SURE WHERE WE'RE GOING.
SO YOU'VE ANSWERED THE QUESTION IN THE PROCESS, THE POLL WILL BE TRANSFERRED 20 SOMETIME AT 25? YES, THANK YOU.
THEN WE WILL MOVE TO C TWO DISCUSSING,
[C.2 Discuss and Consider Amendment to the 2025 Budget Non-Operating Revenue from GrantsDue to Recognition and Reporting Actual TxDOT Grant Revenue in 2024. (Part 1 of 2)]
WE'RE DONE THIS, OH, I'M SORRY.DISCUSS AND CONSIDER AMENDMENT TO THE 2025 BUDGET NON-OPERATING REVENUE FROM GRANTS DUE TO RECOGNITION AND RECORDING THE ACTUAL TAX GRANT REVENUE IN 2024.
AND THAT'S DEFINITELY GERMANE TO THE DISCUSSION.
IF YOU'LL, IF YOU WILL LOOK UNDER THE BUSINESS ITEM TATTOOED, YOU'LL FIND THE DETAILS OF THIS.
ALRIGHT, SHEINA, WHILE WE'RE DOING THAT? YES SIR.
CAN I MAKE A MOTION TO APPROVE THE CONSENT AGENDA? OH, SURE.
UH, ANY OTHER QUESTIONS? ALL THOSE IN FAVOR? AYE.
WHEN WE PASSED THE BUDGET LAST YEAR, WE WERE NOT SURE, AND WE PROJECTED THAT THE TECH STOCK MONEY WOULD BE, UH, SPENT, ALL OF IT WOULD BE SPENT IN 2025.
LO AND BEHOLD, WE GOT AN INVOICE FOR IT, FOR, UH, AN NET INVOICE
[00:45:01]
FOR, UH, $1.2 MILLION FROM ORION THAT WAS DATED DECEMBER 2ND, THAT OF 2024.THAT WAS ACCRUED AND PAID TIMELY ONCE WE GOT THROUGH ALL THE REVIEWS.
AND THEN THAT WAS RELATED TO 2024 AND IT'S INCLUDED IN THE PACKET.
AND THEN WE RECEIVED A SECOND INVOICE AND FINANCE RECEIVED IT ON THE 30TH OF JANUARY FOR, UH, WITH AN INVOICE DATE OF JANUARY 8TH FOR WORK COMPLETED AND, AND MATERIALS STORED IN PLACE, UH, IN DECEMBER FOR STUFF IN DECEMBER.
SO FOR OUR FINANCIAL REPORTING PURPOSES, WE HAD TO BULL PULL THAT 6.1 MILLION INTO 2024.
IT DOES NOT AFFECT IN ANY WAY OP INCOME FROM OPERATIONS.
IT IS STRICTLY A NON-OPERATING INCOME ITEM.
AND IT'S A TIMING DIFFERENCE BASED ON OUR FINANCIAL ACCOUNTING RULES THAT WERE COMPLETED IN, IN THE, IN 2024 NEEDED TO BE REFLECTED IN 2024 FINANCIALS, WHICH WE DID, EVEN THOUGH WE HAD BUDGETED IT FOR 2026.
SO WHAT WE'RE DOING IS SAYING WE'RE GOING TO AMEND THAT, THAT ONE LINE OF NON-OPERATING INCOME FROM GRANTS REDUCING BUDGETED GRANT REVENUE BY $6,102,895 AND 5 CENTS, UH, OUT OF THE 2025 BUDGET.
IT DOES NOT AFFECT, IT DOES NOT AFFECT ACTUAL INCOMES THE INCOME STATEMENT OR IT'S JUST, IT'S JUST A TIMING DIFFERENCE.
IT IS JUST AN ELIMINATION OF AN AMOUNT IN OUR BUDGET.
IT'S, SO THAT BRINGS THAT NEW NUMBER DOWN BECAUSE YOU HAVE WHAT THE NEW NUMBER IS YES.
THAT WE'LL BE COMPARING TO NOW.
WELL, IT'LL DROP IT DOWN BY 6 MILLION, BY 6.1 MILLION, DROP IT DOWN TO A $1.5 MILLION, UH, ONE AND A HALF MILLION DOLLAR TIMING DIFFERENCE WHEN WE, AS WE COLLECT GRANT REVENUES THIS YEAR, 25, THEN YOU'LL SEE THAT ON THE OPERATING STATEMENTS BELOW THE LINE ALSO.
SO WHAT YOU'RE GONNA SEE IS THE REDUCTION IN THE BUDGET COMPARISON IS OFF.
EVERYTHING ELSE IS STILL CASH AS IT IS.
RICHARD, UM, WHAT DOES OUR ANNUAL FINANCIAL REPORT SAY ABOUT THAT $6 MILLION? IT WAS INCLUDED IN 2024.
SO IT HAD TO BE INCLUDED IN 2024.
SO BY CHANGING THE BUDGET, ARE WE ALSO AMENDING THE ANNUAL FINANCIAL REPORT? NO.
IT'S ONLY STRICTLY, ONLY THING IT AFFECTS IS IT AFFECTS ONE LINE IN THE BUDGET.
IT DOESN 2025 BUDGET AND THAT'S IT.
LET ME, LEMME SAY AFFECT ANYTHING ELSE.
IT WOULDN'T, IF SOMEBODY TOOK THE ANNUAL FINANCIAL REPORT AND THE BUDGET AFTER WE AMEND IT, THERE WOULDN'T, THERE WOULDN'T BE ANY ISSUES RECONCILING IT? NO.
BECAUSE IT IS, UM, THE 2024 AFTER IS CORRECT.
2025 BUDGET IS OVERSTATED WITH THIS SIX PAGE.
I JUST DIDN'T, I WAS JUST QUESTIONING WHETHER WE NEEDED TO DO ANY AMENDMENTS TO THE FINANCIAL REPORT ALSO.
IT WAS DONE MAKE THE FINANCIAL REPORT CORRECT.
WE HAD TO ACCRUE THE INVOICE RECEIVED IN JANUARY FOR DECEMBER AS WE DO ALL VENDOR INVOICES THAT WE'RE AWARE OF THAT WE RECEIVED AFTER THE FIRST OF THE YEAR OR THE PRIOR YEAR.
WE HAVE TO ACCRUE THOSE INTO, WE ACCRUE THOSE INTO 2024.
AND THEN MY LAST COMMENT WOULD BE, I, I THINK THERE'S SOMETHING ON THE AGENDA TO TALK ABOUT IT IS WHETHER OR NOT WE BUDGET GRANTS, UH, CAPITAL GRANTS IN THE OPERATING BUDGET OR NOT THE FUTURE.
IS THAT ON THE AGENDA TODAY? YES.
[00:50:01]
THIS WOULD BE A GOOD REASON NOT TO, THIS IS IN THE NON-OPERATING CATEGORY OF THE BUDGET.WELL IT'S WHATEVER Y'ALL WANT US TO DO, WE'LL DO, IT'S NO PROBLEM FOR US.
CAN I HAVE A MOTION TO APPROVE THIS AMENDMENT? OKAY.
ANY MORE QUESTIONS, COMMENTS, THOSE IN FAVORS? AYE.
[C.3 Discuss Updated Master Plan Spreadsheet Capital Projects]
UH, WE CAN TALK ABOUT THE UPDATED MASTER PLAN SPREADSHEET CAPITAL PROJECT.ALL WE, WE TALKED ABOUT THIS LAST BOARD MEETING AND SAID WE'RE GONNA MAKE THE ADJUSTMENTS, MAKE SOME ADJUSTMENTS.
AND TO HELP Y'ALL WITH THAT, WE CREATED A, A QUICK LITTLE SUMMARY SHEET THAT SHOWS YOU WHAT THE CHANGES WERE.
AND WE ACTUALLY MOVED SOME OF THE PROJECTS THAT WERE REAL, THAT WERE ORIGINALLY RECORDED IN 2025.
WE PUSHED THE COST OUT TO WHERE IT ACTUALLY GOING TO OCCUR IN 2026.
SO I'LL LET Y'ALL LOOK OVER THOSE.
AND THESE, THESE WERE ALL DISCUSSED AT THE LAST BOARD MEETING AND UH, IF YOU GO THROUGH HERE, YOU'LL SEE THAT WE MADE THOSE CHANGES ACCORDINGLY.
MARK, UH, WOULD YOU KIND OF UPDATE ME AGAIN ON THE WALKWAY SITUATION, YOU SHIFTED 1,000,025 TO 26.
WHERE ARE WE WITH THAT? I'LL TURN THAT OVER TO JEFF WHO HAS MORE KNOWLEDGE ON WHERE THAT IS THAN I THAT IN THE MEETING.
THE, WE CAN WAIT FOR ROGER ROGER'S GOT IT IN THE SLIDE.
JUST A TECHNICAL MINI PICKY TYPE OF THING.
THESE TYPE THESE, THESE AMENDMENTS AND THIS, THIS NEEDS TO BE APPROVED BY THE BOARD.
ONCE IT'S APPROVED BY THE BOARD, THEY'RE REFLECTIVE OF THESE REPORTS.
WHAT I HEAR MARK SAYS THEY'VE ALREADY PERFECTED THEM IN THE REPORTS EVEN THOUGH THEY HAVEN'T BEEN APPROVED BY THE BOARD.
AND I JUST NEED TO FOLLOW A SEQUENCE OF THINGS AS WE MOVE FORWARD.
I MEAN, I AGREE WITH THEM AND IT'S FINE, BUT, AND WE, WE ARE NOT DIRECTED LAST MONTH TO MAKE, WE WERE, I THOUGHT WE WERE, WE WERE DIRECTED LAST MONTH TO MAKE THOSE CHANGES AT THE LAST MEETING.
AND THAT, AND THEN SO WE REFLECTED THOSE CHANGES IN HERE.
UM, AND THEN UNLESS I'M MISTAKEN IT, I THOUGHT WE WERE, WE WERE, WE WERE TOLD LAST MEETING, WE WENT OVER ALL THESE CHANGES AND, AND WE WERE SAID WE WOULD COME BACK TO THIS MEETING WITH THOSE CHANGES MADE.
AND SO THEN I, IF IN OTHER WORDS YOU WANNA MOVE THAT TO THE NEXT MEETING TO APPROVAL, I, I'M JUST, TO ME THERE'S A DIFFERENCE.
THERE'S A DIFFERENCE BETWEEN THE BOARD DIRECTING SOMETHING AND APPROVING SOMETHING.
AND YOU'RE RIGHT, YOU PROBABLY WERE DIRECTED, WE WERE ALL IN KIND OF AGREEMENT THAT THESE CHANGES WERE HEALTHY AND APPROPRIATE.
AND I'M JUST SAYING AS WE MOVE FORWARD, YOU KNOW, THAT OUGHT TO COME THIS MONTH.
LIKE WE HAVE A BUDGET AMENDMENT OR TO DO IT AND THEN IT DOMINOES ALL THE CHANGES IN THE REPORTS.
IT'S KIND OF WHAT WE DID WITH THE BYLAWS.
GOT A BUDGET AMENDMENT F TWO IN YOUR BUSINESS ITEM.
COULD YOU AMEND IT TO BUDGET? OH, THESE AREN'T IN THE BUDGET.
THESE ARE, THESE ARE WORKSHEET, THESE ARE REALLY CASH FLOWS.
I THINK MOST OF THESE CHANGES.
WE'RE GONNA TALK ABOUT THIS IN THE NEXT ITEM BUDGET.
UM, WP THREE CARGO ROW ROW YARD EXPANSION, DOES THAT DELAY ANY OF THE WORK
[00:55:01]
OR IT'S JUST A PAYMENT FOR THE WORK? PROJECT SAVINGS? WE CAME IN UNDER BUDGET.IS THAT CORRECT, JEFF? W WHICH ONE I COULDN'T HEAR.
WP THREE, WE WERE REDUCTION OF HALF A MILLION DOLLARS.
THAT, THAT WAS FROM WHAT THE BOARD HAD APPROVED.
THAT'S, THAT'S, UH, WHAT WE'RE LOOKING AT.
IT'S A REDUCTION IN THE AMOUNT APPROVED BY THE BOARD BY, AND I THINK YOU EARLIER, THE REALITY OF THE SITUATION IS, IS WE BEEN MENTIONED, WE, WE TRY, WE TRY TO OBJECT THE PROGRESS OF A PROJECT.
AND A LOT OF THIS MONEY, UM, MOST OF MONEY FROM TDOT IS, COMES FROM TXDOT FIRST.
AND SO THE MONEY THAT WE PAY IS TYPICALLY ON THE END OF THE GRANT.
AND SO, YOU KNOW THAT AS THESE THINGS PROGRESS, THEN WE RECEIVE OUR REIMBURSEMENTS.
AND WHEN WE REIMBURSE, WE RECEIVE REIMBURSEMENTS OF ALL OF OUR FUNDS, THEN WE START HAVING TO PAY OUT OF CASH FLOW, THE BALANCE.
AND SO THIS IS REALLY ALL THESE ARE IS AN ADJUSTING TIMING.
I MEAN, IT, IT DOESN'T MEAN THAT WE'RE BEHIND ON ANY OF THESE PROJECTS OR ANYTHING LIKE THAT.
IT JUST IS AN ADJUSTMENT IN WHEN WE ANTICIPATE WRITING CHECKS.
AND THAT'S WHAT, THAT'S WHERE MOST OF THESE ARE.
AND 'CAUSE A LOT OF THESE WE ANTICIPATED, UM, AND YOU, YOU KNOW, YOU DON'T KNOW HOW LONG THE A FFA PROCESS TAKES WITH TXDOT.
AND ONE OF THE THINGS THAT'S HAPPENED HERE, THIS IS A, THIS WAS A FIRST GO AROUND OF THE LARGE, UM, GRANT REVENUE, UH, PROGRAM FROM TXDOT.
SO THERE WAS AN INORDINATE AMOUNT OF TIME GETTING THAT PROCESS IN PLACE FOR SIGNING THE ADVANCED FUNDING AGREEMENTS WITH, UH, TDOT.
SO, YOU KNOW, THAT JUST KIND OF, THIS IS A STEAMROLLING EFFECT.
DOESN'T MEAN PROJECTS AREN'T GETTING DONE OR ON TIME.
I MEAN, IT'S JUST A MATTER OF WHEN WE ARE GONNA HAVE TO PAY FOR IT.
I MEAN WE'RE SHOWING EVERYTHING PROBABLY COMING OUT IN 25 AND 2025 AND 26 FROM THE TECH STOCK.
YEAH, THAT WAS, I MEAN, AND REALLY, YEAH, I SAY CASH FLOW, BUT REALLY IT, IT'S A REFLECTION OF NOT, IT'S NOT NECESSARILY CHANGING AMOUNTS OF PROJECTS ON THE ONE WHERE WE REFLECT THE SAVINGS, BUT A LOT OF IT'S JUST, IT'S EITHER THE EXECUTION TIMING OR IT'S THE PAYMENT TIMING.
AND REALLY, SO THESE ARE, MOST OF THIS IS JUST CHANGING WHEN THAT MONEY'S ACTUALLY GONNA GO OUT THE DOOR, IT MAKE OUR PROJECTIONS MORE ACCURATE.
WE'RE WE'RE UPDATING OUR PROJECTIONS BASED ON THE, AND MARK AND MARK HAS, HAS, HAS SAID IT BEFORE THAT THE FIRST ONE, YOU KNOW, IT TAKES A WHILE.
IT TAKES A WHILE FOR THAT FIRST ONE TO GET PROCESSED.
AND WE SAW THAT OVER THE LAST TWO OR THREE MONTHS WHEN WE KEPT SHOWING THIS THE MONEY YOU NEED TO COME IN FROM THE, AND WE, WE GOT 'EM, WE GOT 'EM.
AND I GO BACK TO MY EARLIER DIATRIBE IN MEETING EARLIER IN THE MEETING.
I MEAN, IT TAKES A LOT OF WORK AND TIME.
I MEAN, I KNOW, YOU KNOW, ROGERS, YOU'RE SPENDING ALL MY, YOU'RE SPENDING CAPITAL A LOT OF MONEY.
IT TAKES A LOT OF TIME AND EFFORT TO SPEND CAPITAL MONEY.
AND AND MY HISTORY OF THAT IS IT ALWAYS TAKES LONGER THAN YOU THINK TO ACTUALLY GET THE CASH OUT THE DOOR.
JUST TO, YOU THINK IT WOULD BE EASY, THE NATURE, YOU THINK IT WOULD BE EASY, BUT BY, THERE'S A LOT OF FACTORS IN.
SO YOU GUYS DO GREAT WORK TO KEEP, I MEAN IT'S A MOVING TARGET AND, AND I KNOW IT'S VERY IMPORTANT AS JIMMY BROUGHT UP AND OTHERS THAT IT'S IMPORTANT 'CAUSE THAT TIMING IS VERY IMPORTANT ON WHEN THE MONEY COMES OUT.
SO KEEPING AN EYE ON THAT AND WATCHING THAT IS CRITICAL.
I PROMISE YOU WE WATCHED THAT.
UH, I'M, I'M JUST GONNA WAIT UNTIL THE NEXT ITEM.
AND, AND JIM, I'M LOOKING AT THE ACTIVE PAGE.
ALL THE GREEN I'M LOOKING AT, OH, ITEMS THAT ARE FUNDED BY OPERATIONS.
IF I LOOK IN THE MIDDLE COLUMN, IT'S 2025.
FIRST BLUE COLUMN, CAPITAL BUDGET, 2025, HAVE $24 MILLION THAT WE SUGGEST GONNA BE SPENT OUTTA OPERATIONS.
AND I GO TO THE NEXT COLUMN AND I SEE 26 WHERE I SPENT 16 MILLION.
YOU TOLD ME IT WAS 29 MILLION.
I'M TRYING TO PIECE THESE THINGS TOGETHER.
[01:00:01]
WHICH I'M NOT SURE I'M MAKING MYSELF CLEAR, BUT WHEN I, AT THE TWO BLUE COLUMNS THAT ARE TALKING ABOUT CAPITAL BUDGET FOR 25, 26, WE'RE GONNA SPEND 40 MILLION OF OPERATIONS.THERE'S CERTAIN THINGS THAT ARE NOT INCLUDED IN THIS.
WE HAVE A, A RENEWAL AND REPLACEMENT BUDGET THAT'S SEPARATE FROM THE CAPITAL BUDGET THAT, UH, MAKES UP THE DIFFERENCE.
AND THAT'S AN OPERATING BUDGET.
THAT'S, THAT THAT DOES DEFLECT AFFECT YOUR OPERATIONS.
NOW PART OF THAT'S IN PART OF THAT FALLS INTO RENEWAL AND REPLACEMENT HAS TWO PIECES.
IS ANYTHING ON THIS PAGE RENEWAL AND REPLACEMENT? NO SIR.
AND I TAKE 24 MILLION, 25 MILLION IN AND OUT OF OPERATIONS AND 25 CAPITAL, CORRECT? MM-HMM
IT'S REMAINING REMAINING TO BE, IT'S REMAINING TO BE SPENT IN 20 24, 20 25.
AND KEEP IN MIND JUST SOME OF THESE PROJECTS THAT ARE NOT, UH, APPROVED YET.
AND THE APPROVED PROJECT, YOU LOOK AT THE, UH, I BELIEVE IT'S THE VERY LAST SHEET IS THE APPROVED PROJECT.
THAT'S 24.8 MILLION AND THEN 16.2 MILLION OF APPROVED PROJECTS IN 2026.
AND THAT'S MY POINT IS IF I HAD THOSE TWO TOGETHER, I COME UP WITH 40 MILLION.
WELL OVER HERE ON THIS OTHER REPORT YOU SAID WE ONLY HAD 29 MILLION.
SO THAT'S THROUGH 20, THAT'S THROUGH THE END OF 25.
IT DOESN'T MATTER WHETHER WE'RE GONNA CASH FORWARD IN 25 OR 26, WE'VE MADE A COMMITMENT THAT MONEY IS EARMARKED, THAT MONEY IS SET, NEEDS TO BE SET ASIDE IN MY OPINION.
I'M JUST TRYING TO GET TO A CONSISTENT NUMBER ABOUT HOW MUCH MONEY WE HAVE COMMITTED TO SPEND UNDER.
AND I DON'T KNOW IF I'M ASKING THE RIGHT QUESTIONS OR LOOKING AT, I THINK THAT THE DIFFERENCE BETWEEN THE MASTER PLAN CAPITAL SHEET, THIS WAS, YOU KNOW, THIS WAS APPROVED AT THE BUDGET TIME, BUT NOT EVERYTHING ON THIS SHEET IS C COMMITTED.
YET WE HAVEN'T BROUGHT CONTRACTS FOR EVERYTHING ON, ON THIS BIG SHEET SAYING THAT WE'RE OBLIGATED TO PAY ANYTHING.
SO ON THE OTHER SHEET WE DO THAT WOULD BE, YEAH.
AND ON THE OTHER SHEET, IS IT EVERYTHING THAT WE CONTRACT SIGNED THAT WE'RE COMMITTED TO PAY, WHICH THE, THE OTHER SHEET, THE 29 MILLION INCLUDES, UH, RENEW, RENEWAL, REPAIR CAPITAL, ANY OTHER SMALLER CAPITAL PROJECTS THAT DON'T MAKE IT TO THE CAPITAL.
IT MIGHT BE A SMALLER CAPITAL PROJECT, BUT IT'S NOT JUST A LEVEL THAT'S BEYOND THIS MASTER PLAN, THESE BIG, THESE BIG GIANT PROJECTS.
AND, AND, AND THAT, THAT'S WHY THIS SAYS THAT THIS IS THE ACTIVE, SOME OF THESE ARE N 25 BUT NOT ACTIVE.
THERE'S STILL SOME CAPITAL CORRECT.
SO, AND THAT, THAT'S THE ANSWER I'M LOOKING FOR.
SO IF I TAKE UP JUST THE NUMBERS ON THIS SHEET IS EITHER THE ONLY ACTIVE ONE THAT WE'VE GOT, RIGHT? YES, SIR.
I MEAN, I COULD PUT AN ASTERISK NEXT TO 'EM TO SAYING, SEE IF WE COMMITTED SOME MONEY TO 'EM, LIKE IF THERE WAS A CONTRACT SIGNED TO 'EM.
BUT IF THEY'RE AGREEING TO ME THAT'S AN ACTIVE, THAT'S A CONTRACT.
THE GREEN MIGHT JUST BE MEANS THAT ORIGINALLY WE THOUGHT THE MONEY WE WERE GONNA START DOING THE PROJECT IN 2025.
NOT NECESSARILY COMMITTED AT THIS PORTION.
THE ENGINEER HAS A, I MEAN I CAN, I CAN IDENTIFY SOME OF 'EM REAL QUICK.
LIKE FOR EXAMPLE, MP SIX, THE ROAD.
JEFF, CAN YOU COME FORWARD PLEASE? OKAY.
YEAH, I MEAN I, WE CAN PROBABLY GO THROUGH THIS AND LOOK AT IT, BUT I KNOW A COUPLE OF 'EM ON HERE.
LIKE MP SIX WHARF ROAD IMPROVEMENTS.
UM, UH, WELL THAT, THAT NOT THAT'S BAD.
MP EIGHT, UH, THAT ONE WE HAVE 500,000 IN THIS YEAR.
HOWEVER, WE DON'T HAVE ANY CONTRACTS EVEN SOLICITED AT THIS POINT FOR, FOR THAT.
I THINK ONE OF THE OTHER ONES, THIS IS WHERE THE CHANNEL EXTENSION PROJECTS AND THE, THE, THE PELICAN ISLAND BRIDGE ARE ON THIS ONE, BUT I DON'T KNOW THAT THEY'RE ON THE OTHER SHEET YET.
MAIN QUESTION, THE MAIN DIFFERENCE IS THAT NOT EVERYTHING IN THESE TOTALS IS CONTRACTED.
[01:05:01]
ANSWER.AND MAYBE WE TALKED ABOUT THIS BEFORE, I THINK ON THESE, ON THE SHEET, I MEAN, BECAUSE WE GOT, WE GOT THE, YOU KNOW, THE, THE FOUR PAGES OR SO THAT'S BASICALLY ALL THE PROJECTED PROJECTS.
THESE ARE THE ONES THAT WE'RE IN GREEN THAT ARE, WE'RE ACTIVELY WORKING ON.
BUT NOT ALL OF THEM HAVE BEEN, HAVE BEEN BOARD APPROVED.
OR THE CONTRACTS HAVE BEEN BOARD APPROVED.
I THINK IT'S SUPPOSED TO BE BOARD APPROVED.
BOARD APPROVED IN THE SENSE THAT THE BOARD APPROVED AT THE BUDGET TIME SAYING THIS, THESE ARE THE PROJECTS WE WANNA WORK ON IN 2025, BUT NOT NECESSARILY CONTRACT, WE HAVEN'T NECESSARILY BOARD APPROVED THE CONTRACT AGAINST.
SO MAYBE THERE IS A, YOU KNOW, ONE MORE GRANULARITY, I DON'T KNOW, A LITTLE HIGHLIGHT IN THE ESTIMATED COST OR SOMETHING.
IF IT, IF IT HAS ACTUALLY, IF WE'VE ACTUALLY APPROVED A CONTRACT AT THE BOARD SPENDING AT THE BOARD LEVEL.
'CAUSE THAT GETS BACK TO JIM'S POINT ABOUT THAT'S THE DIFFERENCE IS, YOU KNOW, WE HAVEN'T, WE HAVEN'T APPROVED YEAH, WE'RE NOT LEGALLY OBLIGATED.
SO I DON'T KNOW IF WE WANT TO INDICATE THAT SOMEHOW WITH A LITTLE COLOR, COLOR IN THE, I'M JUST TRYING TO TIE IT BACK WHERE THESE REPORTS KIND OF MATCH UP THE NUMBERS.
ACTUALLY, YOU KNOW, IF I WAS WORKING THIS STUFF EVERY DAY, LIKE THESE GUYS, I MIGHT UNDERSTAND IT AND BE ON TOP OF IT TO BE HONEST, I THINK ABOUT THE PORT ONCE OR TWICE A MONTH.
UH, ESPECIALLY THIS TIME OF THE MONTH.
AND SO IT'S HARD FOR ME NOT AND THAT'S OUR JOB.
AND, AND BEFORE YOU UNDERSTAND IT, YEAH, WE CAN AND WE CAN WORK ON IT.
MAYBE MAKE ANOTHER KIND OF SUMMARY.
JUST MAKE IT A LITTLE BIT EASIER TO READ.
OR MAYBE YOU JUST COLOR, COLOR THE CELL IN ONE OF THE COLUMNS.
IF WE'VE APPROVED A CONTRACT AT THE BOARD LEVEL, YOU COLOR THAT, COLOR THAT AMOUNT.
SO IT'S, IT'S, THOSE ARE THE ONES THAT WE'VE ACTUALLY APPROVED MONEY FOR.
WE A LITTLE LEGEND DOWN WRONG.
IS THAT, BUT I THINK, BUT I DO THINK IT'S IMPORTANT.
I MEAN BOARD THERE, THERE IS A DIFFERENCE BETWEEN, YOU KNOW, WE'VE APPROVED THE PRO, YOU KNOW, THE PROJECT, WE, WE SAY WE WANT TO DO THAT PROJECT AND THEN ACTUALLY APPROVING A CONTRACT CONTRACT AGAINST THAT, AGAINST THAT, THAT THIS IS YOUR CAPITAL BUDGET.
ASSOCIATED WITH THE MASTER PLAN.
AND THESE ARE ALL THINGS WE WANT TO DO.
BUT NOT ALL OF 'EM WERE CONTRACTED AND NOT ALL.
AND THEY MAY NOT HAVE AN ISSUE.
MAY AS WE, AS WE SAW IT, PROVED IT.
THEY MAY NOT ALL GET DONE FOR VARIOUS REASONS.
PRIORITIES CHANGE, YOU KNOW, ENTROPY OCCURS AS THEY SAY, WE JUST DON'T GET THERE ON SOMETHING.
I DID LIKE, I DID LIKE THE IMPROVED COLORATION ON YOUR FIVE CHARTS ON THE OTHER REPORTS.
EASIER TO READ THAN I THAT LITTLE DARK PURPLE VISIBILITY.
UM, AS I WAS GOING THROUGH MY NOTES KIND OF CONSOLIDATING PACKED LAST YEAR, AND I'M TALKING ABOUT WP TWO A AND EIGHT, WP TWO A AND WP EIGHT.
JEFF WAS UP HERE TALKING ABOUT, IT WAS A $50 MILLION PROJECT AND EITHER BIDS OR STUFF CAME IN IN 40, THERE WAS $10 MILLION.
YOU AT THAT TIME YOU WERE TALKING ABOUT HOW TO DO IT, HOW TO FUEL TEXTILE, THE GRANT WHERE THE LOCAL MATCH WENT DOWN, ALL THAT STUFF.
AND THEY WERE GONNA BRING THAT BACK.
AND I NEVER HAVE RECALL THE CONVERSATION WHERE WE CAME BACK AND TALKED ABOUT THE DIFFERENCE BETWEEN THE $50 MILLION GRANT AWARD AND THE $40 MILLION PROJECT THAT WE ENDED UP.
HAVE WE DONE ANYTHING ON THAT? IS ANY MOVEMENT AS FAR AS MEETING? THERE'S A COUPLE OF, I DON'T THINK THERE'S ANY MORE ACTION RIGHT NOW NEEDED, BUT I MEAN, PART OF IT WAS THE, UM, VERY EARLY ON WE WERE THINKING WE MIGHT BE ABLE TO, UM, USE THE TEXT DOT PROJECT AND ALSO, UH, LAYER IT ON TOP OF THE FEMA PROJECT AS WELL.
WHAT WE FOUND OUT AT A CERTAIN POINT, WE COULDN'T DO THAT.
SO THAT WAS PART OF THE REDUCTION IN COST.
THE OTHER WAS JUST THAT THE BIDS CAME IN LOWER THAN THE ACTUAL COSTS.
AND SO THEN WE CAME TO THE POINT WHERE WE SAID, WELL, OUR, OUR CONTRACT IS REALLY ONLY, UH, AT THIS POINT FOR, FOR THE TECH DOT PROJECT WAS REALLY ONLY, IT WAS SLIGHTLY ABOVE THE TECH DOT TXDOT AMOUNT.
AND SO WE WERE SAYING WELL, DO WE NEED TO FIND A WAY TO OBLIGATE THE, THE LOCAL MATCH PORTION? AND WE GOT FEEDBACK FROM TXDOT SAYING WE DO NOT HAVE TO DO THAT.
AND SO THAT'S ULTIMATELY WHY THE TOTAL COST OF THE PROJECT CAME DOWN.
IF WE HAD TO FULFILL THAT LOCAL, UM, MATCH OBLIGATION, WE WOULD'VE HAD TO TRY AND FIND A WAY TO ADD SCOPE BACK IN THE PROJECT.
IF THAT, IS THAT, IS THAT WHAT YOU WERE REFERRING TO? YEAH.
SO I GUESS WHAT I'M INTERPRETING YOU SAYING IS THAT WE ORIGINALLY HAD A $50 MILLION MM-HMM
AND NOW WE HAVE UNDER METER 30.
THAT WAS PART OF THAT TEXTILE GRANT.
ULTIMATELY IT'S, IT'S PART OF, IT'S JUST WHAT WE'RE PAYING THE FEMA PROJECT THAT WE CAN'T COMMINGLE THE MONEY.
BUT THEN THE OTHER PART, YEAH, THE
[01:10:01]
OTHER PART WAS OUR LOCAL MATCH THAT WE PRESENTED IN THE, THE GRANT FUNDING THAT REALLY, WE JUST DON'T HAVE TO, UM, I GUESS THE BOTTOM LINE, DO WE HAVE TO AMEND ANYTHING WITH TEXT? NOT SAND.WE, YOU, YOU GAVE US 50, BUT WE'RE ONLY GOING TO USE 38.
IS THERE ANYTHING I I THINK WE'RE USING ALL THE TEXTILE MONEY.
IT'S, IT'S THE, THE, THE LOCAL SHARE OF THE MONEY THAT WE'VE WILL NOT BE SPENDING.
AND, AND, AND THAT, THAT WE VERIFIED THAT WITH TAXON AND THAT LOCAL SHARE IS ALL REFLECTED IN ALL THESE DIFFERENT PAGES OF, I BELIEVE ON THE, I CAN VERIFY, BUT I THINK THAT'S HOW THE, THE CAPITAL PLAN SHARE CURRENTLY IS READING THAT, THAT, THAT WE'VE REDUCED THE, THE LOCAL SHARE THAT ALREADY.
AND THEN, YOU KNOW, I, I THINK THAT ALSO GOES BACK TO THE FACT THAT WHEN THE TIME DIFFERENCE BETWEEN PUTTING THAT PROJECT, PROJECTING WHAT THAT PROGRESS IS GONNA COST, AND ULTIMATELY WHAT, AS MARK AS JEFF SAID, THE BIDS COME IN, YOU KNOW, WE ARE, WE'RE TRYING TO DEVELOP A MASTER PLAN.
IN SOME CASES WE DON'T KNOW THE COST, RIGHT.
SO WE'RE ESTIMATING THOSE COSTS.
AND SO THIS IS, I THINK A PRIME EXAMPLE WHERE WE ESTIMATED THE PROJECT WAS BE 50 MILLION, DIDN'T TURN OUT TO BE THAT.
AND WE, WHEN WENT BACK TO T STOCK, TDO SAID, WE'RE GOOD WITH THAT, LET'S MOVE FORWARD.
SO WE'RE THERE, SO THE TECH AMOUNT HADN'T CHANGED IS
BECAUSE A LOT OF THE GRANTS TYPICALLY, YOU, YOU CAN ALWAYS APPLY FOR MORE FUNDING.
IT'S LIKE YOUR PROJECTS, AS LONG AS YOU FOLLOW THE PROCESSES AND WHATNOT, AND ALL THE REPORTING YOU CAN APPLY FOR ADDITIONAL FUNDING ON THAT GRANT IN THIS CASE, LIKE THE, THE GRANT AMOUNT THAT THEY'RE GIVING YOU IS FIXED NO MATTER WHAT WE WERE, WE, WE HELD THE RISK ON THAT.
AND I THINK THAT MIGHT BE ONE OF THE REASONS WHY THEY, UM, ALLOW YOU, IF YOUR PROJECT COMES UNDER, YOU DON'T HAVE TO ADD MORE TO IT TO GET UP TO THAT.
AND WE HAVE A PORT AUTHORITY MEETING TOMORROW IN AUSTIN, AND THESE ARE, THESE ARE THE FIRST GO AROUND.
THESE ARE ALL THE THINGS THAT NOBODY THOUGHT ABOUT FIRST GO AROUND.
AND ESPECIALLY WHEN WE PRESENTED PROJECTS TO THE LEGISLATURE THAT WERE BASICALLY ALMOST THREE YEARS IN ADVANCE OF THEIR REVIEW OF THOSE.
SO IT, IT WAS THE FIRST GO AROUND.
EVERYBODY WAS, EVERYBODY WAS LEARNING A LOT.
I MEAN, IT WAS, 'CAUSE WE HAD NEVER RECEIVED THAT KIND OF MONEY FROM
ONLY REASON IT BROUGHT TO MY ATTENTION WAS I KEEP THE LIST AS, YOU KNOW, THINGS THAT Y'ALL ARE GOING BRING BACK WHEN YOU SAID YOU GONNA DO SOMETHING.
AND I REMEMBER THAT BACK BROUGHT BACK IN MY MIND ABOUT THE LOCAL MATCH.
TONY CAN COMMENT, HE SAID, MAN, YOU'RE WELCOME TO MY WORLD.
RIGHT? YOU GOTTA, YOU GOTTA ESTIMATE THREE OR FOUR YEARS IN ADVANCE WHAT THE PROJECT'S GONNA COST TO THE SCHOOL BOARD.
THEY GO UP SOMETIMES ON OCCASION.
OTHER QUESTIONS, CONCERNS ABOUT THE, I WOULD JUST SAY AGAIN, THIS, I MEAN IT'S A LOT OF WORK AND A LOT OF MOVING PARTS, BUT WE REALLY APPRECIATE THE EFFORTS FOR YOU GUYS BRING THE INFORMATION AND CHANGES TO, AND LIKE JIM SAID, TO THOSE OF US TO LOOK AT IT A COUPLE TIMES A MONTH.
AND SO WE CAN KIND OF LOOK AT, LOOK FOR, YOU KNOW, WE'RE LOOKING FOR NUMBERS THAT MATCH AND UNDERSTAND DIFFERENT BUCKETS, BUT I REALLY APPRECIATE ALL THE WORK YOU GUYS DO TO MAKE NOT ONLY BRING THE INFORMATION TO THE BOARD, THAT'S ALSO TO DO I THINK A WONDERFUL, A REALLY GOOD JOB OF MANAGING THESE PROJECTS, PROJECT MANAGEMENT AND DOING IT RIGHT IS HARD AND YOU GUYS DO A REALLY GOOD JOB WITH IT.
AND I HAVE A LOT OF CONFIDENCE IN YOUR STAFF AS FAR AS BEING ABLE TO MANAGE AND DELIVER ON THE CAPITAL PROJECTS.
AND YEAH, I MEAN, IN REALITY, THINK ABOUT WHAT WE HAVE GOING ON.
THERE'S FOR MAJOR PROJECTS, A LOT OF PARTS BECAUSE KUDOS.
[C.4 Discuss and consider a proposed amendment to the FY2025 Operating and Capital Budget to incorporate the carryforward of capital projects identified during the May 2025 Board meetinginto the next fiscal year. Trustee Moore and Trustee Yarbrough (Part 1 of 2)]
C FOUR, DISCUSS AND CONSIDER A PROPOSED AMENDMENT TO THE FY 2025 OPERATING AND CAPITAL BUDGET TO INCORPORATE THE CARRY FORWARD OF CAPITAL PROJECTS IDENTIFIED DURING THE MAY, 2025 BOARD MEETING INTO THE NEXT FISCAL YEAR.TRUSTEE MOORE, WOULD YOU LIKE TO SAY ANYTHING? I THINK YOU MIGHT AS WELL PROLONG THIS
UH, WELL, YOU KNOW, I COME FROM A, FROM A FUND ACCOUNTING WORLD WHERE EVERYTHING TICKS AND TIES AND START, BUT IT ALL STARTS AT THE BUDGET.
SO, UM, I THINK REALISTICALLY WE APPROVED
[01:15:01]
A CAPITAL BUDGET WHEN WE APPROVED THE OPERATING BUDGET, WHICH HAPPENED IN NOVEMBER.AND NOW WE'VE GOT A LIST OF A GOOD LIST OF CHANGES THAT WE WANT TO MAKE TO THE CAPITAL BUDGET.
WELL, YEAH, LET ME SAY IT THAT WAY.
CHANGES WE WANT TO MAKE TO THE CAPITAL BUDGET THAT WE APPROVE.
MY CONCERN IS WE UN, UNLESS THE BOARD DOES SOMETHING AS SIMPLE AS VOTING AND AS COMPLICATED AS DOING A BUDGET AMENDMENT, I JUST DON'T THINK THAT'S RIGHT.
I THINK, I THINK IF YOU, IF YOU VOTED TO HAVE SOMETHING ONE WAY IN THE BUDGET, YOU SHOULD VOTE TO HAVE A A DIFFERENT WAY BASICALLY.
AND THAT'S MY OLD BACKGROUND, SO, AND I DON'T KNOW WHAT IT, I DON'T KNOW EXACTLY WHAT FORM IT TAKES, WHETHER IT'S A BUDGET AMENDMENT OR A SIMPLE VOTE, BUT WE HAVEN'T DONE EITHER ON THIS AND SO, OR YEAH, AND MAYBE WE SHOULD HAVE A STATED POLICY.
IF WE DON'T GO THE BUDGET AMENDMENT ROUTE, THEN WE HAVE A POLICY THAT SAYS IF WE'RE GOING TO MATERIALLY CHANGE THE CAPITAL BUDGET, AND WE COULD DEFINE MATERIALLY AND START OUT JUST HYPOTHETICALLY $500,000 OR MORE, OR X PERCENT OF THE BUDGETED COSTS OR MORE.
THAT UNTIL, YOU KNOW, IF YOU'RE GONNA CHANGE IT THAT MUCH, THEN THE BOARD MUST APPROVE IT THAT WAY.
WE WOULD HAVE A, JUST LIKE WE HAD A VOTE TO APPROVE IT, WE WOULD'VE TO APPROVE IT.
IT INITIALLY, WE WOULD THEN HAVE A VOTE TO APPROVE THE CHANGE.
UM, YOU KNOW, WHAT WE'RE TALKING ABOUT HERE IS SOMETHING WE DO EVERY MEETING.
I MEAN, WE MAKE CHANGES TO THE, I DON'T WANT TO GET, I MEAN, I'M NOT, I'M NOT SURE, THIS IS JUST IN A PLAY ON WHAT WE'RE CALLING SOMETHING BECAUSE WE HAVE A MASTER PLAN THAT IT IS TURNED INTO A LIVING DOCUMENT ON A MONTHLY BASIS, RIGHT? SO EVERY MONTH WE LOOK AT THIS THING, WE TWEAK IT, UM, AND WE TWEAK THAT AS A BOARD.
I MEAN, WE DON'T, THE, THE, THE STAFF IS IN THE BACKGROUND, YOU KNOW, TAKING A LOOK AT THIS.
WE MEET AT LEAST TWICE, NOT SOMETIMES THREE TIMES IN BETWEEN MEETINGS TO GO OVER THE CAPITAL PROJECTS AND PICK AN I IT'LL BE, THAT'S A THING WITH ME.
AND, AND SO WE NEED TO GO OVER ALL THIS.
SO IF THIS IS GOING TO BE A DOCUMENT THAT NEEDS TO BE PUT ON EVERY MEETING, BECAUSE THIS IS WHAT WE, WHAT THIS IS WHAT WE'VE CREATED IS A MASTER PLAN DOCUMENT THAT WE GO OVER EVERY MEETING AND WE MAKE CHANGES EVERY MEETING BASED ON THE CIRCUMSTANCES AS THEY CHANGE.
AND SO IF, IF YOU WANT, NOBODY'S OPPOSED TO YOU GUYS VOTING ON, YOU KNOW, UM, THE PLAN.
AND HERE AGAIN, YOU KNOW, AND WHAT WE'LL TALK ABOUT LATER ON, WE'RE GETTING READY TO CHANGE IT AGAIN.
I MEAN, WE'RE GETTING READY TO, YOU KNOW, WE'RE GETTING READY TO HAVE A SERIES OF MEETINGS, PUBLIC MEETINGS AND EVERYTHING BETWEEN NOW AND NEXT JULY MEETING ON THE MASTER PLAN.
AND THE MASTER PLAN IS NOW BECOMING A OPERATING BUDGET.
AND WE, WE MADE THAT CONSCIOUS DECISION, I THINK A WHILE BACK.
WE SAID, OKAY, THIS IS WHAT WE'RE GONNA LOOK AT EVERY MEETING.
AND SO, YOU KNOW, WE ARE, WE'RE GOING, WE WANT TO MAKE THE CHANGES.
AND THAT'S WHAT THIS, THIS IS WHAT WE, AS THE STAFF SAID LAST MEETING, THIS IS THE REALITY THAT IS, WE SEE IT LAST MEETING, RIGHT? SO WE'RE, IF IF YOU WANT TO HAVE A FORMAL APPROVAL OF EVERY MEETING AT EVERY MEETING OF THE CAPITAL BUDGET, WHICH IS THE MASTER PLAN BUDGET, RIGHT? IT'S ONE AND THE SAME.
I MEAN, WE'RE NOT OPPOSED TO ANY OF THAT.
I MEAN, I, I JUST, I THINK THAT WHAT WE'D LIKE TO BE LIKE TO UNDERSTAND IS, TO ME THAT'S A WORKING DOCUMENT, RIGHT? AND IS IT, IS IT A DOCUMENT THAT WE REALLY HAVE TO COMMIT TO THE RECORDS THAT'S BEEN APPROVED BY THE BOARD? WHICH I THINK WHAT YOU'RE SUGGESTING, AND WE DON'T HAVE A PROBLEM WITH THAT.
AND IN ESSENCE WE DO, I MEAN, WE DON'T TAKE A VOTE, BUT EVERYBODY, YOU KNOW, WE HAVE A FINANCE COMMITTEE MEETING EVERY MONTH.
AND THE GOOD THING IS EVERYBODY SHOWS UP.
RIGHT? EVERY BOARD MEMBER SHOWS UP TO THAT MEETING.
EVERYBODY HAS THEIR OWN INPUT INTO IT.
AND SO I THINK THAT TO FORMALIZE THAT, WE HAVE NO PROBLEM WITH IT.
[01:20:01]
AND, AND I MEAN, I DON'T THINK WE'RE TRYING TO, TO DO ANYTHING WITHOUT APPROVAL OF THE BOARD.BECAUSE WHAT I, I, HOW I LOOK AT IT IS, IS WE'RE WORKING WITH YOU GUYS EVERY MEETING, EVERY MONTH, EVERY MEETING WE ARE LOOKING AT THIS PROJECT, WE GO OVER IT, WE CODE IT SO THAT THERE'S, EVERYBODY UNDERSTANDS AND IT'S, THERE'S STILL SOME CONFUSION.
I I AGREE THERE'S STILL SOME CONFUSION WITH IT.
UM, BUT IT IS A LIVING DOCUMENT AND HOW DO WE TREAT A LIVING DOCUMENT IS WHAT I GUESS YOU'RE WANTING TO DISCUSS.
WHAT I'M, WHAT I'M TRYING TO GET AT IS HOW DO WE DOCUMENT THAT THE BOARD WAS COGNIZANT AND AGREE TO DO SOMETHING? AND THE ONLY WAY I KNOW TO DO IT IS TO HAVE A VOTE.
'CAUSE THE DOCUMENTATION THAT'S SO IMPORTANT TO ME, IT'S, YEAH, BECAUSE YOU KNOW, YOU SOMETIMES YOU GET INTO MEETINGS, YOU GO, WELL WE DECIDED, REMEMBER WE ALL TALKED ABOUT THIS TWO MONTHS AGO, AND SOMETIMES I DON'T REMEMBER EXACTLY WHAT WE TALKED ABOUT, BUT IF IT'S IN, IF IT'S DOCUMENTED WITH THE VOTE OF THE, THE BOARD AND THAT, AND THAT WOULD SHOW THAT THE BOARD SUPPORTED IT.
AND IT WOULD BE, NO, IT IS A HASSLE THERE, THERE'S NO QUESTION TO IT.
IT'S A HASSLE OVER WHAT WE'RE DOING NOW, BUT IT'S, IT'S DOCUMENTATION.
I JUST GIVE YOU A HYPOTHETICAL.
IF, AND, AND I'M NOT SAYING THIS BECAUSE ALL THIS IS STILL IS ON THE AGENDA FURTHER DOWN OR WHEREVER, LET'S JUST TAKE THE WALKWAY.
IF THE, IF, IF WE WOULD'VE HAD AN EXTRA $10 MILLION FROM SOME PROJECTS THAT WERE, I DUNNO IF IT WAS 10, BUT IF WE HAD AN EXTRA $6 MILLION FROM ALL THESE PROJECTS WE WERE CHANGING AROUND AND THE, THE WALKWAY GOT BUILT FOR $12 MILLION, WHICH IT'S, WHICH I THINK IS ABOUT WHAT IT, WHAT THE HIGHEST BID WAS, BUT THAT'S TWICE AS MUCH AS WE APPROVED IN THE BUDGET.
HOW ARE WE GONNA EXPLAIN TO THE PUBLIC THAT WE SPENT TWICE AS MUCH ON THE WALKWAY COGNIZANTLY THAN WE SAID WE WOULD? WHAT IF WE JUST DID QUARTERLY BUDGET? YOU COULD, BUT WHEN YOU SAY BUDGET, I MEAN WE HAVE MORE THAN ONE BUDGET.
'CAUSE WE HAVE AN OPERATING BUDGET AND WE HAVE A CAPITAL BUDGET.
AND OUR CAPITAL BUDGET IS, IS IN MY UNDERSTANDING, IS THE MASTER PLAN SCHEDULES.
AND, AND I THINK THAT IF ANYBODY IN THE PUBLIC WATCHES OUR MEETINGS, THERE'S NOT ANY, THERE'S NOT ANY CONFUSION ABOUT WHAT WE'RE TALKING ABOUT.
THERE'S, I MEAN OBVIOUSLY IF YOU ARE WATCHING MEETINGS AND YOUR, ANY OF INTEREST TO YOU, THEN YOU SEE THE CONVERSATIONS WE HAVE ABOUT THIS.
SO, I MEAN, I, I'M NOT CONCERNED ABOUT THAT.
BUT IF YOU WANT TO FORMALIZE IT, THAT'S ALL I SAY.
I'M SAYING WE'RE FINE WITH THAT.
WE CAN HAVE A BUDGET, WE CAN HAVE THIS APPROVED EVERY MEETING.
WELL, IT DOESN'T HAVE TO BE EVERY MEETING.
I MEAN, I'M, I'M SAYING I WOULD SAY EITHER, EITHER ON SOME CERTAIN FREQUENCY OR IT'S ONLY NECESSARY I BELIEVE WHEN THERE'S A MATERIAL CHANGE.
AND YOU KNOW, YOU IDENTIFY THAT WITH MATERIAL.
AND 500,000 OR SOMETHING LIKE THAT WOULD BE A, A SPARK FOR ME.
I'M GONNA LET JEFF TALK AND THEN JIM, YEAH.
JUST, JUST KIND OF PROCESS AND THINK THROUGH HOW, HOW TO MAKE THIS, I MEAN, ONE, ONE THING COMES TO MIND IS YEAH, WE HAVE REALLY A PRETTY DETAILED CONVERSATION EVERY MONTH ABOUT THIS.
AND IT COULD BE AS SIMPLE AS JUST SAYING, OKAY, BASED ON THE DISCUSSIONS WE'RE WE ARE GONNA MAKE THESE COUPLE CHANGES, MAKE A MOTION AND WE CHANGE IT AND IT'S APPROVED.
AND, AND MAYBE THAT'S THE SIMPLE ANSWER THAT MAY BE, UH, THE OTHER THING IN MY MIND, I THINK ABOUT WHAT, WHAT'S, WHAT'S REALLY IMPORTANT TO ME? WHAT'S FOR MARK? MAYBE JUST REAL QUICK, TO ME, WHAT'S REALLY IMPORTANT WHEN WE TALK ABOUT AT A HIGH LEVEL BUDGET, YOU KNOW, IT, IT'S WHAT DID WE APPROVE IN, YOU KNOW, BACK IN 2020, FORGET MY YEARS, RIGHT? 2024, WHAT DID WE APPROVE FOR THE OPERATIONS CAPITAL BUDGET FOR 2025? THAT'S AN IMPORTANT NUMBER.
WHAT DID, WHAT DID WE SAY THAT WAS, AND TO ME, THE, THE PART THAT THE BOARD SH AND IT DOES WORRY ABOUT, YOU KNOW, IF WE APPROVE $50 MILLION IN OPERATION SPENDING, WHAT DOES THAT LOOK LIKE THIS MONTH, NEXT MONTH? I MEAN, IF THAT, IF THAT CHANGES, THEN THAT, THAT'S A SIGNIFICANT ISSUE, RIGHT? I MEAN, WE, WE APPROVE SOME NUMBER OF OPERATIONS CAPITAL SPENDING FOR 2025.
IF THAT NUMBER'S GONNA CHANGE.
THAT'S SOMETHING THE BOARD NEEDS TO BE VERY COGNIZANT ABOUT AND MAKE.
THAT'S WHERE I THINK WE NEED TO MAKE A CONSCIOUS CHOICE.
IF WE SAID WE'RE GONNA SPEND 50 MILLION, BUT WE'RE REALLY GONNA SPEND 60, WE NEED TO, WE NEED, THAT'S, TO ME, WHAT WE NEED TO DOCUMENT IS, IS THAT CHANGE TO THE BOTTOM LINE.
[01:25:01]
CHANGING UP SOME OF THE SPENDING UNDERNEATH IN THAT 50 MILLION, THAT'S AN, THAT'S JUST TIMING OF PROJECTS AND OPERATIONS.IT'S REALLY, AND I GO BACK TO MY, MY MY PROJECT WORLD, YOU KNOW, DAYS OR CAREER WORLD.
WHAT REALLY, WHAT REALLY GETS SHOULD GET THE BOARD'S ATTENTION IS IF WE GO, IF WE'RE CHANGING THAT TOTAL SPENDING AMOUNT FOR 2025, THAT WOULD BE SOMETHING THAT WE WOULD NEED TO MAKE.
WE SHOULD MAKE A CONSCIOUS CHOICE OF THAT, HEY, WE'RE GONNA SPEND ANOTHER $10 MILLION IN CAPITAL PROJECTS OVER WHAT WE APPROVED IN THE BUDGET.
THAT, THAT TO ME IS THE, THE THING WE OUGHT TO REALLY WORRY ABOUT.
UH, I KIND OF LIKE YOUR FIRST SCENARIO.
I MEAN I, A SIMPLE, IF THE BOARD APPROVES SOMETHING, THE BOARD HAS THE AUTHORITY, SHOULD HAVE THE AUTHORITY TO CHANGE IT.
IT'S MANAGEMENT'S JOB TO DO WHAT THEY'RE DOING.
WHICH IS SAYING, HEY, WE CAN'T SPEND THIS MONEY ON THIS PROJECT IN 25.
AND IF WE HAVE THAT DISCUSSION LAST MONTH, WHICH WE DID, ROGER AND STAFF TOOK THAT AS GO DO IT.
WE JUST HAVE A MOTION AT THAT MEETING THAT SAYS, HEY, WE AGREE WITH YOUR RECOMMENDATIONS AND YOU CAN RECORD IT.
YOU'VE GOT A PAPER TRAIL AND A TRACK RECORD OF WHERE TO GO LOOK AND SEE WHY YOU GOT CHANGED.
EVERY, EVERY TIME WOULD BE DISCUSS AND CONSIDER UPDATED MASTER PLAN.
AND IT WOULD BE IN THE MINUTES.
AND THAT THAT'S ON THAT PARTICULAR DOCUMENT.
IF WE GET TO THE NEXT ITEM, WHICH IS MORE JUST BROAD BUDGET AMENDMENT IN YOUR OPERATING BUDGET, I'D HAVE SOME OTHER, UH, COMMENTS ON THAT.
I THINK JUST MAKING THAT CHANGE AND WE SHOULD PROVE EVERY MOST MONTHS WE DON'T CHANGE ANYTHING.
I'M JUST LOOKING AT NAMES HERE.
AND THIS ITEM'S ON THE AGENDA FOR THE BOARD MEETING.
AND WHEN, I DON'T KNOW THAT TRUSTEE MOORE IS NOT A MEMBER OF THIS COMMITTEE AND PUT AN AGENDA ITEM ON THIS COMMITTEE, BUT IT CERTAINLY CAN'T BOARD ME.
AND I DIDN'T ASK IT TO BE ON THIS.
I THINK, I THINK WE HAD SOME MISCOMMUNICATION.
AND THEN THE NEXT ITEM IS YOU AS CHAIRWOMAN, YOU PUT WHATEVER YOU WANT ON.
SO I THINK ANGIE AND ROGER AS, AS WE PUT THINGS ON BE CLEAR HOW WE, HOW WE THAT JUST TO COMPLY WITH GENERAL GOOD GOVERNANCE.
BUT I'M NOT AGAINST US TALKING ABOUT ANY OF THIS, BUT I WAS HAPPY TO SEE IT ON THERE THOUGH.
MAYBE WE WON'T HAVE TO TALK ABOUT IT VERY MUCH AT THE REAL MEETING.
IT'S GONNA BE ON THE NEXT MEETING AS WELL.
I THINK A QUESTION ABOUT VOTING ON THIS.
YOU'VE GOT A BUSINESS ITEM F 10 THAT I THINK INCORPORATES APPROVING THESE CHANGES.
IF THAT'S WHAT YOU IDENTICAL THIS SURE.
GOING FORWARD, DISCUSS, CONSIDER THIS ITEM CHANGES, MAKE IT, MAKE IT RECOMMENDATION TO THE IT'S ON AGENDA.
I THINK THAT'S A SIMPLE, SIMPLE WAY SOLUTION.
AND THEN, AND I GO BACK, BUT I THINK AS I WAS TALKING THROUGH THAT, I THINK THE OTHER THING IS, IT, IT PROBABLY IS IMPORTANT FOR US TO LOOK AT MARK, WHAT WE, WHAT, WHAT WAS OUR APPROVED CAPITAL BUDGET FOR 2025 AND THE BUDGET AND WHAT DOES THAT LOOK LIKE NOW BASED ON ALL THESE CHANGES? 'CAUSE I THINK THAT TO ME THAT BOTTOM LINE NUMBER IS REALLY THE ONE.
ISN'T THAT WHAT, PROBABLY DOING THAT ISN'T WELL WE ARE, I JUST, I JUST DON'T KNOW.
I JUST DUNNO WHAT IT WAS THAT, THAT'S THE FIRST COLUMN RIGHT HERE, IF I REMEMBER CORRECTLY.
ISN'T THAT RIGHT ROBERT? THE FIRST COLUMN IS THE, THE MASTER PLAN BUDGET AS, UM, BROUGHT FORWARD FROM LAST YEAR.
I MEAN, AT ONE POINT IN TIME WE HAD, WE HAD ON HERE A COLUMN THAT TALKED ABOUT WHERE WE STARTED.
I, I'M JUST THINKING, AND I THINK THAT'S RIGHT.
I THINK THAT'S THE FIRST COLUMN RIGHT HERE.
IT SAYS IT'S GOT THE, UH, IT'S ORANGE BURN ORANGE HERE.
THAT'S THE COLUMN THAT, UH, WHERE WE STARTED STARTED AT THE BEGINNING.
AND YOU AND YOU HAD ASKED FOR THAT BEFORE.
RIGHT? AND IT, IT'S BEEN ON HERE SINCE THEN.
AND THEN THIS NEXT COLUMN IS, AS YOU SEE IT IS UPDATED AS OF TODAY'S MEETING OR AS OF THE END OF LAST MONTH I SHOULD SAY.
AND THEN WE GO THE COLOR CODING OF WHAT CHANGES WE MADE AND THEN WE DISCUSS THAT.
[01:30:01]
I REALLY THINK WE'RE ALL ON THE SAME PAGE HERE.WELL, I REALLY THINK WE'RE ALL ON THE SAME PAGE.
WE WE'RE ALL SAYING A LITTLE, NO PUN.
BUT WE, WE TALKED ABOUT THESE LAST WEEK.
AND HERE WE ARE THIS WEEK MAKING THOSE CHANGES.
AND JIM'S POINT IS, WE DON'T MAKE THOSE CHANGES UNTIL THE BOARD APPROVES.
BUT THEN THE BOARD WANT TO SEE SOMETHING TO APPROVE VERSUS, 'CAUSE THEN THIS WOULD, IF, IF WE'D HAVE BROUGHT THIS THING LAST MONTH AND SAY, HERE'S THE CHANGES WE DISCUSSED LAST MONTH, UM, BUT WE HAVEN'T MADE IT TO THIS REPORT.
SO THEN THE NEXT MONTH WE BRING THIS REPORT BACK AGAIN WITH THE CHANGES.
AND THEN THIS GOES ON AND ON AND ON.
'CAUSE THIS MEETING SOME, WE, WE LOOK AT THIS THINGS, WAIT A MINUTE, I THINK THIS, WE NEED TO MAKE A CHANGE HERE.
SO THIS CHANGE THEN, UH, WE HAVE TO BRING BACK TO THE BOARD NEXT MEETING AND THE BOARD HAS TO VOTE ON THAT CHANGE THE NEXT MEETING.
WELL, CAMP BOARD DOESN'T, WE HAVE TO SAY WHAT WE'RE GONNA MAKE THE CHANGE.
DO YOU FOLLOW WHAT I'M SAYING? IT IT'S A, IT'S THIS, UH, IT'S PROCESS.
IT'S JUST THIS ROLLING THING WHERE UM, YOU KNOW, IF YOU WANNA MAKE TWO MEETINGS TO MAKE THE, TO MAKE THE, UH, APPROVAL.
AND THAT, AND THAT'S WHAT I, I MEAN HERE AGAIN, I, I THINK WE JUST, I THINK WE JUST, WHATEVER, YOU KNOW, WE HAVE THE DISCUSSION.
WE SAY THESE ARE THE CHANGES YOU'RE GONNA MAKE AND YOU GUYS MAKE A MOTION TO RECOMMEND THOSE CHANGES.
YOU APPROVE IT, WE MAKE, AND THEN WE DO IT AT THE BOARD.
AND THEN, AND THEN WE'LL SEE IT AT THE NEXT MEETING AND WE'LL GO THROUGH THE SAME PROCESS.
BUT I THINK WE DON'T NEED TO, I DON'T NEED MAKE IT ANY MORE COMPLICATED THAN THAT'S DAVE BROUGHT UP A GOOD POINT WITH THE ITEMS THAT WE CAN PUT ON OUR AGENDA.
SHOULD WE, SHE THIS CONVERSATION UNTIL LATER ON FOR OUR REGULAR MEETING.
I THINK WE'VE ALREADY HAD, I KNOW WE'RE STILL DOING, I DON'T WANT TO TAKE IT BACK.
I DON'T THINK I CAN REMEMBER WHAT THIS IS.
JEFF SOLUTION IS A, A GOOD ONE.
LAST MONTH IF WE HAD HAD DISCUSS AND CONSIDER WE COULD WE AGREE WITH THESE CHANGES, MAKE 'EM DONE.
SIT ON THE REPORT THE FOLLOWING MONTH.
WE MAY NOT MAKE IT JUST MAKES IT OFFICIAL.
SO WE DON'T ACTUALLY VOTE ON, WE JUST DISCUSS IT.
MR. HOW DO YOU RECORD THOSE? I MEAN, BUT SOMETIMES YOU DON'T KNOW WHAT CHANGES YOU'RE MAKING UNTIL YOU GET INTO THE DISCUSSION HERE.
WELL, UM, THESE, THESE WERE STAFF.
THESE WERE REALLY STAFF GENERATED, RIGHT? SO THESE WEREN'T, THESE WERE NOT SOMETHING THAT THE BOARD SAID, I WANT TO SEE THIS CHANGE.
RIGHT? THESE WERE, THESE WERE THINGS WHERE WE'RE, WE HAD CONVERSATIONS TWO MONTHS AT THE END OF THAT, YOU KNOW, SAYING THIS, THIS, THIS, THIS THING'S NOT RIGHT.
THERE'S NO WAY THEY CAN, NOW THAT I UNDERSTAND, I SOMETIMES CHANGES WILL POP UP IN THE DISCUSSION.
UH, AND IT'S NOT ON THE AGENDA TO VOTE ON SHOULD WE, WELL, SHOULD WE HAVE THAT ITEM WE HAVE ON THE REGULAR AGENDA THAT SAYS ANYTHING DISCUSSED CAN BE TURNED INTO AN ITEM? WE HAVE THAT.
I THINK IT, I THINK IT'S JUST AS SIMPLE AS IT CHANGES TO THE CAPITAL PLAN.
I MEAN THAT'S SPECIFICALLY WHAT WE'RE TALKING ABOUT.
WE CAN JUST HAVE AN ITEM ON THERE.
I THINK WE CAN JUST SAY CHANGE ANY OF THOSE CHANGES.
AND THEN WE JUST NEED, I THINK IT ALSO FORCES US AS WE GO THROUGH THAT DISCUSSION TO ACTUALLY, YOU KNOW, LET'S DOCUMENT THOSE THREE THINGS WE SAID WE'RE GONNA CHANGE AND THEN WE VOTE.
AS LONG AS IT'S ON THE AGENDA CHANGES.
DISCUSS AND CONSIDER I THINK IS WHAT WE WERE TRYING AND WE CAN'T VOTE ON ANYTHING BECAUSE IT'S NOT WORDED CORRECTLY FOR THIS.
JUST FOR CLARIFICATION, BECAUSE WE'RE GONNA HAVE TO PUT IT ON, I, I'M PROBABLY THE ONE HAVING TO PUT IT ON THE AGENDA.
UM, IS IT, CAN WE ADD THIS TO THE CONSENT AGENDA TO ITEM? WE'RE GONNA DISCUSS IT IN FINANCE.
IT'LL JUST BECOME ITEM PART OF THE, UH, NINE ON THE IT'S CONSENT AGENDA.
SO THAT WAY WE CAN DISCUSS IT.
IF WE HAVE ADDITIONAL CHANGES THAT WE, THAT THE BOARD INSTRUCTS US TO MAKE, WE CAN INCORPORATE THAT INTO THE, INTO THE NEXT THING.
AND THIS JUST LIKE THE FINANCE OR REST THE FINANCIALS AND THE REST OF THE REPORTS IS JUST PART OF THE CONSENT AGENDA.
AND IT'LL NEED TO BE ON BOTH FINANCE AND YEAH.
AND THEN THE CONSENT AGENDA WOULD BE APPROVED.
IT'D JUST BE THE FIRST ITEM IN THE RE ONE OF THE FIRST ITEMS IN THE REGULAR MEETING IS TO APPROVE ALL THE CONSENT AGENDA, WHICH IS, BY THE WAY, WE, WE NEED TO APPROVE THE 6.1 MILLION ADJUSTMENT.
I THAT ITEM CONCERNS THE CHANGES DISCUSSED AT THE BOARD AT THE MAIN MEETING.
THIS SHEET SUMMARIZES THOSE CHANGES.
[01:35:01]
YOU CAN, YOU CAN UH, YOU CAN UH, MOVE TO APPROVE A RECOMMENDATION TO ACCEPT THESE TO THE BOARD.THANKS FOR LETTING ME KNOW MR. HAD YES SIR.
BROWN'S QUESTION MAY HAVE BEEN ANSWERED ABOUT HOW DO WE KNOW WHAT WE DID? AND YOU TO THE HELL OF A JOB, IF YOU LOOK AT THE MINUTES, IT TALKS ABOUT EACH ONE OF THESE THINGS.
SO AFTER THE MEETING, WHEN SHE GETS READY TO DO THE MINUTES, SHE AND ROGER AND WHOEVER INTERESTED PART OF THE TEAM GO THROUGH ALL THE CHANGES WE TALKED ABOUT AND SHE JUST LINED THEM OUT IN THE MINUTES LIKE SHE DID HERE.
AND SO THAT'S REFLECTS WHAT CHANGES WE MADE EVERY WEEK.
[C.2 Discuss and Consider Amendment to the 2025 Budget Non-Operating Revenue from GrantsDue to Recognition and Reporting Actual TxDOT Grant Revenue in 2024. (Part 2 of 2)]
BACK AND PICK UP APPROVING THE 6 MILLION.ANY FURTHER DISCUSSION WITH PLEASE SAY NO.
AND THEN C3, I NOTED A MOTION C TWO ALREADY ALREADY.
UM, TRUSTEE YARBOROUGH AND LAURA GONZALEZ AT THE VERY BEGINNING OF THE CONVERSATION.
SO I DUNNO IF WE'RE GOING BACK AND DOING THAT.
IF YOU SAW THIS, I THINK WEVE MADE TWO MOTIONS ON EVERYTHING.
WHY NOT? MARK, WE ALREADY COVERED FOR TWO YEARS DISCUSSIONS ON EVERYTHING TOO.
SO HOW DO WE UNDO WHAT WE JUST DID? YEAH, DO WE UNDO IT? OKAY.
[C.4 Discuss and consider a proposed amendment to the FY2025 Operating and Capital Budget to incorporate the carryforward of capital projects identified during the May 2025 Board meetinginto the next fiscal year. Trustee Moore and Trustee Yarbrough (Part 2 of 2)]
STILL ON C3 AND OUR ATTORNEY TELLS US THAT WE CAN C FOUR.OUR ATTORNEY TELLS US THAT WE CAN APPROVE THIS PAGE.
SO MAY I HAVE A MOTION TO APPROVE THIS PAGE? I MAKE A MOTION.
UM, ANY FURTHER DISCUSSION, YOUR HONOR? AND IN THE FUTURE WE WILL HAVE A FREESTANDING ITEM THAT WILL JUST BE PART OF C3, DISCUSS AND CONSIDER.
AND IT'LL BE DONE IN THAT FASHION.
YOU'RE SAYING C3 WOULD BE A DISCUSSING CONSIDER IN THE FUTURE.
WELL IN REALITY IS MAKE THE RECOMMENDATION TO THE BOARD.
THE ONLY COMMENT I WANT, AGAIN, I THINK THE IMPORTANT THING FOR THE BOARD TO UNDERSTAND AND MARK, I KNOW WE HAVEN'T, WE HAVE THE, THAT BURN ORANGE COLOR COLUMN AND THE OTHER ONE THAT CHOSE THE ORIGINAL.
BUT AGAIN, I THINK THE NUMBER THAT PROBABLY WOULD BE GOOD TO KEEP OUT IN FRONT OF US IS WHAT DID WE HAVE IN THE BUDGET? TOTAL CAPITAL SPENDING REALLY OUT OF OPERATIONS.
THAT'S, THAT'S ONE WE'RE REALLY CONCERNED ABOUT.
AND WHAT, WHAT IS THAT? WHAT IS THAT CURRENTLY? WHAT, WHAT ARE WE CURRENTLY PROJECTED TO SPEND IN 2025? IN OTHER WORDS, DID WE, DID, DID WE CHANGE THE AMOUNT OF NU OF HAVE WE INCREASED IT, DECREASED IT, BECAUSE THAT, THAT TO ME, FROM A BUDGET STANDPOINT, IS THE ONE THAT WE OUGHT TO, ARE WE GONNA BE SPENDING MORE CAPITAL THAN WE SAID OR LESS CAPITAL? WHAT DID WE APPROVE IN THE BUDGET? TOTAL CAPITAL SPEND FOR 2025.
WHAT IS THAT CURRENTLY PROJECTED AT? I THINK YOU OUGHT TO KEEP THAT NUMBER.
WE OUGHT TO KEEP THAT NUMBER OUT IN FRONT OF US BECAUSE THAT'S THE ONE THAT TO ME, I'M GONNA DECIDE TO CHANGE SOMETHING.
I MIGHT, YOU KNOW, YOU MIGHT, IF WE COME TO OVERSPEND WITH THE CAPITAL BUDGET, THEN YOU GET INTO WHAT DO YOU, WHAT DO YOU HAVE TO DELAY, DEFER.
I MEAN I THINK THAT'S A FAIRLY STANDARD INDUSTRY PROCESS, RIGHT? CAP CAPITAL SPENDING FOR A YEAR.
HOW TO MANAGE THAT TOTAL BUDGET.
NOT SO MUCH THE INDIVIDUAL PIECES, BUT WHAT DOES THAT TOTAL LOOK LIKE? DOES THAT MAKE, DOES THAT MAKE SENSE? IT, UH, DOES CURRENTLY WE'RE JUST SHOWING THE TOTAL PROJECT COST.
WE'RE NOT SHOWING YOU THE CHANGE PER SE.
WELL, REALLY, REALLY, IT, IT IS JUST ONE.
IT'S JUST WE HAD A BUDGET NUMBER FOR 2025.
WHAT IS THAT NUMBER? YOU KNOW, BASED ON ALL THE CHANGES WE MADE, JUST, JUST AS A REFERENCE POINT.
WE'LL, WE'LL PULL SOMETHING TOGETHER.
[C.5 Discuss and Consider Developing and adopting a policy for managing budget amendments forthe Port of Galveston which aligns with City of Galveston policy. – Trustee Lidstone andTrustee Yarbrough]
C FIVE, DISCUSS AND CONSIDER DEVELOPING AND ADOPTING A POLICY FOR MANAGING BUDGET AMENDMENTS FOR THE PORT OF GALVESTON, WHICH ALIGNS WITH THE CITY OF GALVESTON POLICY.THERE IS NO CITY OF GALVESTON POLICY.
UM, I WONDER IF THIS IS NEEDED AFTER OUR FULL DISCUSSION THIS MORNING AT THE, AT THE REGULAR MEETING.
I THINK IT'S DIFFERENT THAN WHAT WE JUST DISCUSSED.
[01:40:01]
OKAY.WHAT WE DISCUSSED WAS A, FOR CAPITAL PROJECTS, CAPITAL PROJECTS.
I'M TALKING ABOUT THE REGULAR OPERATION BUDGET.
I DON'T KNOW IF THE CITY HAS A POLICY OR NOT.
IT DOESN'T, I KNOW FROM A PRACTICAL MATTER, YOU DO IT QUARTERLY.
YOU DO IT QUARTERLY, AND IT'S A BUSY SHEET WITH A LOT OF NUMBERS.
FROM MY PERSPECTIVE, THE BUDGET IN CONJUNCTION WITH THE MASTER PLAN IS THE MOST IMPORTANT THING THE BOARD DOES.
I DON'T WANT TO HAMSTRING MANAGEMENT THEIR ABILITY TO OPERATE.
IN MY MIND, THERE'S SOME BIFURCATED NUMBER OR SOME NUMBER THAT ROGER HAS AUTHORITY TO MOVE MONEY FROM PERSONNEL DOWN TO THIS ONE, UP TO THAT ONE TO, TO MAKE EVERYTHING WORK.
ANYTHING ABOVE THAT MAGIC NUMBER, THE BOARD OUGHT TO APPROVE IT.
WHETHER THAT'S HALF A MILLION DOLLARS OR WHAT THAT NUMBER IS.
BUT THEN IF THEY MAKE, IF THEY'RE MOVING MONEY FROM LINE ITEMS WITHIN THE BUDGET, FROM TRAVEL TO SUPPLIES OR SOME OTHER PAYMENTS AND OPERATION, UH, EXPENSES, THAT OUGHT TO COME ONCE A QUARTER TO THE BOARD JUST FOR DOCUMENTATION PURPOSES.
IT'S VERY NON-CONTROVERSIAL TYPE ITEM.
BUT IF IT'S A MAJOR, WHATEVER MAJOR IS DEFINED AS HE WANTS TO ELIMINATE OR MOVE MONEY, HALF WHATEVER, HALF MILLION DOLLARS IS MY NUMBER.
BUT THAT OUGHT TO COME TO THE BOARD PRIOR TO IT BEING DONE.
AND TO MY KNOWLEDGE, WE'VE NEVER HAD A BUDGET AMENDMENT SINCE I'VE BEEN HERE.
REALLY? THIS WAS THE FIRST ONE.
YOU KNOW, AND, AND THE REASON FOR THAT IS WE DON'T DO THAT.
WE DON'T MOVE ITEMS IN THE BUDGET FROM ONE, FROM ONE POT TO ANOTHER.
WE ADOPT A BUDGET AND WE STICK WITH THAT BUDGET THE WHOLE YEAR.
WE DON'T, WE DON'T HAVE A, AND MAYBE WHAT WE'RE TRYING TO DO IS DEVELOP THE PROCESS, BUT WE DON'T MAKE ANY CHANGES TO THE BUDGET.
THE ONLY, THIS IS THE FIRST CHANGE WE'VE MADE IN THE BUDGET THIS YEAR.
IN THE PAST, WE HAVE NOT AMENDED THE BUDGET.
AND WE DON'T, I DON'T, YOU KNOW, I DON'T MANAGE, AND THIS IS, I DON'T MANAGE, LIKE IF I, I DON'T MANAGE WANTING TO PUT MONEY FROM HERE TO HERE.
WE JUST GO OVER BUDGET, RIGHT? SO WE, WE DON'T REALLY DO BUDGET IN REALITY, WHEN YOU LOOK AT THIS, THIS COMPARISON WE DO EVERY MONTH.
WE DON'T GO OVER BUDGET VERY MUCH.
AND, AND YOU KNOW, SO I THINK THE, MY MY POINT IS, IS I DON'T NEED A TOOL TO MOVE MONEY FROM ONE POT TO ANOTHER BECAUSE I, I DON'T LIKE THAT.
AND I MEAN, I UNDERSTAND FROM A MUNICIPAL STANDPOINT WHY YOU DO THAT BECAUSE YOU HAVE CERTAIN TAX DOLLARS AND WE DON'T HAVE ANY OF THAT.
MARK BROUGHT UP EARLIER WE'RE WE DON'T HAVE ANY TAXING AUTHORITY.
WE HAVE NO TAX MONEY THAT COMES IN.
AND SO WE, WE ADOPT A BUDGET AND THE, I THINK THE REASON WE'RE CHANGING THE BUDGET IS BECAUSE WE JUST ALL TIRES SEEING IN THIS DIFFERENCE ON THIS ONE ITEM, RIGHT? YEP.
AND SO WE'RE, WE'RE MAKING THAT ADJUSTMENT.
BUT YOU KNOW, IN TERMS OF TRUING UP OUR BUDGET EVERY YEAR, WE, WE HAVE NEVER DONE THAT.
AND, AND IF THE BOARD IS SAYING IS SUGGESTING WE NEED TO DO THAT, I MEAN, YOU'LL SEE THE MINIMAL CHANGES THAT WE BE MAKING.
'CAUSE WE MAKE THAT COMPARISON EVERY MONTH.
RIGHT? SO I MEAN, HOWEVER, AND THAT'S JUST MY 2 CENTS WORTH.
WE'RE, WE'RE NOT, I'M NOT INTERESTED IN, IN MY ME PERSONALLY AS DIRECTOR, I'M NOT INTERESTED IN TAKING $25,000 FROM TRAVEL AND MOVING IT DOWN HERE.
AND BECAUSE WE WOULDN'T DO THAT.
AND I THINK THE DIFFERENCE FROM SHEILA 10 IS THE PORT HAS OPERATED MORE LIKE A BUSINESS AND THE CITY AND EVERY OTHER OPERATE WITH TAX DOLLARS OR OPERATE THAT MUNICIPALITY.
JUST A QUESTION THAT WHAT YOU DO, WHAT YOU MENTIONED ROGER, IS THAT A POLICY OF THE COURT OR IS THAT JUST SOMETHING YOU DO? WELL, WE, IT IS NOT A POLICY IF WE DO NOT HAVE A, WE DO NOT HAVE A, UH, AS MENTIONED HERE, WE DON'T HAVE A POLICY FOR MANAGING.
MAYBE WE NEED TO A HIGH LEVEL 'CAUSE WE DON'T MAKE CHANGES MUCH.
I APPRECIATE THE WAY YOU HAVE IT.
I DON'T THINK IT'S BEST PRACTICE OR GOOD GOVERNANCE TO EITHER HAVE POLICIES, NOT HAVE POLICIES BASED ON INDIVIDUALS.
THE INDIVIDUAL WE HAVE AS A CEO RIGHT NOW HANDLES IT ONE WAY.
[01:45:01]
I THINK THE BOARD OUGHT TO HAVE A POLICY THAT IF WE HAVE A CEO OR ANYTIME IN THE FUTURE, WE WANNA DO A BUDGET AMENDMENT.THIS IS THE PROCESS AND THE POLICY THAT YOU FOLLOW.
AND IF ROGER CHOOSES NOT TO EVER HAVE A BUDGET AMENDMENT BECAUSE HE'S NOT GONNA MOVE MONEY FROM LINE 18 TO LINE 32, WONDERFUL.
BUT THE NEXT DIRECTOR COMES IN AND WANTS TO DO ALL THIS SHELLING GAME AND MOVING THE SHELLS.
WE GOT A POLICY IN PLACE THAT TELLS 'EM HOW THEY'RE GONNA MOVE THOSE SHELLS.
WE DON'T, WE DON'T HAVE A POLICY TODAY TO VOTE ON.
I WOULD THINK WE WOULD WANT TO DEVELOP SOME POLICY THAT WE COULD VOTE ON IN THE FUTURE.
BUT THAT'S KIND OF WHERE I, MAYBE THAT'S WHAT WE NEED.
UH, I, I LIKE THE WAY ROGER DOES IT WITH THAT.
THAT'S IF YOU'RE OVER BUDGET, YOU'RE OVER BUDGET.
THAT'S NOT TO SAY THAT SOMEBODY IN THE FUTURE MAY HAVE A DIFFERENT OUTLOOK ON SO THAT WE NEED TO CONSIDER THAT.
SO IF I UNDERSTAND CORRECTLY, WE JUST, WE YOU'D LIKE TO SEE US BRING A POLICY TO THE BOARD TO MANAGE THE BUDGET CHANGES BUDGET POLICY.
GIVE ENOUGH FLEXIBILITY WHERE YOU'RE NOT RUNNING DOWN.
YOU DON'T NEED TO COME OUT AND NOT YOU.
BUT IN THE FUTURE, WE DON'T NEED TO HAVE EVERY $10 ITEM MOVED AROUND.
IF IT'S UP TO YOUR SPENDING AUTHORITY OR UP TO SOME LEVEL THAT WE CHOOSE, THAT'S FINE.
ANYTHING ABOVE THAT, YOU GOTTA BRING IT MAJOR STUFF.
Y'ALL DEAL WITH THAT? REPORT IT AFTER THE FACT QUARTERLY.
I MEAN JUST, YEAH, AGAIN, JUST THINKING THROUGH THE CONVERSATION.
YEAH, I THINK YOU GOTTA DECIDE WHAT LINE ITEM LEVEL DO YOU WANT ME? 'CAUSE YOU DON'T WANT TO GET DOWN INTO THE MINUTIAE, RIGHT? OF, SO IT, IT'S REALLY, TO ME IT'S, IT'S SOME KIND OF SIGNIFICANT MATERIAL CHANGE AT A, AT A FAIRLY HIGH LINE ITEM LEVEL, UH, THAT YOU MIGHT WANT TO DO.
BUT I LIKE THE WAY YOU DO IT, ROGER ON THIS, THAT YOU'RE, YOU'RE BASICALLY, YEAH, IF WE COME 200,000 OVER ON SALARIES, WE'RE 200,000 OVER ON SALARIES.
THAT REFLECTS IN THE BOTTOM LINE.
RIGHT? WE'RE NOT TRYING TO DO BUDGET TRANSFERS.
UM, 'CAUSE I KNOW, I'M JUST THINKING BACK TO MY WORLD.
IN, IN THE PROJECT WORLD, WE USED TO, WE WOULD ACTUALLY DO BUDGET, YOU COULD DO BUDGET TRANSFERS, SCOPE CHANGES, BUT ON AN OPERATING, YOU KNOW, MANAGING THE ADMINISTRATIVE PART OR MANAGING PART, YOU KNOW, WELL YOU, YOU DON'T WANT GET DOWN INTO, UNLESS THERE'S SOME REASON YOU SAY WE WANT TO TAKE $500,000 FROM THIS CATEGORY AND DO, IT'S KIND OF A SCOPE CHANGE TO YOUR OPERATING BUDGET.
WE WANT TO ADD A NEW COMPUTER SYSTEM OR SOMETHING CAME UP.
IT WOULD BE KIND OF A ONE ALWAYS.
IT WOULD BE KIND OF A ONE OFF KIND OF A THING.
IT WOULD BE KIND OF A ONE OFF KIND OF THING.
SO WE, WE DON'T, YOU KNOW, IN IN, IN ESSENCE FROM A, FROM MUNICIPAL STANDPOINT, YOU HAVE A FINITE REVENUE SOURCE, RIGHT? UNTIL WE START GIVING YOU A MILLION AND A HALF.
AND NOW YOU HAVE A FINITE SOURCE.
SO YOU, YOU HAVE TO DO THAT, RIGHT? YEAH.
IF I GOT 50 BILLION, THAT'S ALL I'VE GOT.
SO THAT'S GOT, AND THIS THING'S OVER BUDGET DOWN HERE AND I'VE GOT SOMETHING UP HERE.
HAVE TO, BUT THIS DOESN'T EVER CHANGE, RIGHT? THE TOTAL MONEY COMING IN STAYS THE SAME.
WHERE HERE I'M STRIVING THIS WHOLE STAFF IS STRIVING EVERY MONTH BRING MORE MONEY TO MAKE MORE MONEY AND, YOU KNOW, SO I THINK THAT'S A, A FUNDAMENTAL DIFFERENCE.
AND I LIKE, I LIKE JIM'S, I LIKE JIM'S SUGGESTIONS IS WRITE THAT DOWN.
THAT, THAT YOU, WE JUST, WE JUST NEED, WE JUST NEED A POLICY.
I'M GONNA HAVE TO REEVALUATE MY POSITION.
ME AND I AGREE HERE,
'CAUSE LIKE YOU SAID, WE NEED TO REALLY MAKE IT, YOU KNOW, NOT PERSONNEL DEPENDENT AND WE NEED TO GIVE, YOU KNOW, THIS BOARD AND FUTURE BOARDS AND, AND CEOS A WAY TO UNDERSTAND THE, THE GROUND RULES OF HOW WE WANT TO MANAGE THAT.
SO I MEAN JUST, AND I DON'T WANT TO BE THE DEAD HORSE HERE.
WE'VE GOT ABOUT SIX DEAD HORSES ALREADY.
ONE OF THE THINGS THAT WE WANT DO IS WHAT DO YOU EXPECT? WHAT ARE YOU EXPECTING? RIGHT? SO IF SOMEBODY CAN GIVE US A SUMMARY OF WHAT YOU'RE, I MEAN IN MY MIND, PRETTY BASIC, WE'RE LOOKING FOR A DOLLAR AMOUNT THAT WOULD BE HAVE TO COME BACK TO THE BOARD FOR APPROVAL IF WE WERE GOING TO CHANGE ANY LINE ITEM ON THE BUDGET.
UM, AND WHAT WHAT ELSE? I MEAN, I MEAN HOW, HOW, I MEAN BECAUSE YOU DO APPROVE THE BUDGET.
THE BOARD APPROVES THE BUDGET.
SO OUR STARTING POINT IS SET RIGHT FROM THE BUDGET STANDPOINT.
DO WE KNOW, DO WE KNOW I GUESS FROM THE COMMITTEE OR THE BOARD, DO WHAT LINE ITEM LEVEL ARE WE TALKING ABOUT? UH, WANTING TO CHANGE FROM? I MEAN I DON'T, I'M NOT, I DON'T HAVE THE ACCOUNTING TERMS. I MEAN WHAT, WHAT CODE OF ACCOUNTS OR WHAT, WHAT LEVEL DO YOU GUYS THINK THAT, I MEAN OUGHT TO BE, WE OUGHT TO BE MANAGING TOO.
WE DON'T TRUE THIS UP THOUGH, RIGHT? I MEAN WE'RE NOT LOOKING AT PRETTY HIGH LEVEL A PROCESS OF NO, I'M $200,000
[01:50:01]
BUDGET IN THIS ONE ITEM AND I WANNA MAKE SURE THIS IS NOT THE PROCESS WHERE IF WE ARE, IT IS OKAY.IF I'M $200,000 OVER BUDGET IN THIS ONE ITEM, I'M GONNA GO DOWN HERE AND BRING IT UP SO THAT THERE WE'RE NEVER OVER BUDGET.
'CAUSE I THINK THAT THE WAY WE DO IT NOW IS, IS A MANAGEMENT TOOL.
IT GIVES US THE ABILITY TO SAY WE WE'VE GOT SOME PROBLEM HERE.
OR WE GOTTA MAKE SOME CHANGES IN THIS, THIS AREA.
AND UM, BUT I, I WILL, YOU KNOW, I WORK FOR YOU GUYS SO IF THERE'S SOMETHING MORE YEAH.
I MEAN WE CAN, WE CAN DO THIS.
BUT WE NEED, WE NEED WHAT SAYING IS YOU NEED SOME INPUT FROM FINANCE COMMITTEE AND OR THE BOARD OR WHAT, WHAT DO WE WANNA SEE THERE? I THINK WE'RE REALLY CLOSE TO UM, MAKING A MOTION.
I MEAN I THINK IT'S JIM DO YOU SEE A NUMBER THAT THAT WOULD BE, UM, WHAT, TALKING ABOUT IS IT A NUMBER OR IS IT A PERC? I'M JUST THINKING IS IT A PERCENTAGE OF, YOU KNOW, 200,000 ON SALARY? WELL, 200,000 ON SALARIES IS DIFFERENT THAN 200,000 ON TRAVEL BUDGET.
SO WOULD YOU LIKE FOR US TO BRING, WOULD YOU LIKE FOR US TO BRING IT BACK TO YOU? THIS, SO WE'LL HAVE A DISCUSSION ON WHAT WE BRING BACK.
WE NEED OPPOSED POLICY AS OPPOSED TO WE NEED SOMETHING TO DISCUSS THE WAY THE THE AGENDA ITEMS YOU'RE TALKING ABOUT DEVELOPING, CONSIDER DEVELOPING AND DEVELOPING POLICY.
WELL LET THEM COME DEVELOPING IT, BRING IT BACK AND WE CAN SOME MORE.
SO I THINK YOU GET THE WAY, THIS IS JUST EVERYTHING IN A SECOND POLICY I MAKE MOTION.
I'D MAKE A MOTION THAT WE ASK STAFF TO COME BACK WITH A PROPOSED POLICY FRAMEWORK THAT WE CAN DISCUSS AND CONSIDER THE NEXT MEETING.
ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE.
UM, COMMENTS FROM THE BOARD OF TRUSTEES.
ANYONE ELSE? I'LL FILE THE CHAIRWOMAN LEAD.
[E. SET DATE OF NEXT BOARD MEETING, TIME, AND LOCATION]
SORRY.JULY 22ND, 9:00 AM SAME PLACE, SAME TIME.
THANK YOU ALL VERY, VERY MUCH.
UM, THIS MEETING IS ADJOURNED.
WELL WE CAN, WE'LL CONVENE THE REGULAR MEETING IN FIVE MINUTES.