No Bookmarks Exist.
Gentlemen, if you would take a look at the minutes from our last meeting. 00:00:00
And if there's a motion to adopt, we'll entertain that. All in favor, say aye, aye, OK. 00:00:04
Minutes are adopted. 00:00:10
Item number 1 Old Business. 00:00:11
Authorization to amend joint funding agreement with University of Alabama. 00:00:14
The Northington Property Access Rd. Improvements Project sections. 00:00:18
One and two Miss Standridge. 00:00:23
Yes, good afternoon, council. Good afternoon. This item was briefed last week. There is approximately $135,000 that the University 00:00:25
of Alabama has. 00:00:30
Analyzed as savings on the Northington Access Rd. Project. 00:00:36
And they are requesting that we move that exact 135,000 out of their funding agreement for that project and into improvements for 00:00:40
the strip area that they will manage. 00:00:45
Um, and you know, just to transfer over that amount of funding from the Northington Access Rd. into strip improvements? 00:00:50
Mr. Moore and Miss Coleman are both here to be able to discuss SCOPE, if you have questions about that. 00:00:58
I do. Who wants to start? 00:01:03
Mr. Moore, you brokered the deal. Why don't you get us into it and then summer, you can. 00:01:06
Walk us through the structures to be taken care of. 00:01:12
Sir, so this request is from the University of the Northington Rd. project. There's approximately $135,000 in savings from the bid 00:01:15
price. 00:01:19
They approached us and this has been an ongoing probably for six to eight months. 00:01:25
Of trying to do some general maintenance and safety improvements on the strip in between or during the summer months in between 00:01:29
really the end of school and the start back of the fall. 00:01:33
About two weeks ago. Well, actually, yes. This Wednesday will be our second meeting, 2 weeks ago. 00:01:38
We had our kind of pre planning implementation meeting as public safety centric. 00:01:43
For Fall 23 football season. 00:01:47
Matt Pajak, Tim Leopard, Chad Tindall, Chief Hooks, Ralph, really Kind of everybody on the US side and their counterparts from the 00:01:52
City side, so. 00:01:57
Doctor Rush Scott Holmes. 00:02:02
Chief Clark, myself. Selmer. 00:02:05
Sat down and kind of tried to identify some quick items that we could look at for improvement. 00:02:08
Some of the ones we have identified right now is adding some kind of speaker and camera type systems to the police precinct area. 00:02:12
Mr. What speaker? 00:02:20
To help communicate if you needed to do crowd disbursement. 00:02:22
Mr. O'Leary noted some fiber improvements in that area that will be running the precinct. That should address some cameras that 00:02:26
we'd also like to install that get disrupted. 00:02:30
Due to excessive crowds and Wi-Fi, that can kind of cause the signal to go down. 00:02:34
That should be cleared up. I'm sure you're familiar with the. 00:02:39
Yellow kind of loading zone area. 00:02:42
We are working with Miss Coleman and the UA side to figure out a little bit safer way for what I'll call the ride sharing the 00:02:45
party, courts, Joy Rides, Lyft, Uber, et cetera. 00:02:50
Kind of race stripe that, get that cleaned up. 00:02:55
There's some trip hazards out in the area that have been and been identified by Mr. Green and then the UA Facilities Maintenance 00:02:57
Group that we're looking at trying to get on some of the intersections improved. 00:03:02
For some general cleanup. 00:03:08
And then also too, there's also some discussion about lighting. 00:03:10
In some areas that we're going to talk about, I think it's this Wednesday. 00:03:14
That we would like to get moving in some areas to do a little bit faster. 00:03:17
OK, summer, you wanna include between where and where? 00:03:21
Between where and where basically be from. 00:03:26
What is the? 00:03:29
Race, not race St. I would say 1 potentially red Drew. 00:03:31
I would say maybe the campus way right at the public's intersection. It shouldn't punch too much past unless it's some signage. 00:03:35
So kind of in that core concentrated a lot, 2 blocks, OK And and who's executing the work and who's overseeing it, The 00:03:41
universities overseeing construction department will oversee that. They will issue either contracts or purchase orders to their 00:03:46
contractors. They will come out and handle. 00:03:51
Any of their repairs and that that actually helps us out because between my group and Sylvans group we just we we don't have the 00:03:56
manpower to do it in that timely. 00:04:00
Fashion. 00:04:04
And that one month period. So that that helps us out a lot and they'll manage it. 00:04:05
And we we can use this. 00:04:09
Savings of money to take care of it. 00:04:11
OK. One other observation that I'll put in here and then I'll, I'll let the other members. 00:04:14
This. 00:04:20
Just loading zone which runs from. 00:04:21
Red Drew to Frank Thomas, I think essentially. 00:04:25
That we we got rid of the. 00:04:28
Parallel parking there and we converted it. 00:04:32
To loading. 00:04:36
Reserve loading zone. 00:04:38
I have never seen it utilized routinely. 00:04:41
On. 00:04:45
Several times a week we'll see the trucks parked in the center lane of University Blvd. And anybody who wants. 00:04:46
A pizza burrito or whatever. 00:04:54
Is parked in those lines, so I would ask. 00:04:56
That if. 00:04:59
If this is encompassing that area. 00:05:00
That I I would suggest that we include whoever that is our. 00:05:03
Traffic engineering people reassess that place and I can also restricting and painting for it to be a rideshare area or a delivery 00:05:08
drop off but not a. 00:05:13
Not like a Cisco truck, but just a. 00:05:19
Well, right now it is routinely and regularly used to. 00:05:22
For people to park and there's no enforcement. 00:05:28
That I know of, And that's how it always sits. That's any Mr. Crow, Mr. Fail. 00:05:31
Any questions? 00:05:36
Is there a capital? 00:05:38
13135 not to exceed. 00:05:40
Can we do it for 1:35? 00:05:45
Yes, yes. And I mean I I walked the area with Tim Leopard a couple weeks ago. We went, we noted some things. I think it's totally. 00:05:47
Doable. 00:05:54
And I do think in summer touched almost not. I was remiss that I should have pointed this out earlier. I did speak with. 00:05:57
Public works and facilities and grounds on those dollars. 00:06:04
Both reiterated Miss Colman's point that really from a capacity manpower to be able to actually execute it within that 60 day 00:06:07
window. 00:06:10
It would be more advantageous for the university that we looked at doing it internally. 00:06:14
And their recommendation was to let them knock it out. 00:06:18
I think if if council would like we could bring back once we get through kind of the pre planning process tomorrow. 00:06:22
Goal is to have everything essentially up and running by Labor Day or by the Texas game, which I believe is the 10th. 00:06:27
Or 9th excuse me. 00:06:34
Have that work through. We could bring you back some of the specs and show you kind of what we're trying to do in that area. 00:06:36
In concert, If that's something council, be interested. 00:06:42
Any other questions? 00:06:44
Through motion. 00:06:46
So move. 00:06:47
Or second. 00:06:49
You got a second, Mr. Foyle? 00:06:51
All in favor, say aye, aye. OK, motion is approved item number two or item number one on new business. 00:06:53
Authorization to amend contract agreement with Para Foundation. 00:07:02
For improvements to Bowers Park. 00:07:06
Hey, good afternoon council. Good afternoon. This is to amend a previous contract with the pair of foundation from 235,000 down to 00:07:08
100,000. 00:07:12
This is due in large part to the ask that both Tuscaloosa tourism or visit Tuscaloosa and the Para Board came to us for what those 00:07:17
improvements may be. 00:07:21
And for us finding cost savings for the city to be able to provide fiber and Wi-Fi work that originally was going to be required. 00:07:25
That was for the Dixie youth. Yes, Dale, right, that never happen. 00:07:33
Correct. So this is the original contract. 00:07:36
We signed with them for that, correct. So we're wanting to change that just for. 00:07:40
To make it. 00:07:44
Yeah, lowering the amount just from the list of asks that they provided with us, the amount come in, came in a lot lower than the 00:07:45
previous ask. Ask another question. Yeah, just so. 00:07:50
I mean. 00:07:56
You said five or what? What else? I mean, they're gonna, I don't think, upgrade the ball fields. And yeah, they're going to 00:07:57
provide for that. They're going to do air units and the press boxes, run electrical wiring out into the dugouts and then. 00:08:02
Do upgrades to the PA communication systems, currently one PA system. 00:08:08
Goes to all four fields in each cluster, so each field will have its own PA. 00:08:13
Go ahead, Mr. 00:08:20
His wife. 00:08:21
Yeah, both. Yes, Sir. Both ball field clusters will have Wi-Fi servicing. 00:08:23
Them and roughly the area nearby. 00:08:29
And and so all of that. 00:08:35
That Wi-Fi fiber, all of that's at Bauer Park? Bowers Park. 00:08:37
Yes, Sir. There's already conduit out there that the city will be able to tap into and utilize. There would be a little additional 00:08:42
that will have to do some boring under the road right there. 00:08:46
But compared to the cost that was 55,000 proposed from Para, we think we could do the work for much cheaper. 00:08:51
OK. 00:08:58
Ohh yeah sure. 00:09:00
Doing these improvements and I know stands here and our French pair here too, but. 00:09:03
We feel, I would hope the answer is yes, this is going to improve our our prospects of getting. 00:09:09
Maybe some other tournaments? 00:09:14
Some other things. These are things that we need to do in order to make us more competitive. 00:09:16
Yes. And I and I'll leave on this, I'll, I'll lean on Stan really to speak to that. 00:09:20
Pretty much any bid outside of kind of something very smaller. 00:09:26
Very minimum requirements, you got that Wi-Fi nowadays. 00:09:29
So getting those kind of up to speed and up to grade, we'll be able to kind of that's what the Dixie was. That was one of the main 00:09:32
kind of draws of it was it was kind of. 00:09:35
The build of it not only was huge, but it was gonna have to, you know, force us to kind of get up with the times. 00:09:39
With it. So yes, it'll it'll definitely help us in the long term for sure. 00:09:44
IT is going to maintain the system itself. We made that decision and that will. 00:09:49
If parents having a big functional on a weekend. 00:09:54
And something goes sideways. 00:09:57
They don't have to call out a company and hope that they will get there. 00:09:59
And so it's good all the way around. The other thing is that none of these improvements will be torn out. 00:10:03
Because we have several million budgeted for Bowers Park improvements over the next few years. 00:10:09
And we want they None of these improvements will be torn out as part of those. 00:10:14
And so we never. 00:10:22
Miss Stent, we never put. 00:10:24
We never handed the check. 00:10:26
Over to the pair of foundation, right? It's still. 00:10:27
And this account 23517, yes Sir, the way that we, the way that we configured the funding agreement was on a basically 00:10:31
reimbursement basis that they would have to you know give us cost. 00:10:36
I got you. 00:10:42
Substantiation for what they spent and the investments they put in. And since nothing ever happened, we never cut them any checks 00:10:43
off of this budgeted amount. So the full 235 is currently sitting still budgeted as it was appropriated and so this funding 00:10:50
agreement would just take that to 100,000 for the specific investments. 00:10:56
The other 135 is still going to be kind of in that Bowers Park investment account that could possibly be reallocated at another 00:11:03
time or something else. 00:11:07
Yes. 00:11:11
So we we've got the pair of executive team over here, Brian, Mike anything you want to add or ask? 00:11:12
OK. 00:11:21
Is there a motion to approve motion? 00:11:23
Is there a second? 00:11:26
2nd. 00:11:28
All in favor, say aye. Aye. OK, motion is approved. 00:11:29
Item number 3 Quarterly budget. Mayor and Miss Standridge. Yes Sir. I'll begin with the General Fund and Education and Education 00:11:34
ETF elevates Tuscaloosa major funds along with water and sewer. So. 00:11:41
We'll jump. I say ETF sometimes I still think I put on my state hat and think Education Trust fund. 00:11:51
When you look at our general fund major revenue budgets, when you look at where we get the prime, where we our primary sources of 00:11:57
revenue sales tax. 00:12:02
Is always a driver of that along with countrywide sales tax so. 00:12:07
Nearly. 00:12:11
50% of our revenues come from the day-to-day transactions in our economy. 00:12:12
If you factor in, use tags and SUT climbs above. 00:12:18
Well above 50%. So that's what drives our ability to. 00:12:23
To fund fire. 00:12:27
Fun police. 00:12:28
As we were talking about yesterday, $0.41 out of every dollar we spend at city of Tuscaloosa goes into fire and police. 00:12:30
So that is certainly our our top priorities. 00:12:37
In terms of major revenues, where we are in the budget year, we're at 67% of of budget. 00:12:41
Overall, we estimate that if all things being equal, and if we are able to average out what we are at, collect what we. 00:12:49
Did last year at this time we will finish with a $6.2 million revenue surplus. 00:12:58
On the general fund, that does not include. 00:13:04
Elevate. 00:13:07
You can also see through that bar graph that every month we've been a little bit ahead of prior year. 00:13:08
I'm getting rumors out of A and F that that may not be the case for April's election. 00:13:15
It's still too early for us to to know. 00:13:22
They'll have to be a deep dive, but. 00:13:27
We do see signs of a slowing economy compared to last year. 00:13:29
The other thing I think we have to be careful of and not to have hubris about. 00:13:34
Is that, yes, there is growth on the sales tax side, but how much of that's inflationary related? 00:13:38
Versus actual true growth. 00:13:43
In the economy itself. 00:13:45
So certainly you want to be ahead, but how much of the light prior year inflation? 00:13:48
Contributed to that? 00:13:52
Again that that's that's something for us to think about is. 00:13:55
We're now. 00:13:59
You know. 00:14:00
2 feet in the deep end of the pool. 00:14:01
Of the fiscal year 2000 Fiscal year 24 budget. 00:14:03
So in terms of general sales, general fund sales tax collections? 00:14:07
23.6 million was what we collected. 00:14:12
As of March, and you can see where we were this time. 00:14:17
And 22 and 21. 00:14:21
Overall, we anticipate being 1.6 million. 00:14:24
Above budgeted. 00:14:29
On city sales tax. 00:14:31
On use funds, we're a couple 100,000 of where we were this time last year. 00:14:34
We anticipate assuming that we. 00:14:40
We collect the equal amount prior from from April to. 00:14:43
September of last year. 00:14:47
We anticipate having a budget surplus in this line item of 466,000. 00:14:49
$6 Can can I ask you should be a short answer question and I may have asked it before. 00:14:55
I think it's gonna be a mischief. 00:15:00
Do we? 00:15:03
When we're building the revenue budget for. 00:15:04
The sales tax. 00:15:08
That we assume an inflation number. 00:15:09
On the front end as part of that. 00:15:11
I know we've talked about. 00:15:13
We generally take our. 00:15:15
Our last year's, I think we add 2%. 00:15:17
That. 00:15:20
Under the mic, right? You know that was. 00:15:22
The microlight formula, it really lasts on sales tax and use tax. We we have increased on property tax and lodging tax and SUT. 00:15:24
Just because of their growth, but on the back. 00:15:34
The. 00:15:38
We don't assume any inflation base. 00:15:40
On the front end of that. 00:15:42
Alright, thank. 00:15:45
Looking at simplified, sellers use tax, which is what I would normally refer to as an Internet tax. 00:15:49
Certainly this continues to grow. 00:15:55
And on one hand that is a positive and we do anticipate. 00:15:58
Under SUTA. 00:16:02
Got my CHEAT SHEET in front of me. 00:16:06
Almost $1,000,000 above budget. 00:16:08
But I'd like to remind you what you're seeing there is about $0.70 on the dollar. 00:16:11
It's as if I. 00:16:17
You know this, you gave somebody a dollar and they gave you back $0.70 and. 00:16:18
You should be happy with the $0.70 that you got. 00:16:23
This is certainly something we're gonna continue to work on. 00:16:26
I sent you a copy of the park a study recently. 00:16:30
15% of gross sales now in Alabama total come out of Internet based sales. 00:16:33
And that number is going to continue to increase. 00:16:40
If. 00:16:43
You know, if our share of that continues to be less and less. 00:16:44
That will continue to be a problem for municipalities across the state, especially larger municipalities. 00:16:48
Remember 68%? 00:16:54
Points of sale in Tuscaloosa County take place within the cities. 00:16:56
Limits. 00:17:00
But we don't receive 68% of the share of the county. 00:17:02
SUT preparation. 00:17:06
That that's something that long range. 00:17:08
Myself and others that fall behind me will have to. 00:17:11
Certainly continue to work through. 00:17:14
To resolve. 00:17:17
On property tax, we're a little bit ahead of this time last year. The majority of property tax has been collected. 00:17:19
Becky and her wisdom believes we will finish about $166,000 over budget. 00:17:27
By the time it's all said. 00:17:33
And done. 00:17:36
I don't know about you, but if any of you got any appraisal complaints. 00:17:38
Mine went up 23%. 00:17:42
Ohh, mine went up and I've had a lot of people contact me via e-mail or text and. 00:17:45
Why the city did that and why did we do I, I don't know why we did it and we we didn't even realize we did it, you know, but we we 00:17:50
sent them some to the county tax appraisers. 00:17:55
All of us. 00:18:01
General fund rental tangible tax, we anticipate a small budget surplus at 52,000. We're at 53% of budget. 00:18:02
And are a little bit of head of where we were. 00:18:11
This time last year. 00:18:15
So that'll shake out that if we're. 00:18:16
53%. 00:18:20
Can you back up one? 00:18:21
And some of these million one, a million two is that? 00:18:24
The overall budget for rental tangible this year we budgeted 1,154,000. 00:18:28
OK. 00:18:37
A lot of these are not a lot of these, but some of these taxes are don't come in 12. 00:18:38
Increments that are collected over 12 months, but. 00:18:44
Larger shares come in different time periods. 00:18:47
We certainly believe lodging tax will be one of these, although it's at 48% today. 00:18:50
We do anticipate that lodging tax will exceed budget. 00:18:56
Albeit by $125,000 if we collect equal to this time last year in fiscal year 22. 00:19:00
We budgeted how much growth, This is one of the few line item 3 budgeted growth I think. 00:19:08
So. 00:19:17
And I want to make sure I don't because I do confuse the rental. 00:19:19
That that little tangible tax. 00:19:23
That's the one on rental property? No Sir. That's like I'm renting A forklift or a. 00:19:25
You know, piece of equipment. 00:19:32
OK. And but we're we're coming up to the rental license? 00:19:34
So we're. 00:19:39
The next just over 5,000,000. 00:19:41
On short term logic, tax right. 00:19:44
On lodging tags, we also have a short term rental. 00:19:48
Category as well. 00:19:52
Ohh. We break out the lodging. I got you. 00:19:56
I thought, Man, we're collected 5. 00:20:00
Plus million on. 00:20:03
Game day rentals. 00:20:04
And in a couple of other notes, TTS could probably direct us to know occupancy. 00:20:06
Again, you may have some inflationary pressures here that may make that number a little bit higher. 00:20:13
So that's something as we get into the budget time, we we will coordinate with TTS. 00:20:20
Look at occupancy. The other can be timing of Alabama football games. 00:20:25
If you have sometimes you may have two in September. You have all the big ones after the end of the fiscal year. 00:20:31
And and that can. 00:20:36
That can create some Tommy difference. This year we have three home games in September. 00:20:38
And I think all three are pre. 00:20:43
Significant that Texas one will be. 00:20:46
It'll make LSU 2019 and LSU 2011 looked like a. 00:20:48
One of my flag football games I coach. 00:20:54
It'll be small, we actually. 00:20:57
On a weekend, the economic impact of that, what was that number like on a football weekends it? 00:21:00
Says they normally say about 20 + 1,000,000 dollars economic impact. Now we don't receive that. 00:21:05
Contrary to what people hear that number and they make all this money. 00:21:11
No, we normally get about 3% of that. So that would be about $600,000. But you've got to remember we also expend about $350,000 in 00:21:14
personnel costs, so. 00:21:19
We certainly still make a profit. 00:21:25
But it's not clear. 00:21:27
It's not the clear kind of. 00:21:29
Profit. The other thing. 00:21:31
Is, and I call it. You can only put so much water in a bathtub. 00:21:33
We only have so many hotel rooms, so many restaurants. 00:21:36
So many places you can spend money and when you have 120,000. 00:21:40
Versus 150,000, you're not really going to pick up that much more in revenues. 00:21:45
But you will pick up a lot more. 00:21:50
And expenses? 00:21:53
That's done by the Texas weekend. Yeah, yeah, see, that's the projected. 00:21:55
Friday the Tiger Woods. 00:22:00
Facilities supposed to open, yeah. 00:22:02
But this, this year, the good thing for us is we've got 5. 00:22:06
We always have seven home games, but we have 5. 00:22:09
Really good games. 00:22:11
Five. Goodness, because you got Tennessee. 00:22:13
Got LSE Arkansas Homecoming, Ole Miss. 00:22:15
And Texas. I mean, the Texas game is huge, but. 00:22:18
LSU and Tennessee will be. 00:22:21
Yeah, the Tennessee game is going to be back to being. 00:22:23
The way it was when I was little. 00:22:26
It. 00:22:28
It's going to be a lot of fun for our fans and guests and our citizens. It's going to be a lot of work by your departments. Ohh, 00:22:29
absolutely airports. 00:22:33
I absolutely note the Texas game may be the largest airport drive. I know Texas A&M is normally the biggest airport day of the 00:22:40
year. 00:22:44
They we're hearing that Texas maybe? 00:22:48
We're also getting a lot of economic development requests, people who all of a sudden are looking at Tuscaloosa and like to come 00:22:51
to the Alabama, Texas game. It's amazing. Yeah, how, how, how, how, all that, all that works. All of a sudden they they want to 00:22:55
come see the city on Saturday the. 00:23:00
The day the game happens. 00:23:05
So the next one is the the rental tax, dwelling tax. 00:23:08
Right now, we're anticipating a. 00:23:13
A surplus of $174,000. 00:23:16
We're a little bit ahead of budget this year overall the the total budget on that Mister Busby. 00:23:19
Is this year 3.8 million? 00:23:26
That's 1%. 00:23:29
3.8 and we've been in the low threes. 00:23:31
Yes, Sir. It's also for the hike. 00:23:34
Well, the hike is separated out the 2%, which is on the 200 and more. 00:23:37
Apartments, which may be I don't think is included in this slide, It's not. 00:23:43
It's it's what? 00:23:51
They're not. 00:23:53
Pleasure is mine. 00:23:54
OK. That's on top of the three ish. 00:23:57
Yes Sir, the 1.7 on top of the 3.8 I'm very good. 00:24:02
So we collect about 4.5 million. 00:24:05
Little over between boat. 00:24:09
Short term rental, I I believe this this number is encouraging and the sense that our collections continue to pick up. 00:24:13
But I don't believe it is a reflection of what we see out there. 00:24:21
In terms of short term rentals? 00:24:26
Our team does work this. 00:24:29
But it'll be have something we will have to continue to to work on. 00:24:31
We hear. I don't know if Mr. Adams here is what we hear but hoteliers, I would imagine say the same things to them as. 00:24:36
They believe this is. 00:24:42
The Airbnb the RBO's are making a dent. 00:24:44
And their room nights. 00:24:48
If they are, and you juxtapose what we're collecting there versus. 00:24:51
Which is a much higher rate is 11%. 00:24:55
On a. 00:24:58
SDR. 00:24:58
Or right? 00:25:00
Same as lodging. 00:25:03
You know, I'm not saying there should be comparable because there's not 3000 plus hotel rooms, but. 00:25:11
Yeah, I do think that's something as we look over the horizon. 00:25:17
Own. 00:25:21
The potential revenue that we're not collecting. 00:25:22
This could be something the Council wants to focus on in the future. It certainly would take more. 00:25:25
Enforcement to do that. 00:25:30
I wanna brag. I don't know if we have a slide on audits. Do we have a? I don't think we do before before we leave. 00:25:33
Can can you back up that one? Yes, Sir. You still got the short? 00:25:40
So. 00:25:45
I suspect. 00:25:48
The hotel yours complaint about their. 00:25:50
That the short term rentals. 00:25:53
Or making. 00:25:55
There. 00:25:57
Is probably true. 00:25:58
Because I think the pricing mechanism. 00:26:00
Is temporarily out of whack. 00:26:03
If you compare. 00:26:05
If you're bringing a family group of. 00:26:08
8. 00:26:11
And whatever down here. 00:26:12
And you compare trying to get hotel rooms. 00:26:14
Versus. 00:26:17
I'm home. 00:26:19
You'll. 00:26:21
The pricing mechanism right now? 00:26:22
Is very much in favor. 00:26:24
Of the short term rentals, if that suits your needs. 00:26:26
But that's going up quickly. 00:26:29
And so the the inflation. 00:26:31
The price inflation we're seeing on those rental houses. 00:26:34
Yes. 00:26:39
Probably foreign exists. 00:26:39
Of the price inflation we're seeing. 00:26:42
In general, prices around here. 00:26:44
It's. 00:26:46
Bordering on. 00:26:47
Obscene and I'm on the I'm on the good end of that. But. 00:26:48
Our, our just the hotel rooms are just. 00:26:52
I can't imagine. 00:26:55
Paying for a hotel room. 00:26:57
And it'll be multiple nights, I guess. 00:26:59
393 night minimums that be $6000. 00:27:02
See. 00:27:07
That's terrible. 00:27:08
Well, they'll pay 7000 for a big house that weekend. 00:27:09
I'm sorry, go ahead. No, no, it's it's just horrible. So it's there's not a slot, but I really want to commend Miss Standridge and 00:27:14
Miss Sheep and there's and and Mr. Smalley and their entire team. 00:27:20
Our audit budget this year was $250,000. 00:27:28
We anticipate an $840,000. 00:27:32
That we will end the year on. 00:27:37
And a lot of that has to do with, in my opinion. 00:27:40
We're focusing on going after more of the big, bigger out of town. 00:27:45
Who? 00:27:51
Have both. 00:27:52
A hybrid of a Internet and brick and mortar business as well. 00:27:53
And they've done a really good job of coordinating with OCA on that. And so they're they're to be commended, that is. 00:27:58
Significant and. 00:28:05
Please express your heart. Thanks to your team. 00:28:06
And transcend here, You know, he's the one that leads our audit team. 00:28:10
And I, you know, I can't say enough. 00:28:14
Great things about the work that they do that the. 00:28:16
Amount of activity that happens in our economy that we do not know about, that does not touch us. They try and handle as much of 00:28:20
that as possible and that's really where you will see the audit revenues come into play. 00:28:27
You know, not obviously. Not everybody wants to come in. 00:28:34
Report to the government about the money that they're making in our. 00:28:37
Our community. 00:28:41
And so they really are going to be the the ones that. 00:28:42
The trial. 00:28:45
You're right. 00:28:46
Well, I think every taxpayer, most taxpayers in our community that wake up every day go to work. They invest in their homes. 00:28:49
They deserve to know that everyone's paying their fair share. 00:28:57
And I'm really proud that our audit team. 00:29:01
Is ensuring that that happens and and we need it because you you hear about the challenges that we face. 00:29:04
And certainly the taxpayers want us to make certain that everyone's. 00:29:11
They don't want to pay anymore until they're certain that we're collecting every bit. 00:29:15
That should be paid. 00:29:19
And our audit team. 00:29:20
Has done a really good job and I'm I'm thankful for and I know that that is not an easy assignment. 00:29:22
Business license, which is always a reflection of a year in the past. 00:29:27
We are at 100% of budget. 00:29:33
A little bit ahead of where we were. 00:29:36
This time last year, so as we look in the rearview mirror. 00:29:38
At business licenses as a whole, we anticipate being 420. 00:29:42
1000 ish. 00:29:48
Above budget when all said and done, we still got a few more months of collection, but for the most part. 00:29:49
All business licenses have been paid. 00:29:54
This is the one that if if I were in sitting in your shoes and you're gonna get our budget. 00:29:58
In August that you should be concerned about is our building permits. 00:30:04
Our building permit numbers are. 00:30:09
Down considerably. 00:30:11
From where they were now, the Council did in its budget. 00:30:13
Big Reduce the amount of building permits. 00:30:17
We only anticipate being down budget wise by $15,000. 00:30:20
But what we believe last year is holding true into this year. 00:30:25
There is not a lot of. 00:30:29
Commercial and residential building as what we've seen in the past. 00:30:32
Some of that's going to be because we're in a digital economy, you're you're not gonna have university malls. 00:30:36
Of the future, people are never going. You're not going to have the big commercial developments which. 00:30:41
Are the bread and butter of municipalities. 00:30:46
In Alabama anymore because of our tax structure? 00:30:48
But even with that said, I think we. 00:30:52
There is a definite slowdown, certainly that if the feds goal was to slow it, slow it down by bringing up in interest rates, they 00:30:55
have done. 00:30:59
At least in our little. 00:31:03
In the corner of the world. 00:31:04
I think we have to keep this in mind as we're thinking about the 24 budget. 00:31:07
That probably needs to govern us and not. 00:31:12
Being too ambitious in our revenue line items. 00:31:15
Assuming much growth, I think we've got another 12 months of. 00:31:19
A wait and see economy. 00:31:23
And if anybody knows their crystal ball is working, we certainly would be interested in. 00:31:26
And what they think is going to happen. 00:31:31
But right now I think it's there's a lot of uncertainty in this. 00:31:34
This doesn't. This adds to that uncertainty, in my opinion. 00:31:38
Any questions on this? 00:31:40
Ashley and her team. 00:31:44
They always do a deep dive prior to budget and we will give you. 00:31:45
Data on this kind of lets you get a little an inside look of the breakdown of residential and commercial. 00:31:50
As we get into the budget season. 00:31:57
County sales tax and certainly mirrors the cities. The little bit of difference with the county sales tax is they they throw in 00:32:00
their use tax with it. 00:32:05
We anticipate being 1.1 million. 00:32:10
Above budget. 00:32:13
This is really good for not only the county, but for our city, schools, county schools, Tikrit. 00:32:14
DCH Northport. 00:32:21
By the way, SUT doesn't get broken out by those. 00:32:23
It it just goes directly to the county. 00:32:26
So whereas the county sales tax, we get 19% of. 00:32:29
On the county distribution of SUT, we get nothing. 00:32:33
Or C schools get nothing. 00:32:37
And again, that's a. 00:32:39
That's another long term consideration. 00:32:40
We'll have to. 00:32:43
Work through. 00:32:44
Looking to elevate? 00:32:46
As we. 00:32:49
As it mirrored the general fund you see. 00:32:51
That compared to last year, month by month. 00:32:54
We're we're. 00:32:56
We're streaming ahead. 00:32:57
Elevate is primarily a sales and use tax fund. So it's it's going to reflect what you see. 00:32:59
On the general fund sales tax side again? 00:33:05
83% of budget. 00:33:09
Becky anticipates will be about $400,000 above. 00:33:11
Budget. 00:33:15
On sales tax and that we will be 118,000 above budget. 00:33:16
Upon use. 00:33:21
The water and sewer side, we've got some. 00:33:23
Promising news. 00:33:26
Revenues are climbing up. 00:33:29
You see that 39% number and you think, well, that doesn't equal the number of months. 00:33:31
We're getting into our money months with summer. 00:33:36
So certainly use will be going up. 00:33:39
Our average daily. 00:33:42
Treatment of water combined with plot and love. 00:33:45
Has been over 30 the last few days. 00:33:49
And so, you know, not that we're pro drought. 00:33:52
But dry weather, certainly. 00:33:55
Helps. 00:33:58
In terms of. 00:34:00
Revenue sales, both on the water side. 00:34:01
And sewer side, that'll be the headline tomorrow. And and thread. Mayors. Pro drought. Drought. Yeah, my bills gone up $20.00 a 00:34:03
month? I don't know. 00:34:08
Well my question is why isn't it gone up 30? 00:34:14
Ohh, come on. 00:34:19
But in all seriousness, we're we're we're seeing some good numbers certainly. 00:34:21
The Council's action that it took to invest in the 10 year plan. 00:34:26
And to abide by what the? 00:34:30
What the? 00:34:32
What the economy is doing and what inflation is doing. 00:34:34
As certainly helped in our water and sewer side. 00:34:37
You see the water revenues? 00:34:40
Sewer revenues are going to mirror. 00:34:42
Pretty much that. 00:34:44
So overall in the water and sewer side compared to previous years, we feel really good. 00:34:47
Also want to commend Kimberly and her team on. 00:34:52
And the billing side? 00:34:55
Since you allowed us to. 00:34:57
Go back to a utility structure. 00:35:00
That is really been good for us. 00:35:03
And certainly, you know, that's one of the lessons we learned, I learned. 00:35:06
Coming out of IPS. 00:35:10
And Kimberly has done a really good job, much more hyper focus, solving a lot of issues. 00:35:12
And I think that's gonna continue to pay dividends for us as well. 00:35:18
I'll be happy to answer any questions, certainly Miss Standridge and miss She. 00:35:22
There they experts and they can go into any technical details to any questions you might. 00:35:26
Thank you, Mayor, I asked mine. 00:35:30
Along the way, gentlemen, any questions? 00:35:33
Mr. Conner. 00:35:37
Good. 00:35:38
Just for councils awareness on the expenditure side. 00:35:39
Yeah, a number of the city departments. 00:35:43
Are tracking a little low. 00:35:45
Where they would be percentage wise for budget and so. 00:35:48
With the mayors you know. 00:35:52
Analysis that you mentioned for beings of approximately $6 million over budget in the revenue projections, so that's $6,000,000 to 00:35:54
the good we should be able to hold steady on expenditures. Is that across the general fund or just for the sales tax? 00:36:01
Finish your operations. 00:36:11
So if. 00:36:14
Revenues hold true to projection and we end at $6 million over budget. 00:36:15
That made $6,000,000 to the good for us. 00:36:22
And our expenditures hold steady at just meeting budget or even a little bit below. 00:36:24
We hope that that $6,000,000 will be able to translate into a general fund surplus. That's the general idea. 00:36:29
And and it's a preview to the. 00:36:35
Our goal is to present the budget on August 15. 00:36:39
We've moved up our timetable to try and that's certainly, you know, statutorily we have to the last day in August, but we're going 00:36:43
to work and endeavor ourselves to have it. 00:36:48
By the 15th. 00:36:53
This year's budget is, quite frankly, it's gonna be, it's gonna be very vanilla compared to what you've seen in the past two 00:36:55
years. 00:36:58
A lot of that is due is that the things that you've initiated now are in the mix. 00:37:02
And they're moving along and and we're preparing down that road. The other is that. 00:37:06
6.2 million may sound like a lot of money. 00:37:12
But in a city with 1400 employees. 00:37:16
That's not. 00:37:19
And just the employee cost alone will eat up. 00:37:20
If not the majority of all of that 6.2. 00:37:24
And that's before you get into pay increases for your employees. 00:37:27
And before you even touch technology, vehicles, equipment. 00:37:32
Agency funding, etcetera. 00:37:36
So you will likely see within your budget actually reductions in department head expenditure line items. 00:37:39
So it it's. 00:37:46
It's gonna be again. Hopefully next month our revenues are even better and we can project to 7,000,000. 00:37:48
Then the next month and you will have two more months than I will. 00:37:54
But 6.2 million is great. 00:37:58
But it's not. 00:38:00
I I just don't want. 00:38:01
When the public hears and really the agencies that we fund, when they hear 6.2 million, they. 00:38:03
Yeah. 00:38:08
For us. 00:38:10
That's. 00:38:11
That's not a lot of growth. 00:38:12
That you can then go out and do what we did last year when we were, what, 15? 00:38:15
In growth. 00:38:22
And that's the that's the economic situation, by the way. I'd rather be in that economic situation than a lot of cities who are. 00:38:23
No negative. 00:38:30
And then still have to deal with all the things that we just talked. 00:38:32
Thank you. Thank you, Miss Sanders. 00:38:37
One last question is we go out. 00:38:40
Regarding the slowdown that we're starting to see in the the building permits. 00:38:43
What's the single best weather balloon we can watch? 00:38:48
To get a reading on that as we move forward. 00:38:53
For business. 00:38:56
For for. 00:38:58
Recessionary. 00:39:00
Environment. 00:39:01
So I will say that and and Becky will probably laugh at me when I say this, but whenever sales, sales and use tax, dollar amounts 00:39:03
come in every month. 00:39:07
Um. 00:39:11
Literally there, it will be the 16th or 17th of the month and I'll be like kind of jonesing for like what? What are we looking at? 00:39:12
What's what's coming in? 00:39:16
Sales and use tax are always going to be the barometer. 00:39:20
You know we will have and maybe trick and speak a little bit more to this, but we have stragglers that will report in a little bit 00:39:23
later. You kind of try to make up for that when you're thinking about did we make budget this this month. 00:39:29
And so. 00:39:36
To me. 00:39:38
The. 00:39:39
Like the mayor alluded to. 00:39:40
The month of April. 00:39:42
Is. 00:39:44
Concerning to me, it is not a trend by any means, but the fact that it is one month in our, in our. 00:39:45
Rearview mirror. 00:39:52
Where we have had. 00:39:53
A deficit, A deficit or or a slowdown in growth? 00:39:55
That is concerning. 00:39:59
You know, previous months we've seen. 00:40:02
A little up, a little down. Everything we saw here was. 00:40:04
That was through the end of March. Right to the end of March, yes, Sir. 00:40:07
So you know April activity kind of being a little. 00:40:11
It. 00:40:15
It's down. It's not a lot down. 00:40:15
So y'all already see an April. 00:40:18
That's yes Sir, that is April. So April is down a little bit. It's not down a whole lot. 00:40:21
When May comes in. 00:40:25
If. 00:40:27
That's also down. Again, they haven't provided me the final number yet. What do you, what do you think that number will be 00:40:27
assuming no other stragglers come in 80,000? 00:40:32
So what's that? A percent? 2%. 00:40:42
That's less than one person. It's less than 1% of a slowdown. 00:40:45
Yeah. So again, it's not the, it's not the magnitude that concerns me, it's the activity. 00:40:50
Of that that concerns me, the lacity. 00:40:56
And the fact that you know when, when May comes in, obviously we'll work to see if there's a trend on that. 00:41:00
A from my general walking around since I think that this summer seems busier. 00:41:07
Out on the street than it was last summer. That is again my personal perception. 00:41:13
Hopefully the numbers might play that out. We'll keep you guys updated if. 00:41:19
If that does. 00:41:23
And this is my pitch again on SUT and why I think it's so important in the years ahead that we discussed this with our legislative 00:41:24
delegation. 00:41:28
Is that? 00:41:33
20 to 25% of our population is between the ages of 18 to 24. 00:41:34
They average about 8:00. 00:41:38
Hours a week. Purchasing goods online. 00:41:41
Whereas we own where in brick and mortar we get $3.57 per purchase for every $100. 00:41:44
When they go online we get $0.07. 00:41:51
Sales taxes are still our barometer because we know 85% of purchases are through sales tax and use tax. 00:41:55
But as that number continues to creep up. 00:42:01
How we pay the bills through through, you know, through sales tax is gonna diminish if SUT. 00:42:05
Is not. 00:42:12
Addressed. 00:42:13
We don't have any other way to go. We can't increase business licenses. We're capped under state law. We have a local act that 00:42:14
that prohibits any sort of occupational tax. 00:42:19
Sales tax where at 10% and shouldn't go up. 00:42:26
You know, for now, I think we are where we need to be on that. 00:42:29
There's really not a lot of places to go so. 00:42:32
I would just, I think it's really as a council member, we'd ask that you continue to talk to our legislators about this. 00:42:35
Because that's money you've earned and those are services that you're providing. 00:42:42
That. 00:42:46
Someone elses. 00:42:47
It's redistribution. It's redistribution of wealth. 00:42:48
And it's it is to the rural areas away from it's basically to the rural areas and it's basically protecting out-of-state 00:42:52
companies. I mean you're we're, we're. 00:42:56
We're saying Amazons is more important than Amy's florist. 00:43:00
It's to the rural areas into the counties as well. I mean, let's not take the counties. 00:43:04
Out of the equation that they get. 00:43:08
A number of you know Tuscaloosa County is is an outlier. Tuscaloosa County gets 3% of sales tax, whereas most counties have 1/2 of 00:43:11
a percent or 1% sales tax. But yet they're. 00:43:15
The SAT is distributed by population and and the cities within those counties. Population is factored into the distribution 00:43:21
method. 00:43:24
Sorry, that's my soapbox for that one. I'll get off that one. But that is why you see the larger cities are really beginning to 00:43:29
talk about this because. 00:43:33
You can't sustain population growth while at the same time that population is buying their goods online. 00:43:37
And you're not receiving the benefit of those dollars? 00:43:42
Population should result in revenue that pays for the services, so again, it's not an issue for today or tomorrow. 00:43:46
But it will be an issue as we begin the next decade. 00:43:54
And it's very important that the next four or five years we get this solved. 00:43:57
So we can, you know, continue to fund services and have a great quality of life. 00:44:02
People want the city to do their incentives for Mercedes. People want the city to keep an airport open. People want the city to 00:44:06
provide all these other services. 00:44:10
But. 00:44:16
Those come with the cost and so. 00:44:17
We have to, as we grow, we have to have the revenues to continue to fund those things, to make them happen in our community. 00:44:19
Anyway, I can't. I don't ever miss a chance miss no, no. And we appreciate it actually to talk about Sgt. Because it's important. 00:44:27
All right. 00:44:35
Gentlemen, any other business to be brought before the committee? 00:44:37
I'm sure your motion to adjourn, so move all in favor. Say aye. 00:44:40
OK. 00:44:45
Finances adjourn. 00:44:46
Got that? 00:44:48
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Gentlemen, if you would take a look at the minutes from our last meeting. 00:00:00
And if there's a motion to adopt, we'll entertain that. All in favor, say aye, aye, OK. 00:00:04
Minutes are adopted. 00:00:10
Item number 1 Old Business. 00:00:11
Authorization to amend joint funding agreement with University of Alabama. 00:00:14
The Northington Property Access Rd. Improvements Project sections. 00:00:18
One and two Miss Standridge. 00:00:23
Yes, good afternoon, council. Good afternoon. This item was briefed last week. There is approximately $135,000 that the University 00:00:25
of Alabama has. 00:00:30
Analyzed as savings on the Northington Access Rd. Project. 00:00:36
And they are requesting that we move that exact 135,000 out of their funding agreement for that project and into improvements for 00:00:40
the strip area that they will manage. 00:00:45
Um, and you know, just to transfer over that amount of funding from the Northington Access Rd. into strip improvements? 00:00:50
Mr. Moore and Miss Coleman are both here to be able to discuss SCOPE, if you have questions about that. 00:00:58
I do. Who wants to start? 00:01:03
Mr. Moore, you brokered the deal. Why don't you get us into it and then summer, you can. 00:01:06
Walk us through the structures to be taken care of. 00:01:12
Sir, so this request is from the University of the Northington Rd. project. There's approximately $135,000 in savings from the bid 00:01:15
price. 00:01:19
They approached us and this has been an ongoing probably for six to eight months. 00:01:25
Of trying to do some general maintenance and safety improvements on the strip in between or during the summer months in between 00:01:29
really the end of school and the start back of the fall. 00:01:33
About two weeks ago. Well, actually, yes. This Wednesday will be our second meeting, 2 weeks ago. 00:01:38
We had our kind of pre planning implementation meeting as public safety centric. 00:01:43
For Fall 23 football season. 00:01:47
Matt Pajak, Tim Leopard, Chad Tindall, Chief Hooks, Ralph, really Kind of everybody on the US side and their counterparts from the 00:01:52
City side, so. 00:01:57
Doctor Rush Scott Holmes. 00:02:02
Chief Clark, myself. Selmer. 00:02:05
Sat down and kind of tried to identify some quick items that we could look at for improvement. 00:02:08
Some of the ones we have identified right now is adding some kind of speaker and camera type systems to the police precinct area. 00:02:12
Mr. What speaker? 00:02:20
To help communicate if you needed to do crowd disbursement. 00:02:22
Mr. O'Leary noted some fiber improvements in that area that will be running the precinct. That should address some cameras that 00:02:26
we'd also like to install that get disrupted. 00:02:30
Due to excessive crowds and Wi-Fi, that can kind of cause the signal to go down. 00:02:34
That should be cleared up. I'm sure you're familiar with the. 00:02:39
Yellow kind of loading zone area. 00:02:42
We are working with Miss Coleman and the UA side to figure out a little bit safer way for what I'll call the ride sharing the 00:02:45
party, courts, Joy Rides, Lyft, Uber, et cetera. 00:02:50
Kind of race stripe that, get that cleaned up. 00:02:55
There's some trip hazards out in the area that have been and been identified by Mr. Green and then the UA Facilities Maintenance 00:02:57
Group that we're looking at trying to get on some of the intersections improved. 00:03:02
For some general cleanup. 00:03:08
And then also too, there's also some discussion about lighting. 00:03:10
In some areas that we're going to talk about, I think it's this Wednesday. 00:03:14
That we would like to get moving in some areas to do a little bit faster. 00:03:17
OK, summer, you wanna include between where and where? 00:03:21
Between where and where basically be from. 00:03:26
What is the? 00:03:29
Race, not race St. I would say 1 potentially red Drew. 00:03:31
I would say maybe the campus way right at the public's intersection. It shouldn't punch too much past unless it's some signage. 00:03:35
So kind of in that core concentrated a lot, 2 blocks, OK And and who's executing the work and who's overseeing it, The 00:03:41
universities overseeing construction department will oversee that. They will issue either contracts or purchase orders to their 00:03:46
contractors. They will come out and handle. 00:03:51
Any of their repairs and that that actually helps us out because between my group and Sylvans group we just we we don't have the 00:03:56
manpower to do it in that timely. 00:04:00
Fashion. 00:04:04
And that one month period. So that that helps us out a lot and they'll manage it. 00:04:05
And we we can use this. 00:04:09
Savings of money to take care of it. 00:04:11
OK. One other observation that I'll put in here and then I'll, I'll let the other members. 00:04:14
This. 00:04:20
Just loading zone which runs from. 00:04:21
Red Drew to Frank Thomas, I think essentially. 00:04:25
That we we got rid of the. 00:04:28
Parallel parking there and we converted it. 00:04:32
To loading. 00:04:36
Reserve loading zone. 00:04:38
I have never seen it utilized routinely. 00:04:41
On. 00:04:45
Several times a week we'll see the trucks parked in the center lane of University Blvd. And anybody who wants. 00:04:46
A pizza burrito or whatever. 00:04:54
Is parked in those lines, so I would ask. 00:04:56
That if. 00:04:59
If this is encompassing that area. 00:05:00
That I I would suggest that we include whoever that is our. 00:05:03
Traffic engineering people reassess that place and I can also restricting and painting for it to be a rideshare area or a delivery 00:05:08
drop off but not a. 00:05:13
Not like a Cisco truck, but just a. 00:05:19
Well, right now it is routinely and regularly used to. 00:05:22
For people to park and there's no enforcement. 00:05:28
That I know of, And that's how it always sits. That's any Mr. Crow, Mr. Fail. 00:05:31
Any questions? 00:05:36
Is there a capital? 00:05:38
13135 not to exceed. 00:05:40
Can we do it for 1:35? 00:05:45
Yes, yes. And I mean I I walked the area with Tim Leopard a couple weeks ago. We went, we noted some things. I think it's totally. 00:05:47
Doable. 00:05:54
And I do think in summer touched almost not. I was remiss that I should have pointed this out earlier. I did speak with. 00:05:57
Public works and facilities and grounds on those dollars. 00:06:04
Both reiterated Miss Colman's point that really from a capacity manpower to be able to actually execute it within that 60 day 00:06:07
window. 00:06:10
It would be more advantageous for the university that we looked at doing it internally. 00:06:14
And their recommendation was to let them knock it out. 00:06:18
I think if if council would like we could bring back once we get through kind of the pre planning process tomorrow. 00:06:22
Goal is to have everything essentially up and running by Labor Day or by the Texas game, which I believe is the 10th. 00:06:27
Or 9th excuse me. 00:06:34
Have that work through. We could bring you back some of the specs and show you kind of what we're trying to do in that area. 00:06:36
In concert, If that's something council, be interested. 00:06:42
Any other questions? 00:06:44
Through motion. 00:06:46
So move. 00:06:47
Or second. 00:06:49
You got a second, Mr. Foyle? 00:06:51
All in favor, say aye, aye. OK, motion is approved item number two or item number one on new business. 00:06:53
Authorization to amend contract agreement with Para Foundation. 00:07:02
For improvements to Bowers Park. 00:07:06
Hey, good afternoon council. Good afternoon. This is to amend a previous contract with the pair of foundation from 235,000 down to 00:07:08
100,000. 00:07:12
This is due in large part to the ask that both Tuscaloosa tourism or visit Tuscaloosa and the Para Board came to us for what those 00:07:17
improvements may be. 00:07:21
And for us finding cost savings for the city to be able to provide fiber and Wi-Fi work that originally was going to be required. 00:07:25
That was for the Dixie youth. Yes, Dale, right, that never happen. 00:07:33
Correct. So this is the original contract. 00:07:36
We signed with them for that, correct. So we're wanting to change that just for. 00:07:40
To make it. 00:07:44
Yeah, lowering the amount just from the list of asks that they provided with us, the amount come in, came in a lot lower than the 00:07:45
previous ask. Ask another question. Yeah, just so. 00:07:50
I mean. 00:07:56
You said five or what? What else? I mean, they're gonna, I don't think, upgrade the ball fields. And yeah, they're going to 00:07:57
provide for that. They're going to do air units and the press boxes, run electrical wiring out into the dugouts and then. 00:08:02
Do upgrades to the PA communication systems, currently one PA system. 00:08:08
Goes to all four fields in each cluster, so each field will have its own PA. 00:08:13
Go ahead, Mr. 00:08:20
His wife. 00:08:21
Yeah, both. Yes, Sir. Both ball field clusters will have Wi-Fi servicing. 00:08:23
Them and roughly the area nearby. 00:08:29
And and so all of that. 00:08:35
That Wi-Fi fiber, all of that's at Bauer Park? Bowers Park. 00:08:37
Yes, Sir. There's already conduit out there that the city will be able to tap into and utilize. There would be a little additional 00:08:42
that will have to do some boring under the road right there. 00:08:46
But compared to the cost that was 55,000 proposed from Para, we think we could do the work for much cheaper. 00:08:51
OK. 00:08:58
Ohh yeah sure. 00:09:00
Doing these improvements and I know stands here and our French pair here too, but. 00:09:03
We feel, I would hope the answer is yes, this is going to improve our our prospects of getting. 00:09:09
Maybe some other tournaments? 00:09:14
Some other things. These are things that we need to do in order to make us more competitive. 00:09:16
Yes. And I and I'll leave on this, I'll, I'll lean on Stan really to speak to that. 00:09:20
Pretty much any bid outside of kind of something very smaller. 00:09:26
Very minimum requirements, you got that Wi-Fi nowadays. 00:09:29
So getting those kind of up to speed and up to grade, we'll be able to kind of that's what the Dixie was. That was one of the main 00:09:32
kind of draws of it was it was kind of. 00:09:35
The build of it not only was huge, but it was gonna have to, you know, force us to kind of get up with the times. 00:09:39
With it. So yes, it'll it'll definitely help us in the long term for sure. 00:09:44
IT is going to maintain the system itself. We made that decision and that will. 00:09:49
If parents having a big functional on a weekend. 00:09:54
And something goes sideways. 00:09:57
They don't have to call out a company and hope that they will get there. 00:09:59
And so it's good all the way around. The other thing is that none of these improvements will be torn out. 00:10:03
Because we have several million budgeted for Bowers Park improvements over the next few years. 00:10:09
And we want they None of these improvements will be torn out as part of those. 00:10:14
And so we never. 00:10:22
Miss Stent, we never put. 00:10:24
We never handed the check. 00:10:26
Over to the pair of foundation, right? It's still. 00:10:27
And this account 23517, yes Sir, the way that we, the way that we configured the funding agreement was on a basically 00:10:31
reimbursement basis that they would have to you know give us cost. 00:10:36
I got you. 00:10:42
Substantiation for what they spent and the investments they put in. And since nothing ever happened, we never cut them any checks 00:10:43
off of this budgeted amount. So the full 235 is currently sitting still budgeted as it was appropriated and so this funding 00:10:50
agreement would just take that to 100,000 for the specific investments. 00:10:56
The other 135 is still going to be kind of in that Bowers Park investment account that could possibly be reallocated at another 00:11:03
time or something else. 00:11:07
Yes. 00:11:11
So we we've got the pair of executive team over here, Brian, Mike anything you want to add or ask? 00:11:12
OK. 00:11:21
Is there a motion to approve motion? 00:11:23
Is there a second? 00:11:26
2nd. 00:11:28
All in favor, say aye. Aye. OK, motion is approved. 00:11:29
Item number 3 Quarterly budget. Mayor and Miss Standridge. Yes Sir. I'll begin with the General Fund and Education and Education 00:11:34
ETF elevates Tuscaloosa major funds along with water and sewer. So. 00:11:41
We'll jump. I say ETF sometimes I still think I put on my state hat and think Education Trust fund. 00:11:51
When you look at our general fund major revenue budgets, when you look at where we get the prime, where we our primary sources of 00:11:57
revenue sales tax. 00:12:02
Is always a driver of that along with countrywide sales tax so. 00:12:07
Nearly. 00:12:11
50% of our revenues come from the day-to-day transactions in our economy. 00:12:12
If you factor in, use tags and SUT climbs above. 00:12:18
Well above 50%. So that's what drives our ability to. 00:12:23
To fund fire. 00:12:27
Fun police. 00:12:28
As we were talking about yesterday, $0.41 out of every dollar we spend at city of Tuscaloosa goes into fire and police. 00:12:30
So that is certainly our our top priorities. 00:12:37
In terms of major revenues, where we are in the budget year, we're at 67% of of budget. 00:12:41
Overall, we estimate that if all things being equal, and if we are able to average out what we are at, collect what we. 00:12:49
Did last year at this time we will finish with a $6.2 million revenue surplus. 00:12:58
On the general fund, that does not include. 00:13:04
Elevate. 00:13:07
You can also see through that bar graph that every month we've been a little bit ahead of prior year. 00:13:08
I'm getting rumors out of A and F that that may not be the case for April's election. 00:13:15
It's still too early for us to to know. 00:13:22
They'll have to be a deep dive, but. 00:13:27
We do see signs of a slowing economy compared to last year. 00:13:29
The other thing I think we have to be careful of and not to have hubris about. 00:13:34
Is that, yes, there is growth on the sales tax side, but how much of that's inflationary related? 00:13:38
Versus actual true growth. 00:13:43
In the economy itself. 00:13:45
So certainly you want to be ahead, but how much of the light prior year inflation? 00:13:48
Contributed to that? 00:13:52
Again that that's that's something for us to think about is. 00:13:55
We're now. 00:13:59
You know. 00:14:00
2 feet in the deep end of the pool. 00:14:01
Of the fiscal year 2000 Fiscal year 24 budget. 00:14:03
So in terms of general sales, general fund sales tax collections? 00:14:07
23.6 million was what we collected. 00:14:12
As of March, and you can see where we were this time. 00:14:17
And 22 and 21. 00:14:21
Overall, we anticipate being 1.6 million. 00:14:24
Above budgeted. 00:14:29
On city sales tax. 00:14:31
On use funds, we're a couple 100,000 of where we were this time last year. 00:14:34
We anticipate assuming that we. 00:14:40
We collect the equal amount prior from from April to. 00:14:43
September of last year. 00:14:47
We anticipate having a budget surplus in this line item of 466,000. 00:14:49
$6 Can can I ask you should be a short answer question and I may have asked it before. 00:14:55
I think it's gonna be a mischief. 00:15:00
Do we? 00:15:03
When we're building the revenue budget for. 00:15:04
The sales tax. 00:15:08
That we assume an inflation number. 00:15:09
On the front end as part of that. 00:15:11
I know we've talked about. 00:15:13
We generally take our. 00:15:15
Our last year's, I think we add 2%. 00:15:17
That. 00:15:20
Under the mic, right? You know that was. 00:15:22
The microlight formula, it really lasts on sales tax and use tax. We we have increased on property tax and lodging tax and SUT. 00:15:24
Just because of their growth, but on the back. 00:15:34
The. 00:15:38
We don't assume any inflation base. 00:15:40
On the front end of that. 00:15:42
Alright, thank. 00:15:45
Looking at simplified, sellers use tax, which is what I would normally refer to as an Internet tax. 00:15:49
Certainly this continues to grow. 00:15:55
And on one hand that is a positive and we do anticipate. 00:15:58
Under SUTA. 00:16:02
Got my CHEAT SHEET in front of me. 00:16:06
Almost $1,000,000 above budget. 00:16:08
But I'd like to remind you what you're seeing there is about $0.70 on the dollar. 00:16:11
It's as if I. 00:16:17
You know this, you gave somebody a dollar and they gave you back $0.70 and. 00:16:18
You should be happy with the $0.70 that you got. 00:16:23
This is certainly something we're gonna continue to work on. 00:16:26
I sent you a copy of the park a study recently. 00:16:30
15% of gross sales now in Alabama total come out of Internet based sales. 00:16:33
And that number is going to continue to increase. 00:16:40
If. 00:16:43
You know, if our share of that continues to be less and less. 00:16:44
That will continue to be a problem for municipalities across the state, especially larger municipalities. 00:16:48
Remember 68%? 00:16:54
Points of sale in Tuscaloosa County take place within the cities. 00:16:56
Limits. 00:17:00
But we don't receive 68% of the share of the county. 00:17:02
SUT preparation. 00:17:06
That that's something that long range. 00:17:08
Myself and others that fall behind me will have to. 00:17:11
Certainly continue to work through. 00:17:14
To resolve. 00:17:17
On property tax, we're a little bit ahead of this time last year. The majority of property tax has been collected. 00:17:19
Becky and her wisdom believes we will finish about $166,000 over budget. 00:17:27
By the time it's all said. 00:17:33
And done. 00:17:36
I don't know about you, but if any of you got any appraisal complaints. 00:17:38
Mine went up 23%. 00:17:42
Ohh, mine went up and I've had a lot of people contact me via e-mail or text and. 00:17:45
Why the city did that and why did we do I, I don't know why we did it and we we didn't even realize we did it, you know, but we we 00:17:50
sent them some to the county tax appraisers. 00:17:55
All of us. 00:18:01
General fund rental tangible tax, we anticipate a small budget surplus at 52,000. We're at 53% of budget. 00:18:02
And are a little bit of head of where we were. 00:18:11
This time last year. 00:18:15
So that'll shake out that if we're. 00:18:16
53%. 00:18:20
Can you back up one? 00:18:21
And some of these million one, a million two is that? 00:18:24
The overall budget for rental tangible this year we budgeted 1,154,000. 00:18:28
OK. 00:18:37
A lot of these are not a lot of these, but some of these taxes are don't come in 12. 00:18:38
Increments that are collected over 12 months, but. 00:18:44
Larger shares come in different time periods. 00:18:47
We certainly believe lodging tax will be one of these, although it's at 48% today. 00:18:50
We do anticipate that lodging tax will exceed budget. 00:18:56
Albeit by $125,000 if we collect equal to this time last year in fiscal year 22. 00:19:00
We budgeted how much growth, This is one of the few line item 3 budgeted growth I think. 00:19:08
So. 00:19:17
And I want to make sure I don't because I do confuse the rental. 00:19:19
That that little tangible tax. 00:19:23
That's the one on rental property? No Sir. That's like I'm renting A forklift or a. 00:19:25
You know, piece of equipment. 00:19:32
OK. And but we're we're coming up to the rental license? 00:19:34
So we're. 00:19:39
The next just over 5,000,000. 00:19:41
On short term logic, tax right. 00:19:44
On lodging tags, we also have a short term rental. 00:19:48
Category as well. 00:19:52
Ohh. We break out the lodging. I got you. 00:19:56
I thought, Man, we're collected 5. 00:20:00
Plus million on. 00:20:03
Game day rentals. 00:20:04
And in a couple of other notes, TTS could probably direct us to know occupancy. 00:20:06
Again, you may have some inflationary pressures here that may make that number a little bit higher. 00:20:13
So that's something as we get into the budget time, we we will coordinate with TTS. 00:20:20
Look at occupancy. The other can be timing of Alabama football games. 00:20:25
If you have sometimes you may have two in September. You have all the big ones after the end of the fiscal year. 00:20:31
And and that can. 00:20:36
That can create some Tommy difference. This year we have three home games in September. 00:20:38
And I think all three are pre. 00:20:43
Significant that Texas one will be. 00:20:46
It'll make LSU 2019 and LSU 2011 looked like a. 00:20:48
One of my flag football games I coach. 00:20:54
It'll be small, we actually. 00:20:57
On a weekend, the economic impact of that, what was that number like on a football weekends it? 00:21:00
Says they normally say about 20 + 1,000,000 dollars economic impact. Now we don't receive that. 00:21:05
Contrary to what people hear that number and they make all this money. 00:21:11
No, we normally get about 3% of that. So that would be about $600,000. But you've got to remember we also expend about $350,000 in 00:21:14
personnel costs, so. 00:21:19
We certainly still make a profit. 00:21:25
But it's not clear. 00:21:27
It's not the clear kind of. 00:21:29
Profit. The other thing. 00:21:31
Is, and I call it. You can only put so much water in a bathtub. 00:21:33
We only have so many hotel rooms, so many restaurants. 00:21:36
So many places you can spend money and when you have 120,000. 00:21:40
Versus 150,000, you're not really going to pick up that much more in revenues. 00:21:45
But you will pick up a lot more. 00:21:50
And expenses? 00:21:53
That's done by the Texas weekend. Yeah, yeah, see, that's the projected. 00:21:55
Friday the Tiger Woods. 00:22:00
Facilities supposed to open, yeah. 00:22:02
But this, this year, the good thing for us is we've got 5. 00:22:06
We always have seven home games, but we have 5. 00:22:09
Really good games. 00:22:11
Five. Goodness, because you got Tennessee. 00:22:13
Got LSE Arkansas Homecoming, Ole Miss. 00:22:15
And Texas. I mean, the Texas game is huge, but. 00:22:18
LSU and Tennessee will be. 00:22:21
Yeah, the Tennessee game is going to be back to being. 00:22:23
The way it was when I was little. 00:22:26
It. 00:22:28
It's going to be a lot of fun for our fans and guests and our citizens. It's going to be a lot of work by your departments. Ohh, 00:22:29
absolutely airports. 00:22:33
I absolutely note the Texas game may be the largest airport drive. I know Texas A&M is normally the biggest airport day of the 00:22:40
year. 00:22:44
They we're hearing that Texas maybe? 00:22:48
We're also getting a lot of economic development requests, people who all of a sudden are looking at Tuscaloosa and like to come 00:22:51
to the Alabama, Texas game. It's amazing. Yeah, how, how, how, how, all that, all that works. All of a sudden they they want to 00:22:55
come see the city on Saturday the. 00:23:00
The day the game happens. 00:23:05
So the next one is the the rental tax, dwelling tax. 00:23:08
Right now, we're anticipating a. 00:23:13
A surplus of $174,000. 00:23:16
We're a little bit ahead of budget this year overall the the total budget on that Mister Busby. 00:23:19
Is this year 3.8 million? 00:23:26
That's 1%. 00:23:29
3.8 and we've been in the low threes. 00:23:31
Yes, Sir. It's also for the hike. 00:23:34
Well, the hike is separated out the 2%, which is on the 200 and more. 00:23:37
Apartments, which may be I don't think is included in this slide, It's not. 00:23:43
It's it's what? 00:23:51
They're not. 00:23:53
Pleasure is mine. 00:23:54
OK. That's on top of the three ish. 00:23:57
Yes Sir, the 1.7 on top of the 3.8 I'm very good. 00:24:02
So we collect about 4.5 million. 00:24:05
Little over between boat. 00:24:09
Short term rental, I I believe this this number is encouraging and the sense that our collections continue to pick up. 00:24:13
But I don't believe it is a reflection of what we see out there. 00:24:21
In terms of short term rentals? 00:24:26
Our team does work this. 00:24:29
But it'll be have something we will have to continue to to work on. 00:24:31
We hear. I don't know if Mr. Adams here is what we hear but hoteliers, I would imagine say the same things to them as. 00:24:36
They believe this is. 00:24:42
The Airbnb the RBO's are making a dent. 00:24:44
And their room nights. 00:24:48
If they are, and you juxtapose what we're collecting there versus. 00:24:51
Which is a much higher rate is 11%. 00:24:55
On a. 00:24:58
SDR. 00:24:58
Or right? 00:25:00
Same as lodging. 00:25:03
You know, I'm not saying there should be comparable because there's not 3000 plus hotel rooms, but. 00:25:11
Yeah, I do think that's something as we look over the horizon. 00:25:17
Own. 00:25:21
The potential revenue that we're not collecting. 00:25:22
This could be something the Council wants to focus on in the future. It certainly would take more. 00:25:25
Enforcement to do that. 00:25:30
I wanna brag. I don't know if we have a slide on audits. Do we have a? I don't think we do before before we leave. 00:25:33
Can can you back up that one? Yes, Sir. You still got the short? 00:25:40
So. 00:25:45
I suspect. 00:25:48
The hotel yours complaint about their. 00:25:50
That the short term rentals. 00:25:53
Or making. 00:25:55
There. 00:25:57
Is probably true. 00:25:58
Because I think the pricing mechanism. 00:26:00
Is temporarily out of whack. 00:26:03
If you compare. 00:26:05
If you're bringing a family group of. 00:26:08
8. 00:26:11
And whatever down here. 00:26:12
And you compare trying to get hotel rooms. 00:26:14
Versus. 00:26:17
I'm home. 00:26:19
You'll. 00:26:21
The pricing mechanism right now? 00:26:22
Is very much in favor. 00:26:24
Of the short term rentals, if that suits your needs. 00:26:26
But that's going up quickly. 00:26:29
And so the the inflation. 00:26:31
The price inflation we're seeing on those rental houses. 00:26:34
Yes. 00:26:39
Probably foreign exists. 00:26:39
Of the price inflation we're seeing. 00:26:42
In general, prices around here. 00:26:44
It's. 00:26:46
Bordering on. 00:26:47
Obscene and I'm on the I'm on the good end of that. But. 00:26:48
Our, our just the hotel rooms are just. 00:26:52
I can't imagine. 00:26:55
Paying for a hotel room. 00:26:57
And it'll be multiple nights, I guess. 00:26:59
393 night minimums that be $6000. 00:27:02
See. 00:27:07
That's terrible. 00:27:08
Well, they'll pay 7000 for a big house that weekend. 00:27:09
I'm sorry, go ahead. No, no, it's it's just horrible. So it's there's not a slot, but I really want to commend Miss Standridge and 00:27:14
Miss Sheep and there's and and Mr. Smalley and their entire team. 00:27:20
Our audit budget this year was $250,000. 00:27:28
We anticipate an $840,000. 00:27:32
That we will end the year on. 00:27:37
And a lot of that has to do with, in my opinion. 00:27:40
We're focusing on going after more of the big, bigger out of town. 00:27:45
Who? 00:27:51
Have both. 00:27:52
A hybrid of a Internet and brick and mortar business as well. 00:27:53
And they've done a really good job of coordinating with OCA on that. And so they're they're to be commended, that is. 00:27:58
Significant and. 00:28:05
Please express your heart. Thanks to your team. 00:28:06
And transcend here, You know, he's the one that leads our audit team. 00:28:10
And I, you know, I can't say enough. 00:28:14
Great things about the work that they do that the. 00:28:16
Amount of activity that happens in our economy that we do not know about, that does not touch us. They try and handle as much of 00:28:20
that as possible and that's really where you will see the audit revenues come into play. 00:28:27
You know, not obviously. Not everybody wants to come in. 00:28:34
Report to the government about the money that they're making in our. 00:28:37
Our community. 00:28:41
And so they really are going to be the the ones that. 00:28:42
The trial. 00:28:45
You're right. 00:28:46
Well, I think every taxpayer, most taxpayers in our community that wake up every day go to work. They invest in their homes. 00:28:49
They deserve to know that everyone's paying their fair share. 00:28:57
And I'm really proud that our audit team. 00:29:01
Is ensuring that that happens and and we need it because you you hear about the challenges that we face. 00:29:04
And certainly the taxpayers want us to make certain that everyone's. 00:29:11
They don't want to pay anymore until they're certain that we're collecting every bit. 00:29:15
That should be paid. 00:29:19
And our audit team. 00:29:20
Has done a really good job and I'm I'm thankful for and I know that that is not an easy assignment. 00:29:22
Business license, which is always a reflection of a year in the past. 00:29:27
We are at 100% of budget. 00:29:33
A little bit ahead of where we were. 00:29:36
This time last year, so as we look in the rearview mirror. 00:29:38
At business licenses as a whole, we anticipate being 420. 00:29:42
1000 ish. 00:29:48
Above budget when all said and done, we still got a few more months of collection, but for the most part. 00:29:49
All business licenses have been paid. 00:29:54
This is the one that if if I were in sitting in your shoes and you're gonna get our budget. 00:29:58
In August that you should be concerned about is our building permits. 00:30:04
Our building permit numbers are. 00:30:09
Down considerably. 00:30:11
From where they were now, the Council did in its budget. 00:30:13
Big Reduce the amount of building permits. 00:30:17
We only anticipate being down budget wise by $15,000. 00:30:20
But what we believe last year is holding true into this year. 00:30:25
There is not a lot of. 00:30:29
Commercial and residential building as what we've seen in the past. 00:30:32
Some of that's going to be because we're in a digital economy, you're you're not gonna have university malls. 00:30:36
Of the future, people are never going. You're not going to have the big commercial developments which. 00:30:41
Are the bread and butter of municipalities. 00:30:46
In Alabama anymore because of our tax structure? 00:30:48
But even with that said, I think we. 00:30:52
There is a definite slowdown, certainly that if the feds goal was to slow it, slow it down by bringing up in interest rates, they 00:30:55
have done. 00:30:59
At least in our little. 00:31:03
In the corner of the world. 00:31:04
I think we have to keep this in mind as we're thinking about the 24 budget. 00:31:07
That probably needs to govern us and not. 00:31:12
Being too ambitious in our revenue line items. 00:31:15
Assuming much growth, I think we've got another 12 months of. 00:31:19
A wait and see economy. 00:31:23
And if anybody knows their crystal ball is working, we certainly would be interested in. 00:31:26
And what they think is going to happen. 00:31:31
But right now I think it's there's a lot of uncertainty in this. 00:31:34
This doesn't. This adds to that uncertainty, in my opinion. 00:31:38
Any questions on this? 00:31:40
Ashley and her team. 00:31:44
They always do a deep dive prior to budget and we will give you. 00:31:45
Data on this kind of lets you get a little an inside look of the breakdown of residential and commercial. 00:31:50
As we get into the budget season. 00:31:57
County sales tax and certainly mirrors the cities. The little bit of difference with the county sales tax is they they throw in 00:32:00
their use tax with it. 00:32:05
We anticipate being 1.1 million. 00:32:10
Above budget. 00:32:13
This is really good for not only the county, but for our city, schools, county schools, Tikrit. 00:32:14
DCH Northport. 00:32:21
By the way, SUT doesn't get broken out by those. 00:32:23
It it just goes directly to the county. 00:32:26
So whereas the county sales tax, we get 19% of. 00:32:29
On the county distribution of SUT, we get nothing. 00:32:33
Or C schools get nothing. 00:32:37
And again, that's a. 00:32:39
That's another long term consideration. 00:32:40
We'll have to. 00:32:43
Work through. 00:32:44
Looking to elevate? 00:32:46
As we. 00:32:49
As it mirrored the general fund you see. 00:32:51
That compared to last year, month by month. 00:32:54
We're we're. 00:32:56
We're streaming ahead. 00:32:57
Elevate is primarily a sales and use tax fund. So it's it's going to reflect what you see. 00:32:59
On the general fund sales tax side again? 00:33:05
83% of budget. 00:33:09
Becky anticipates will be about $400,000 above. 00:33:11
Budget. 00:33:15
On sales tax and that we will be 118,000 above budget. 00:33:16
Upon use. 00:33:21
The water and sewer side, we've got some. 00:33:23
Promising news. 00:33:26
Revenues are climbing up. 00:33:29
You see that 39% number and you think, well, that doesn't equal the number of months. 00:33:31
We're getting into our money months with summer. 00:33:36
So certainly use will be going up. 00:33:39
Our average daily. 00:33:42
Treatment of water combined with plot and love. 00:33:45
Has been over 30 the last few days. 00:33:49
And so, you know, not that we're pro drought. 00:33:52
But dry weather, certainly. 00:33:55
Helps. 00:33:58
In terms of. 00:34:00
Revenue sales, both on the water side. 00:34:01
And sewer side, that'll be the headline tomorrow. And and thread. Mayors. Pro drought. Drought. Yeah, my bills gone up $20.00 a 00:34:03
month? I don't know. 00:34:08
Well my question is why isn't it gone up 30? 00:34:14
Ohh, come on. 00:34:19
But in all seriousness, we're we're we're seeing some good numbers certainly. 00:34:21
The Council's action that it took to invest in the 10 year plan. 00:34:26
And to abide by what the? 00:34:30
What the? 00:34:32
What the economy is doing and what inflation is doing. 00:34:34
As certainly helped in our water and sewer side. 00:34:37
You see the water revenues? 00:34:40
Sewer revenues are going to mirror. 00:34:42
Pretty much that. 00:34:44
So overall in the water and sewer side compared to previous years, we feel really good. 00:34:47
Also want to commend Kimberly and her team on. 00:34:52
And the billing side? 00:34:55
Since you allowed us to. 00:34:57
Go back to a utility structure. 00:35:00
That is really been good for us. 00:35:03
And certainly, you know, that's one of the lessons we learned, I learned. 00:35:06
Coming out of IPS. 00:35:10
And Kimberly has done a really good job, much more hyper focus, solving a lot of issues. 00:35:12
And I think that's gonna continue to pay dividends for us as well. 00:35:18
I'll be happy to answer any questions, certainly Miss Standridge and miss She. 00:35:22
There they experts and they can go into any technical details to any questions you might. 00:35:26
Thank you, Mayor, I asked mine. 00:35:30
Along the way, gentlemen, any questions? 00:35:33
Mr. Conner. 00:35:37
Good. 00:35:38
Just for councils awareness on the expenditure side. 00:35:39
Yeah, a number of the city departments. 00:35:43
Are tracking a little low. 00:35:45
Where they would be percentage wise for budget and so. 00:35:48
With the mayors you know. 00:35:52
Analysis that you mentioned for beings of approximately $6 million over budget in the revenue projections, so that's $6,000,000 to 00:35:54
the good we should be able to hold steady on expenditures. Is that across the general fund or just for the sales tax? 00:36:01
Finish your operations. 00:36:11
So if. 00:36:14
Revenues hold true to projection and we end at $6 million over budget. 00:36:15
That made $6,000,000 to the good for us. 00:36:22
And our expenditures hold steady at just meeting budget or even a little bit below. 00:36:24
We hope that that $6,000,000 will be able to translate into a general fund surplus. That's the general idea. 00:36:29
And and it's a preview to the. 00:36:35
Our goal is to present the budget on August 15. 00:36:39
We've moved up our timetable to try and that's certainly, you know, statutorily we have to the last day in August, but we're going 00:36:43
to work and endeavor ourselves to have it. 00:36:48
By the 15th. 00:36:53
This year's budget is, quite frankly, it's gonna be, it's gonna be very vanilla compared to what you've seen in the past two 00:36:55
years. 00:36:58
A lot of that is due is that the things that you've initiated now are in the mix. 00:37:02
And they're moving along and and we're preparing down that road. The other is that. 00:37:06
6.2 million may sound like a lot of money. 00:37:12
But in a city with 1400 employees. 00:37:16
That's not. 00:37:19
And just the employee cost alone will eat up. 00:37:20
If not the majority of all of that 6.2. 00:37:24
And that's before you get into pay increases for your employees. 00:37:27
And before you even touch technology, vehicles, equipment. 00:37:32
Agency funding, etcetera. 00:37:36
So you will likely see within your budget actually reductions in department head expenditure line items. 00:37:39
So it it's. 00:37:46
It's gonna be again. Hopefully next month our revenues are even better and we can project to 7,000,000. 00:37:48
Then the next month and you will have two more months than I will. 00:37:54
But 6.2 million is great. 00:37:58
But it's not. 00:38:00
I I just don't want. 00:38:01
When the public hears and really the agencies that we fund, when they hear 6.2 million, they. 00:38:03
Yeah. 00:38:08
For us. 00:38:10
That's. 00:38:11
That's not a lot of growth. 00:38:12
That you can then go out and do what we did last year when we were, what, 15? 00:38:15
In growth. 00:38:22
And that's the that's the economic situation, by the way. I'd rather be in that economic situation than a lot of cities who are. 00:38:23
No negative. 00:38:30
And then still have to deal with all the things that we just talked. 00:38:32
Thank you. Thank you, Miss Sanders. 00:38:37
One last question is we go out. 00:38:40
Regarding the slowdown that we're starting to see in the the building permits. 00:38:43
What's the single best weather balloon we can watch? 00:38:48
To get a reading on that as we move forward. 00:38:53
For business. 00:38:56
For for. 00:38:58
Recessionary. 00:39:00
Environment. 00:39:01
So I will say that and and Becky will probably laugh at me when I say this, but whenever sales, sales and use tax, dollar amounts 00:39:03
come in every month. 00:39:07
Um. 00:39:11
Literally there, it will be the 16th or 17th of the month and I'll be like kind of jonesing for like what? What are we looking at? 00:39:12
What's what's coming in? 00:39:16
Sales and use tax are always going to be the barometer. 00:39:20
You know we will have and maybe trick and speak a little bit more to this, but we have stragglers that will report in a little bit 00:39:23
later. You kind of try to make up for that when you're thinking about did we make budget this this month. 00:39:29
And so. 00:39:36
To me. 00:39:38
The. 00:39:39
Like the mayor alluded to. 00:39:40
The month of April. 00:39:42
Is. 00:39:44
Concerning to me, it is not a trend by any means, but the fact that it is one month in our, in our. 00:39:45
Rearview mirror. 00:39:52
Where we have had. 00:39:53
A deficit, A deficit or or a slowdown in growth? 00:39:55
That is concerning. 00:39:59
You know, previous months we've seen. 00:40:02
A little up, a little down. Everything we saw here was. 00:40:04
That was through the end of March. Right to the end of March, yes, Sir. 00:40:07
So you know April activity kind of being a little. 00:40:11
It. 00:40:15
It's down. It's not a lot down. 00:40:15
So y'all already see an April. 00:40:18
That's yes Sir, that is April. So April is down a little bit. It's not down a whole lot. 00:40:21
When May comes in. 00:40:25
If. 00:40:27
That's also down. Again, they haven't provided me the final number yet. What do you, what do you think that number will be 00:40:27
assuming no other stragglers come in 80,000? 00:40:32
So what's that? A percent? 2%. 00:40:42
That's less than one person. It's less than 1% of a slowdown. 00:40:45
Yeah. So again, it's not the, it's not the magnitude that concerns me, it's the activity. 00:40:50
Of that that concerns me, the lacity. 00:40:56
And the fact that you know when, when May comes in, obviously we'll work to see if there's a trend on that. 00:41:00
A from my general walking around since I think that this summer seems busier. 00:41:07
Out on the street than it was last summer. That is again my personal perception. 00:41:13
Hopefully the numbers might play that out. We'll keep you guys updated if. 00:41:19
If that does. 00:41:23
And this is my pitch again on SUT and why I think it's so important in the years ahead that we discussed this with our legislative 00:41:24
delegation. 00:41:28
Is that? 00:41:33
20 to 25% of our population is between the ages of 18 to 24. 00:41:34
They average about 8:00. 00:41:38
Hours a week. Purchasing goods online. 00:41:41
Whereas we own where in brick and mortar we get $3.57 per purchase for every $100. 00:41:44
When they go online we get $0.07. 00:41:51
Sales taxes are still our barometer because we know 85% of purchases are through sales tax and use tax. 00:41:55
But as that number continues to creep up. 00:42:01
How we pay the bills through through, you know, through sales tax is gonna diminish if SUT. 00:42:05
Is not. 00:42:12
Addressed. 00:42:13
We don't have any other way to go. We can't increase business licenses. We're capped under state law. We have a local act that 00:42:14
that prohibits any sort of occupational tax. 00:42:19
Sales tax where at 10% and shouldn't go up. 00:42:26
You know, for now, I think we are where we need to be on that. 00:42:29
There's really not a lot of places to go so. 00:42:32
I would just, I think it's really as a council member, we'd ask that you continue to talk to our legislators about this. 00:42:35
Because that's money you've earned and those are services that you're providing. 00:42:42
That. 00:42:46
Someone elses. 00:42:47
It's redistribution. It's redistribution of wealth. 00:42:48
And it's it is to the rural areas away from it's basically to the rural areas and it's basically protecting out-of-state 00:42:52
companies. I mean you're we're, we're. 00:42:56
We're saying Amazons is more important than Amy's florist. 00:43:00
It's to the rural areas into the counties as well. I mean, let's not take the counties. 00:43:04
Out of the equation that they get. 00:43:08
A number of you know Tuscaloosa County is is an outlier. Tuscaloosa County gets 3% of sales tax, whereas most counties have 1/2 of 00:43:11
a percent or 1% sales tax. But yet they're. 00:43:15
The SAT is distributed by population and and the cities within those counties. Population is factored into the distribution 00:43:21
method. 00:43:24
Sorry, that's my soapbox for that one. I'll get off that one. But that is why you see the larger cities are really beginning to 00:43:29
talk about this because. 00:43:33
You can't sustain population growth while at the same time that population is buying their goods online. 00:43:37
And you're not receiving the benefit of those dollars? 00:43:42
Population should result in revenue that pays for the services, so again, it's not an issue for today or tomorrow. 00:43:46
But it will be an issue as we begin the next decade. 00:43:54
And it's very important that the next four or five years we get this solved. 00:43:57
So we can, you know, continue to fund services and have a great quality of life. 00:44:02
People want the city to do their incentives for Mercedes. People want the city to keep an airport open. People want the city to 00:44:06
provide all these other services. 00:44:10
But. 00:44:16
Those come with the cost and so. 00:44:17
We have to, as we grow, we have to have the revenues to continue to fund those things, to make them happen in our community. 00:44:19
Anyway, I can't. I don't ever miss a chance miss no, no. And we appreciate it actually to talk about Sgt. Because it's important. 00:44:27
All right. 00:44:35
Gentlemen, any other business to be brought before the committee? 00:44:37
I'm sure your motion to adjourn, so move all in favor. Say aye. 00:44:40
OK. 00:44:45
Finances adjourn. 00:44:46
Got that? 00:44:48
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