Jul 22, 2025 Port of Galveston Meetings - Wharves Finance Committee

IN, UH, APPROVAL OF THE MINUTES OF THE FINANCE COMMITTEE FROM THE MONTH OF JUNE.

DOES ANYONE WANT TO DECLARE A CONFLICT OF INTEREST BEFORE WE GET STARTED? OKAY.

SEE NONE.

JUMP RIGHT

[B.1 Approval of Minutes of the Finance Committee]

DO I HAVE A MOTION? MOTION SECOND.

ANY QUESTIONS, COMMENTS? ALL THOSE IN FAVOR? RAISE YOUR HAND.

THAT'S UNANIMOUS.

[B.2 Comments for the Public]

THE MESS THAT HAPPENED THIS YEAR BETWEEN THE PARK BOARD AND THE CITY.

COMMENTS FROM THE PUBLIC.

I BELIEVE WE HAVE MS. CHARLOTTE O'ROURKE IS OUR ONLY PERSON WANTING TO COMMENT TODAY.

CHARLOTTE, GOOD MORNING.

GOOD MORNING.

I CAME THIS MORNING TO UM, BASICALLY DISCUSS THE CITY BUDGET, WHICH THEY'RE DOING PROJECTIONS NOW.

AND THE CITY BUDGET SHOWS NEGATIVE BUDGETS STARTED THIS YEAR AND GOING THROUGH THE NEXT FIVE YEARS.

AND WHEN YOU GO TO ONE OF THEIR BUDGET MEETINGS, THEY ACTUALLY PASS OUT THE MATERIAL C TWO FOUR YOU SEE THERE.

AND ONE OF THE THINGS THAT THE BOARD NEEDS TO WORK ON IS WHEN YOU HAVE PRESENTATIONS THAT ARE MAJOR, LIKE THE ONES TODAY ON THE MASTER PLAN, IT SURE WOULD BE NICE FOR IT TO BE THERE SO YOU CAN MAKE COMMENTS ON IT.

UH, AND IT'S NOT THERE.

SO THE CITY BUDGET, THE PURPOSE OF THE WAR SCORE, WHICH IS IN, UH, YOUR COURT DIRECTOR SUPPORT IS TO BE AN ECONOMIC ENGINE FOR THE CITY AND TO HELP THE CITY.

AND AS WE KEEP GETTING MORE AND MORE TOURISTS, WE'RE NOT GIVING ENOUGH MONEY TO THE CITY AND WE NEED TO WORK ON THAT BECAUSE IT'S REALLY IMPACTING NEIGHBORHOODS GOING, EVERYTHING'S GOING.

STR.

AND WHAT WE'RE ALSO DOING IS LOBBYING NOT THROUGH A LOBBYIST, WHICH IS WHAT SENATE BILL 12 IS TRYING TO SOLVE, BUT THROUGH THE CHAMBER OF COMMERCE.

AND SO YOU BASICALLY PAY A MEMBERSHIP OF $10,000 TO DIRECT AS ONE VOTE SITTING ON THE BOARD OF DIRECTORS, UH, THE CHAMBER AND DO THEIR LOBBYING AND THEY GO TO THE LEGISLATURE.

THE PROBLEM IS THE PUBLIC DOESN'T HEAR WHAT THEY ARE LOBBYING FOR.

AND YOU CAN SEE

[00:05:01]

AND I HAVE NO IDEA WHAT THE WARS BOARD WAS LOBBYING FOR BECAUSE IT WASN'T ON THE CHAMBER'S AGENDA THAT YOU COULD GET TO AND SEE WHAT THE COURT WAS LOBBYING FOR.

SO IF YOU WOULD TAKE A LOOK AT SPONSORSHIPS, I WOULD REALLY APPRECIATE IT.

'CAUSE WHAT YOU'RE DOING IS PAYING 27,000 CAN'T GIVE YOU AN EXACT NUMBER 'CAUSE JANUARY WAS MISSING 'CAUSE THE WEBSITE TOOK AWAY ALL THE HISTORICAL DATA.

BUT IT LOOKS TO BE AROUND $27,000 IN SPONSORSHIPS.

AND THAT'S PUBLIC MONEY THAT YOU'RE PAYING FOR AN ENTITY TO LOBBY FOR YOU.

AND NO ONE KNOWS WHAT THEY'RE LOBBYING FOR.

'CAUSE YOUR CEO SITS ON THAT BOARD AND HE DOESN'T BRING BACK THE TOPICS TO THE WARS BOARD TO VOTE ON.

HE VOTES ON IT IN THE CHAMBER, ALL PRIVATE.

I FINALLY RECEIVED THE BYLAWS FROM THE CHAMBER AND IT SAYS THAT THEIR MEETINGS ARE OPEN TO THE PUBLIC PUBLIC, BUT IF NO ONE TELLS THE PUBLIC THEY'RE OPEN, THEN YOU CAN ATTEND.

AND THEY HAD A VERY IMPORTANT TOPIC ON THE PORT IN JANUARY AND THEY DID ADVOCACY AND THEY CAME UP HERE AND THEY REALLY FLOODED THE THE PORT WITHOUT GIVING YOU AN OPPORTUNITY TO CONSIDER HOW ARE WE GONNA FIX OUR PROBLEM WITH NOT GETTING MONEY TO THE CITY.

AND I KNOW YOU PUT UP THAT CHART THAT SHOWS HOW MUCH MONEY GOES OVER, BUT WHAT YOU DON'T TELL PEOPLE IS ALL OF THAT MONEY ALWAYS WENT TO THE CITY WITH THE EXCEPTION OF TWO THINGS.

THE PARKING $1 PER CAR PER DAY, AND THE SECOND THING TO 25 CENTS.

THAT'S THE ONLY TWO THINGS THAT ARE DIFFERENT.

AND YOU CAN COST PROPERTY TAX FROM THE CITY.

SO I THANK YOU ALL YOU CONSIDER THAT AND CONSIDER YOUR SPONSORSHIPS.

ITEM C ONE, DISCUSS AND CONSIDER PORTFOLIO PERFORMANCE ANALYSIS REPORT, SUMMARY OF INVESTMENT PERFORMANCE REPORT AND INVESTMENT DETAIL OF THE GALSTON WHA'S PENSION PLAN PERIOD ENDING JUNE 30TH, 2025.

OKAY, MOVING ALONG.

[C.1 Discuss And Consider Portfolio Performance Analysis Report, Summary Of Investment]

AND DISCUSS AND CONSIDER PERCENTAGE CHANGES IN THE FUND MIX THAT MAY BE NECESSARY TO INCREASE INVESTMENT RESULTS.

AND I BELIEVE WE HAVE MR. S WE HAVE REPRESENTATION FROM FROST GO OVER THE, UH, YEAR TO DATE RESULTS AND, UH, GIVE SOME INDICATION OF WHERE THINGS SEE THESE THINGS ARE HEADING.

OH, SORRY, HERE MORNING EVERYONE.

UM, A COUPLE UPDATES HERE AS WE GO THROUGH.

YOU CAN SEE THE ASSET ALLOCATION HERE AND THE PORTFOLIO SAYS IT WAS JUNE 30TH.

FOR YOUR NOTES, UM, MARKET VALUE TODAY IS 16 MILLION 2 2 2 3 8 1.

SO UP A LITTLE BIT FROM THE JUNE 30TH NUMBERS.

SO THE CURRENT ASSET ALLOCATION I WENT THROUGH, UH, EARLIER IN THE MONTH AND, UH, ASSET OUT THE EQUITIES WERE GETTING UP AROUND 81 AND A HALF.

SO I WENT THROUGH AND I TRIMMED THAT BACK.

OUR TARGET IS 79%, SO I'M AT 79.1.

SO DID SOME TRIMMING.

THE CASH, WHICH YOU SEE LISTED AT 7 64 IS SITTING IN ABOUT 1,000,001 RIGHT NOW.

PART OF THAT WILL GO BACK INTO FIXED INCOME.

THE COMMITTEE, WE ARE RECOMMENDING NO CHANGES TO THE COMMITTEE THIS TIME FOR THE ASSET ALLOCATION.

I AM GLAD, YOU KNOW, WHEN WE WERE HERE IN MARCH, WE HAD THIS AND WE WERE RIGHT IN THE MIDST OF TARIFFS AND EVERYTHING GOING ON.

I'M GLAD THE COMMITTEE STOOD THEIR GROUND AND AND KEPT THE ASSET ALLOCATION, UH, WHERE IT WAS AT BECAUSE YOU WERE REWARDED BY CARRYING THROUGH THOSE BUMPS.

UH, LEMME START RUNNING MY CLOCK.

SO THAT IS THE CURRENT ASSET ALLOCATION ON PAGE ONE.

YOU GO TO PAGE THREE, YOU CAN LOOK BACK.

YOU'VE SEEN THIS PAGE BEFORE.

IT JUST GIVES YOU, UM, JUST HISTORICAL WHAT YOU CAN SEE, WHAT YOU'VE TAKEN OUT, WHAT YOU'VE GAINED.

UH, IT WAS INTERESTING BACK IN 2022, I WENT BACK LOOKING AT MARKET VALUES.

YOU CAN SEE THAT WAS BEFORE THE FED STARTED RAISING INTEREST RATES.

THE PORTFOLIO WAS, UH, HAVE REACHED A HIGH NEAR 16.7 MILLION.

UH, ANOTHER 500,000 WILL BE BACK THERE.

WE TAKE A LOOK AT THE PERFORMANCE ON THE YEAR TO DATE.

NUMBERS PORTFOLIOS UP ABOUT 7.34%.

FIXED INCOME, UP ABOUT 3.45 VERSUS 3.5.

THE BENCHMARK EQUITIES UP 8.3 VERSUS THE BENCHMARK OF ABOUT 10.

A LITTLE BIT BEHIND ON THE YEAR DATE FOR THE EQUITIES.

UM, BUT

[00:10:02]

PORTFOLIOS, YOU KNOW, LOOKING BACK OVER TIME, IT'S AMAZING THIS PORTFOLIO IS GONNA, YOU KNOW, LOW MID TEAM RETURNS.

CAN YOU TAKE A LOOK AT THE BENCHMARKS? I'VE GONE THROUGH THOSE WITH SHARED WITH THE COMMITTEE IN THE PAST.

UM, YOU CAN SEE IT'S JUST PART OF THE SECOND QUARTER WAS THE US RALLY THAT WE SAW IN THE SNAPBACK.

WHEN YOU LOOK AT THE THREE MONTH NUMBER, CAN YOU TAKE A LOOK AT FIXED INCOME? RANK OUT, UH, AVERAGE YIELD ABOUT 3.4% ON THE FIXED INCOME COMPONENT, WHICH IS ABOUT 18% OF THE PORTFOLIO.

AVERAGE MATURITY IS ABOUT 2.85 WITH SOME MATURITIES COMING UP, LENGTH OUT A LITTLE BIT IN THE PORTFOLIO AND TAKE ADVANTAGE OF THE YIELD CURVE FROM A SECTOR BASIS.

YOU KNOW, EVERY TIME YOU PREP FOR A MEETING, YOU GO THROUGH THE NIGHT BEFORE, YOU'RE ALWAYS FIND ONE THING THAT'S OFF.

AND MY SECTOR WAITINGS WERE OFF A LITTLE BIT AS I COME ACROSS WHERE WE UNDERWEIGHT, OVERWEIGHT THE COMMUNICATION SERVICE OTHERWISE KNOWS TELECOM, WE'VE OVERWEIGHTED, CONSUMER DISCRETIONARY, WE'VE OVERWEIGHTED, BUT NOT TO THAT EXTENT.

AND I CAN'T FIGURE OUT WHY IT'S PICKING IT UP IN STATEMENT.

CONSUMER STAPLES, ENERGY WE'RE UNDERWEIGHTED.

FINANCIALS SLIGHTLY UNDERWEIGHTED HEALTHCARE, SLIGHT OVERWEIGHT AND INDUSTRIALS IS SLIGHT OVERWEIGHT TECHNOLOGY.

WE'RE JUST ABOUT EVEN NOT QUITE THAT SPREAD.

AND THEN MATERIALS, REAL ESTATE AND UTILITIES SLIDE DOWN AS WE GET INTO THE MEAT OF THE PORTFOLIO, WHICH YOU'VE SEEN BEFORE.

THE MONEY MARKETS.

I SAID WE'RE ABOUT 1.12, YOU CAN SEE THE BOND HOLDINGS.

I FAVOR MORE OF CORPORATES OR TREASURES, UM, HOLDINGS TO PICK UP ADDITIONAL YIELD.

UM, AS WE GO THROUGH THE NAMES, UH, SORTED OUT BY IN THE PORTFOLIO.

UH, WE'VE ADDED A COUPLE OF NEW NAMES.

UH, STARBUCKS, WE ADDED IT'S, THIS IS AS OF JUNE 30TH.

I ADDED 'EM WHEN I WAS TRADING A PORTFOLIO A COUPLE WEEKS AGO.

WE ADDED STARBUCKS, UH, MONOLITHIC POWER, UH, TRANS TDG IS A TICKER SYMBOL.

UH, IT'S JUST A COUPLE NAMES THAT WE'VE ADDED IN THE PORTFOLIO AND IT HAS BEEN PRETTY MUCH IN THE SECOND QUARTER WAS LED BY GROWTH STOCKS.

BUT IT HAS SINCE BROADEN OUT FINANCIALS HAVE KEPT UP.

THAT IS EVERYTHING AND THE PORTFOLIO QUESTIONS THAT I MAY ADDRESS TO THE COMMITTEE BEFORE I GO INTO THE MARKET.

ANYONE, GUYS, MAKE IT EASY FOR ME TODAY.

I'M GONNA DO A LITTLE BACKWARDS THIS TIME IN MY TIME.

UM, I'M GONNA START WITH WHAT OUR SUMMARY IS AND JUST GO THROUGH SOME CHARTS THAT WE FOUND INTERESTING FROM WHEN WE HAD THE OPPORTUNITY TO MEET.

UM, OUR OUTLOOK HASN'T CHANGED THAT MUCH, UH, FOR WHAT WE SEE FROM OUR EARLIER MEETING FOR THE ECONOMY.

WE'RE KIND OF LOOKING FOR THAT SLOW TO MUDDLE THROUGH, UH, TYPE, YOU KNOW, THE ONE TO 2% GROWTH GOING FORWARD.

UM, AS I SAY THIS NOW, UH, OUR ODDS OF A RECESSION HAVE GONE DOWN, BUT WE'RE GONNA SEE WHAT APRIL OR AUGUST 1ST BRINGS.

AND I'LL GET INTO TARIFFS IN A MINUTE.

UM, DEPENDING UPON, YOU KNOW, IF THE TARIFFS STICK FOR, FOR THAT AND DEPENDING UPON THE DURATION, IT INCREASES THE POTENTIAL FOR THE ODDS OF A RECESSION.

CONSUMERS STILL IN GOOD SHAPE LOOKING AT THEY'RE CONTINUING TO SPEND.

UH, RETAIL NUMBERS CAME OUT.

THEY WERE SOLID, UH, 6.6% IN THE LAST MONTH.

THE FED, WE WERE LOOKING AT ONE TO TWO CUTS THIS YEAR.

UM, I'LL GET INTO THE FED IN A LITTLE BIT MORE OF MY COMMENTS.

INFLATION RIGHT AROUND THAT TWO TO 3% THAT YOU SEE, WE EXPECT THAT TO STAY WITHIN THAT AGAIN UNLESS THE TARIFFS TAKE OFF.

AND YOU'RE GONNA SEE THAT GO UP TO THREE, MAYBE A LITTLE FOUR.

HANDLE UNEMPLOYMENT.

WE'RE STILL AT FULL EMPLOYMENT RIGHT NOW AT ABOUT 4.1%.

THE LABOR MARKET IS COOLING.

UM, WHEN WE TAKE A LOOK, THERE'S A CHART ON INITIAL AND CONTINUING CLAIMS ZONE ADDRESS THAT ADDRESS THAT, UH, EQUITY UPTREND IS STILL INTACT.

REMEMBER WHEN WE TALKED, UM, MARKET HAD PULLED BACK QUITE 20% AND BUT RECOVERED.

SO WE DIDN'T REALLY ENTER A NEW BEAR MARKET.

BUT THE BULL MARKET IS STILL INTACT.

BUT WE DO EXPECT SOME CONTINUED VOL VOLATILITY COMING INTO AUGUST AND SEPTEMBER AS THE MARKET LOOKS FOR CLARITY RELATIVE TO THE TARIFFS AND CLARITY RELATIVE TO THE FEDERAL RESERVE.

UM, WE BELIEVE THE TARIFF DEALS, WHILE THERE'LL BE VOLATILITY, THERE WILL BE, UH, THE DEALS WORKED OUT IN TIME.

JUST A COUPLE FACTS.

THE S AND P RALLIED WHEN THE S AND P HAS RALLIED MORE THAN 20% IN THE TWO MONTH TIME PERIOD, WHICH

[00:15:01]

IT DID.

UH, IT'S HIGHER A YEAR LATER.

AND IT HAPPENED IN ALL 10 INSTANCES THAT WE SAW.

AND IT'S INTERESTING, 80% OF, UH, GLOBAL MARKETS, IF WE HAD ALL THE MARKETS ARE NOW TRADING ABOVE THEIR 250.

SO THE TREND IS POSITIVE AND UP.

UH, FIRST, FIRST QUARTER WE PUT THE WRONG.

OKAY, WE'RE GONNA, BECAUSE THIS IS FROM THE PRIOR PRESENTATION.

UM, EQUITY INDEX MARKETS, UH, I'M JUST GONNA READ TO YOU 'CAUSE THAT'S THE OLD CHARTS, UH, BOUNCED OFF.

THE TARIFF APPEARS THAT MARKETS WERE UP 10, UH, SMP UP 10 IN THE FIRST QUARTER.

THE MSC ACQUI GLOBAL MARKETS UP 12 AND SMALL CAP EVEN HAD A RETURN OF 8.5% THE DOLLAR.

UM, WHILE WE DO NOT FORECAST THE DOLLAR, UM, IT LOOKS OVERSOLD ON THE NEAR TERM.

AND IT'S INTERESTING WHEN YOU LOOK BACK AND, AND IF YOU DON'T HAVE 'EM A LEASE IN THIS, UH, THE DOLLAR'S CURRENTLY GOING BACK TO WHERE IT TRADED, WHEN WE GO BACK INTO THE MID-TEENS OF 2000, 2015, 16, 17, 18, YOU'VE NOW PULLED BACK TO THOSE LEVELS.

FIXED INCOME MARKETS, BONDS HAD A DECENT QUARTER.

UM, AGAIN, THAT WAS THE PRESENTATION FROM THE FIRST QUARTER.

BONDS HAD A DECENT QUARTER COMING OFF.

UH, THE INFLATION AND TIER SPHERES, UH, GLOBAL BONDS WERE UP ABOUT 7%.

UM, HIGH YIELD WAS UP ABOUT 3.5300000000000002%.

PART OF IT, YOU KNOW, WE HAD SEEN HIGH YIELD GO BACK.

BUT WITH, UM, THINGS KIND OF BEING TAMPERED DOWN THE SPREADS AND NARROWED AND, UH, YOU KNOW, INVESTMENT GRADE CREDIT SPREADS WHEN YOU LOOK AT HIGH YIELD IS USUALLY AN INDICATOR OF POTENTIAL RECESSION COMING ON.

AND WE DO NOT, UH, AT LEAST THE MARKET WITHIN THE HIGH YIELD CREDIT SPREADS IS IN FORECASTING THAT, UM, INFLATION WE TALK ABOUT THAT, UH, CONTINUES TO TREND DOWN.

IT'S REALLY BEING HELPED BY CPI RENT.

UH, RED GROWTH IS ABOUT 3.8%.

THERE'S A COUPLE REASONS FOR THAT.

UM, ADDITIONAL UNITS ARE BEING BUILT.

UM, UH, ANYTIME YOU TAKE A DRIVE ALONG 99 AS YOU'RE HEADING TOWARDS K YOU CAN JUST SEE ALL THE APARTMENT BUILDINGS IN YOUR GREEN BUILDING THERE.

SO IT DOES CREATE, UH, OPPORTUNITY FOR PEOPLE TO RENT.

UM, PEOPLE ARE MOVING FROM HIGHER MARKETS.

YOU SEE PEOPLE MOVING FROM CALIFORNIA, YOU SEE THEM MOVING OUT NEW YORK, ILLINOIS AND COMING INTO AREAS THAT, UH, IT'S A LITTLE MORE ADVANTAGEOUS FROM A COST STANDPOINT.

AND THEN YOU SEE REMOTE WORK FOR PEOPLE STILL BEING ABLE TO WORK AT HOME.

SO, UM, IT, IT'S INTERESTING IN TERMS, SO WE LOOK FOR THIS TREND TO CONTINUE.

IT WAS 2.7 FOR JUNE FOR THE HEADLINE AND 2.7 FOR THE POOL UP SLIGHTLY FROM 2.4, BUT STILL UNDER THAT 3% TARGET.

I HEARD A REPORT TODAY ABOUT HOUSING THAT UM, WE'RE STILL UNDER STOCKED FOR THE HOUSING AND THE AMOUNT OF HOUSING THAT WE NEED.

THAT'S WHY THE PRICES HAVE NOT COME DOWN.

YOU HAD GO.

IS THAT ACCURATE? ACCURATE? THAT'S A SPOT ON STATEMENT.

UM, WE TALK ABOUT RENT GROWTH NOT BEING ABLE TO INCREASE AND ADDITIONAL SUPPLY, BUT TO YOUR POINT, HOUSING'S A MESS RIGHT NOW.

MM-HMM .

AND THERE'S BASICALLY PEOPLE WANT, THERE'S A WHOLE GENERATION THAT WANT TO DO HOUSE WHAT WE CALL HOUSEHOLD FORMATION AND THEY'RE NOT ABLE TO DO IT.

UM, DUE TO THE COST OF INSURANCE, UM, DUE TO THE ABSOLUTE PRICE OF A HOUSE, I WENT BACK OVER FIVE YEARS.

HOUSE PRICES ARE UP 45%.

OKAY? AND THEN, UM, YOU JUST TALK ABOUT OUR INTEREST RATES ARE AT, OKAY, IF, YOU KNOW, A BOOST IN THE YARD FOR THE HOUSING MARKET WOULD BE A HUNDRED BASIS POINT CUT TO INTEREST RATES BECAUSE IT'S INTERESTING, EVERY TIME YOU SEE A DIP IN THE MARKET, WHAT YOU'LL SEE IS NEW HOUSINGS, NEW CONSTRUCTION STARTS POP UP AND MORE MORTGAGE APPLICATIONS POP UP.

YOU KNOW, SO PEOPLE WANT TO RUSH IN TO BE ABLE TO GET IT.

AND YOU KNOW, IT'S, IT IS GONNA BE INTERESTING BECAUSE I'M STARTING TO SEE INVENTORY PICK UP IN MY NEIGHBORHOOD.

IT IS ABOUT 2100 HOMES, UM, UP IN CONROE AND WE NOW HAVE ABOUT 75 HOMES UP FOR SALE.

AND WHEN I LOOK AT IT ON A NATIONAL BASIS, WE ARE STARTING TO SEE THE SUPPLY PICK UP WHEN, AND IT'S MEASURED BY THE NUMBER OF MONTHS OF AVAILABLE INVENTORY.

CORRECT.

SO WE'RE STARTING TO SEE THAT, BUT UNTIL THERE'S SOMETHING TO HELP BETTER MAKE IT BETTER, IT'S GONNA, IT'S GONNA CONTINUE TO STRUGGLE, UM, BECAUSE PEOPLE ARE BEING PRICED OUT OF THAT.

UM, AND IT'S INTERESTING, THERE ARE, AND I MENTIONED IT AND IF I DID FORGIVE ME AT OUR LAST MEETING, UH, PEOPLE ARE TRYING TO FIND WAYS FOR SOLUTIONS THAT WANT TO LIVE.

WE'VE SEEN ENTIRE NEIGHBORHOODS BEING BUILT THAT ARE COMPLETE RENTALS, FOR

[00:20:01]

EXAMPLE.

OR WE'RE STARTING TO SEE GROWTH, FOR EXAMPLE, IN RENT TO HOME, YOU KNOW, SOME TYPES OF NEIGHBORHOODS BEING, UM, NEW CONSTRUCTION.

I LOOKED AT THAT FOR MY SON.

UH, HE'S A SCHOOL TEACHER, SO WE KNOW HIS SCHOOL TEACHERS.

UM, SO THERE'S DIFFERENT OPTIONS OUT THERE.

UH, IT WAS INTERESTING, UH, BERKSHIRE HATHAWAY, THEIR REAL ESTATE GROUP, UH, HAD AN INTERESTING ARTICLE AND THEY SAID THEY THOUGHT THERE WAS GONNA BE A GENERATIONAL TRANSFER WHERE OLDER FOLKS LIKE ME, OKAY, ARE DOWNSIZING.

OKAY? SO YOU HAVE THIS WEALTH THAT'S BUILT UP IN THE HOUSE, YOU KNOW, THE HOUSE IS PAID OFF SO THEY CAN SELL THE HOUSE AND THEN MOVE TO SOMETHING SMALL AND THEN THAT MAY COMPETE FOR PEOPLE WHO WANT TO COME IN INTO THE MARKET.

BUT WHEN I READ THROUGH IT, THE ONE QUESTION WAS ON THE PREMISE OF, GEE, WHO'S GONNA BUY THE BIGGER HOUSE THEN? OKAY, IS IT THE PEOPLE WHO DID THE, WHAT I DEFINE AS THE ENTRY LEVEL, YOU KNOW, THEY, THEY WERE MARRIED AND MAYBE HAVE ONE KID, NOW THEY HAVE 2, 3, 4 KIDS, WHATEVER THE CASE MAY, AND THEY NEEDED A BIGGER HOUSE.

ARE THEY GONNA BE ABLE TO AFFORD TO MOVE INTO THAT OR WILL YOU JUST, YOU KNOW, AND IF I, AND IT'S ALL, I WAS TALKING TO SOMEBODY ABOUT THIS THE OTHER DAY, IT'S ALL WHERE YOU LOOK AT IT, OKAY? ARE OKAY OVER THE FIVE YEARS IN MY EXAMPLE, HOUSES ARE UP 45%.

OKAY, SO YOU HAD A NICE POT.

'CAUSE I KNOW PEOPLE COMPLAIN ABOUT PROPERTY TAXES, BUT ARE YOU LOOKING AT IT FROM WHEN IT PEAKED, IT COME DOWN AND THEN IT'S LIKE, I DUNNO, MY HOUSE IS DOWN X AMOUNT, YOU KNOW, WHERE YOU WERE A COUPLE YEARS AGO AND LOOK AT WHAT YOU'VE LOCKED INTO THE GATE.

SO IT'S, IT'S INTERESTING TO WHAT WE SEE ON THERE.

AND IT'S INTERESTING.

ANOTHER THING IS WITHIN MY NEIGHBORHOOD, YOU KNOW, A LOT OF OPEN HOUSES TO, TO GAIN THE TRAFFIC AND A LOT OF SIGNS SAYING, HEY, THIS IS JUST UP FOR LISTING, WHICH MEANS THEY'RE TRYING TO GET ATTENTION ON THERE.

BUT TO YOUR POINT, COULD SOMETHING MESS RIGHT NOW THERE? UM, TALK ABOUT, UH, INITIAL AND JOBLESS CLAIMS. YOU KNOW, UNEMPLOYMENT'S AROUND 4.1%.

UH, FULL EMPLOYMENT IS SOMEWHERE BETWEEN FOUR TO 5%.

AND, YOU KNOW, WE'RE STARTING TO SEE INITIAL JOBLESS CLAIMS, UM, TICK UP A LITTLE BIT, BUT NOTHING, ANYTHING SIGNIFICANT.

WHERE WE DO SEE IT TICK UP IS CONTINUING CLAIMS. SO WHAT THAT TELLS ME IS A COUPLE OF THINGS WITHIN THE JOB MARKET.

ONE, THE LABOR MARKET SOFTENING THOSE WHO ARE LOOKING FOR JOBS, IT'S TAKING THEM A LITTLE BIT LONGER TO BE ABLE TO FIND THE JOB THAT THEY'RE LOOKING FOR.

UM, SO THERE'S NOT QUITE AS MUCH SLACK THAT WE SEE IN THE SYSTEM.

UM, STILL LOOKING AT INCOME AND PAYROLL GROWTH, INCOME GROWTH IS STILL 3.6% THAT BODES WELL FOR SPENDING.

AND SO, YOU KNOW, IN JUNE WE SAW 147,000 NEW JOBS NEED ABOUT 150,000 NEW JOBS CREATED EVERY MONTH JUST TO BREAK EVEN TO SHOW THAT THE ECONOMY'S TREADING ALONG.

INTERESTING.

UH, ALSO, I REMEMBER I DIDN'T KNOW THE MEDIAN WEEKLY SALARY NUDGE UP TO ABOUT A LITTLE OVER 1200 BUCKS A MONTH NOW, I'M SORRY, A WEEK.

SO THAT AVERAGES OUT TO A MEDIAN SALARY OF A LITTLE OVER 60,000, WHICH MY IS A SCHOOL TEACHER, .

UM, THERE'S A GREAT CHART AND, AND I WILL SEND THE, THE, THE PRESENTATION AND THE TO SHARE WITH THE COMMITTEE.

UM, AND IT'S TALKING ABOUT UNEMPLOYMENT AND BUDGET DEFICIT.

AND, AND IF YOU THINK ABOUT IT, WHEN THE ECONOMY SLOWS AND UNEMPLOYMENT RISES, YOU WANT TO HAVE THE GOVERNMENT STEP IN TO PUMP UP AND STIMULI, STIMULI THE ECONOMY.

BUT WHAT WE'RE SEEING HERE, AND YOU'LL SEE IT IN THIS CHART ON PAGE 25, IS THE FACT THAT WE'RE SEEING BUDGET DEFICITS INCREASE, BUT WE'RE SEEING UNEMPLOYMENT LOW.

IT'S NOT A GOOD, IT'S NOT A GOOD MIX.

UH, ANOTHER TENURE TREASURY TERM PREMIUM, THAT IF YOU'VE HEARD THAT TERM, WHAT THAT MEANS IS IT REPRESENTS THE EXTRA YIELD THAT INVESTORS ARE ASKING OR DEMANDING FOR HOLDING A 10 YEAR BOND.

SO IF YOU HAVE MONEY AND YOU HAVE A BOND, YOU HAVE A CHOICE TO BUY.

AND YOU CAN SAY, UM, I CAN BUY A 10 YEAR AND I CAN HOLD IT TO MATURITY, OR I CAN BUY A TWO YEAR, TWO YEAR, TWO, TWO YEAR, KEEP ROLLING THEM.

BUT IF I'M HOLDING FOR THAT 10 YEAR, I HAVE TO TAKE ON ADDITIONAL RISK OF TIME.

SO YOU HAVE WHAT'S CALLED THIS TERM PREMIUM AND IT'S THE ADDITIONAL RATE ABOVE IT.

AND RIGHT NOW IT'S ABOUT 75 BASIS POINTS.

SO IT TALKS ABOUT WHAT THE BOND MARKET SAYS ABOUT INFLATION EXPECTATIONS, ECONOMIC GROWTH AND MONETARY POLICY, UH, ESPECIALLY THE QUANTITATIVE EASING.

'CAUSE IF YOU'RE NOT GONNA TAKE THAT LEVEL OF DEBT DOWN, YOU'RE GONNA PUT MORE PRESSURE ON THE LONGER END, UM, TIME HERE.

ONE MINUTE.

[00:25:01]

WE ARE, THERE ARE, AND AGAIN, MY APOLOGIES TO THE COMMITTEE, THERE ARE, WE TALK ABOUT THE FED CURRENTLY, YOU KNOW, THE FED IS, UH, FED FUNDS RATE IS ABOUT FOUR AND A QUARTER TO FOUR AND A HALF.

WE'LL JUST SAY A 4.3.

IT'S WORTH THE DIFFERENT, UM, MARKET EXPECTS A 50 BASIS POINT CUT IN THERE, WHETHER IT'S ONE FOR 50 OR TWO.

UM, WHAT YOU'RE GONNA SEE, AND IT'S, UM, INTERESTING TO LISTEN IS THE FED HAS ITS ANNUAL MEETING OUT IN JACKSON HOLE COMING UP, OKAY.

AND FED POWELL FOR WHAT HIS TONE IS.

YOU KNOW, IS HE GONNA BE FIRM IN SAYING, UNTIL I SEE THAT THIS CARE ISSUE, I'M NOT CUTTING ANYTHING.

OR HEY, YOU KNOW, MY, YOU KNOW, MY INFLATION RATES HAVE COME DOWN ALMOST TO MY TARGET.

I CAN SEE THIS, ESPECIALLY WITH THE JOB MARKETS SLOWING A LITTLE BIT AND THE ECONOMY KIND OF MUDDLING THROUGH.

OKAY? AND SO THAT'LL BE, AND PLUS, YOU KNOW, HE'S GETTING ADMINISTRATIVE, HE'S GETTING PRESSURE FROM THE ADMINISTRATION.

OKAY? HE CAN'T FIRE HIM.

I DON'T CARE WHAT HE SAYS.

OKAY? BUT YOU, YOU'VE HEARD IN THE NEWS THE, UH, THE RENOVATIONS THAT THE FED BUILDINGS ARE GONNA MAKE.

OKAY? ABOUT TWO AND A HALF BILLION FOR TWO BUILDINGS.

OKAY? SO THERE'S A QUESTION, WHY ARE YOU SPEND? AND THESE BUILDINGS, I DON'T THINK HAVE BEEN RENOVATED FOR LIKE DECADES.

SO THAT'S JUST SO, UH, OUR PRESIDENT SAYS, WELL, YOU KNOW, IF THERE'S SOMETHING GOING WRONG ON THE SPENDING HERE, THIS GIVES ME CAUSE TO FIRE UP.

SO, UM, NAMES TO THROW OUT.

AS YOU KNOW, FED CHAIRMAN IS THERE UNTIL MAY OF NEXT YEAR AND STEPS DOWN, UM, TWO NAMES POTENTIAL.

THE NEXT FED CHAIRMAN IS GENTLEMAN BY THE NAME OF KEVIN WALSH.

AND HE WAS A FEDERAL FORD FEDERAL FED BOARD GOVERNOR FROM 2006 TO 2011.

AND A GENTLEMAN BY THE NAME OF KEVIN HASSETT, UM, NATIONAL ECONOMIC COUNCIL DIRECTOR.

SO JUST A COUPLE NAMES, BUT IT RAISES THE BIGGEST ISSUE IS, YOU KNOW, THE FEDERAL RESERVE HAS TO BE INDEPENDENT FROM THE ADMINISTRATION AND CONGRESS AND NOT BE TAINTED.

NOW IF YOU HAVE A PRESIDENT TRUMP, UH, PERSON WHO FILED STRONGLY, WILL THAT TAINT THE FED, YOU KNOW, ON, ON THINGS OR WILL HE STAND UP TO THE PRESIDENT? SO WE'LL SEE.

UH, THERE'S A CHART IN THERE ON TALKS AND DOVES.

YOU'LL SEE, UH, THERE ARE SEVEN GOV GOVERNORS AND THERE ARE, UH, 12 REGIONAL PRESIDENTS THAT ARE THERE AND SHOWS THE STUFF.

UM, LAST TWO CHARTS, BECAUSE I STAY WITHIN MY TIME, UH, TALKS ABOUT PRIVATE EQUITY.

OKAY? AND WHAT I FIND INTERESTING IS IN PRIVATE EQUITY, 50% OF ALL THE PRIVATE EQUITY DEALS ORIGINATE OUT THE US AND IN AND APPROXIMATELY IN 2025, 60% OF ALL THE DEALS FOR AI PRIVATE EQUITY ARE COMING IN, ARE COMING FROM NORTH AMERICA.

SO THE US HAS TAKEN A LEAD IN THE PRIVATE EQUITY DEALS.

AND IT'S INTERESTING IN SOME OF MY READINGS THAT AI HAS BEEN ACCEPTED AND EMBRACED FAST AT A RATE FASTER THAN WHAT THE INTERNET WAS EMBRACED.

SO, UH, JUST SOMETHING TO KEEP IN MIND.

SO KIND OF THE SAME OLD, SAME OLD FOR WHAT WE SEE YES.

ON PRIVATE EQUITY.

UM, I READ SOMEWHERE RECENTLY THAT THE, UH, PUBLIC SECTOR INVESTMENTS IN PRIVATE EQUITY HAVEN'T PROVED TO BE AS ADVANTAGEOUS AS THEY WERE THOUGHT THAT THEY WERE.

IS THAT A FAIR ASSESSMENT OF THINGS? YOU MEAN AS A, FOR EXAMPLE, FOR SOME OF MY HIGHER NET WORTH CLIENTS, I'LL PUT THEM IN PRIVATE EQUITY, PRIVATE DEBT, PRIVATE EQUITY, RIGHT? RIGHT.

SAYING, REFERRING TO THAT, I'M TALKING ABOUT THE, LIKE INVESTORS LIKE THE UNIVERSITY OF TEXAS PERMANENT UNIVERSITY FUND AND THOSE KINDS.

IS EVERYTHING YOU'VE GOT TRACK.

WHAT YOU'VE HAD, IF YOU THINK BACK, YOU'VE HAD JUST A HUGE GROWTH OF DIFFERENT PE FIRMS THAT ARE OUT THERE TRYING TO GET IN.

AND, YOU KNOW, WHEN YOU HAVE 'EM, WHEN YOU HAVE A GROUP STARTED, THOSE WEED OUT FALL OUT, THE ONES THAT DON'T DO WELL.

AND YOU HAVE THE PREMIUM ONES WHO WERE GETTING THE DEALS.

NOW THAT YOU'VE HAD SO MANY ADDITIONAL PE FIRMS ENTER THE MARKET RAISING CAPITAL, BECAUSE YOU HAVE A LITTLE BIT OF WHAT I DEFINE AS CUOMO FEAR OF MISSING OUT, UM, YOU'RE NOT REALLY SURE BECAUSE NOT ALL DEMAND AND THAT DISAPPOINT BECAUSE IF YOU'RE IN A PRIVATE EQUITY DEAL, PROBABLY 15 TO 17% IN YOUR DEALS, AND IF YOU'RE RETURNING 13, 14, IT MAY NOT BE AS STRONG AS WHAT YOUR EXPECTATIONS WERE.

ANYWAY, UM, THAT

[00:30:01]

SO GOOD TO SEE EVERYBODY AGAIN, THANK YOU FOR HAVING THANK YOU.

YOU'LL GET THE UPDATED CHART, UH, BACK TO THE OFFICE.

I'LL SEND THEM TO MARK AND, UH, FOR YOU TO SEE.

APPRECIATE YOU BEING HERE TODAY.

I MAKE A MOTION WE ACCEPT THE REPORT AND RECOMMENDATION NOT TO CHANGE THE MIXING ALLOCATION FOR THE NEXT CYCLE.

SECOND THAT.

ANY OTHER QUESTIONS OR CONCERNS? WE VOTE A MOTION AND A SECOND.

THOSE IN FAVOR? RAISE YOUR HAND.

MM-HMM .

OH, THANK YOU.

[C.2 CFO REPORT/CONSENT AGENDA]

MOVING ON TO THE CFO REPORT AND THE CONSENT AGENDA, MR. YOU? YEP.

OUR EXPENSES, ONE THING WE CAN SAY ABOUT 'EM HAVING A MILDER SUMMER SO FAR THIS YEAR, OUR UTILITIES ARE RUNNING CONSIDERABLY LOWER THAN WHAT WE HAD ANTICIPATED.

GO THROUGH THIS FAIRLY RAPIDLY TODAY.

AND I FELT MY QUESTIONS.

WE HAD SEVERAL OTHER THINGS ON THE AGENDA.

UH, MONTH OF JUNE, OUR MONTH DATE NET INCOME WAS 2.9 MILLION.

OUR MONTH DATE OPERATING REVENUE 6.2 MILLION 3.1 IN OPERATING EXPENSES.

OUR REVENUES AND OPERATING EXPENSES BEFORE DEPRECIATION WERE VIRTUALLY ON TARGET.

OUR NON-OPERATING INCOME, UH, IS UNDER WHAT WE HAD BUDGETED.

UH, WE'RE DOWN TO THE GRANTS AND, UH, T STOCK GRANTS ARE RUNNING IN ABOUT 30, 45 DAYS BEHIND WHAT WE HAD BUDGETED.

THAT DOESN'T MEAN THE WORK'S GOING ANY SLOWER, IT'S JUST A MATTER OF GOING THROUGH THE PROCESS OF BILLING AND RECORDING THOSE EXPENSES AND REVENUES.

IT'S TAKING A LITTLE LONGER TO GET THE, GET THE INVOICES TO US, AND THEN THUS GETTING THEM ON OVER TO TDOT AND THEN GETTING, GETTING THE FUNDS FROM TDOT.

UH, BUT THE, THESE ARE, UH, PROJECTS THAT WE DID HAVE SCHEDULED AND WE ARE ON, WE'RE STILL ON TRACK ON THE PROJECTS.

HERE'S OUR FINANCIAL SUMMARY FOR THE MONTH.

YOU'LL NOTICE THAT OUR, UH, OVERALL WE'RE RUNNING, AS I SAID, WE'RE RUNNING FAIRLY CLOSE.

OUR DEPRECIATION RUNNING SLIGHTLY UNDER BUDGET RIGHT NOW, AND OTHERWISE OUR OPERATING INCOME AND OPERATING EXPENSES ARE RUNNING FAIRLY CLOSE TO WHAT WE HAD BUDGETED.

WE'LL POINT OUT OUR CAPITAL EXPENDITURES FOR THE MONTH FOR $15.8 MILLION FOR THE MONTH OF, UH, UH, JUNE.

HIT THE WRONG BUTTON.

THERE WE GO.

ALRIGHT, OUR REVENUES, HERE'S, HERE'S A, UM, YOU'LL SEE OUR REVENUES, THE, THE BIG SHIFTS ARE SWITCHING AND STORAGE RAIL CARS.

WHILE IT'S NOT A LOT OF MONEY, WE ARE DOWN THERE, UM, UNDER BUDGET THERE.

AND ALSO ON LAY DOCKAGE.

LAY DOCKAGE.

WE, WE ANTICIPATED IT BEING DOWN.

IT'S BEING RUNNING LITTLE LESS THAN WHAT WE HAD ANTICIPATED.

UH, BUT WE ARE RUNNING, WE DON'T HAVE THE DOCK SPACE FOR LAY DOCKAGE RIGHT NOW.

YES, SIR.

WHERE ARE THOSE SHIPS GOING IF WE DON'T HAVE THE SPACE FOR 'EM? BUT IT, I COULDN'T TELL YOU THAT THEY'RE EITHER GOING TO, UH, I WOULDN'T SAY THEY'RE REALLY TRYING TO TAKE IT OUTTA HOUSTON, BUT THEY EITHER GET SOME OF THEIR SERVICES, COAST GUARD INSPECTIONS OR WHATNOT AT OTHER PORTS.

IT COULD BE WHERE ON THE GULF COAST WE'RE DOWN TO FIVE PARTS AND THREE OF 'EM ARE, ARE CRUISE TRACTORS.

GOOD.

AND AS OUR BROOKS BECOME AVAILABLE, AGAIN, WE ANTICIPATE THIS COMING BACK UP.

SURE, SURE.

[00:35:05]

HAVING, I THINK TODAY IS SUPPOSED TO BE THE FIRST A HUNDRED DEGREE DAY BY THE YEAR.

SO THAT, THAT'S SOME GOOD NEWS.

UH, OTHERWISE THEY'RE RUNNING FAIRLY CLOSE TO BUDGET, NOT REALLY THROUGH.

AND YOU'VE GOT, UH, OTHER OPERATING EXPENSES ARE RUNNING A LITTLE OVER BUDGET.

THAT'S, THAT'S GONNA TAKE CARE OF ITSELF HERE.

WHEN WE START LOOKING AT YEAR TO DATE, YEAR TO DATE, 27.1 MILLION, BUT $3.1 MILLION, UH, NET, UH, YEAR TO DATE NET INCOME IS $3.1 MILLION ON BUDGET, 10 MILLION OVER WHERE WE WERE THIS TIME LAST YEAR.

THE 3.1 MILLION REALLY IS TXDOT AND SECURITY GRANTS.

IT'S JUST THE TIMING OF TXDOT AND SECURITY GRANTS.

UH, OPERATING REVENUES WHERE RIGHT ON BUDGET, $200,000 OVER BUDGET.

THAT'S, UH, THE REVENUES ARE STILL 1.3 MILLION OVER WHAT WE HAD LAST YEAR.

AT THIS TIME.

OUR OPERATING EXPENSES ARE 600,000 UNDER BUDGET NOW.

OUR OPERATING EXPENSES ARE UP 1.8 MILLION OVER PRIOR YEAR RESULTS.

UM, SO WE, WE HAD LAST YEAR WE HAD, WELL WE'VE HAD, WE HAVE MORE STAFF.

WE'RE DOING MORE WORK INTERNALLY.

UM, WE'RE JUST, WE'RE RUNNING HIGHER PLUS WE HAVE MORE DEPRECIATION ENDING CASH FLOWS FROM OPERATION.

UM, WE'RE NINE AND A HALF MILLION DOLLARS UNDER BUDGET, UH, AND 5.7 MILLION IN THE PRIOR YEAR.

AND I BELIEVE THAT IS A TIME THAT SHOULD, THAT HAS THAT MOVING ALONG.

IS IT, IS IT PRIMARILY ALL GRANT RELATED? YES.

FUNDING GRANT.

THAT'S, THAT'S, THAT'S GRANT RELATED.

WE'RE ALSO SPENDING MONIES FASTER THAN WE ANTICIPATED ON, UH, 16TH.

SO WE'RE MAKING A LITTLE LESS INTEREST IN WHAT WE HAD BUDGET.

BUT IT'S, THAT'S, THAT'S, THAT'S OKAY.

WE'RE STILL, WE'RE STILL DOING ALRIGHT THERE.

UH, OUR REVENUES BROKEN DOWN.

UH, YOU KNOW, SUCH DEPRECIATION EXPENSES IS BELOW BUDGET IS NON-OPERATING INCOME.

IS, IS DOWN AND NOT OPERATING INCOME.

THAT'S, THAT'S WHERE YOUR, THAT'S WHERE THE GRANTS AND WHATNOT ARE LOCATED.

UH, GRANTS AND INTERESTING TO OUR CASH FLOW FROM OPERATIONS.

WE'RE RUNNING, UH, ACTUAL YEAR TO DATE OF 13 MILLION AS OPPOSED TO A HIGHER AMOUNT LAST YEAR.

AND OUR CAPITAL EXPENDITURES TODAY, WE HAVE SPENT $98.6 MILLION YEAR TO DATE ON CAPITAL EXPENDITURES LAST YEAR.

THIS TIME WE HAD SPENT, UH, ONLY 22 MILLION.

SO WE, WE ARE MOVING FORWARD RAPIDLY WITH ALL THESE CAPITAL EXPENDITURES.

SOONER WE GET 'EM COMPLETED, THE SOONER WE WILL HAVE, WE'LL START RECOGNIZING THE REVENUE FROM IT.

HERE'S OUR, UH, THIS FINANCIAL REVENUES YEAR TO DATE.

RAIL IS, IS DOWN.

UM, JUST, JUST NOT MUCH ACTIVITY WITH RAIL ABOUT.

THE ONLY THING COMING IN ON RAIL RIGHT NOW IS, UH, AND IT'S BASICALLY BEING LOADED ON THE RAIL YARD THAT WE DON'T GET BENEFIT FROM.

AND THAT'S THE WIND TOWERS.

THEY'RE COMING IN, THEY'RE COMING ACROSS OUR DOCKS, COMING ACROSS, CROSSING OVER HARBOR SIDE.

AND THEN THEY'RE STAGING TO GO OUT ON RAIL ON THE, UH, PROPERTIES THAT IN ARLINGTON NORTH HAS.

[00:40:01]

UM, YES SIR.

IT'S THE LAY DOCKAGE MARK.

THAT'S DOWN.

I SEE.

UH, IS THAT WHAT YOU, WE JUST DON'T HAVE THE DOCK SPACE, RIGHT? THAT'S CORRECT.

WE JUST, WE'RE JUST SHORT OF SAID WE'VE GOT FIVE DOCKS OPERATING RIGHT NOW.

WE WE'RE PUTTING BULKHEADS ACROSS A GOOD BIT OF THE, UH, WEST END.

AND THAT'S TAKING THOSE, THAT'S TAKING A LOT OF SPACE OUT OF SERVICE.

IT'S NOT THAT WE'RE NOT HAVING CHIPS HERE IN THE PORT, WE JUST, WERE HAVING CARGO SHIPS AND CRUISE SHIPS NOT HAVING, NOT HAVING THE SPACE FILE RIGHT NOW.

MARK, EXCUSE ME.

IS THAT, IS THAT SOMETHING THAT YOU'LL PROJECT, PROJECT? I BELIEVE SO.

WE'RE NOT, WE'RE NOT GONNA BE THROUGH WITH THE, THE UNTIL FIRST QUARTER NEXT YEAR.

THE KIDS IN FILL IN.

I HAVE A QUESTION FOR, FOR BRETT, MAYBE ON THAT LAY DOCK.

ARE THE, THE SERVICE PROVIDERS THAT DO THE INSPECTIONS AND THE LIGHT MECHANICS AND ALL THAT, ARE THEY, UH, LOCAL? I GUESS THEY'RE, THEY'RE REGIONAL.

UH, THE BIGGEST ISSUE THAT WE HAVE IS ONLY FIVE VERSUS AVAILABLE ABOUT THREE CREWS AND THEN TWO CARBO DOCKS.

A LOT OF THE MONEY AND REVENUE THAT WE, WE GENERATE FROM LAY DOCKAGE WAS FOR REPAIRS.

AND THOSE SHIPS THAT WAS ALONGSIDE FOR THREE TO FIVE DAYS, WE JUST DON'T HAVE THAT TIME PERIOD AVAILABLE BETWEEN CRUISE SHIPS AND CARGO VESSELS.

BUT, BUT YES, A LOT OF THE CONTRACTORS, UM, YOU'RE TALKING ABOUT TOW BOAT OPERATORS, PILOTS LINING, IT'S ALL RELATIVELY LOCAL, REGIONAL.

THANKS.

THE UTILIZATION OF THE CARGO DOCKS THAT WE DO HAVE IS VERY HOT.

SO WE'LL, WE'LL WE'VE HAD RECENTLY TWO TO FOUR WIND SHIPS.

THAT'S TWO TO FOUR DAYS ALONGSIDE, UH, I THINK THIS MONTH WE HAD 10 ROW ROW SHIPS.

THAT'S ONE, ONE AND A HALF, TWO DAYS ALONGSIDE.

SO IT FILLS UP THOSE BURNS QUITE A BIT.

NOT ONLY THAT, BUT SOMETIMES THE RAILROAD SHIPS HAVE CARGO THAT IS, UH, UH, TOO HEAVY TO BE ON 30 32.

SO IT HAS TO MOVE TO 34, WHICH TAKES UP BOTH WORKS, I GUESS.

SO FROM A LOCATION TO, FROM A SHIP'S PERSPECTIVE, WE'RE PROBABLY AN OPTIMAL LOCATION FOR THEM TO DO LAY DOCKET.

ABSOLUTELY, YES, WE ARE.

AND IT'S NOT A DECLINE IN, IN, YOU KNOW, DEMAND.

AND THAT WAS MY POINT.

I JUST DIDN'T WANT THEM TO, I FELT THAT IT'S NOT A DROP IN DEMAND AT ALL COMPANY.

WELL, WE WOULD MUCH RATHER HAVE SHIPS IN HERE UNLOADING PASSENGER UNDERSTOOD.

AND A LOADING CARGO THAN WE WOULD.

YEAH, ABSOLUTELY.

AND LOOKING OUT MY WINDOW WHERE THE, UH, CARGO IS, IT IS RARE DAY THAT THERE'S NOT A SHIP.

I UNDERSTAND.

PROPERLY IN THE, UH, ALLOCATION FORM, IN THE ALLOCATION MODEL.

MOVING FORWARD.

HERE ARE EXPENSES, UH, HERE TO DATE.

BIGGEST DECREASES IN, UH, PERCENTAGE WISES IN UTILITIES.

OTHERWISE WE'RE RUNNING RELATIVELY, UH, REPAIRS AND MAINTENANCE VERSUS IT'S RUNNING UNDER, UM, IT THAT FLUCTUATES THROUGHOUT THE YEAR.

AND AS WE USE CNN TO DO VARIOUS OTHER CAPITAL TYPE PROJECTS, WE HAVE THE LABOR, BUT WE DON'T HAVE THE EXPENSES.

AND THEN ALONG WITH THE, UH, SOME OF THE, UH, PORT SECURITY GRANTS THAT ARE CONSIDERED MAINTENANCE, UH, THEY WOULD NORMALLY FALL IN, IN THIS CATEGORY ALSO.

IT IS GRAPHICALLY.

AND THEN FIND SUMMARY.

WE HAVE BEEN LOOKING INTO THE, UH, ALLOCATION.

WE HAVE CORRECTED THE ALLOCATION FOR THE, UH, MONTH OF JUNE.

WE STILL HAVE TO GO BACK AND, UH, REDO THE ALLOCATION IN PRIOR MONTHS.

UH, THAT'S ABOUT A $700,000 SWING INTO, UH, ALLOCATION OF OVERHEADS INTO CREWS OUT OF PARKING.

CAN YOU ELABORATE A LITTLE BIT ON WHAT THE ISSUE WAS? OKAY, BUS.

IT WAS A BUSTED FORMULA.

IT WAS A BUSTED FEET.

THE LOGIC WASN'T THAT WE HAD ADDED SOME VARIOUS LINES DUE TO THE VARIOUS GAS FEES.

AND THEY WERE NOT ALL THE, UH, APPLIED

[00:45:01]

AND WE'RE HAPPY TO GO BACK.

WE'VE GOT JUNE FIXED.

WE CAN THEN WE'RE GONNA GO BACK 'CAUSE THIS IS A SUMMARY REPORT.

SO THE PRI MORE DETAIL, THE PRIMARY DRIVER OF THE ALLOCATION IS WHAT, AGAIN, REVENUES.

WELL FOR THE, FOR THE UNALLOCATED, RIGHT.

THE OTHER, EVERYTHING THAT YOU CAN'T DIRECTLY ALLOCATE TO IT.

WE HAD TO ADD SOME LINES TO REVENUES.

AND SO IT WAS SO ON.

THIS IS A VERY GENERAL STATEMENT, BUT IF, IF REVENUE FROM PARKING IS HIGHER THAN CREWS, THEN THE ALLOCATION TO PARKING SHOULD BE HIGHER.

AND IF REVENUE TO CRUISE IS HIGHER THAN PARKING, THEN THE ALLOCATION TO CRUISE SHOULD BE HIGHEST.

IS THAT A FAIR STATEMENT? CRUISE IS HIGHER THAN PARKING REVENUE FROM CRUISE IS HIGHER THAN PARKING.

AND THEREFORE THE ALLOCATION TO CRUISE WILL BE HIGHER.

GOT IT.

AND WE WILL SEE THE CORRECTION YEAR TO DATE IN AUGUST.

GOT IT.

THIS IS DONE AT THE, IN THE SOFTWARE.

THIS IS ALL DONE BY SPREADSHEET.

IT'S, AND IT TAKES A LITTLE TIME TO FIX THAT.

SO ANYWAYS, WE'RE WORKING ON THAT.

DILIGENT.

I MEAN, REALLY WHAT WE'RE WORKING ON IS TRYING TO GET, UM, AS MUCH DIRECT ALLOCATIONS AS WE CAN.

THAT'S THE ISSUE.

SO, YOU KNOW, RIGHT NOW, THIS IS NOT A REAL TRUE PICTURE.

I MEAN, YOU ALLOCATE SOMETHING TO PARKING, WHICH IN REALITY PARKING PROBABLY HAS LESS EXPENSE OVERHEAD THAN CREW DOES.

AND YET THEY GET A BIGGER SHARE OF THE, OF THE ALLOCATED EXPENSES, WHICH, YOU KNOW, IT'S, IT'S, IT'S PERFECT.

IF Y'ALL RECALL, WE'RE DOING, WE WE'RE WORKING WITH FIELD, WE'RE IMPLEMENTING ANOTHER MODULE FIELD, UH, SERVICES MODULE, WHICH WILL ALLOW US TO CAPTURE, CAPTURE MORE OF THAT ACTUAL COST AND ALLOCATED TO THE RIGHT THAT WE'RE PART OF THE $10 MILLION HERE THAT WE HAVEN'T ALLOCATED, THAT WE'RE HAVING ALLOCATED IS TO DIRECT IT TO THE RIGHT PLACE TO BEGIN WITH IT.

SO THE AMOUNT OF THE DOLLAR AMOUNT OF THE ALLOCATION WILL DECREASE AS WE GET THESE MODULES, UH, UP AND TEST IT OUT.

AND IT'LL TAKE A FEW MONTHS TO GET THEM UP AND TEST IT OUT THERE.

SO, BUT THE ALLOCATION WILL BEGIN AT THE JOB.

IT'LL BE A THEN HAVING TO COME BACK AFTERWARDS.

WE'LL BE TRACKING DIRECT COST BOTTLES BEING ALLOCATED WILL END UP BEING A DIRECT COST, NOT AN ALLOCATED COST.

YEAH, I WAS JUST GONNA SAY FROM A HISTORICAL PERSPECTIVE, I, I REMEMBER WHEN I FIRST GOT ON THE BOARD, YOU GUYS WERE HAVING THE DISCUSSIONS ABOUT, ABOUT DOING THIS.

AND I THINK IT'S A, IT'S A GOOD EXERCISE.

I MEAN, I THINK 'CAUSE PREVIOUSLY YOU REALLY DIDN'T HAVE A WAY OF TELLING BY BUSINESS LINE WHERE THE, I MEAN, YOU COULD KIND OF SEE GROSS NUMBERS, BUT THIS WAS A MORE FINITE LOOK AT EACH OF YOUR PRODUCT LINES.

AND I GUESS I WOULD SAY THAT, YOU KNOW, IT, IT'S A JOURNEY, RIGHT? YOU'RE, YOU CONTINUING TO REFINE IT AND YOU KNOW, IT'S NOT PERFECT.

IT'S, YOU KNOW, BETTER THAN IT WAS, YOU KNOW, FIVE YEARS AGO OR FOUR YEARS AGO.

BUT IT'S A, IT'S A JOURNEY TO GET THERE.

AND I THINK AS YOU CONTINUE, I MEAN, I GUESS I'M SAYING IT, IT'S WORTH THE EFFORT TO CONTINUE TO REFINE IT.

'CAUSE I THINK IF THIS IS A GOOD LOOK, YOU, YOU KIND OF WANT TO SEE, WELL, WE'RE MAKING A LOT, GOT A LOT OF GROSS REVENUE HERE, BUT WE'RE REALLY NOT MAKING MUCH, YOU KNOW, PROFIT HERE.

SO IT'S, IT'S JUST A GOOD WAY FOR THE BOARD TO HAVE A BETTER INSIGHT INTO THE, YOU KNOW, THE PROFITABILITY AND THE VALUE OF EACH OF THE PRODUCT LINES THAT YOU'RE IN.

CAN YOU APPROVE THE SOFTWARE, UH, MEETING AS WELL? YES.

AND WE'RE, WE'RE GETTING IN SAID IT TIME WE GET IT INSTALLED AND EVERYTHING TESTED OUT.

WHEN YOU'RE COMFORTABLE WITH IT, IT'LL BE NEAR YEAR END.

WE HAVE IT DONE.

SO I'M JUST CONCERNED WE'RE GONNA HAVE TO ALLOCATE A LOT MORE TO THE COUNTY DEPARTMENT, CURRENT A LOT MORE.

ALL THIS WORK TO A LOT.

REVENUE GOES, WE'RE JUST OVERHEAD.

YEAH, THAT'S RIGHT.

ALL REVENUE GOES AGAIN.

AND WE, WE'LL SEE SOME REDUCTIONS AND WE WILL BECOME CLOSE A LITTLE CLOSER TO BUDGET.

YOU SAID, I'VE ALWAYS BEEN TOLD THAT FINANCE IS NOTHING MORE THAN OVERHEAD UNLESS WE LESS INTEREST RATES ARE GOOD.

UH, OKAY, LET'S MOVE FORWARD.

OUR TRAINING, TRAVEL TRAINING AND DEVELOPMENT.

UM, WE'RE WELL BELOW BUDGET AGAIN, UH, I THINK IN JULY YOU'LL SEE THAT THAT AMOUNT SHRINK AND WHERE WE'RE BELOW BUDGET, UH, IN, IN JUNE AND JULY AND THROUGH EARLY SEPTEMBER, IS, UH, TIME WHERE A LOT OF TRAINING OCCURS.

[00:50:02]

OUR CASH POSITION, TOTAL CASH, WE'VE GOT 122.1 MILLION AND UNRESTRICTED IS 23.2 MILLION.

LEGALLY RESTRICTED IS 86.3 MILLION.

AND THEN WHAT WE HAVE IS INTERNALLY RESTRICTED, WHICH IS MONIES THAT IT'S WHAT WE REPORTED WHEN WE REPORT THE FINANCIAL STATEMENTS.

WE ONLY HAVE TWO TYPES OF CASH THAT'S UNRESTRICTED AND LEGALLY RESTRICTED.

SO THE INTERNALLY RESTRICTED IS PART OF THE, UH, UNRESTRICTED WHEN YOU LOOK AT OUR FINANCIAL AUDITED FINANCIAL STATEMENTS.

BUT TO BE PRUDENT, WE'RE PUT SETTING ASIDE AN INTERNALLY RESTRICTED FUNDS THAT WE KNOW WE'RE GOING TO BE SPENDING IN THE NEAR TERM ON AND LEGALLY RESTRICTED ARE THOSE FUNDS THAT ARE LEGALLY RESTRICTED, USUALLY RUN PROCEEDS, INTEREST IN SEEKING FUNDS AND, UH, RESERVE FUNDS.

I THINK WE HAVE SOME ADDITIONAL DISCUSSION ABOUT THIS.

WE, WE, WE WILL HAVE SOME MORE DISCUSSION ON THAT LATER TODAY.

UH, VENDOR REGISTER CHECKS TO LOCAL VENDORS WITH 2 MILLION, THAT'S 11% OF OUR ORDINARY OPERATING PAYMENTS.

NON-LOCAL VENDORS, 16.9 MILLION.

AND, UH, NON-OPERATING VENDORS, 5.7 MILLION COUNTS OVER 90 DAYS.

WHEN WE PRINTED THIS, IT WAS AT $235,000 OVER 90 DAYS THIS MORNING.

I'M ABLE TO, UH, REPORT THAT THAT AMOUNT IS DOWN TO 114,000 BUCKS.

UM, AND A PORTION OF THAT 114, WE HAVE BEEN TOLD THAT WE, THAT IT IS IN THEIR PROCESS TO SEND US ACHS IN THE NEXT FEW DAYS.

SO WE WE'RE KEEPING A, KEEPING A VERY GOOD HANDLE ON THAT.

IT CHECKS IN THE WATER, CHECKS IN THE, IN THE WATER IN MAN ABOUT.

I DON'T, WHEN THEY TELL ME, WHEN THEY GIVE ME A A, THE NUMBER, THE, UH, THE FED ID NUMBER WHEN IT'S COMING.

AND THAT'S WHEN I BELIEVE IT FEEL PRETTY, FEEL PRETTY GOOD MOVING FORWARD.

HERE'S THE AGING THERE AGAIN, WE'RE DOWN, I JUST GAVE YOU THE OVER 90 DAY BALANCE, UH, THE 30, 60 AND NINE AND THOSE CATEGORIES CHANGE.

THERE ARE DYNAMIC IN H THIS IS A SNAPSHOT OF TIME ON JUNE 30TH, BUT IT CHANGES CONSTANTLY.

CURRENT CAST POSITION IS SLIDE SHOWING OF CURRENT CASH POSITION.

UH, WE WERE ASKED TO SHOW YOU DOWN AT THE BOTTOM, UH, WHERE THE OPERATIONS FUNDS ARE NOW.

IS THAT THE YARBOROUGH LINE? THAT'S THE YARBOROUGH LINE, YES SIR.

I WANT KNOW.

I APPRECIATE IT GETTING ON THERE.

AND BASICALLY THAT TELLS YOU WE GOT $3 MILLION THAT MONEY AND THAT'S AN ACCURATE PICTURE FOR MOST ANYBODY WHO WOULD ASK.

I APPRECIATE IT.

AND IT ALSO POINTS OUT THAT THE INTERNALLY RESTRICTED AND THE REMAINING, UH, AND THE UNRESTRICTED REALLY ARE THERE TO COVER THE APPROVED COMMITTED BALANCE.

THE APPROVED COMMITTED BALANCE OR, OR BALANCES.

THE BOARD HAS APPROVED A CONTRACT AND RELEASED THE PROJECT TO PROCEED.

AND THIS IS JUST ON OPERATING CASH, RIGHT? OBVIOUSLY DOES NOT TALK ABOUT DEBT.

DOES TALK ABOUT DEBT.

THE MONIES WE HAVE OR THE PROCEEDS, THE NON PORT PORTION OF GRANTS.

FOR EXAMPLE, WE HAVE A TDOT GRANT AND THE PORTS PORTION IS 20 OR ANY GRANT, SAY THE PORTS PORTIONS 25%, WE'RE ONLY SHOWING THE PORTS 25%.

YOU CLEARLY SAY OPERATIONS FUNDED THEIRS.

YES, A SMALL PRINT.

BUT I, I ALSO NOTICED YOU GUYS TOOK A, YOU ALSO HIGHLIGHTED IN THE, UH, MASTER PLAN, THE CAPITAL PLAN THAT YOU COULD USE SOME KIND OF, IT'S KIND OF A, KIND OF AN ORANGEY LOOKING COLOR, BUT OF THE ONES THAT WE, WHERE WE'VE ACTUALLY APPROVED CONTRACTS FOR.

SO NOW IT'S EASY TO TELL, WHICH I GUESS YOU ASSUME THAT'S PART OF WHAT YOU'VE USED TO ROLL UP INTO.

THIS IS ONE THE BOARD IS THAT WE'VE ACTUALLY APPROVED CONTRACTS.

IT'S NOT ONE WHERE WE'VE DONE, WE'RE JUST DOING SOME ENGINEERING WORK UP FRONT, BUT WHERE YOU'VE ACTUALLY, WE'VE ACTUALLY APPROVED A CONSTRUCTION CONTRACT.

UM, THOSE ARE HIGHLIGHTED IN THE MASTER PLAN SHEET.

WE REVAMPED THE LEGEND.

REWARD DESCRIPTION.

[00:55:01]

THE ORANGE OTHER, THE ORANGE COLOR VICTORY VICTORY.

QUICK RECAP ON INTERNALLY RESTRICTED THREE MONTHS OUT, WHICH IT'S COMBINATION INTERNALLY RESTRICTS COMBINATION.

IT'S A COUPLE THINGS.

WE EARNED.

WE MONTHLY, INTERNALLY RESTRICT THE PAYMENT MOVES TAXES TO THE CITY.

THAT'S, YOU KNOW, ABOUT 200,000 A YEAR.

WE, WE, WE SET ASIDE A PORTION OF THAT EACH YEAR.

WE ALSO INTERNALLY RESTRICT A PORTION THAT WE HAVE TO PAY TO CARNIVAL EVERY SIX MONTHS.

SO, UM, WE JUST MADE THAT PAYMENT.

SO YOU'RE GONNA SEE A JET INTERNALLY RESTRICTED.

THEN WE LOOK AT WHAT, UH, CAPITAL PROJECTS, INCLUDING RENEWAL AND REPLACEMENT THAT WE HAVE AND WE'RE GOING OUT ON, ON SOME OF THE SMALLER ONES.

WE WILL JUST SET IT ALL ASIDE.

'CAUSE BASICALLY WE'RE GONNA PAY THAT WITHIN 90 DAYS ANYWAY.

AND THEN THE OTHERS, WE PROJECTING OUT THAT, OKAY, THIS IS ABOUT WHAT WE BELIEVE WE'RE GOING TO PAY OUT AND IT STAYS, IT GENERALLY STAYS PRETTY CONSISTENT.

SO WE'RE SETTING ASIDE, SO THE BULK OF IT IS ABOUT A 90 DAY PROJECTION ON THE BIG CAPITAL? IT IS, IT IS SOMEWHERE IN THAT NEIGHBORHOOD.

THAT'S WHERE WE'RE SHOWING UP HERE.

I JUST WANTED TO KNOW WHAT YEP.

WHAT PUSHED IT UP TO THE GREEN 90 DAYS.

A ONE 20 DAYS, TWO MONTHS, 90.

YEAH, SOMEWHERE AROUND AROUND 90 DAYS.

VERY GOOD, THANK YOU.

OKAY, OTHER QUESTIONS? ALRIGHT, AND THEN WE GET TO OUR STAFFING LEVELS.

THE 2025 BUDGET CALLED FOR 144 EMPLOYEES.

WE, AS OF THE PAY PERIOD 7 3 20 25, WE HAD 136 EMPLOYEES.

UH, I KNOW THE ONE OPENING IN MY, MY GROUP HAS BEEN FILLED, UH, IN JULY ALREADY.

AND WE WILL START FILLING, WE'RE STARTING TO FILL THOSE POSITIONS THAT ARE NEEDED FOR CT 16 OPENING SO THAT WE CAN HAVE PEOPLE TRAIN AND READY TO GO TO WORK.

UM, AND THE CRUISE TERMINAL WHEN IT OPENS.

SO WE'RE GONNA START SEEING THOSE NUMBERS, UH, OF EMPLOYEES INCREASE IT.

IT LOOKS LIKE WE'RE GONNA WORK, I GUESS BEING ABLE TO KEEP FAIRLY STABLE ON THE SAFETY SECURITY FOLKS.

YES, MS. ROGER.

FAR AS THE POLICE HIRING LOOKS LIKE WE'RE ABLE TO KIND OF KEEP, KEEP LOSE ONE GAIN, KEEP KEEP AHEAD ABOVE WATER ANYWAY.

WELL, AND AND THAT'S A, THAT'S A BIG PIECE.

WE GOTTA MAKE SURE WITH CT 16 AND FOR CT 16, I THINK WE'VE HIRED THE POLICE FOR THAT.

'CAUSE IT TAKES, IT TAKES LONGER TO TRAIN THEM CREWS.

WE, WE'VE STILL GOT TO GET PEOPLE IN, UH, GET THEM READY AND CNM WORK, WE'RE STILL GROWING.

UH, AND TRYING TO FIND PEOPLE WE NEED FOR CNN.

ALRIGHT, THE MAYOR SLIDE MAYOR SAW IT COMING, BUT WE'LL GO, I GUESS WE'LL GO OVER IT ANYWAY.

40, UH, YEAR TO DATE, HE'S ALREADY LOOKED AT IT, YOU KNOW.

THE NONPAYMENT RULE TAXES ANNUALIZED 3,000,001 30.

YOU KNOW, IT, WE, WE'VE CONTRIBUTED 1.7 MILLION TO THE, UH, CITY OF GALVESTON AND YOU CAN SEE THE PAYMENT LIEU OF TAXES WE PAID AT THE BEGINNING OF THE YEAR, THE TRANSIT TERMINAL, THE PORTION OF NET REVENUE THAT WE PAID FROM THE TRANSIT TERMINAL.

4%.

AND THEN THE, UH, LOCAL SHARE OF THE TAXES WE COLLECT ON THE PARKING.

AND THEN THE OTHER, THE LONG TERM PARKING FEE AND THE PER PASSENGER FEE.

AND AS THE, UH, PARKING DECREASES, SO DOES THE, UH, SALES AND USE TAX PORTION THAT GOES TO THE CITY TO CHARLOTTE, TO CHARLOTTE'S POINT, YOU KNOW, IT'S, IT'S, IT'S 1,000,002 MORE THAN WHAT WE ARE, QUOTE REQUIRED BY CONTRACT OR BY STATE OBLIGATION TO PAY OR CHARTER OBLIGATION, UH, THROUGH SIX MONTHS.

THAT'S TWO, TWO AND A HALF MILLION ANNUALLY.

AND I DO LIKE THE FACT THAT THAT 40,000 STATE'S CONSISTENT.

IT JUST DOESN'T CHANGE.

AND IT'S A NICE EASY NUMBER TO REMEMBER.

VOTE, VOTE.

[01:00:01]

SO IF YOU ADD THE 1 57 TO THAT, IT'S ALMOST THREE, 3 MILLION.

AND ALSO, YOU KNOW, FOR QUARTER THIS YEAR YOU HAVE ANOTHER FOURTH QUARTER WILL TENDS TO RUN HIGHER THAN THE OTHER.

THAN THE OTHER.

THAT'S, THAT'S THE PEAK QUARTER TENDS TO RUN THE HIGHEST QUARTER FORCE.

MM-HMM .

MOVING FORWARD.

AND TO ME THE DIRECT CORRELATION IS, YOU KNOW, THE PIE IS WHAT THE PIE IS.

IF YOU GIVE MORE TO THE CITY, THAT MEANS WE'RE GONNA DO LESS OVER HERE.

YOU KNOW, AND MANAGEMENT AND BOARD SUPPORT, YOU KNOW, WE'VE DONE A GOOD JOB OF INCREASING THE SIZE OF THE PIE AND THEY COULD APPROPRIATE INCREASE BECAUSE THE PIE IS NOW GETTING BIGGER.

AND THAT'S, TO ME, THE SOLUTION IS NOT TO GIVE THEM A BIGGER SLICE OF OUR PIE, BUT MAKE THE PIE PIE BIGGER.

FIND WAYS TO MAKE THE PIE BIGGER.

THAT'S GOOD.

CHRIS, RAISE THE BRIDGE OR LOWER.

HERE'S STAFFING.

WELL, WE'VE STAFF THE LONG WAY DOCK, UH, DOCKAGE DISCOUNTS.

WE'VE HAD TWO SHIPS IN IT.

WE, WE'VE GIVEN DISCOUNTS TO, UH, ANYONE HAS ANY QUESTIONS, RESPOND TO THEM, IF NOT, OKAY.

THAT'S PRETTY MUCH COVERS, UH, CONSENT AGENDA ITEMS ONE THROUGH SEVEN AND WE CAN MOVE ON TO, DO YOU, DO YOU WANT TO APPROVE THESE OR JUST WAIT TILL WE DO AEM ALL ONE? I CAN MAKE A MOTION TO APPROVE TO STEP, UH, MARK COURT.

SECOND, SECOND, SECOND.

A MOTION AND A SECOND.

UM, QUESTION.

QUESTION.

THESE REPORTS ARE NOT QUITE AS ROSY AS THEY HAPPENED IN THE PAST, AND I UNDERSTAND THERE'S TIMING ISSUES AND ALL THAT SORT OF THING.

ANYTHING YOU'RE CONCERNED ABOUT? NO, THIS IS A SLOW, THIS IS OUR SLOWEST TIME OF THE YEAR, JUNE, JULY OR OUR WORST MONTHS, JUNE, JULY AND AUGUST, SUMMER MONTHS.

WE TEND TO HAVE, ESPECIALLY WITH US NOT BEING ABLE TO BRING IN THE LAY BUSINESS LIKE WE HAVE IN THE PAST, THIS, THIS IS OUR WORST PART OF THE YEAR.

WE HAVE SEASON, WE HAVE SEASONAL ACTIVITY.

UM, SO WITH THE CRUISE LINES AND THE SEASONAL ACTIVITY WILL START PICKING UP IN OCTOBER AND THEN IT'LL RUN THROUGH, UH, MARCH, APRIL.

AND ONCE YOU GET PAST SPRING BREAK, IT, IT KIND OF, YOU HAVE FEWER SHIPS HERE.

THEY GET REPOSITIONED AND UH, WE HAVE A LITTLE BIT OF A LAW.

AND THAT'S, THAT'S KIND OF WHAT WE'RE SEEING NOW FROM WHAT I UNDERSTAND THE SHIPS ARE SELLING VIRTUALLY FULL OF FACT.

AND THIS IS, THIS IS WHAT I KEEP TELLING CRUISE LINE IS THEY'RE MISSING OUT.

THEY'RE MISSING OUT ON SUMMER MONTHS BECAUSE THIS IS WHERE, YOU KNOW, THE PEOPLE ARE HERE AND THEY'RE READY CREWS.

AND, AND SO I THINK WE, WE WILL SEE THAT OBVIOUSLY WITH DISNEY AND NORWEGIAN AND MSC ALL COME YEAR ROUND NOW, THEN YOU'LL SEE THAT PICK BACK UP IN SOME BECAUSE THEY'RE HERE AND THIS IS WHERE IT'S AT.

LESS COMPETITION YOU TO FILL UP.

MARK SAID, AND I'D JUST LIKE TO POINT OUT ON PAGE SEVEN, THE NET INCOME FOR THE COURT FOR SIX MONTHS IS OVER 27 MILLION, WHICH IS 10% BELOW BUDGET OF 30, BUT IT'S 59.4% LAST YEAR.

16, ALMOST 17.

SO I, IT'S THAT PAGE SEVEN SAYS IT ALL.

YEAH, I, I MEAN I UNDERSTAND THAT.

I JUST THOUGHT I'D ASK THE QUESTION.

THAT'S GOOD QUESTION.

AND I'M GLAD TO SEE THAT LEVEL OF CONFIDENCE I HAD.

I DON'T LOSE ANY SLEEP AT ALL ABOUT, ABOUT THE SUMMER MONTHS.

WE KNEW CERTAIN SEGMENTS WERE GOING TO BE OFF A LITTLE BIT AND THAT'S, AND WE'RE SEEING IT, BUT WE'RE, BUT THERE AGAIN, CARGOES COMING IN, WE'RE KEEPING THE CARGO FLOWING AND IT, IT'S MUCH MORE PROFITABLE THAN JUST HAVING RELATIONSHIPS.

AND, AND THEN KNOWING WHAT WE'VE GOT COMING UP THROUGH THE FALL, IT'S, IT'S, UH, YEAH.

AND NEXT SUMMER WON'T BE AS BIG, YOU KNOW, WE'LL STILL HAVE THE DIFF LIKE WE'RE HAVING, BUT AFTER STARTING NEXT SUMMER, THE FOLLOWING SUMMER IN 27, WE'LL HAVE MORE SHIPS HERE THROUGH THE SUMMER.

SO WE WON'T HAVE THAT BIG, BIG OF A TIP IN THE SUMMER.

PLUS WE'LL HAVE WEST END FINISH, OR AT LEAST TO THE POINT WHERE WE CAN BRING IN LAY SHIPS AGAIN.

UH, SO WE'RE GONNA BE GOING STRONG.

WE KNEW, WE KNEW THIS YEAR WAS GOING TO BE, UH, GREAT YEAR.

YEAH, GREAT YEAR, GREAT YEAR.

[01:05:01]

YOU'RE GOOD.

JUST, JUST, IT'S ONE MINOR POINT ON I GUESS IF WE NEED TO, UH, YEAH, I, THIS IS PART OF, KIND OF, PART OF THE A POINT ON THE, UM, THE DOCUMENTATION.

I GUESS WE HAD ROGER'S CREDIT CARD STATEMENT IN THERE TWICE, BUT WE DIDN'T HAVE THE ONE ON THE, I GUESS THE CORPORATE CREDIT CARD.

THAT ONE'S MISSING.

WELL, THE OTHER, THE BIG, THE OTHER, YOU'VE GOT TWO CREDIT CARDS, RIGHT? ROGERS AND THE, AND THE PORT.

THE PORT ONE, THE PORT, THE STATEMENT FOR THE PORT CREDIT CARDS WASN'T IN HERE.

ROGERS WAS IN HERE TWICE.

JUST I MAKE SURE WE SAW SPEND TWICE A MONTH NOW.

SPENT THE SAME AMOUNT ON EACH ONE.

IT WAS, WE WILL, WE WILL GET A COPY OF THAT TO YOU TODAY.

JUST TODAY.

JUST A POINT WHILE Y'ALL ARE IN EXECUTIVE SESSION, AT THE VERY LATEST, WE WILL HAVE IT, PRINT IT OFF AND HAND IT OUT TO THE BOARD MEMBERS AND THEN I'LL GIVE IT TO ANGIE AND, AND WE WILL GET IT, WE'LL GET IT ATTACHED TO THE WEBSITE.

I BELIEVE WE HAVE A MOTION AND A SECOND TO ACCEPT THE, UM, CFO'S REPORT.

UM, ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR RAISE YOUR HAND.

MARK STILL GOT NINE BUILDING RIGHT? THE CHANGES YOU MADE TO THE CAPITAL MASTER PLAN IS VERY HELPFUL.

DID WE HAVE A SPOT ON HERE? WE WERE GONNA REVIEW THE CAPITAL PLAN OR SEEMED LIKE WE HAD A THAT'S, IS IT IYE? OKAY.

YEAH, WE DIDN'T REALLY TALK ABOUT IT.

MARK, IS THERE ANYTHING YOU CAN POINT OUT ON THAT OTHER THING? THERE WAS NO CHANGES OTHER THAN, OTHER THAN KIND OF UPGRADE ON THE, THERE'S NO CHANGES.

THE ONLY THING WE DID, WE UPDATED THE, UH, ACTUAL AMOUNT SPENT TO REFLECT WHAT WE SPENT IN JUNE AND THAT WOULD'VE, UH, LOWERED THE, UH, AMOUNT REMAINING TO BE SPENT AND, UH, FOR THE, FOR IN 2025.

THE UPDATED ACTUAL, YEAH, WE UPDATED THE ACTUAL, I THINK TODAY, TODAY'S BOARD'S ITEM THAT MAKE SOME ON PASSES.

ANY QUESTIONS? I THINK OF MAYBE JUST ONE.

YEAH, JUST MY GLASSES TO READ IT HERE.

I GUESS PELICAN, THE PI ONE PROJECT, I ASSUME THAT'S THE, THE PELICAN ISLAND BRIDGE.

THERE'S NOT PAGE NUMBER FIRST ONE ON, FIRST ONE ON THE, I ASSUME THAT'S THE PELICAN ISLAND BRIDGE.

2 MILLION.

THE 2 MILLION.

YOU CAN 2 MILLION.

AND I AND I I WAS JUST THINKING MAYBE THEIR DESCRIPTIONS.

YEAH, WELL I I THEY COULD FIGURE IT OUT.

I GUESS THE QUESTION WAS, YEAH, WE'VE GOT I GUESS THE, UH, THE YELLOWISH, ORANGEISH YELLOWISH COLOR.

I GUESS WE'VE COMMITTED THAT 2 MILLION.

IS IT FAIR TO SAY WE'VE COMMITTED THAT $2 MILLION? YES.

SO I DON'T KNOW IF THAT SHOULD, BY OUR COLOR SCHEME, IF THAT SHOULD SHOW UP IN THE ORANGE YELLOW COLOR THERE BECAUSE WE, WE'VE COMMITTED IT AS A BOARD.

IS THAT THE BASIS? I BELIEVE WE WERE WAITING FOR THE MO .

SO THERE'S STILL A TECHNICAL PIECE WE HAVE.

I'M NOT AWARE THAT WE HAVE THE MOU MOU HASN'T BEEN ACCEPTED BY THE BOARD.

THAT'S THAT'S FAIR.

HIGH BRIDGE.

IT'S ANY OTHER QUESTIONS? BIGGER CONCERNS? THIS CONTINUES TO BE AN EXCELLENT DOCUMENT.

I VERY MUCH APPRECIATE.

TAKE THAT BACK TO THE CITY.

IF I COULD SLIDE, BUT I DID SOME MATH.

THREE POINT MILLION THIS YEAR.

IF YOU ANNUAL, WHAT WE'VE DONE FROM SIX MONTHS,

[01:10:04]

THERE WAS A MOTION TO MAKE, GIVE THE CITY MORE, BUT WE FAILED TO GET A SECOND WAY.

IT ALWAYS IS.

DO WE NEED TO HAVE A MOTION TO ACCEPT THE, I THINK WE SET THAT UP WHEN YOU APPROVE THE CONSENT AGENDA NOW.

IT'S PART, IT'S AUTOMATICALLY.

[C.3 Discuss and Consider Approval of True ups for the 2024 Incentive Compensation Plan for Employees Post-Audit. Trustee Yarbrough and Trustee Lidstone.]

MOVING ON THEN TO C3.

DISCUSS AND CONSIDER APPROVAL OF TRUE APPS FOR THE 2024 INCENTIVE COMPENSATION PLAN FOR EMPLOYEES AFTER THE AUDIT.

AND THAT WOULD BE, UH, MARK AND TRUSTEE BOROUGH ON MY NEXT THERE TOO.

I A MOTION WE ACCEPT THE REPORT.

ALRIGHT.

ALL I WANTED TO DO WAS HAVE IT ON PUBLIC RECORD.

WHAT WE DID.

EXPECT TO ME.

ONE SECOND.

AND ANY QUESTIONS I'D LIKE TO, I'D LIKE TO SUGGEST THAT BE AN ANNUAL PROCESS AFTER WE GET THE AUDIT AND WE KNOW THE NUMBERS.

SECOND.

ALL THOSE IN FAVOR, RAISE YOUR HAND.

THAT'S UNANIMOUS.

WE'LL START BRINGING THAT WITH THE, AFTER WE ACCEPT THE AUDIT, WE'LL JUST GO AHEAD AND COUNT THAT AS RIGHT THERE AND GIVE Y'ALL AN UPDATE AT, THAT'S PROBABLY THE CALENDAR ITEM.

MM-HMM.

JUNCTION AUDIT TO THINK.

SAME REPORT, SAME MEETING.

[C.4 Discuss and Consider a Draft Budget Amendment Policy. Trustee Yarbrough and Trustee Lidstone.]

ITEM C FOUR IS DISCUSSING CONSIDER A DRAFT BUDGET AMENDMENT POLICY.

AND THAT HAS TRUSTEE YARROW AND TRUSTEE DID STILL, YEAH.

WHEN WE LEFT THE LAST MEETING, WE, WE TALKED IN TERMS OF OUR POLICY AND ROGERS MANAGEMENT STYLE AND STUFF, THAT WE DON'T REALLY HAVE A LOT OF BUDGET AMENDMENTS, IF ANY.

BUT I, I'M, I'M A BELIEVER THAT THAT'S THE WAY ROGER OPERATES SOME YEARS DOWN THE ROAD.

ROGER WON'T BE HERE, SOMEBODY ELSE WILL BE HERE.

WE NEED TO HAVE A POLICY THAT KIND OF PUTS THE BOARD'S PERSPECTIVE WRITING.

AND WE WERE GONNA GET A KIND OF A DRAFT POLICY BACK THIS MONTH TO DISCUSS.

AND SO IF WE DON'T HAVE IT AGAIN, I THINK IT'S, IT BEHOOVES THE COURT TO HAVE A POLICY OF REFERENCE IN THAT SUBJECT, EVEN THOUGH I KNOW YOU'RE WORKING ON YEAH.

AND, AND EVEN THOUGH WE KNOW FROM A PRACTICAL MATTER, IT PROBABLY WON'T BE GERMANE BECAUSE OF THE WAY ROGER OPERATES.

WE DON'T DO BUDGET ARGUMENTS PER SE.

SO IF, IF IT'S A DRAFT OF THAT POLICY COULD COME IN THE NEXT MEETING IS FINE.

EXPENSIVE, 60 MILLION, SOMETHING LIKE THAT.

ANY OTHER DISCUSSION ABOUT THAT ITEM?

[C.5 Discuss and Consider for Approval Development and Implementation of a Policy Regarding Cash Reserves for the Port of Galveston. Trustee Yarbrough and Trustee Lidstone.]

OKAY, C FIVE.

DISCUSS AND CONSIDER FOR APPROVAL, DEVELOPMENT AND IMPLEMENTATION OF A POLICY REGARDING CASH RESERVES FOR THE COURT OF GALVESTON.

TRUSTEE YARBOROUGH.

TRUSTEE , UH, GIMME A GO AHEAD.

WE OBVIOUSLY HAVE A PRETTY LENGTHY DISCUSSION EVERY, EVERY MONTH ON CASH RESERVES AND THAT ISSUE, UH, ROGER HAS MENTIONED AT A COUPLE OF THE DIFFERENT MEETINGS WHAT HE KIND OF ENVISIONS OUR CASH RESERVE NEEDS ARE OR WANTS.

GOALS ARE, I THINK WE NEED TO FORMALIZE IT TO ME, TO ME TO MATCH UP WITH WHAT MARK SAID.

WE BASICALLY HAVE TWO RESERVES.

WE'RE TALKING ABOUT LEGALLY REQUIRED, WHICH IS PRIMARILY DEBT SERVICE, AND THEN THE QUOTE, UNRESTRICTED POT.

UM, WE'RE BOUND BY STATUTE UPON COVENANTS, ET CETERA, ON THE LEGALLY REQUIRED FOR DEBT PAYMENT, DEBT, SERVICE BALANCES AND STUFF LIKE THAT.

I, I'M WORKING UNDER, WHAT I HAVE ALWAYS WORKED ON, UNLESS IT'S CHANGED, IS IF ONCE YOU PUT MONEY INTO A DEBT SERVICE RESERVE, YOU CAN'T MOVE IT.

IT'S A ONE WAY STREET YOU PUT IT IN.

YOU CAN ONLY TAKE IT OUT FOR THOSE DESIGNATED PURPOSES.

SO IN MY MIND, WE, WE MATCH OUR LEGALLY REQUIREMENTS THE WAY WE'RE DOING IT.

ROGER HAD MENTIONED HE WOULD LIKE SOME MORE MONEY IN THE DEBT SERVICE AREA JUST FOR THE RAINY DAY.

I WOULD SUGGEST THAT THAT WOULD BE AN INTERNALLY RESTRICTED AMOUNT.

I KNOW WE DON'T DO THE FUND ACCOUNTING HERE, BUT IN MY REALM OF THINKING, A RESTRICTED AMOUNT WITHIN OUR GENERAL FUND, OUR UNRESTRICTED AMOUNT THAT GOES OVER FOR POTENTIAL DEBT SERVICE NEEDS, IF WE DON'T EVER NEED IT, THAT'S GREAT.

WE CAN, IF SOMETHING COMES UP AND WE NEED TO TAKE MONEY FROM THAT ACCOUNT AND WE WENT BACK OVER SOMETHING ELSE, WE CAN, BECAUSE IT'S NOT LEGALLY PUT OVER TO THE DEBT SERVICE ON THE UNRESTRICTED SIDE.

I DON'T KNOW WHAT THE CITY REQUIREMENT IS.

THREE MONTHS, FOUR MONTHS.

[01:15:01]

THREE, THREE MONTHS.

YES, SIR.

WELL, JUST IN LOOKING AT THE NUMBERS WE JUST WENT OVER, WE'RE SPENDING ABOUT 5 MILLION A MONTH.

SO, YOU KNOW, IF YOU HAD THREE MONTHS, YOU'RE LOOKING SOMEWHERE BETWEEN 15 AND 20 MILLION.

I MEAN, WHAT THAT POLICY SAYS, WE WANT THREE MONTHS, FOUR MONTHS, WHATEVER THE BOARD WANTS IN AN UNRESTRICTED FUND BALANCE.

AND THAT'S A, THAT'S A JOURNEY, NOT AN OCCURRENCE.

YOU'RE GONNA FLIP THE SWITCH AND HAVE IT, UH, THE GOOD NEWS IS, UH, BASED ON OUR CURRENT FINANCIALS, GIVE YOU MORE THAN THREE MONTHS WORTH OF RESERVES.

BASICALLY.

ONLY, ALMOST ONE, JUST ONE YEAR IS A DEPRECIATION IS GONNA GET YOU THERE.

IT'S A NON CASH EXPENSE SHOW, $12 MILLION A YEAR DEPRECIATION.

THIS TIES BACK INTO THE BIGGER CONVERSATION WE'VE HAD, UH, OVER THE LAST SEVERAL MONTHS.

AT SOME POINT, THE PORT NEEDS TO CATCH ITS BREATH.

WE HAVE BEEN SPENDING MONEY ON CAPITAL PROJECTS, WHICH ARE NEEDED.

IT HELPS GROW THAT PIE WE JUST TALKED ABOUT.

BUT AT SOME POINT WE, I'M NOT SAYING WE NEED TO TAKE A STOP, BUT WE NEED TO CATCH OUR BREATH AND SLOW DOWN AND LET OUR CASH BUILD UP INSTEAD OF HAVING THE CASH THAT BUILDS UP EVERY MONTH, GO RIGHT OUT THE DOOR TO PAY FOR THE LOCAL MATCH AND THE THIS AND THE THAT, THAT WE, WE ALL AGREE WE NEED.

SO, YOU KNOW, I'D LIKE TO SEE THE BOARD DEVELOP A POLICY THAT SAYS WE THREE MONTHS IS PROBABLY A, A PRETTY GOOD FIGURE IF, IF WE'RE ON SOLID GROUND WITH EVERYTHING AND, AND MEMORIALIZE THAT AND HAS WHATEVER ROGER SAYS.

I MEAN, WE'VE GOT BASICALLY A YEAR'S WORTH OF DEBT SERVICE OVER IN RESERVE, YOU KNOW, ANOTHER YEAR, SIX MONTHS.

I DON'T KNOW WHAT ROGER WOULD BE THINKING, BUT, UH, COME BACK WITH A RECOMMENDATION THAT WE NEED TO HAVE ANOTHER AMOUNT.

IT'S 40 MILLION.

YEAH, IT'S A BUNCH.

WE'VE BEEN SAYING THAT, I MEAN, LOOSELY WE'VE BEEN SAYING 40 MILLION AND I THINK THAT'S, WE GOTTA GET THERE.

WE CAN'T GET THERE RIGHT NOW.

OBVIOUSLY, BECAUSE WE'VE GOT PROJECTS THAT ARE, THAT ARE WORKING RIGHT NOW AND, AND WE ALL RECOGNIZE THAT.

SO I MEAN, I I HAVE A, I MEAN, I THINK WE CAN DO THAT, UM, WHEN WE CAN GET TO 40 MILLION.

I'D LIKE TO PROJECT THAT.

NO, I I, I'D LIKE TO UNDERSTAND SO THAT EVERYBODY UNDERSTANDS.

I HOPE WE ALL REALIZE, LIKE I SAID, IT'S NOT FLIPPING THE SWITCH.

YOU'RE NOT GONNA MAKE THE POLICY ALL OF SUDDEN YOU'RE AT COMPLIANCE, $4 MILLION RESERVE OR WHATEVER THE COMPANY IS THAT, BUT IT, IT'S A GOAL THAT THE BOARD HAS STATED AND WE CAN MAKE SURE THAT, LIKE EVERYTHING ELSE AROUND HERE, I'M, I'M A BIG BELIEVER IN INCREMENTAL PROGRESS.

YOU KNOW, WE'RE NOT GONNA GET THERE OVERNIGHT, BUT IF WE JUST CHIP AWAY AT IT TWO OR THREE YEARS FROM NOW, WE'RE GOING TO BE REALLY ON SOLID FINANCIAL FOOTING.

AND I DO BELIEVE TO GET THERE, WE DON'T HAVE TO STOP CAPITAL PROJECTS BECAUSE THERE'S ALWAYS ONGOING THINGS THAT YOU DON'T, EITHER YOU DON'T KNOW OR THAT YOU PLANNED, BUT WE HAD JUST A BIT OF SLOWDOWN.

IT WOULDN'T TAKE LONG WITH THE CASH FLOW WE'RE GENERATING RIGHT NOW TO GET DAMN NEAR ALL THE WAY THERE.

I JUST LIKE TO MEMORIALIZE IT POLICY IN MY MIND AFTER 26, 26, THEN WE CAN REALLY DO IT EXPONENTIALLY, I THINK.

BUT UP UNTIL THE END OF 26, WE HAVE SO MUCH ON, ON THE BOARD ALREADY, UM, THAT OBVIOUSLY WE CAN'T STOP.

AND THEN HERE AND HERE, THE OTHER, THE OTHER SITUATION IS, IS PARKING DECKS AND THINGS LIKE THAT, WHICH, YOU KNOW, I CAN SEE IF, IF OTHER, IF CERTAIN CRUISE LINES GO THROUGH WITH THEIR PLAN, THEN THE BOARD PASSES IT.

WE'VE GOT, UH, WE'VE GOT AN OBLIGATION THERE TO GO UP.

AND, YOU KNOW, IT'S GONNA DO NOTHING BUT GENERATE THE, AND FROM A PERSONAL PERSPECTIVE, I'M LOOKING FOR THAT TO COME OUTTA THE MASTER PLAN IS THE PARKING ASSESSMENT.

HOW MANY SPOTS DO WE NEED TO TAKE, RIGHT? AND THEN BASED ON OUR MASTER PLAN, ANOTHER CRUISE TERMINAL OR, UH, WHATEVER WE HAVE, WHAT IS OUR NEEDS OVER THE NEXT THREE TO FIVE YEARS? WE CAN FACTOR THAT IN, YOU UNDERSTAND? BUT YEAH, ANOTHER DECK'S GONNA BE ON, WE WE'RE HAVING THOSE DISCUSSIONS NOW, UM, THERE, THERE'S CONCERNS FROM THAT FROM THE OTHER SIDE THAT ARE WE GONNA BE ABLE TO HANDLE ANOTHER BIRTH IF, IF THE BOARD DECIDES WE ANOTHER BIRTH OUT THERE, WE'VE GOTTA HAVE MORE HARM.

AND, AND THAT'S WHERE WE'RE GONNA HAVE TO GO, PROBABLY VERTICALLY.

AND SO THAT'S THE QUESTIONS.

THEY'RE GOOD QUESTIONS.

UM, ROGER, WOULD YOU KIND OF IN YOUR MIND OUTLINE THIS 40 MILLION? HOW DID YOU COME UP WITH THAT? WELL, I MEAN IT'S, THERE ARE ROUGH ESTIMATES, BUT 20 FOR DEBT AND 20 FOR OPERATIONS IN A NUTSHELL.

THREE MONTHS AND THREE MONTHS AND 15.

SO, I MEAN,

[01:20:02]

SO YOU HAVE FOUR MONTHS.

IT REALLY COULD BE 35 MILLION, RIGHT? BECAUSE OUR DEBT SERVICE IS ABOUT 17.

SO 17 37, 27 35 WOULD BE A SAFE NUMBER.

34.

YOU'RE PUTTING THE LEGALLY RESTRICTED INTO THE OPERATIONS.

WELL, I, AS JIM WAS SAYING, WHAT I'M PUTTING INTO THE IS RESTRICTING ONE MORE YEAR WITH DEBT SERVICE BECAUSE AS, AS JIM SAID, WE CANNOT TAKE THAT DEBT.

THE DEBT SERVICE, IF THE DEBT SERVICE RESERVES ARE USED.

WE GOT BIG PROBLEMS, RIGHT? IT'S NOT JUST US.

IT'S PROBABLY A GLOBAL PROBLEM, AN ECONOMIC PROBLEM THAT WE WANT, THAT WE USE.

BUT IT'S ALWAYS THERE, RIGHT? AND SO, YOU KNOW, I THINK THAT WE, YOU KNOW, UM, I THINK WE SHOULD DO IT AGAIN, ADD ANOTHER AMOUNT ABOUT THE SAME AMOUNT, UH, TO COVER THAT DEBT SERVICE IN THE EVENT THAT, THAT THERE IS A DOWN DOWNTURN, THEN WE HAVE THE MONEY TO COVER THE DEBT SERVICE THAT, BECAUSE WE CAN'T GET THE PRESERVES RIGHT? THE REALITY, THEY SIT THERE, WE DO EARN INTEREST AND THE INTEREST WE EARN CAN BE USED FOR DEBT SERVICE, BUT WE DON'T, WE CAN'T GET TO IT.

SO THE OTHER THING IS, IF YOU LOOK AT THREE MONTHS WORTH OF OPERATING EXPENSE, AND THIS IS WHAT MARK AND I IS DISCUSSING INTERNALLY TOO, IS WHAT'S THAT NUMBER? YOU KNOW, BUT WE ALL ARE WELL AWARE.

I MEAN, YOU CAN SEE OUR CASHFLOW.

WE WE'RE GENERATING, WE THINK IT'LL BE SOMEWHERE AROUND 12 TO 14 MILLION, UM, YOU KNOW, AT THE END OF THIS YEAR, WHICH IS GONNA BE BELOW THAT NUMBER.

AND AS WE'VE BEEN LOOKING AND STUDYING AT THIS BOARD FOR SEVERAL MONTHS, WHAT IS THE REAL NUMBER? WHAT IS THE REAL COMMITMENT, UM, THAT WE HAVE? AND OBVIOUSLY, YOU KNOW, THE DIFFERENCE BETWEEN WHAT THAT $39 MILLION WE SHOWED UP THERE AND 12 MILLION THAT WE'RE GONNA HAVE AT THE END OF THE BANK.

I MEAN, THE ONLY FACTOR'S NOT THERE IS WE'RE ASSUMING WE CONTINUE TO BE IN BUSINESS, RIGHT? RIGHT.

AND THEN WE'RE GONNA GENERATE TWO TO $3 MILLION IN CASH FLOW EVERY MONTH.

AND SO THAT'S WHY WE GOTTA CATCH UP HERE, UM, TILL THE END OF 26 THROUGH 27, MORE THAN LIKELY.

UM, YOU KNOW, MAYBE, OR MAYBE NOT.

I MEAN, 'CAUSE I MEAN, WHAT WE'VE GOT ON THE HORIZONS IN TERMS OF NEW SHIPS, NUMBERS OF SHIPS AND, UH, THE SHIPS THAT WILL BE IN HERE OVER THE SUMMER.

AND THEN, YOU KNOW, HERE AGAIN, WE'RE, WE'LL SEE THIS IN THE MASTER PLAN UPDATE, I THINK TODAY IS WHERE ARE WE GOING ON THE WEST END WITH, WITH ALL THE, WHAT'S THAT GONNA LOOK LIKE? I MEAN, RIGHT NOW IT'S A CRYSTAL BALL, BUT YOU KNOW, WE KNOW WE'VE BEEN AT 10 MILLION, YOU KNOW, UM, THERE'S NO REASON WE CAN'T GET BACK TO THAT AT THE CARGO LEVEL.

BUT, YOU KNOW, THOSE ARE NUMBERS RIGHT NOW, WE'RE NOT IN OUR MINDS FOCUSED ON BECAUSE WE ARE ON THE CONSTRUCTION.

RIGHT? AND, AND, AND WE CAN'T REALLY USE THAT.

SO I THINK THAT THE REALITY OF IT IS, IS WHEN I, WHEN I LOOK AT IT, I THINK IT'S REALLY THROUGH 26.

WE MAY BE ABLE TOLL START IN 26, BUT YOU KNOW, WHEN WE START ADDING THE NUMBER OF SHIPS THAT WE'RE LOOK, THAT WE'RE LOOKING AT IN 27 AND THE FREQUENCY OF THOSE SHIPS, THEN ALL OF A SUDDEN THE NUMBERS START GETTING A LOT BETTER.

AND I THINK IT WOULD BE AT 4 MILLION A MONTH IN CASH FLOWS.

AND IF YOU LOOK AT WHAT WE, WHAT WE'VE BEEN DOING, YOU KNOW, THEN THE NUMBER, OUR CASH FLOW, YOU KNOW, EXPONENTIALLY INCREASES.

LET'S DENY WE STILL HAVE THAT EXPANSION OVER THERE.

THIS, UH, YOU KNOW, WE'LL TALK ABOUT IT.

BUT IF THIS, UH, LEASE TRANSFER OVER THERE HELP COPPER, THEY TRY TO EXPAND.

I THINK SO.

AND YOU KNOW, WE DON'T, YOU KNOW, WE REALLY DON'T HAVE, AND WE CAN TALK ABOUT THIS LATER, BUT I THINK WE DON'T HAVE THE PLANS.

WE DON'T HAVE THEIR PLANS YET, AND I DON'T THINK THAT THEY DO OTHER THAN ASSIGNMENT AT THIS STAGE.

UM, YOU KNOW, BUT THERE'S A LOT OF ACTIVITY.

A LOT OF ACTIVITY.

YOU GUYS WERE LOOKING OVER THERE.

WE, WE KNOW TWO OR THREE DIFFERENT FIRMS THAT ARE LOOKING OVER THERE THAT WILL DO NOTHING BUT INCREASE REVENUES.

AND IF YOU'RE IN A RENTAL, IN A RENTAL SITUATION, THEN ALL THAT FALLS TO THE BOTTOM LINE BASICALLY.

WELL, I'D JUST LIKE TO COMMENT, IF WE DO GET THIS, THOSE ARE CASH RESERVES.

THIS IS GONNA HAVE THE BOND RANGE AND IT MAKES EVERYTHING BETTER.

IT'S GOOD TO HAVE THAT FALLBACK, UH, CHAIRMAN.

WANT TO PUT IT IN THE LEGAL OR RESTRICTED BECAUSE THEN IT'S NOT, WELL, WE CAN LEGALLY RESTRICT IT.

I WAS, UH, I'M CURIOUS, WERE YOU, WERE YOU VISUALIZE THESE FUNDS RESTING IN, IN WHAT, WHAT FUND? INTERNALLY RESTRICTED? I DON'T THINK YOU CAN DO THAT, BUT MAYBE YOU CAN IN INTERNALLY RESTRICTED FOR US IS JUST A, IS A MANAGEMENT REPORT SAYING WE'RE NOT GONNA SPEND THESE MONEY STILL IN THE OPERATING FUNDS.

WE DON'T

[01:25:01]

WE CAN DROP IT IN THERE, BUT YOU'LL KNOW ONE WAY STREET GET IT, YOU KNOW, I MEAN IT'LL RAISE OFF TALKING ABOUT THAT.

YEAH, NO, NO, IT DOESN'T.

WHAT I KIND OF ENVISION IS, AND THIS IS SOMEWHAT THEORETICAL, WHICH DOES NOT ALWAYS HAPPEN WHEN THE RUBBER HITS THE ROAD, I UNDERSTAND, BUT IN THEORY, GOING BACK TO, IN MY, MY TERM, DUMB IT DOWN WHERE I CAN UNDERSTAND IT, YOU END UP HAVING TWO, TWO POOLS OF MONEY LEGALLY RESTRICTED.

WE'RE ALREADY THERE.

YOU HAVE UNRESTRICTED DISCRETIONARY GENERAL FUND BALANCE.

WITHIN THAT GENERAL FUND BALANCE, YOU WOULD'VE A INTERNALLY RESTRICTED AMOUNT FOR DEBT SERVICE.

THAT'S THE ADDITIONAL 17 MILLION THAT GETS US TWO YEARS WORTH.

NUMBER TWO, YOU WOULD HAVE TRULY UNRESTRICTED CASH.

THAT'S THE POOL THAT YOU GET YOUR THREE OR FOUR MONTHS WORTH OF EXPENSES IN RESERVE, AT LEAST IN THEORY, ONCE WE GET THERE, AND THAT MAY BE 28 BEFORE WE GET THERE, ONCE WE GET THERE, THEN THE BOARD AND MANAGEMENT TO SAY, HEY, WE'RE GONNA TAKE A PERCENTAGE OF OUR DEPRECIATION DEPRECIATION'S NON CASH, IT'S NOT BEEN WRITTEN OUT ANYWHERE, AND MOVE SOME OF THAT OVER TO THE UNRESTRICTED FUND BALANCE TO KEEP BUILDING IT OR PUT IT INTO THE DEBT SERVICE WITHIN THAT FUND, GENERAL FUND BALANCE.

THAT'S AN IDEAL SOURCE TO BEGIN TO MOVE THE PORT TOWARD.

WE APPROVE A $2 MILLION CONTRACT TO GO EXTEND THE ROADWAY OVER THERE.

THE CASH MONEY'S RIGHT THERE TO DO IT.

YOU KNOW, IT'S OUR POLICY.

WE CAN CHANGE OUR POLICY, WE CAN TAKE MONEY OUTTA THAT DEBT SERVICE, 17 MILLION AND USE IT FOR A CAPITAL PROJECT THAT COMES UP THAT WE HADN'T PLANNED OUT AND, AND WHAT HAVE YOU.

THE OTHER THING IS THE POLICY CAN CERTAINLY STAY PREAMBLE.

YOU KNOW, WE ACKNOWLEDGE WE'RE NOT THERE.

THESE ARE OUR ASPIRATIONS, THESE ARE OUR GOALS.

I DON'T WANNA BE IN VIOLATION OF OUR POLICY DAY ONE SO WE CAN PREAMBLE IT WITH ALL THE RIGHT LEGAL EASE TO SAY THESE ARE WHERE WE'RE HEADED, ACKNOWLEDGING THAT WE'RE NOT THERE IN 19, UH, 2025, BUT OUR GOAL IS IN THE COMING YEARS IS THIS WILL BE IN IN ONE, ONE.

ANCILLARY QUESTION WAS DO YOU, UH, DO YOU FORESEE PRESCRIBING THE TIME PERIOD THAT YOU USED TO GAUGE THE AMOUNT THAT SHOULD BE THERE? IN OTHER WORDS, IT'S, UH, THREE MONTHS OF, OF LAST, LAST FISCAL YEAR'S OPERATING COST OR THREE MONTHS OF BUDGETED OPERATING COSTS, OR I THINK YOU COULD DO IT, UH, WITH PROVERBIAL, UH, THE GREATER OF THE LAST YEAR'S ANNUAL OKAY.

ACTUAL EXPENDITURES OR THREE MONTHS OF THE EX BUDGET, UH, EXPENDITURES.

SO WE CLIMB THAT AND FLOAT THAT DEPENDING ON WHAT HAPPENS.

AND, AND I JUST, I WANT TO, UM, MAKE SURE IN MY MIND, UM, WHEN YOU THINK ABOUT WHERE WE ARE TODAY, WE WERE IN THE POSITION THAT WE'RE TRYING TO GET TO BEFORE WE WENT INTO THESE PROJECTS RIGHT NOW.

I MEAN, WE WERE SITTING ON THE $40 MILLION IN NON-RESTRICTED FUNDS.

IT WAS CONSISTENTLY THERE.

AND SO, YOU KNOW, I THINK WE, WE CAN SEE WHAT HAPPENS, RIGHT? WE CAN SEE WHAT HAPPENS NOW BECAUSE WE, WE HAVE THE 40 MILLION AND WE SPEND IT ON MATCHES AND WE SPEND IT ON, UH, YOU KNOW, SOME MOSTLY MATCHES.

THAT'S WHERE OUR BIGGEST MONEY HAS GONE IS.

AND SO ONE OF THE THINGS WE HAVE TO, I THINK MAKE SURE WITH THIS POLICY, IT'S WITHIN THIS BOARD'S DISCRETION.

I MEAN, THIS IS NOT A LEGAL, IN MY MIND, IT'S NOT A LEGAL DOCUMENT THAT IF WE VIOLATE OR, OR DECIDE THAT WE, THE BOARD WANTS TO DO SOMETHING DIFFERENT WRONG ON JAIL.

I MEAN, IT'S NOT THAT IT'S NOT THAT EXTREME, BUT IT'S, IT'S, IT'S JUST SOMETHING TO DEVIATE FROM, RIGHT.

WELL, BECAUSE I I, I'M CONCERNED WE'RE GONNA BE DEVIATING, YOU KNOW, BECAUSE HERE AGAIN, IF WE HAVE THINGS COME UP, YOU KNOW, FOR INSTANCE, CT 28, YOU KNOW, AND THERE'S GONNA BE SOME WORK NEEDS TO BE DONE 28TH SURE.

AND THOSE KIND OF THINGS THAT I THINK IF WE HAVE, I BELIEVE IF IN THE BACK IN MY MIND WE HAVE IN THE BACK OF OUR MIND, THIS IS WHERE WE'RE HEADING, THEN IT'S A LOT BETTER THAN NOT KNOWING WHERE WE'RE HEADING.

WELL, AND IF SEMANTICS, YES.

IF, IF YOU DIDN'T WANT TO CREATE AN INTERNAL RESERVE WITHIN THE GENERAL FUND

[01:30:01]

FOR DEBT SERVICE, YOU COULD JUST HAVE IT BROADLY FOR CAPITAL PROJECTS AND DEBT SERVICE AND THE BOARD, THE BOARD'S GONNA MAKE THAT DECISION.

AND WHEN WE HAVE A PRESENTATION FROM JEFF OR MARK OR ROGER COMES UP AND SAY, HEY, WE GOT THIS GRANT, WE WANT TO DO THIS.

AND THERE'S A WRITE UP, THEY CAN, UNDER FISCAL IMPACT, THEY CAN SAY, THE $3 MILLION FOR THIS LOCAL MATCH OR CAPITAL PROJECT IS COMING OUT OF FUND BALANCE.

AND WHEN WE APPROVE THAT, IT TELL, IT SHOULD TELL EVERYBODY TODAY WE'RE PERMITING OUR POLICY OR WE'RE USING THE MONEY FOR THAT PURPOSE.

AND AS LONG AS DISCLOSE PUBLIC INFORMATION, THERE'S NOTHING WRONG WITH THAT.

AS VIC BROUGHT UP.

I MEAN THE, THE RATING AGENTS.

ALL.

YOU KNOW, I DON'T THINK WE'LL EVER GET TO THE POINT WE CAN BUILD A PARKING DECK WITHOUT DEBT, BUT UH, UH, WE NEED TO MOVE THAT DIRECTION.

I'VE SEEN, I KNOW A COUPLE COURTS NOW THAT HAVE ARE YEAH, NO, YEAH.

IN 28, 29, WE MIGHT WELL DO IT.

BUT I THINK JUST TO ME THAT IT'S AN ASPIRATIONAL, I MEAN IT'S, IT IS JUST SAYING THIS IS WHERE WE WANT TO CONTINUE TO KEEP HEADING.

BUT IN MY MIND, IT DOESN'T TAKE AWAY AT ALL FROM EVERY BOARD HAS TO KIND OF LOOK AT THE OPPORTUNITIES AND THE SITUATION AND SAY, HEY, THIS IS A GOOD DEAL FOR US TO, TO TAKE SOME OF THAT MONEY AND INVEST AND MAKE MORE REVENUES.

I THINK YOU LIKE ROGER, I THINK YOU WORK WITHIN, YOU WORK TOWARDS THAT POLICY, BUT IT DOESN'T SAY YOU CAN'T MAKE SOME DEVIATIONS AS OPPORTUNITIES ARISE OR AS THE MASTER PLAN CALLS FOR NOT GOING TO JAIL, DON'T DO IT.

WELL THEN YOU DON'T WANT TO HAMSTRING FUTURE BOARDS TO BEING ABLE TO MAKE MONEY.

IT'S VOLUNTARY.

IT'S VOLUNTARY, RIGHT.

IT'S POLICY.

BUT YOU KNOW, WE CAN SET UP A PLAN WE SET.

I THINK THE POINT WE SHOULD DOCUMENT IT.

I MEAN, THAT'S A GREAT DOCUMENT.

IT WOULD GIVE THE BOARD, I MEAN THE BOARD WOULD MAKE DECISIONS COGNIZANTLY THAT THAT FUND IS EITHER FULL OR NOT OR WHERE WE'RE AT.

YOU MAKE, YOU'RE MAKING CONSCIOUS CHOICES.

IT'S A CONSCIOUS CHOICE.

EXACTLY.

DON REMEMBER WHEN I FIRST CAME HERE, WE, AND FOR IT REALLY DIDN'T MEAN A WHOLE LOT, BUT YOU KNOW, WHEN WE PUT 200,000 A MONTH, IF YOU REMEMBER THAT, I REMEMBER THAT.

PUT 200,000 A MONTH IN THE BANK AND WE SAID, HERE IT IS.

WE'RE LOOKING AT IT, WE CAN SEE IT.

AND IT, IT'S PSYCHOLOGICAL TO A CERTAIN EXTENT.

IT'S PSYCHOLOGICAL.

IT'S YOUR YOUR SAVING FOR THE FUTURE.

AND YOU KNOW, WE CAN DO SOMETHING VERY SIMILAR TO THAT.

AGAIN, YOU KNOW, WE KNOW WE WANT TO DO THIS AND SO WE, WE SAY WE'RE GONNA PUT 500,000 A MONTH OVER HERE, AND THEN THEORETICALLY WE'RE BUILDING THIS AS YOU KNOW, ALL ALONG AND YOU KNOW, BUT WE'RE SEEING IT.

WE'RE SEEING THE, WE'RE SEEING THE RESULTS.

YOU JUST PUT SOME IMPLIED GUIDELINES, GUARDRAILS THAT YOU KIND OF BOUNCE BETWEEN.

AND I THINK WE'RE THE VIOLENT AGREEMENT HERE.

DID YOU SAY BALANCE BETWEEN OR BALANCE BETWEEN BALANCE.

BALANCE.

I THINK THAT'S THE RIGHT DESCRIP.

SOMETIMES, SOMETIMES IT'S A BALANCE.

MAYOR, YOU KNOW, I, I AGREE AND I THINK WE SHOULD BE FLEXIBLE.

I PERSONALLY, I FEEL IT NEEDS TO BE A POLICY.

IT NEEDS TO BE MORE THAN JUST, HEY, WE'RE GONNA DO THIS.

IT NEEDS TO BE A POLICY THAT WE VOTE ON.

AND IN THAT POLICY, IT GIVES US THE FLEXIBILITY TO MOVE MONEY OUT OF THERE IF WE NEED TO.

BUT IT NEEDS TO BE SOMETHING THAT'S FORMALIZED SO THAT WE KNOW THAT THAT'S A POLICY THAT WE HAVE.

THAT'S THE REASON FOR THE AGENDA ITEM.

WE HAVEN'T FORMALLY BEEN DOING THIS.

I THINK IT NEEDS TO BE CODIFIED AND POLICY BOOK DO THE SAME THING.

THEY COULD SAY OUT OF THIS SECOND, OUT OF THIS SILO, WE'RE GONNA GET REPORTS THIS MUCH MONEY TO HELP BUILD THE RESERVES.

THE CITY'S GONNA, THE CITY WILL FOREGO THREE YEARS OF THEIR MONEY WORTH SENDING AND CONTRIBUTION.

THAT'S NOT BAD HERE, HONOR.

SO HOW DO WE WANT TO MOVE FORWARD WITH THIS DRAFT? WE WILL, YOU KNOW, WE WILL ATTEMPT TO HAVE THIS BY THE NEXT MEETING.

LIKE IT'S A DIRECT CASH FLOW TYPE, UM, METHOD.

UM, AND I THINK YOU SHOULD BE ABLE TO, YEAH, AND I'M, I'M, YOU KNOW, THE BOARD'S GONNA BE HERE FOR A LONG TIME, SO IF WE DRAFT NEXT MONTH, WE DON'T HAVE TO VOTE ON IT NEXT MONTH.

WE CAN GET A DRAFT ADJUSTED A MONTH VOTE IN SEPTEMBER.

I MEAN, JUST KEEP MOVING THE BALL FORWARD.

AND IF I COULD POINT OUT ONE THING, IF YOU LOOK AT THE CONSENT AGENDA, ITEM NUMBER FIVE, WHAT WE'RE TALKING ABOUT DOING, WE'RE PRETTY MUCH DOING THAT IN THAT YOU LOOK AT THE DECEMBER'S NUMBER AND YOU GO DOWN TO THE VERY LAST THREE COLUMN.

WE START OFF, WE ADD DEPRECIATION BACK IN DURING THE COURSE OF THE YEAR.

SO WE'RE TAKING DEPRECIATION AND WE'RE TAKING OUT THE CASH AND NON-CASH ITEMS, JUST

[01:35:01]

AND WE GET DOWN HERE AND PUT THE LOOK AT THE LAST THREE LINES.

THERE'S 12 MILLION, 500,000, 14 MILLION, 820,000.

THAT'S WHAT'S IN, THAT'S WHAT CONSIDERED FOR FINANCIAL PURPOSES, UNRESTRICTED CASH.

THE TWO LINES ABOVE THAT ARE, ARE THE, THE LEGALLY RESTRICTED AMOUNTS.

SO WE'VE GOT IT BROKE DOWN ALREADY IN A VERY USABLE, GOOD FORMAT THAT MIRRORS WHAT WE PUT IN THE ANNUAL REPORT.

SO IT, IT'S, IT'S REFLECTIVE OF THAT.

IF THIS IS JUST PROJECTIONS THROUGH THE END OF THE YEAR.

SO ONCE WE KNOW WHAT THOSE TARGETS ARE, WE CAN, WE CAN WORK TOWARD IT.

ANY FURTHER DISCUSSION ABOUT THIS? IF NOT,

[C.6 Discuss and Consider for Approval the Changes to the Financial Summary Reports from the June Meeting. Trustee Yarbrough and Trustee Lidstone.]

WE'RE GONNA MOVE ON, UH, TO, UH, C SIX, WHICH IS DISCUSSED AND CONSIDER FOR APPROVAL OF THE CHANGES TO THE FINANCIAL SUMMARY REPORTS FROM THE JUNE MEETING TRUSTEE BOROUGH.

YEAH, WE, WE GOT A GOOD REPORT LAST TIME.

MARK AND THEM DID A GOOD JOB OF KIND OF CAPING THE CHANGES THAT WE HAD DISCUSSED OVER THE LAST SEVERAL MONTHS.

AGAIN, ALL I'M, MY REQUEST IS THAT WE ACTUALLY APPROVE THOSE.

I WEIGH TWO YEARS FROM NOW, WHEN A BOARD MEMBER SAYS, WELL, WHY DON'T WE HAVE THIS REPORT? STAFF CAN GO BACK AND SAY, WELL, THE BOARD IN 25 SAID THIS IS WHAT THEY WANTED.

AND THEY CAN CHANGE IT AGAIN IF THEY WANT.

SURE.

JUST TO MEMORIALIZE IT IN THE MINUTES AND PUBLIC RECORD.

WITH THAT, DO WE HAVE A MOTION? SO MOVE SECOND, SECOND MOTION AND A SECOND FURTHER DISCUSSION.

ALL THOSE IN FAVOR, RAISE YOUR HAND.

YOUR UNANIMOUS.

C SEVEN, DISCUSS AND CONSIDER DEVELOPMENT OF ANCE COMMITTEE CALENDAR FOR THE REMAINDER OF 2025 AND ALL OF 2026 TO ALIGN WITH THE OVERALL BOARD CALENDAR DISCUSSED AT THE JUNE MEETING.

OKAY,

[C.7 Discuss and Consider Development of Finance Committee Calendar for the remainder of 2025 and all of 2026 to Align with Overall Board Calendar, discussed at the June Meeting.]

I MEAN, THIS IS PRETTY STRAIGHTFORWARD.

YEAH, SAME THING.

AND I THINK ALL THREE COMMITTEES, THE PENSION, THE, UH, COMP AND THE FINANCIAL OUGHT TO HAVE AN INTERNAL CALENDAR THAT WE DON'T HAVE THINGS SLIP THROUGH THE CRACKS OR FORGET.

AND THE REST OF THE COURT WHO AREN'T ON THOSE COMMITTEES KNOW KIND OF WHAT'S COMING.

IF THEY WANT TO WEIGH IN ON A TOPIC WITH THAT, IS THERE A MOTION? SO SECOND.

SECOND.

UM, ANY FURTHER DISCUSSION? AND THEY CAN BRING BACK LIKE THEY DID ON THE BOARD.

THIS WOULD BE WITH THEM BOARD.

THEY CAN BRING THAT BACK TO THE FINANCE COMMITTEE TO LOOK AT IT AND UNDERSTAND IT A LITTLE CLOSER AND ADD TO IT OR WHATEVER FALLS.

MOTION IN A SECOND.

ALL THOSE IN FAVOR? RAISE YOUR HAND.

I WOULD THINK ONE, AND I WOULD ADD ONE POINT THAT, UM, WE SHOULD, WE WOULD WELCOME FEEDBACK FROM BOARD MEMBERS ON WHAT THEY'D LIKE TO SEE ON TOO.