Dec 03, 2024 Council Work Session

[1. Call Meeting To Order/Roll Call]

[00:00:10]

>> MARK, ARE WE READY? >> GOOD EVENING AND WELCOME TO THE HUBER HEIGHTS WORK SESSION. IT IS DECEMBER 3, 2024 6:04 AND WE ARE GETTING STARTED. WOULD YOU CALL THE ROLLCALL PLEASE?

>> MISTER DAVIDSON? HERE. MISS BAKER? HERE. MISS CANDLE-- CAMPBELL? MISS BYRGE? MAYOR GORE?

>> WE DON'T NEED APPROVAL FOR ABSENCES BUT MISS KITCHEN LET

[2. Approval Of Minutes]

[ City Manager Report]

ITEM 3 IS OUR TOPICS OF DISCUSSION THIS EVENING AND WE WILL GET STARTED WITH IIIA WHICH IS OUR CITY MANAGER

REPORT. >> MAYOR AND COUNCIL THANK YOU.

A COUPLE OF HIGHLIGHTS FROM THE WEEK. WE HAD AN EXCITING WEEK FOR SOME EMPLOYEES HERE SO WE WILL GET STARTED AS WE GO THROUGH HERE, MAYBE. THERE WE GO. AS WE PROGRESS FORWARD AND AS WE LOOK TO KIND OF MOVE OUR ORGANIZATIONS, POLICE AND FIRE IN THE RIGHT DIRECTION, OBVIOUSLY WE LOSE PEOPLE, PEOPLE RETIRE , PEOPLE GET OTHER JOBS. SPECIFICALLY ME .

AND WE HAVE TO FILL SOME SPOTS. IN THAT PROCESS, WE HAVE FINALLY GOTTEN TO A POINT WHERE WE'VE DONE SOME PROMOTIONAL PROCESSES. EVERYONE HAS PERFORMED TO THE TOP OF THE PROMOTIONAL PROCESS AND I JUST THOUGHT IT WAS IMPORTANT TO RECOGNIZE THEM SO THIS WEEK WE HAVE A NEW BATTALION CHIEF WORKING FOR THE FIRE DIVISION. HIS NAME IS JASON COLUMN . HE WAS THE VICE PRESIDENT FOR THE LOCAL WHEN I WAS THE PRESIDENT OF IFF 2926. WE HAVE CAPTAIN ANDY FEDDER WHO HAS BEEN A LIEUTENANT FOR A WHILE AND THEN OUR NEWLY MINTED OFFICER IN THE GROUP IS LIEUTENANT RYAN TEMPLE. HE HAS COME TO US FROM WASHINGTON DC. HE'S BEEN HERE PROBABLY 10 YEARS NOW, 15 YEARS, HE WAS A LOCAL GUY BUT CAME BACK TO US FROM WASHINGTON DC. WE DID HAVE A NEW AWARD GIVEN OUT SO BATTALION CHIEF DEERE HAS BEEN HERE ABOUT A YEAR AND A HALF. THE FIRE DEPARTMENT IS A MEMBER OF THE GREATER VALLEY COUNCIL WHICH GOVERNS ABOUT , MAN. WHAT DO YOU THINK ALEX, NINE COUNTIES? IT'S A LOT OF COUNTIES. NINE COUNTY REGIONS IN THE DAYTON AREA. IT'S BASICALLY THE GOVERNING BODY FOR HOW THEY OPERATE PROTOCOLS AND THINGS LIKE THAT. BRENDAN HAS BEEN VITAL IN MAKING THINGS HAPPEN ON HIS OTHER JOB BEFORE WE GOT HIM. SO WE STOLE HIM FROM PREMIER HEALTH. EMS COORDINATOR AND BRENDAN CAME TO US WITH A TON OF EXPERIENCE. HE WAS ACTUALLY AWARDED THE EXTRA MEASURE OF SERVICE AWARD NAMED AFTER NORMAN DIETRICH WHO WAS A BIG EMS GREW HERE IN THE COUNTY. HE GOT THAT AWARD HANDED OUT LAST WEEK AND THAT IS A REALLY BIG HONOR FOR HIM. I DID BRING UP NEXT -- I BROUGHT IT HERE AND I SHOWED IT TO KATE. COUNCILWOMAN BAKER BROUGHT TO ME AN IDEA A FEW MEETINGS BACK THAT SHE SAW ONLINE. I THOUGHT IT WAS A GREAT IDEA. WASHINGTON TOWNSHIP AND SOME OF OUR OTHER SURROUNDING PARTNERS HAVE STARTED THIS BUT BASICALLY IT'S AN AUTISM AWARENESS ENVELOPE SO THAT WHEN YOU ARE DRIVING A CAR, IF THERE'S A MEDICAL EMERGENCY OR AN ACCIDENT AND PEOPLE THAT HAVE AUTISM OR ARE ON THE SPECTRUM IN ANY WAY HAVE A DIFFICULT TIME COMMUNICATING, THE POLICE DIVISION DEVELOPED THIS AND DID IT PRETTY QUICKLY. HOW LONG AGO, TWO WEEKS ? THEY GOT THIS TO US. I HAVE THIS IN PRINT AND IT WILL GO OUT TO OFFICERS NOW AND THEN WE ARE ALSO GOING TO SEND IT OUT TO SOME OF OUR MEDICAL STAFF SO WE CAN SURE -- MAKE SURE THAT THESE GET FILLED OUT. WE WILL PROBABLY APPROACH THE DMV AS WELL SO THEY ARE AWARE THAT IT'S HERE. I GAVE KATE THE INAUGURAL ENVELOPE BECAUSE IT WAS HER IDEA. THAT IS SOMETHING VERY EXCITED SO NEW THINGS HAPPENING IN THE POLICE DIVISION.

>> WE ALSO HAD A NEW DISPATCHER SWORN IN YESTERDAY MORNING AND WHAT'S REALLY INTERESTING ABOUT GRACE, MOST OF YOU

[00:05:03]

QUESTIONS? >> THANK YOU, JOHN. ONE QUESTION. HOW MANY PASSES DO THEY MAKE ?

>> USUALLY IN THE PAST WE'VE TOLD EVERYBODY TWO. WE STARTED EARLY ENOUGH THAT THE LEAVES WERE COMING DOWN, THE WEATHER WAS TURNING A LITTLE BIT SO MIKE AND I HAVE AN AGREEMENT THAT AS LONG AS THE LEAVES CAN BE SUCKED OFF THE GROUND AND THEY ARE NOT FROZEN , WE ARE GOING TO CONTINUE TO PICK UP LEAVES. SO YOU'RE GOING TO GO TO THE MIDDLE OF DECEMBER RIGHT

[ Carriage Trails Subdivision - Street Dedications]

NOW. >> AWESOME.

>> THANK YOU JOHN. APPRECIATE IT.

>> NEXT UP IS 3B SUBDIVISION -- CARRIAGE SUBDIVISIONS AND WE

HAVE SOME . >> IT'S FOR THE APPROVAL AND ACCEPTED -- ACCEPTANCE OF THREE STREETS IN THE CARRIAGE TRAIL SUBDIVISION . THE STREETS ARE SHOWN IN GREEN ON THE BOTTOM RIGHT CORNER OF THE MAP. THE STREETS INCLUDE BUCKTHORN WAY AND THE FINAL PORTIONS OF CHERRY BIRCH DRIVE AND FORESTEDGE STREET. THE STREETS WERE INSPECTED AND FINAL REPAIRS WERE MADE BY THE DEVELOPER AND THE FINAL COURSE OF ASPHALT WAS COMPLETED. THIS WILL MAKE THE STREETS PUBLIC NOW AND THEY WILL BE MAINTAINED BY THE CITY FOR PLOWING AND ANY

FUTURE REPAIRS. >> ANY QUESTIONS FOR US? OKAY.

ANY OBJECTIONS? MOVING THIS FORWARD?

>> SEEING NONE -- WE ARE ON DECEMBER 9 NOW, CORRECT?

[ Increase Not To Exceed Amount – 2024 Maintenance Contract – Veolia Water]

CONTRACT FOR THE VEOLIA WATER . >> THIS LEGISLATION IS FOR CONTRACT MODIFICATION TO INCREASE THE MAINTENANCE CAP THAT WE HAVE WITH VEOLIA MY $45,000 TO COVER THE ESTIMATED EXPENDITURES NEEDED TO COMPLETE THEIR SERVICES FOR THE REMAINDER OF THIS YEAR. I TYPICALLY COME BACK EVERY YEAR TO COUNCIL TO ASK FOR INCREASE TO COVER AND THE REST OF THE YEAR, REPAIRS AND PURCHASES. IN YOUR PACKAGE IS A COPY OF ALL THE VEOLIA EXPENSES FROM JANUARY TO THE MIDDLE OF NOVEMBER . THESE EXPENSES INCLUDE EVERYTHING WITHIN OUR WATER AND SANITARY SYSTEMS THAT HAVE NEEDED REPAIRS AND FOR PURCHASES THAT WERE UP TO $7500. THEY HAVE USED ABOUT $260,000 OF THE $284,500 , WHICH IS OF THE YEARLY CAP AMOUNT AND LIKE I SAID WE ARE ESTIMATING ABOUT $45,000 MORE NEEDED TO FINISH THE YEAR. NORMALLY WHEN I COME BACK THE DOLLAR AMOUNT THAT I ASK FOR IS HIGHER THAN THE -- THIS YEAR IT'S BEEN LOWERED BECAUSE A LOT LESS WATER MAIN BREAKS.

>> ANY OTHER QUESTIONS FOR US? ANY OBJECTIONS? SEEING NONE WE

[ Supplemental Appropriations]

APPROPRIATIONS. >> GOOD EVENING MAYOR AND COUNCIL MEMBERS. I PUT IN YOUR PACKET, I HAD ONE SUPPLEMENTAL CHANGE AND THEN I'VE GOT THREE MORE THAT I NEED TO DISCUSS WITH YOU TONIGHT THAT HAVE COME UP SINCE WE SENT THE PACKET TO TONY. THE ONE IN YOUR PACKET WAS $350,000 RETURN OF AN ADVANCE TO THE GENERAL FUND AND THAT WAS FOR ISSUE 2 FUND GRANT REVENUE SO COMES INTO THE ISSUE 2 FUND , AND GRANTS FOR PROJECTS. GENERAL FUND USUALLY ADVANCES MONEY TO THAT ISSUE 2 FUND BEFORE WE GET THE MONEY SO THIS ADVANCE NEEDS TO SEND THE MONEY BACK TO THE GENERAL FUND. I USUALLY WAIT UNTIL WE KNOW WHEN THEY ARE GETTING THAT ISSUE 2 FUND MONEY BEFORE I TAKE IT TO COUNCIL TO LEGISLATE. IN ADDITION TO THAT I HAVE THREE SMALL ITEMS THAT HAVE COME UP SINCE THE LAST CHANCE I HAD TO SUBMIT THIS. ONE WAS A DONATION TO THE FIRE DEPARTMENT AND THAT WAS A DONATION TO, I BELIEVE IT WAS

[00:10:07]

PACKET THAT WENT OUT TO YOU. >> ANY QUESTIONS? ANY

OBJECTIONS? OKAY. >> I WOULD ALSO ADD THAT WE NEED TO PASS THIS, SINCE IT'S THE LAST MEETING COMING UP ON MONDAY IF WE COULD PASS THAT ON FOR TWO MEETINGS I WOULD

APPRECIATE THAT. >> WITHOUT THE SECOND READING?

>> A LITTLE GROGGY TONIGHT, SORRY.

>> IT'S PROBABLY ME. IT'S A LONG WEEK AND IT'S ONLY

[ 2025 City Budget]

TUESDAY. >> NEXT UP IS ITEM 3E. WHICH IS OUR 2025 CITY BUDGET . ALEX? YOU ARE UP. I WAS JUST MADE AWARE THAT THE BUDGET HAS BEEN PUBLISHED ON THE WEBSITE SO PEOPLE CAN ACTUALLY GO THERE AND SEE THE PRESENTATION AS WELL , IS WHAT COUNCIL IS SAYING SO IT IS A PUBLIC DOCUMENT. YOU WANT TO START WITH SLIDES?

>> WE'VE GOT SOME GOOD NEWS. THE BUDGET UP UNTIL THE LAST MINUTE, REALLY, WE BEEN WORKING PRETTY DILIGENTLY I WILL SAY.

KUDOS. YOU GUYS KNOW HOW I FEEL ABOUT JIM BUT WHAT AN AMAZING MONTH AND A HALF. HE HAS BEEN TAKING IT AND TRYING TO GET THINGS DONE. THE THREE OF US WERE REALLY WORKING UP UNTIL ALMOST 5:15 TONIGHT TO GET THINGS WHERE WE ARE TODAY. AS WE GO THROUGH THIS, THIS IS A PRETTY HIGH LEVEL VIEW OF KIND OF WHERE WE ARE BUT WE ARE BALANCED BUDGET, WE ARE IN THE BLACK AND IN GOOD STANDING. I AM GOING TO TAKE THE FIRST COUPLE OF SLIDES HERE TO GIVE YOU GUYS AN OVERVIEW AND THAT I'M GOING TO TURN IT OVER TO THE BRAINS OF THIS OPERATION.

GO FORWARD, ALEX. MAYBE. DID I TURN IT OFF ON YOU?

>> AARON WILL DO IT. >> AS WE GO FORWARD, WE DID LIST IN THE PRESENTATION ALL OF YOU. YOU ARE AT LARGE VOTED BY RESIDENTS AND BY TAXPAYERS AND WE JUST WANT TO MAKE SURE THEY UNDERSTAND THAT YOU ARE THE GOVERNING BODY AND THAT YOU HAVE THE ULTIMATE SAY IN WHAT HAPPENS HERE. WE LIST EACH ONE OF YOU HERE IN THE PRESENTATION. THE NEXT ITEM THAT YOU SEE IS REALLY JUST THE KEY PEOPLE IN STAFF THAT REALLY HELPED US . I'M GOING TO READ MY STATEMENT HERE IN A MINUTE, BUT REALLY, THIS PROCESS BEING A NEW EXECUTIVE TEAM AND NEW LEADERSHIP, I DON'T KNOW THAT STAFF KNEW WHAT TO EXPECT NOR DID WE KNOW WHAT TO EXPECT. SO WE STARTED THIS PROCESS SEPTEMBER? AUGUST? WE REALLY ASKED ALL OF THE DEPARTMENTS TO BRING TO US A WISH LIST. WE DIDN'T REALLY KNOW WHERE WE WERE OR WHERE WE WERE GOING TO BE, SO EVERYBODY REALLY DID A GREAT JOB OF GETTING THINGS TO US. WE THEN HAD INDIVIDUAL MEETINGS WITH EVERY SINGLE DEPARTMENT HEAD AND THE FOUR OF US WENT THROUGH EVERYTHING. CAME TO WHERE WE WERE A LITTLE OVER. I WILL USE THAT TERM TIGHTLY. WE WERE OVER A BIT , SO WE SHARPENED THE PENCILS, AND I AM JOKING. WE WERE OVER QUITE A BIT. EVERYONE HAD SOME PRETTY BIG ASKS. EVERY DEPARTMENT CAME BACK PREPARED AND WE GOT TO A POINT WHERE WE DO HAVE A BALANCED BUDGET AS WE SPEAK. THE NEXT SLIDE IS THE ORGANIZATION CHART WHICH IS UP TO DATE AS OF TODAY. WE DO HAVE SOME SPOTS. I KNOW THAT I'VE SPOKEN TO A FEW OF YOU ABOUT IT BUT WE ARE IN THE PROCESS OF FILLING EMPTY SPOTS. IT IS OUR PRIORITY . WE ARE CURRENTLY PRIORITIZING WHAT THOSE SPOTS

[00:15:06]

>> I AM GOING TO READ MY NEXT STATEMENT SO YOU CAN UNDERSTAND. THIS WILL BE ON THE PRESENTATION BUT MAYOR AND COUNCIL, IN ACCORDANCE WITH ARTICLE 6 SECTION 6.02 SUBSECTION 4 OF THE CITY CHARTER I AM PLEASED TO PRESENT THE 2025 BUDGET FOR THE CITY OF HUBER HEIGHTS. THE ANNUAL BUDGET SERVES AS THE CITY 'S MOST ESSENTIAL POLICY DOCUMENT AND DEVELOPMENT REQUIRES COLLABORATION FROM EVERY DEPARTMENT AND DIVISION WITH A VALUATION OF SERVICES AND PROGRAMS AS WELL AS A THOROUGH REVIEW OF REVENUES, EXPENDITURES, AND PRIORITY OF THE CITY'S NEEDS. THE 2025 BUDGET REFLECTS OUR CONTINUED COMMITMENT TO DELIVERING HIGH-QUALITY SERVICES AND MAKING NECESSARY INVESTMENTS TO INFRASTRUCTURE TO ENSURE EXCEPTIONAL QUALITY OF LIFE FOR RESIDENTS. HUBER HEIGHTS REMAINS A PREMIER RESIDENTIAL COMMUNITY WITHIN THE REGION WITH A WELCOMING SUBURBAN ATMOSPHERE THAT PROVIDES AN IDEAL ENVIRONMENT FOR FAMILIES AND INDIVIDUALS SEEKING A FULFILLING LIFESTYLE. THE CITY IS KNOWN FOR WELL-MAINTAINED PARKS, EXCELLENT SCHOOLS AND CONVENIENT ACCESS TO THE VALLEY. HUBER HEIGHTS STRIKES A PERFECT BALANCE BETWEEN SMALL TOWN CHARM AND THE AMENITIES OF CITY LIVING WITH REVERSE HOUSING, RECREATIONAL OPTIONS, IT STANDS OUT AS A FAMILY-FRIENDLY COMMUNITY TO OFFER A COMFORTABLE AND FULFILLING LIFESTYLE. I EXTEND MY SINCEREST GRATITUDE TO ALL THOSE WHO HAVE CONTRIBUTED TO ANOTHER SUCCESSFUL YEAR FOR THE CITY OF HUBER HEIGHTS AND WOULD LIKE TO RECOGNIZE THE EFFORTS OF DEPARTMENTS, DIVISION HEADS AND THE ENTIRE MANAGEMENT TEAM FOR THEIR INVALUABLE CONTRIBUTIONS FOR THE PREPARATION OF THIS DOCUMENT.

WITH THAT BEING SAID, THE BRAINS OF THE GROUP.

>> THANK YOU JOHN, APPRECIATE THAT.

>> MAYOR AND CITY COUNCIL, MISTER CITY MANAGER, JIM AND I ARE APPEAR TO PREVENT -- PRESENT THE 2025 BUDGET. IT'S AN HONOR TO BE A PART OF THIS TEAM AND TO BE UP HERE. THE TEAM CONCEPT THAT JOHN HAS PUT OUT REALLY WORKS AND WE ARE EXCITED TO GO THROUGH THE BUDGET. THE TIMELINE, JOHN KIND OF MENTIONED THIS. WE STARTED THE BUDGET WITH OUR FINANCE DEPARTMENT IN AUGUST LOOKING AT PROJECTED REVENUES AND WHERE WE ARE GOING TO BE WITH ANTICIPATED CARRYOVER OF THE 2024 BUDGET. AND THEN ANTICIPATED REVENUES FOR 2025 .

IN SEPTEMBER, WE DID MEET AS A MANAGEMENT TEAM AND WHEN I SAY MANAGEMENT TEAM, TALKING ABOUT CITY MANAGER AND BOTH ASSISTED CITY MANAGERS AS WELL AS THE DIRECTOR OF FINANCE WHERE WE ARE JUST LOOKING AT THE PRIORITIES SET FORTH BY CITY COUNCIL , WHETHER IT'S LONG-TERM PLANS AND SOME OF THE OTHER LEGISLATION PASSED BY THIS BODY. THEN AS THE CITY MANAGER MENTIONED, WE DID TELL THE DEPARTMENT AND THE DIVISION HEADS COME WITH YOUR WANTS AND NEEDS . YOU ARE GOING TO HEAR THAT A COUPLE TIMES TONIGHT. EVERYBODY HAS WANTS , EVERYBODY WANTS TO HAVE ALL THEIR PROJECTS GO FORWARD BUT THEN WE HAVE TO LOOK AND PRIORITIZE. WE DID NOT COME IN WITH RESTRICTIONS TO ANY OF OUR DEPARTMENTS OR DIVISIONS. WE SAID BRING EVERYTHING TO US AND LET US EVALUATE IT. IT ALSO LETS US KNOW WHAT LONG-TERM, OUR DEPARTMENTS AND DIVISIONS ARE GOING TO BE LOOKING AT IN BUDGETS FOR YEARS TO COME. IF WE KNOW THAT WE HAVE CUTS ON THINGS IT'S GOING TO COME BACK IN THE FUTURE AND IT ALSO GIVES AN OPPORTUNITY TO LOOK AT OTHER FUNDING SOURCES WHICH YOU WILL HEAR ABOUT SHORTLY. AND THEN IN NOVEMBER, WE SAT DOWN AS A TEAM AGAIN AND FOCUSED ON THE NEEDS

[00:20:03]

ALONG. >> YOU HEARD THE CITY MANAGER TALK ABOUT THIS. WITH INCOME TAX AND PROPERTY TAX REVENUE , WE ARE IN A STRONG, HEALTHY FINANCIAL POSITION. SO WE ARE SEEING SOME PROJECTED FUND GROWTH AND ACTUALLY JIM AND I WORKED THROUGH SOME OF THESE NUMBERS AGAIN TODAY TO MAKE SURE THEY ARE CORRECT. NEXT YEAR IN THE 2025 BUDGET WE ANTICIPATE SEEING SOME INCREASES IN THE GENERAL FUND, THE MOTOR VEHICLE FUND, GAS TAX, STREET AND WATER. SCHEDULE FUND BALANCE REDUCTIONS IS WHERE WE TAKE SOME OF OUR GENERAL FUND MONEY AND CARRYOVER TO SUBSIDIZE OR SUPPORT POLICE, FIRE, PARKS AND OTHERS. PERSONNEL COSTS IS PROBABLY THE BIGGEST PART OF THE BUDGET. YOU WILL SEE NUMBERS SHORTLY REGARDING THAT. IN THE PERSONNEL BUDGET AND LINE ITEMS, IT INCLUDES SALARY, HEALTHCARE, BENEFITS AND ALL OF THE EMPLOYMENT TAXES ASSOCIATED WITH THOSE EMPLOYEES. WHEN WE DO COST ALLOCATE SOME POSITIONS, POLICE AND FIREFIGHTER ARE ALLOCATED FUNDS WHICH MEANS THEY ARE PAID OUT OF POLICE OR FIRE ONLY. SO MAYBE YOUR SUPPORT STAFF, YOUR MANAGEMENT TEAM, FINANCE STAFF, TAX, ENGINEERING, IT. WE COST ALLOCATE SALARIES TO THOSE SO FOR EXAMPLE MY SALARY IS COST ALLOCATED TO DIFFERENT FUNDS THAT I TOUCH OR WORK WITH. THE CITY MANAGER TALKED ABOUT THIS. HERE IS OUR CURRENT AUTHORIZED STAFFING APPROVED BY COUNCIL. TOTAL POSITIONS ARE 377. SOME OF THE POSITIONS, AS MENTIONED, WE DON'T HAVE ROOM FOR. ONE THING TO NOTE IS POLICE AND FIRE. MADE A LITTLE NOTE , CURRENTLY AS OF TODAY HOW MANY VACANCIES WE HAVE AND THE POLICE DIVISION AND FIRE DIVISION , FIRE DIVISION IS THREE POSITIONS AND FIVE IN THE POLICE DIVISION. IT IS NO SECRET NATIONWIDE WE ARE DEALING WITH A SHORTAGE OF POLICE OFFICERS AND FIREFIGHTERS. IF WE LOOK AT OHIO AND ESPECIALLY SOUTHWEST OHIO WE ARE ESSENTIALLY ROBBING PETER TO PAY PAUL WHEN IT COMES TO POLICE OFFICERS AND FIREFIGHTERS. WHAT WE ARE SEEING IN DAYTON IS MOVING FROM ONE COMMUNITY TO ANOTHER AND IT'S HARD REPLACING THOSE EMPLOYEES. THEY ARE GOING FOR DIFFERENT WORK SCHEDULES AND PAY. IT IS A STRUGGLE, I COMMEND COUNCIL FOR THE PROJECTS THAT I HAVE SEEN SINCE I'VE BEEN HERE IN REGARDS TO THE CADET PROGRAM. HOPEFULLY WE CAN ATTRACT SOME YOUNG PEOPLE TO COME IN AND SEE WHAT JOBS ARE ABOUT AND USE IT AS A RECRUITING TOOL. THEY ARE IN THE HIGH SCHOOLS, THEY ARE AT DIFFERENT EVENTS. JUST TODAY THE POLICE AND FIRE CHIEF TALKED ABOUT GOING TO DIFFERENT EVENTS TRYING TO RECRUIT PEOPLE TO COME TO OUR POLICE OR FIRE DIVISION. WHEN IT COMES TO PERSONNEL COSTS , OBVIOUSLY IN THE BUDGET PRESENTED HERE TONIGHT WE HAVE FULLY FUNDED ALL OF THOSE POSITIONS. SOME OF THEM ARE NOT FILLED AS THE CITY MANAGER MENTIONED, AND THIS IS NOT ANTICIPATE IN THE BUDGET. IF WE HAVE SOMEONE WHO IS RETIRING WE DON'T BUDGET FOR, LET'S SAY THERE ARE RETIRING IN JUNE. WE BUDGET FOR THE FULL YEAR AT THAT SALARY SO EVERYTHING IS FULLY FUNDED WHEN IT COMES TO AUTHORIZED STAFF.

[00:25:01]

KATIE DID A GREAT JOB WITH HEALTHCARE THIS YEAR. YOU WILL SEE HEALTHCARE COSTS WITH AN ESTIMATED 8% INCREASE. THAT IS UNUSUAL. MOST EVERYBODY IN THE REGION YOU ARE SEEING DOUBLE DIGITS AND VERY LARGE DOUBLE DIGITS. 30S, 20S, SO WE WERE ABLE TO KEEP IT DOWN TO JUST A SINGLE DIGIT. THIS IS VERY GOOD ESPECIALLY FOR THE BUDGET THAT WE ARE TALKING ABOUT LONG-TERM.

>> REVENUES, JUST KIND OF AN EDUCATION. WE HAVE OVER 100 REVENUE ACCOUNTS AND THEY ARE ALL ROLLED UP INTO CATEGORIES SO ANYTHING WE RECEIVE FROM THE FEDERAL GOVERNMENT AND STATE, ANY FEES OR CHARGES THAT WE CHARGE, AND HE FINDS THAT ARE ASSESSED AND OF COURSE INTEREST WHICH WE WILL TALK ABOUT IN A SECOND, AND THAT ANY DEBT PROCEEDS. BUSY SLIDE. HERE'S YOUR REVENUE. THIS DOES NOT TAKE INTO CONSTANT -- THIS IS JUST ANTICIPATED REVENUE COMING INTO THE CITY.

>> I WANTED TO ADD THIS BECAUSE I WANT TO GIVE ANOTHER SHOUT OUT TO OUR DIRECTOR OF FINANCE WHO HAS DONE AN EXCELLENT JOB OF KEEPING US FULLY FUNDED IN REGARDS TO INVESTMENTS, JIM BELL. YOU CAN SEE THE ANTICIPATED REVENUE THAT WE ARE GOING TO GET FROM OUR PORTFOLIO. WE HAVE HAD A LOT OF DISCUSSIONS ABOUT TAKING SOME OF, WE KNOW THAT INTEREST RATES ARE DROPPING SO TAKING A LOOK AT SECURING LONG-TERM INVESTMENTS AND MATCHING THAT WITH THE PRIORITIES OF THE CITY TO SEE WHERE THEY WOULD FALL OFF IN A COUPLE YEARS.

>> THIS SLIDE IS INTERESTING BECAUSE WHEN YOU THINK OF JUST THREE YEARS AGO WHEN WE WERE AROUND $300,000 OF INTEREST INCOME, I THINK YOU ARE AWARE OF WHERE THE MARKET HAS GONE AND I'VE TAKEN FULL ADVANTAGE OF THAT AND INVESTED AS WISELY AS POSSIBLE. AS WE SAW RATES START TO DROP AND PREPARE TO DROP DURING 2024, I SPOKE WITH OUR INVESTMENT ADVISOR AND MADE SURE THAT THEY KNEW THAT MY GOAL, AND THE GOAL OF THE CITY IS TO START INVESTING MONEY THAT WE DON'T NEED FOR LIQUIDITY , TO START INVESTING THAT LONG TERM. THE LONGEST WE CAN GO OUT IS FIVE YEARS AND THAT'S TYPICAL FOR LOCAL GOVERNMENTS. I WAS PUSHING THEM TO MAKE SURE THAT OUR INVESTMENTS TEND TO BE THREE, FOUR, OR FIVE YEARS OUT BUT STILL TRY TO KEEP THE PORTFOLIO--. THE OTHER REASON FOR THIS , I WOULD EXPECT IN 26 IT WILL START TAILING OFF BUT THE REASON WHY I CAN ESTIMATE THERE WILL BE A LARGE INCREASE EVEN THOUGH RATES ARE DECLINING, IS BECAUSE WE HAVE LOCKED IN A LOT OF MONEY INTO LONGER-TERM INVESTMENTS THAT ARE AT THAT 4% - 5% INTEREST RATE LEVEL.

>> YOU SAID THREE YEARS AGO OR SO , OUR EARNED INCOME OFF OF INVESTMENTS WAS $300,000? WHAT IS THE NUMBER OUT TO THE RIGHT?

>> 2 1/2 MILLION DOLLARS. >> AT 2 1/2 MILLION DOLLARS, YOU HAVE HAD TO HAVE A LOT OF MONEY INVESTED TO EARN 2 1/2

MILLION DOLLARS. >> THAT IS CORRECT. AND THE OTHER FUNCTION IS THAT WE'VE BEEN ISSUING A LOT OF NOTES SO WE TAKE THOSE PROCEEDS UNTIL THE PROJECTS ARE COMPLETE , WE HAVE THEM ISSUED FOR PUBLIC WORKS FACILITIES AND THE NEW GOVERNANCE CENTER. THOSE ARE SOME BIG DOLLARS THAT ARE EARNING THOSE INTEREST INCOME RATES . AND AS LONG AS WE ARE STAYING ON TASK WE WOULD GET TO KEEP THAT INTEREST INCOME. IF IT TURNS OUT THE PROJECT TAKES TOO LONG, ARBITRAGE COMES INTO PLAY AND WE WILL HAVE TO GIVE SOME OF THAT INTEREST BACK BECAUSE YOU ARE NOT SUPPOSED TO ISSUE NOTES IN ORDER TO MAKE MORE INTEREST THAN YOU ARE PAYING ON YOUR DEBT.

>> SO NOT FOR TONIGHT THAT AT SOME POINT WOULD YOU FOLKS BE ABLE TO TELL US WHAT RATE OF INTEREST WE EARNED?

>> IT IS NORTH OF 3% ON THE AVERAGE PORTFOLIO. I WANT TO SAY IT'S ABOUT 3.40? I CAN GET THAT NUMBER TO YOU. IT IS

[00:30:05]

BACK INTO OUR COMMUNITY. >> BEING WISE INVESTING IN OUR MONEY. I'M GLAD YOU GOT THE RECOGNITION.

>> IT GOES BACK TO THE WANTS AND TO BE ABLE TO DO SOME PROJECTS THAT MAYBE WE WOULDN'T HAVE BEEN ABLE TO DO AND GIVE MAYBE A LITTLE INSURANCE BLANKET WITH SO MANY OTHER PROJECTS WE HAVE GOING ON. AT LEAST FOR NEXT YEAR WE ARE THINKING AND INTEREST RATE DROP . THIS IS A PART -- A PRIORITY FOR US, THE TEAM WORKING TOGETHER AS WELL AS

STAFF. >> AS RATES WENT DOWN YOU FINANCED A LOT OF OUR DEBT . I REMEMBER YOU WOULD REFINANCE SEVERAL MILLION DOLLARS IN DEBT AND SAVE US MILLIONS OF DOLLARS . DO YOU HAVE ONE EXAMPLE OF THAT?

>> THE ANNUAL BUDGETS FROM 21 THROUGH 25, WHY DID IT DROP SO FAR BACK IN 21 - 22 AND THEN INCREASED AGAIN TO 23. I DUG INTO IT AND ONE OF THE REASONS WAS THAT WE REFINANCED A LOT OF OUR WATER DEBT . WE HAD WATER DEBT WE HAD INITIALLY TAKEN ON IN 2013 OR 14 AND OH WA HAD NEVER PREVIOUSLY-- OWDA HAD NEVER PREVIOUSLY ALLOWED THIS BUT WE WERE ALLOWED TO FOR A SIGNIFICANT SAVINGS. THE ORIGINAL DEBT WAS AROUND 6% AND WE REFINANCED AT 3% SO SAVINGS WAS OVER $6 MILLION.

>> SO JIM, YOU'VE BEEN FINANCING DEBT AT ATTRACTIVE RATES. BY REFINANCING, YOU HAVE INVESTED OUR MONEY AND HAVE A BLENDED RATE SUCH THAT WE ARE GARNERING 2 1/2 MILLION DOLLARS IN INTEREST. AND JOHN, THAT'S NOT EVEN TALKING ABOUT THE FIRE DIVISION WHEN THEY GET GRANTS FOR HALF $1 MILLION FIRE TRUCKS. SO THESE ARE THINGS I DON'T READ ABOUT OR SEE FROM OTHER CITIES. YOU DO STAND OUT, AND ALEX YOU WILL BE A FINE ADDITION WITH JIM . I COULDN'T BE HAPPIER.

>> I THINK THAT IS VERY WELL PUT.

>> WE ARE EXCITED. BOTH OF US ARE EXCITED.

>> IT'S NEAT HAVING MONEY TO WORK WITH BECAUSE YOU CAN MAKE MONEY IF YOU HAVE MONEY. WE'VE WORKED HARD TO GET THERE.

>> AND IT WAS VERY CHALLENGING IN 2021 EVEN EARNING $300,000 BECAUSE RATES WENT DOWN TO 0 FOR A LONG PERIOD OF TIME SO I WAS VERY CAREFUL NOT TO INVEST OUT FIVE YEARS OR WE WOULD STILL BE AT HALF A PERCENT OR LESS THAN THAT . IT DIDN'T MAKE ANY SENSE TO TRY TO KEEP EVERYTHING SHORT UNTIL RATES

STARTED CLIMBING. >> WHEN DID YOU GET HERE?

>> 2011. >> 08 , 2009, 2010. THOSE WERE INTERESTING. AND HERE WE ARE TODAY.

>> THIS IS JUST KIND OF A BREAKDOWN OF THE INCOME TAX DISTRIBUTION GOING BACK AS JIM MENTIONED. WE ARE GOING TO SEE SOME SLIDES HERE LOOKING AT SOME HISTORY. THE GOOD NEWS IS THE TOP LINE TOTAL, WE HAVE THE BREAKDOWN AND EACH OF THE

[00:35:04]

INCOME TAX. >> HERE'S THE BREAKDOWN. THE LARGEST IS 36%, THE GENERAL FUND IN REGARDS TO RECEIVING INCOME TAX REVENUE. THE NEXT LARGEST. AND I ALSO WANT TO SAY THAT 36% ALSO FUNDS A LOT OF THESE OTHER FUNDS AS WELL IN OUR FIRE DIVISION. SO THERE'S JUST A BREAKDOWN OF WHERE THE INCOME TAX REVENUE GOES AND BROKEN DOWN BY THE DEPARTMENT

AND DIVISION. >> VERY DETAILED SPREADSHEET BUT THIS GIVES YOU AN OVERALL OF WHAT THE GENERAL FUND LOOKS LIKE. WE ARE IN THE BLACK AS YOU CAN SEE, ALMOST TO $70,000.

THAT MEANS WE ARE NOT GRABBING SOME OF OUR CARRYOVER, USING OUR CARRYOVER BECAUSE WE ARE LOOKING AT LONG-TERM PROJECTS AND MAKING SURE THAT WE TAKE THAT CARRYOVER AND FOCUS ON THE

FUTURE FOR THE CITY. >> CAN YOU EXPLAIN WHY FIRE CAPITAL IS SO MUCH SMALLER THAN THE POLICE CAPITAL?

>> WE DON'T HAVE ANY INCOME TAX GOING TO POLICE CAPITAL.

IT'S POLICE OPERATIONS, SO FIRE HAS INCOME TAX DEDICATED TO FIRE OPERATIONS AND SOME OF IT IS DEDICATED TO CAPITAL AND IT'S DETERMINED BY VOTES OF THE PEOPLE. WE'VE GOT ANOTHER ONE COMING UP IN MAY OF NEXT YEAR . YOU WILL NOTICE WHEN I USED TO GIVE YOU LINE BY LINE DETAIL ON THE BUDGET, THE SUBSIDY FROM GENERAL FUND TO FIRE FUND WAS ALWAYS MORE THAN POLICE, ALMOST DOUBLE THAT AND THIS IS THE REASON WHY. OVER TIME, SOME OF THESE INCOME TAXES WERE PUT INTO PLACE LONG AGO, LIKE OVER 30 YEARS AGO. THEY ARE BETTER FUNDED BY THE INCOME TAX REVENUE THEN FIRE WAS. WHEN WE'VE HAD MORE RECENT LEVIES LIKE THE ONES COMING UP NEXT YEAR, THAT WAS IN 2014 AND 2015. THOSE WERE 50 - 50. WE SPLIT IT 50% - 50%.

COULD'VE WENT 50% FIRE AND 50% POLICE, BUT QUITE HONESTLY THE GENERAL FUND IS THE UMBRELLA THAT COVERS EITHER OF THOSE.

>> THIS IS A NEW SLIDE AND THIS IS SOMETHING THAT JIM AND I WANT TO MAKE SURE WE GET ACROSS IN REGARDS TO THE OVERALL BUDGET. IN THE BLACK IS REVENUES AND IN THE RED IS EXPENDITURES. THOSE LINES STAY PRETTY CLOSE TO EACH OTHER BUT IF YOU TAKE INTO CONSIDERATION OUR REVENUE PLUS CARRYOVER, AND THIS IS BEING GOOD STEWARDS OF THE PEOPLE'S TAX MONEY , THAT IS THE AVAILABLE RESOURCES WHICH MEANS YOU COULD SPEND UP TO THAT ORANGE LINE. WE ARE NOT GOING TO LIKE THAT, SO WE WILL PROBABLY GET UP HERE AND SAY A FEW WORDS. THE AVAILABLE RESOURCES IN BETWEEN US CARRYOVER PLUS REVENUE THAT ALLOWS US TO LOOK AT LONG-TERM PROJECTS. ONE-TIME PROJECT WHERE YOU MAY SEE AN EXPENDITURE GOES ABOVE THAT LINE IN REGARDS TO REVENUE. THAT IS ANTICIPATED BECAUSE WE HAVE SUCH A GAP IN BETWEEN. YOU NEVER WANT TO BE CLOSE TO THAT ORANGE LINE AND YOU DEFINITELY NEVER WANT TO BE UP ABOVE IT SO THIS KIND OF SHOWS A GOOD SNAPSHOT OF THE BUDGETS FROM 2021 TO THE PROPOSED BUDGET OF 2025 AND WHERE WE ARE AT.

THAT'S WHEN I SAID STRONG FINANCIAL HEALTH. THIS IS A

PRIME SLIDE THAT SHOWS THAT . >> DEFINITELY HELPS WITH NEXT YEAR WHEN WE MAY TAKE SOME OF OUR NOTES INTO LONG-TERM WITH ONE'S -- BONDS AND THEY LOVE TO SEE A LARGER AVAILABLE

RESOURCE SPREAD LIKE THAT. >> HOPEFULLY WE GO UP THERE IN

SUMMER AND NOT IN WINTER. >> IT CHICAGO.

QUESTIONS ON THAT SLIDE? >> I JUST WANT TO POINT OUT

[00:40:03]

$80 MILLION. IS THAT RIGHT? >> IN REGARDS TO CARRYOVER PLUS REVENUE. $80 MILLION IN THE LAST FOUR YEARS?

>> YES. THAT ALLOWS US TO DO THE PROJECTS LIKE WE MENTIONED EARLIER. FIRE DIVISION, POLICE DIVISION, PARKS AND PUBLIC WORKS. THE FACILITIES EVEN THOUGH WE HAVE SOME OTHER REVENUES. THAT ALLOWS US TO DO PROJECTS THAT BENEFIT THE COMMUNITY WITHOUT GOING OUT AND ASKING FOR MORE MONEY. THIS IS ONE LINE IN MY 30 SOMETHING YEARS THAT USUALLY YOU WILL SEE SOME COMMUNITIES GET INTO WHERE THEY ARE SPENDING MORE THAN THEY ARE TAKING IN AND THEY JUST DIG INTO THAT CARRYOVER, OR SPEND THEIR CARRYOVER AND THEN JUST GO OUT AND ASKED FOR MORE MONEY. WHAT WE BEEN DOING HERE AS A COMMUNITY IS SOUND , WHERE WE ARE LOOKING NOT JUST AT THE 2025 BUDGET. JIM AND I HAVE BEEN TALKING THE NEXT FIVE YEARS IN REGARDS TO BUDGETS.

THIS IS THE IMPORTANT LINE THAT HE AND I LOOK AT . SO I AGREE WITH YOU, MAYOR. THIS IS GREAT NEWS FOR THE CITY.

>> I REMEMBER ONE OF THE FIRST CONVERSATIONS YOU AND I HAD AND I SHARED WITH YOU MY PHILOSOPHY, THAT WE NEEDED TO CONTINUE RUNNING HUBER HEIGHTS LIKE A BUSINESS AND RUN IT WITH A BALANCE SHEET, NOT A TAX DIVISION AND THAT CHART PROVES THAT WE HAVE DONE THAT. I BET IF YOU WENT OUT FURTHER IT WOULD LOOK VERY SIMILAR, SO NICE JOB.

>> THANK YOU. >> THIS IS JUST A BUDGET SUMMARY OF EVERYTHING YOU LOOKED AT IN THE PACKET. THIS IS THE OVERALL BUDGET AND ALSO GOOD NEWS YOU WILL SEE THAT WE ARE IN THE BLACK BY JUST OVER $1.6 MILLION. VERY SOUND, SAME THING. WE ARE NOT DIGGING INTO A LOT OF THE RESERVES. YOU MAY SEE SOME NEGATIVE NUMBERS THERE BUT THOSE ARE PLANNED. AS I MENTIONED IN THE EARLIER SLIDES WE ARE TAKING KNOWN CARRYOVER AND SUBSIDIZING SOME OF THOSE FUNDS LIKE WE TALKED ABOUT, THE FIRE DIVISION . CAPITAL PROJECTS. WE HAVE A LONG LIST AND AS WE MENTIONED EARLIER IT STARTED WITH THE WANTS AND THEN WE CAME DOWN TO THE NEEDS AND PROJECTS THAT WE HAVE HERE. IN THE 2025 CAPITAL PROGRAMS THAT WE ARE GOING TO BE DOING NEXT YEAR WE HAVE A LOT OF PROJECTS IN ROADS, FOR OUR ROADS. WATER INFRASTRUCTURE, SEWAGE INFRASTRUCTURE, AND OF COURSE A GREAT LIST FOR OUR PARKS. SOME OF THESE ARE DESIGNED, SOME OF THESE ARE RIGHT-OF-WAY PROJECTS. SOME WILL HAVE TO COME BACK TO COUNCIL, SOME WE WILL BE PUTTING OUT RFPS FOR AND COMING BACK WITH A TRUE NUMBER. A LOT OF THE NUMBERS AND HERE ARE ESTIMATES, WHAT WE THINK. THE GOOD NEWS IS THAT SOME OF THE RFP'S THAT WE BEEN SEEING HAVE BEEN COMING UNDER WHICH IS GREAT. AND THE ECONOMY KEEPS GOING WHERE WE THINK IT'S GOING NEXT YEAR IN 25 AND LONG-TERM HOPEFULLY WE WILL SEE A LOT OF THOSE COSTS DROP DOWN. IVC WE KNOW THAT ASPHALT WAS UP IN CONCRETE IS THROUGH THE ROOF RIGHT NOW. THERE'S A LOT OF THINGS WE ARE HOPING TO SEE SOME CHANGES IN , IN THE 25 BUDGET. IN THE LOCAL ECONOMY AS WELL AS THE NATIONAL ECONOMY.

ANY QUESTIONS ON ANY OF THESE PROJECTS?

>> I WOULD LIKE TO ADD SOMETHING. THERE ARE A COUPLE OF CAPITAL PROJECTS THAT ARE NOT APPEAR ON THE LIST AND THAT'S BECAUSE WE ARE IN THE-- STAGE AND NOT SURE WHAT THE FINAL COST IS. I KNOW THAT YOU HAVE ALL BEEN MADE AWARE OF MISTER RUSSELL, WE ARE LOOKING AT FINANCIAL SOFTWARE AND AN UPGRADE TO THAT. WE HAVE NOT DECIDED WHICH COMPANY TO CHOOSE YET AND WE ARE GOING TO THE DEMO PROCESS RIGHT NOW. WE STARTED THIS BACK IN FEBRUARY WITH THEM TOGETHER AND RFP SO IT HAS TAKEN A LONG TIME BUT IT TOUCHES ALL THE DEPARTMENTS. SO THEY ALL RELY ON THIS SOFTWARE AND IT'S NOT JUST FINANCE SOFTWARE. IT'S GOING TO BE PAYROLL, HUMAN RESOURCES , IT REALLY WILL TOUCH ALL DEPARTMENTS. BUT THAT FINAL COST MAY BE APPROACHING $1 MILLION SO THAT WILL BE COMING NEXT YEAR. ALSO WE BEEN CONCENTRATING THIS YEAR ON THE NEW PUBLIC WORKS FACILITY AND THE NEW GOVERNANCE CENTER. ONCE THE STAFF GO TO THE NEW GOVERNANCE CENTER THIS BUILDING WILL NEED TO BE RENOVATED IN ORDER TO BRING -- HERE AND THE COSTS ARE NOT KNOWN YET. ALEX HAS BEEN WORKING WITH AN ARCHITECTURE FIRM AND I DON'T KNOW IF YOU WANT TO COMMENT ON

[00:45:01]

THAT? >> SAME THING, SAME PROCESS. WE LOOK AT THE WANTS AND NEEDS OF THE DIVISIONS THAT WILL BE MOVED INTO THIS BUILDING. WE MET WITH FINANCE STAFF, ALL STAFF TO GET THEIR INPUT . WE DID THE SAME THING WITH WATER AS WELL AS TAX. WALKED THROUGH LOCATIONS TO SEE WHAT WORKS FOR THEM AND WHAT DOESN'T AND THEN WE WILL GET BACK AN ASSESSMENT BY THE END OF THIS WEEK WHERE YOUR SENIOR MANAGEMENT TEAM WILL THEN TAKE A LOOK AT, THAT IS A WANT SO LET'S SEE WHAT THE NEEDS ARE, AND SCALE IT BACK AND BE PREPARED FOR NEXT YEAR SO THAT ONCE WE MOVE INTO THE NEW GOVERNANCE CENTER WE MAY HAVE EVEN TALKED ABOUT PHASING OR FINANCE STAYS.

UNFORTUNATELY WE WILL HAVE TO DEAL WITH SOME CONSTRUCTION IF APPROVED BUT GETTING THEM INTO INDIVIDUAL OFFICES , THESE ARE THE FOLKS THAT LOOK AT SPREADSHEETS AND NEED TO HAVE SOME QUIET AROUND THEM. WE ARE ALREADY TALKING ABOUT THE PHASING PROCESS AND THEN OF COURSE THAT GETS US OUT OF THE LEASE PAYMENTS THAT WE ARE MAKING. TWO OF THEM, ACTUALLY THREE. ONE WILL BE MONTH-TO-MONTH STARTING NEXT YEAR IN 2025 AND THE OTHER TWO WILL EXPIRE IN 27. THE ARCHITECT KNOWS THE TIMEFRAME IN REGARDS TO MOVING INTO OUR NEW FACILITY AND WHEN THE LEASE EXPIRES. AT THIS POINT I THINK EVERYTHING IS DOABLE SO IT COULD BE SEAMLESS. AUGUST? IS

THAT CORRECT? >> SO CURRENTLY WE HAVE A COUPLE OPTIONS FOR THAT. WE HAVE TWO TARGETS MOVING ON THAT. SO ONE, WE ARE LOOKING AT PUTTING THE CHAMBER IN HERE.

ONE THING IDENTIFIED ON THE ECONOMIC DEVELOPMENT SIDE THAT WE ARE SEEING IS INCUBATOR SPACE. SOMETHING I IDENTIFIED WHEN I FIRST GOT HERE. WE WOULD LIKE TO HAVE SOME INCUBATOR SPACE WHERE WE CAN HAVE STARTUP BUSINESSES. THERE STATISTICS SHOW THAT IF THEY START UP IN A COMMUNITY, THEY GROW OUT OF THAT INCUBATOR SPACE AND STAY IN THE COMMUNITY THAT THEY STARTED THEIR BUSINESS. ONE OF THE THINGS , I MET WITH THE CHAMBER PRESIDENT. MASON AND I BOTH BROUGHT IT UP ALMOST AT THE SAME TIME DURING OUR CONVERSATION AS WELL AS COAL LAB SPACE FOR SMALL BUSINESSES WOULD BE ABLE . WE STARTED THE DISCUSSION ABOUT POTENTIALLY USING THE SENIOR CENTER TO HOUSE THE CHAMBER AS WELL AS INCUBATOR SPACE AND COLLABORATION SPACE FOR SMALL BUSINESSES IN OUR COMMUNITY. WE DON'T HAVE AN OFFICIAL PROGRAM YET . IT REALLY ENDS UP WITH WHAT THE ARCHITECT SAYS ON THIS BUILDING AND WHAT EVERYONE CAN FIT IN THIS BUILDING. IF THEY CANNOT WE MAY PIVOT AND LOOK AT A COMBINATION OF THIS SPACE AND THE SENIOR CENTER SPACE. BUT IF EVERYBODY CAN FIT HERE , IT WILL BE MY RECOMMENDATION TO THE CITY MANAGER . FIRST DAY OF-- WE NEED SOMETHING FOR OUR SMALL BUSINESS . IF SMALL BUSINESS GROWS HERE THEY ARE GOING TO STAY HERE, AND THEY ARE GOING TO LIVE HERE.

>> JUST ONE QUESTION. YOU MENTIONED NEEDS VERSUS WANT .

WERE THERE ANY NEEDS THAT WERE BROUGHT UP BY THE LEADERS OF THE DIVISIONS THAT WERE NOT CONSIDERED IN THIS BUDGET?

>> NO. WE DIDN'T CUT ANY NEEDS . WE MAY HAVE CUT SOME OF THE WANTS AND THE WISH LIST BUT NONE OF THE NEEDS.

>> WE ARE TO REPRIORITIZE.

>> I WAS JUST ABOUT TO SAY THERE ARE SOME PROJECTS--

>> WE DIDN'T TOTALLY DO AWAY WITH ANY NEEDS OF THAT MAKES

SENSE . >> FOR EXAMPLE ONE OF THE DISCUSSIONS , AND REST CAN TELL YOU WE SAID CAN THIS WAIT UNTIL 26? AND RUSS SAID YEAH I GUESS.

LOOKED AT THE CRITICAL THINGS FIRST AND PRIORITIES SET FORTH BY THIS BODY. COUNCIL, MAYOR. AND THE WANTS OF OUR COMMUNITY.

WE LOOK AT THOSE AS THE PRIORITIES AND THEN WE LOOK AT OKAY, WHAT'S NEXT. LET'S LOOK AT THE BUDGET AND THE REVENUE, LOOK AT THE CARRYOVER AND PRIORITIZE IT BASED ON WHAT HAS ALREADY BEEN APPROVED BY COUNCIL. SORRY, RUSS.

>> JUST TO CLARIFY NANCY YOU ARE TALKING ABOUT THE SENIOR CENTER ON TIMBERS BIRD? NOT THE NEW ONE? BECAUSE WE ARE USING

[00:50:06]

WANTED THE CLARIFICATION. >> CONTINUE. THANK YOU.

>> THIS IS THE OVERALL BUDGET . EXPENSE DISTRIBUTION. YOU CAN SEE THAT WHERE THE MONEY IS GOING IN THE BUDGET OBVIOUSLY YOU CAN SEE THE DIFFERENT -- GOT A PIPE AND SOME ICONS TO SHOW YOU ARE SOME OF YOUR MONEY IS GOING IN REGARDS TO THE

TAXPAYERS MONEY . >> I WOULD LIKE TO ADD ON THAT SLIDE THERE'S A VERY LARGE NUMBER FOR DEBT AT 44%. THE REASON THAT IS SO LARGE IS BECAUSE WE ARE ISSUING NOTES.

WE KEEP ROLLING OVER ONE YEAR NOTES AND THAT IS A HIGH DOLLAR AMOUNT. WE CONSIDER THAT THE NOTES AND THE TOTAL PAID FOR THOSE PROJECTS, WE CAN START ISSUING THAT DEBT INTO BONDS LONG-TERM AND THEN THE NUMBER WILL COME WAY DOWN. WHAT YOU SEE IN THE BUDGET AS AN EXPENSE WOULD BE THE ANNUAL DEBT PAYMENT AND NOT THE TOTAL OF ALL THE REVENUES. AND THAT WILL

GO AWAY. >> THAT WAS NOT A SOFTBALL BY

THE WAY. >> WE THINK THE FINAL REPORT SHOULD COME OUT SHORTLY, I AM ASSUMING AT LEAST BY THE END OF THE YEAR. LOOKING AT SOME OF THE LONG-TERM PLANS IS, HOW DOES HUBER HEIGHTS LOOK FINANCIALLY ? HOW WELL WE LOOK DEPENDS ON WHAT RATES THEY WOULD BE WILLING TO OFFER US. I AM EXCITED AND PLEASED TO ANNOUNCE THAT WE GOT A DOUBLE 8- -- WHICH IS BUT A A- . THE NEXT LEVEL UP IS AA AND THEN YOU HAVE AA PLUS SIGN . WE HAVE HAD A LOT OF DISCUSSION ABOUT THIS. WE BELIEVE THAT WITH SOME FINANCIAL POLICIES THAT WE CAN IMPLEMENT FIRST QUARTER OF NEXT YEAR, AND THE BUDGET THAT IS APPROVED BY COUNCIL PLUS SOME OF OUR LONG-TERM PLANNING INCLUDING CARRYOVER, THAT WE CAN GET TO A AA RATING BY JULY.

I DON'T THINK IT'S GOING TO BE THAT HARD.

>> THAT'S GREAT NEWS. >> AREN'T WE AT AA-?

>> THAT'S OUR CURRENT RATING. WE DID NOT MOVE, WHICH IS GOOD, AND JIM AND I SPENT A LONG TIME ON A CONFERENCE CALL WHEN THEY FIRST CAME OUT WITH THE REPORT WE ASKED THEM TO CLARIFY A FEW THINGS. THEY PRETTY MUCH SAID THESE ARE THINGS YOU NEED TO DO AND WE SAID IT'S DOABLE. PROBABLY IN THE NEXT COUPLE OF WEEKS , FINANCE STAFF AND MANAGEMENT TEAM WILL START WORKING ON POLICIES TO BRING TO COUNCIL . THESE ARE PRACTICES THAT ARE ALREADY IN PLACE. THAT IS MY ARGUMENT TO THESE FOLKS, THAT WE ARE ALREADY DOING THIS. JIM CAN TELL YOU , WE ARE ALREADY DOING THESE THINGS. THESE ARE PRACTICES THAT WE'VE DONE INTERNALLY AND WE JUST NEED TO PUT THEM ON PAPER AND

PASS THEM BY CITY COUNCIL. >> LIKE THE SPREAD YOU SHOWED EARLIER WITH THE RESOURCES. THEY LIKE SEEING THAT BUT THEY WANT TO SEE IT IN WRITING AND SEE THAT THIS BODY IS COMMITTED TO A POLICY THAT SAYS WE ARE GOING TO KEEP THAT GAP. WHEN THEY SEE THAT IN WRITING AND THAT YOU ARE COMMITTED TO IT IT'S THE MORE BACK BONE TO POTENTIALLY RAISE OUR DEBT RATING. IT'S NOT THAT WE DON'T HAVE ANY POLICIES IN PLACE. WE HAVE A PURCHASING POLICY--

>> WE ARE NOT JUST ALL SITTING IN THE OFFICE BACK THERE.

>> THEY WANT TO SEE THINGS LIKE A RESERVE POLICY AND A

FORMALIZED DEBT POLICY. >> YOU WILL SEE AT THE END OF THIS PRESENTATION SOME OF THE GOALS FOR NEXT YEAR AND THAT IS ONE OF THEM THAT WE ARE GOING TO BE TACKLING. WE ARE ALSO GOING TO BE TACKLING OTHER FINANCIAL POLICIES BECAUSE OF

[00:55:02]

CHRISTMAS. BUDGET TIME. >> SO TO LOOK AT THE 2025 BUDGET I'M NOT GOING TO SIT IN READ IT BUT THE HIGHLIGHT IS THE 2025 BUDGET IS LEGALLY BALANCED AND THAT'S WHAT WE LIKE TO SEE. THE GENERAL FUND, STRUCTURAL BALANCE. THESE ARE TWO TERMS YOU WANT TO HEAR IN THE FINANCE WORLD. I KIND OF LIKE THIS STUFF . BUT, THIS IS GREAT NEWS FOR THE HEALTH OF THE FINANCIAL PART OF THE CITY. BUDGET GOALS, I MENTIONED SOME OF THIS STUFF. YOU HEARD STUFF FROM THE CITY MANAGER AND SAW THAT IN SOME OF THE BUDGET GOALS. OBVIOUSLY WE WANT TO LOOK LONG-TERM AND MAKE SURE WE CONTINUE THIS GREAT FISCAL HEALTH THAT WE HAVE. THIS GOES BACK TO WHAT WE WERE JUST TALKING ABOUT, MANAGE FUNDS TO STRENGTHEN THE BOND RATING. WE WILL BE BRINGING SOME POLICIES FOR YOUR CONSIDERATION TO LOOK AT. WE WILL IDENTIFY WHAT WE ARE DOING AND NOT DOING IN SOME OF THESE POLICIES SO I WOULD SAY PROBABLY 98% OF IT WE ARE DOING. INVESTMENTS, WE ARE GOING TO INVEST IN LONG-TERM INFRASTRUCTURE FOR THE COMMUNITY. WE HAVE A LOT OF NEEDS AS A GROWING COMMUNITY AS WELL AS SOME OF OUR OLDER INFRASTRUCTURE THAT NEEDS TO BE REPLACED. SO LOOKING AT LONG-TERM WE DO HAVE SOME THINGS THAT WE ARE GOING TO BE LOOKING AT IN 25 TO BE PREPARED FOR, ESPECIALLY THE 2026 BUDGET. LEAVE IT OR NOT, JIM AND I, AND THE MANAGEMENT TEAM ARE ALREADY TALKING ABOUT 2026. FINANCIAL HEALTH, I KIND OF HIT ON THAT A COUPLE OF TIMES . ONE OF THE THINGS WE MENTIONED IS THE LAST BULLET POINT . UPGRADING OUR FINANCIAL SOFTWARE. IT DOES INCLUDE NOT ONLY FINANCE SOFTWARE , ACCOUNTS RECEIVABLE BUT ALSO INCLUDES BUDGETING SOFTWARE THAT WILL MAKE THIS PROCESS A LITTLE EASIER AND STREAMLINING IT. BUDGETS ARE NOT EASY BUT IT'S FUN TO DO . IS IN THAT CRAZY TO SAY? IT ALSO INCLUDES TIMEKEEPING SOFTWARE, HR SOFTWARE , AND THE IMPORTANT THING IS THAT IT ALL COMMUNICATES. IF WE MAKE AN UPDATE TO, LET'S SAY, AN EMPLOYEE ADDRESS, IT GOES THROUGH ALL ASPECTS OF THE MODULES WHETHER IT'S HR OR PAYROLL OR THOSE TYPES OF THINGS. IT IS GOING TO STREAMLINE SERVICES. THIS WILL BE THE THIRD ONE IN MY CAREER. THAT'S THE GRAY HAIR. IT'S A HARD TRANSITION AND WILL BE A LOT OF WORK NEXT YEAR FOR STAFF. IT'S GOING TO BE A YEAR PROCESS TO GET THROUGH. SO ONCE APPROVED WE ARE ANTICIPATING ABOUT A ONE YEAR TRANSITION FROM CURRENT OPERATIONS BUT IT WILL STREAMLINE A LOT OF OUR OPERATIONS. ONE THING WE ARE ASSISTING ON IN ALL OF THESE SOFTWARE'S IS THAT THEY COMMUNICATE AND THAT IF THEY DO NOT COMMUNICATE, THAT THEY BUILD A BRIDGE SO THAT IT DOES COMMUNICATE AND THAT IT IS SEAMLESS. I WILL TELL YOU SOME OF THE THINGS WE ARE DOING IS DOWNLOADING DATA , CHANGING THE FIELDS TO MATCH OTHER PROGRAMS SO WE CAN UPLOAD IT . THAT TAKES DAYS TO DO. THIS WILL STREAMLINE THAT ENTIRE PROCESS SO WE CAN BE MORE EFFICIENT WHEN IT COMES TO THE OPERATIONS OF THE COMMUNITY. I WILL TELL YOU THIS. IN MY OPINION, I THINK OTHER PEOPLE MAY DISAGREE BUT THIS WILL BE THE HEARTBEAT OF THE CITY OPERATIONS. THIS FINANCE SOFTWARE THAT WE ARE

GOING TO. >> AND IT HAPPENED TO COME ON THE HEELS OF OUR CYBER ATTACK LAST YEAR. THIS WILL BE COMPLETELY CROWD BASED. WE SAID THAT WE DON'T REALLY WANT TO RFPS TO COME BACK AND HAVE A CLUB SOFTWARE PROPOSAL. THERE ARE SOME COMPANIES INCLUDING THE ONE THAT WE USE RIGHT NOW WHICH DID NOT HAVE A FULLY CLOUD SOFTWARE AND FINANCE PROPOSAL. THEY HAVE A UTILITY THAT THEY CAN DO AND THAT'S PART OF IT. THE UTILITY HAS TO INTEGRATE WITH THE TAX SOFTWARE

[01:00:01]

WE IMPLEMENTED THAT RIGHT AWAY AND BY DAY 5 OR 9 , WITHIN THE FIRST 10 DAYS WE HAD THAT OFF-SITE SO THAT HAS BEEN A BIG HELP BUT NOW WE WANT TO GO FULLY CLOUD SOFTWARE AND THEY WERE NOT PREPARED TO DO THAT SO WE ARE LOOKING AT OTHER

OPTIONS. >> SO CLEARLY THIS COMES AT A COST. IT'S GOT A PRICE TAG ON IT BUT ULTIMATELY IF STREAMLINING EFFICIENCY , IF WE LITERALLY HAVE PEOPLE DOING THE SAME TASK OVER AND OVER WITH THREE OR FOUR PROGRAMS TO MAKE IT ALL TALK , I'M NOT EVEN SURE WE CAN PUT OUR FINGER ON A PRICE TAG IN TERMS OF WHAT TYPE OF MONEY THAT WILL SAVE JUST IN THE EFFICIENCY OF THE SOFTWARE . BY NOT DOING REPETITIVE PROCESSES OVER AND OVER AGAIN . I AM HAPPY TO HEAR THAT AND I DO THINK THAT WE HAVE SPENT A LOT OF MONEY. YOU LOOK AT THE OPERATIONAL FUNCTIONS AND THOSE HAVE BEEN SOME LARGE DOLLAR AMOUNTS. THAT I BELIEVE THAT ON THE BACKSIDE OF THIS IT IS OBVIOUSLY ALL PAYING OFF AND GOING TO SAVE US IN THE LONG RUN. WE CAN'T PUT OUR FINGER ON THAT BUT JUST KNOWING THE FRUSTRATIONS THAT I'VE HEARD FROM JOHN AND SENIOR STAFF OF WHAT WE'VE GOT EMPLOYEES DOING OVER AND OVER AGAIN TRYING TO MAKE ALL THIS WORK AND TALK , THIS IS GOING TO FREE UP TIME AND BE MORE PRODUCTIVE IN OTHER AREAS OF THE JOB WHICH ONLY BENEFITS TAXPAYERS AND US AND COSTS US LESS MONEY GOING

FORWARD. >> IT DOES.

>> THE LAST TWO MAJOR GOALS. ONE IS THAT WE NEED TO BE PREPARED FOR OUR INCOME TAX RENEWAL FOR NEXT YEAR SO STAFF HAS ALREADY STARTED WORKING ON THAT. WE'VE ALREADY HAD A LOT OF DISCUSSION ON THAT AND WILL BE PREPARED TO BRING SOME THINGS FIRST QUARTER NEXT YEAR. JANUARY WE WILL BRING LEGISLATION . THAT RENEWAL LEVY DOES REPRESENT $3 MILLION OF INCOME TAX INCOME TO THE CITY. VERY IMPORTANT.

>> IS THAT THE 50/50 DIVIDE? >> IT'S NOT QUITE 50-50. IT'S 40 1/2 AND THE 19% IS GENERAL FUND. MOSTLY POLICE AND FIRE.

>> THE LAST THING THAT WE ARE GOING TO FOCUS ON IN 2025 WHICH THE CITY MANAGER MENTIONED AS WELL IS THAT WE WANT TO LOOK AT SOME ALTERNATE FUNDING SOURCES, ESPECIALLY GRANTS. WE WANT TO BE VERY PROACTIVE WITH GRANTS AND APPLY FOR EVERYTHING. STAFF COULD PROBABLY TELL YOU IF YOU TALK WITH THEM, IT CAME UP IN OUR INDIVIDUAL MEETINGS IN THE BUDGET -- THE BUDGET PROCESS.

FIRST QUESTION WE ASKED, IS THERE A GRANT FOR THIS? THAT CAME FROM YOUR MANAGEMENT TEAM. IF WE LOOKED AT A ONE TIME PIECE OF EQUIPMENT WE WOULD SAY IS THERE A GRANT FOR THIS? AND LET'S START LOOKING FOR THESE. AS THE CITY MANAGER INDICATED WE ARE MEETING WITH OUR CURRENT THIRD-PARTY PROVIDER AND WE WILL MAKE IT CLEAR TO THEM THAT WE WANT TO LOOK AT, NOT ON THE LIST, LOOK AT BEING VERY AGGRESSIVE OF FINDING GRANTS THAT WE COULD BE SUCCESSFUL AT FOR THE COMMUNITY. THAT GOES BACK TO THE PREVIOUS SLIDE ALONG WITH FOR EXAMPLE, THE INTEREST. THE MORE GRANT MONEY THE MORE CARRYOVER WE HAVE AND THE MORE WANTS AND THINGS WE CAN DO FOR THE COMMUNITY

WITHOUT RAISING TAXES. >> IF WE SEE SOMETHING LIKE A GRANT CAN WE SEND IT TO JOHN AND YOU?

>> ABSOLUTELY. >> REVIEW FOR NEEDS. NANCY IS THAT A LOT OF COMMUNITY EVENTS AND -- THE VALLEY YES. BEING OUT IN THOSE YOU HEAR DIFFERENT THINGS AND YOU GET A DIFFERENT EMAIL LIST AND THEY ALSO COME THROUGH THAT.

>> I LOOK FORWARD TO SENDING THEM ON.

>> IN FACT JIM SENT ME ONE THE OTHER DAY . THAT WAS AFTER HOURS, HE SENT IT TO ME AND SAID WE APPLIED FOR THIS. I DUG DEEP INTO IT AND UNFORTUNATELY WE WERE NOT. IT'S GOING TO GO TO THE STATE NOW AND ONCE IT DOES THAT HOPEFULLY IT OPENS UP THAT WE CAN APPLY FOR THE FUNDING THROUGH THE GRANT . BUT WE ARE GOING TO KEEP AN EYE ON SOME OF THOSE BECAUSE WE KNOW

[01:05:03]

MONIES COMING THROUGH. >> COULD YOU VERIFY IF IN 2024 WE RECEIVED ANY MONEY FROM THE SENATOR? I THINK IT HAD TO DO WITH THE YMCA. WOULD YOU GET BACK WITH ME ON THAT?

>> OFF THE TOP OF MY HEAD I AM NOT AWARE OF THAT.

>> OKAY. I JUST HEARD THAT WE WERE HOPEFUL TO RECEIVE THAT AND WANTED TO VERIFY WHETHER WE DID OR DID NOT.

>> THAT BRINGS UP ANOTHER POINT THAT I DON'T KNOW IF WE'VE TARGETED ANYTHING TO ASK OUR STATE LEGISLATORS FOR. THE END OF THE YEAR MONEY AS YOU WELL KNOW IS UP FOR GRABS AND I SEE -- I SAW WERE CENTERVILLE JUST GOT A JOB FROM THEIR

REPRESENTATIVES. >> THERE ARE GOING TO BE SOME OTHER THINGS THAT WE WILL IDENTIFY IN DIFFERENT PLANS OR PRIORITIES , THAT WE CAN SHOW FOR EXAMPLE THIS PROJECT IS A PRIORITY AND WILL HAVE ECONOMIC IMPACT NOT ONLY IN THE COMMUNITY BUT TO THE REGION. THOSE ARE THINGS WE TALKED ABOUT AND HAVING SOME THINGS WRITTEN DOWN . WHAT ARE THESE PRIORITIES? WE CAN GO TO OUR LEGISLATOR AND SAY WE THINK THIS IS GOING TO BENEFIT THE COMMUNITY AND HERE'S WHY. WE ALSO THINK IT'S GOING TO GO OUTSIDE THE BORDERS AND BENEFIT THE COMMUNITY AS A WHOLE SO THOSE ARE THINGS WE ARE LOOKING AT . FIRST OF THE YEAR WE WILL ALSO BE BRINGING A PLAN AS COUNCIL IS AWARE . WE ARE PART OF THE COALITION OF GOVERNMENTS WITH THE PATTERSON AIR FORCE BASE . I WAS ABLE TO PUSH THE PROJECT MENTIONED IN THAT REPORT. I WROTE UP THREE PARAGRAPHS FOR IT BUT ONE LINE GOT INTO THE DRAFT PLAN. BUT IT'S IN THE PLAN, SO WE CAN LOOK AT SOME PROJECTS THAT WILL BENEFIT NOT ONLY THE COMMUNITY BUT ALSO WRIGHT PATTERSON AIR FORCE BASE FOR THE FOLKS INSIDE THE FENCE AS WELL AS THOSE OUTSIDE . PUTTING SOME OF THOSE THINGS IN WRITING SO WE CAN SHOW WHETHER WE ARE ASKING FOR MONEY, GRANT MONEY OR FEDERAL MONEY, COALITION OR COUNCIL OF GOVERNMENT, WE CAN SAY HERE IS A PRIORITY AND IT'S IN THE REPORT.

>> ANYONE ELSE HAVE ANY QUESTIONS?

>> COULD YOU GET BACK WITH US ON THE TED FUND BALANCE?

>> YES. THAT IS THE TRANSFORMATIVE ECONOMIC

DEVELOPMENT FUND . >> THANK YOU FOR A GREAT REPORT. THIS IS VERY IMPORTANT AND I THINK THE AVERAGE RESIDENT CAN UNDERSTAND IT. VERY THOROUGH AND VERY

OPTIMISTIC. APPRECIATE IT. >> WE ARE EXCITED.

>> MAYOR, I'M GOING TO FOLLOW UP ON WHAT NANCY SAID. I HAVEN'T BEEN ON COUNCIL ALL THAT LONG, BUT THIS PRESENTATION IS TOP-NOTCH. JOHN, DO YOU, ALEX , WEBB, AARON, YOUR TEAM HAS DONE A PHENOMENAL JOB AND I THINK RESIDENTS WILL APPRECIATE IF NOTHING ELSE, THE VISUAL SIMPLICITY OF IT AND GIVING EVERYONE IN THE COMMUNITY A VERY HIGH LEVEL YET DETAILED LOOK OF HOW THE CITY IS FINANCING THINGS. GREAT JOB, THANK YOU.

>> IT'S DEFINITELY A TEAM EFFORT AND I LOVE THAT CONCEPT.

UNDER JOHN'S LEADERSHIP, THROUGH CITY COUNCIL , I THINK WE HAVE SOME GREAT THINGS COMING FOR THIS COMMUNITY SO I

AM EXCITED. >> NOT QUITE THE LONGEST TERM BECAUSE JOHN HAS BEEN WITH THE CITY LONGER THAN ME, BUT IT IS VERY REFRESHING COMPARED TO THE COUPLE OF YEARS IN THE PAST .

IT'S A REFRESHING TEAM APPROACH AND I REALLY, REALLY

[01:10:04]

OTHER DEPARTMENT HEADS. >> GLAD TO HEAR THAT.

>> JUST TO CONTINUE, NICE JOB. JOHN, YOU MAKE A GREAT LEADER.

I WOULD LIKE TO THANK YOU, MAYOR . OVER THE LAST SIX YEARS IT HAS NOT BEEN THE MOST EASY SIX YEARS FOR YOU .

>> WE HAD SOME UPS AND DOWNS. >> YOU HAD INTRODUCED EVERYONE AS THE BEST LEADERSHIP TEAM IN THE MIAMI VALUE. THIS IS JUST TREMENDOUS. WITHOUT YOUR HARD WORK AND DEDICATION WE WOULD

NOT BE HERE. >> THANK YOU MARK. APPRECIATE THAT. DOES ANYONE HAVE ANYTHING ELSE? WHAT WE HAVE WOULD BE THE BUDGET ORDINANCE AT MONDAY'S MEETING. WE NEED TO WAIVE THE SECOND READING TO MAKE SURE IT'S APPROVED BY THE END OF THE YEAR. FISCAL LEGISLATION ALL TAKES EFFECT IMMEDIATELY AND WE NEED TO MAKE THE SECOND READING ON MONDAY. ANY OBJECTIONS TO THAT? OKAY. THANK YOU GUYS FOR YOUR PRESENTATION.

[ Hayden Apartments - CRA Assignment]

APPRECIATE IT. >> NUMBER 3F. FOR THE HAYDEN APARTMENTS AND THERE IS A CRA ASSIGNMENT.

>> 2022 WE ENTERED INTO AN AGREEMENT WITH HAYDEN APARTMENTS WHO RECENTLY CONTRACTED -- CONSTRUCTED APARTMENTS AND THEY ARE SELLING THAT IS PART OF THE PORTFOLIO.

THE AGREEMENT REQUIRES CONSENT TO TRANSFER OR SOMETHING THE CRA AGREEMENT SO THAT'S WHAT THIS LEGISLATION DOES, EXPLICITLY ALLOWS US TO ASSIGN THAT TO THE NEW USER WHICH IS THE KHAZEI FAMILY FUND. THERE ARE NO MINIMUM SERVICE PAYMENTS ASSOCIATED WITH THIS AGREEMENT AND THEY HAVE MET ALL THE

TERMS. >> FULL , FULLY RENTED, SO THAT'S ALWAYS A GOOD SIGN. ANY QUESTIONS FOR AARON REGARDING THE ASSIGNMENT OF THE CRA? ANY OBJECTIONS? OKAY. NEXT UP IS

[ Case BDP 24-23 - Grey Fox Capital - Basic Development Plan - 5425 Charlesgate Road]

>> WE SAW THIS AT THE LAST WORKS SESSION. THIS IS THE LAND THAT IS PROPOSED TO BE 159 UNIT TOWNHOUSE DEVELOPMENT AT THE END OF CHARLESGATE ROAD AND A LONG WILDCAT. THE DEVELOPER HAS SUBSEQUENTLY ENLARGED THE NORTHERN BUFFER TO APPROXIMATELY 40' AT THE REQUEST OF OURSELVES AS WELL AS CONCERNS THAT WERE EXPRESSED BY THE NEIGHBORS TO THE NORTH.

THIS IS THE RENDERING OF THE NEW LANDSCAPE PLAN WITH THE SUBSTANTIALLY ENLARGED BUFFER TO THE NORTH AS WELL AS ADDITIONAL LANDSCAPING AND PLANTING ALONG THAT NORTH AND EAST SIDE. ROUGHLY FOR A FRAME OF REFERENCE IT'S ABOUT 282' BETWEEN THAT LAST STRUCTURE AND THE PROPERTY LINE. SO ADDING ANOTHER 40' YOU ARE UP TO 320' BETWEEN THE LAST STRUCTURE AND POTENTIALLY THE NEW STRUCTURE OF THIS DEVELOPMENT. THERE WERE ALSO CONCERNS ABOUT THE LOCATION OF THE QUARRY . REALLY THE ACTIVITY OF THE QUARRY IS NORTH OF THIS SITE . THOSE OPERATIONS ARE NORTH OF THAT AND MOST OF THE PREVAILING WIND HEAD TO THE NORTH AND NORTHEAST SO WE DON'T ANTICIPATE A LOT OF DUST FROM THE QUARRY OPERATIONS ITSELF. THERE COULD BE DUST FROM TRAFFIC A LONG WILDCAT BUT THE RECOMMENDATION OF THE PLANNING COMMISSION WAS TO APPROVE THIS BASIC DEVELOPMENT PLAN. WE WILL REVISE THE LEGISLATION TO-- THE NEW LAYOUT AS PART OF THAT . IT IS IMPORTANT TO KNOW THAT IT IS ZONED RESIDENTIAL SO IT'S NOT A REZONING. THIS IS JUST THE APPROVAL OF THE BASIC

DEVELOPMENT PLAN. >> WHAT IS THE TOTAL AMOUNT OF FOOTAGE FROM STRUCTURE TO STRUCTURE ?

>> FROM THE STRUCTURE TO THE NORTH, TO THE END OF THIS BUFFERING IS AROUND ME HUNDRED 22' AND ADD ANOTHER 40 TO THE SIDE OF THE HOUSE AND YOU ARE AT AROUND 360' FROM STRUCTURE

TO STRUCTURE. >> WHAT IS THE BUFFER FROM THE

PROPERTY LINE? >> FROM HERE TO THE END OF THE BUFFER WILL BE 40' AND THEN YOU ARE LOOKING AT ANOTHER 40

[01:15:01]

TO THE EAST . >> DO WE KNOW IF THE DEVELOPERS TALKED TO THOSE RESIDENTS OR IF THERE HAS BEEN COMMUNICATION?

>> THE DEVELOPERS HERE, THEY HAVE SENT THE SITE PLAN AND REACHED OUT TO THE NEIGHBORS TO THE NORTH BUT I HAVE NOT HEARD

WHAT THE RESPONSE IS. >> IF YOU WOULD COME TO THE PODIUM, PLEASE? JUST KIND OF WHAT THOSE CONVERSATIONS WERE LIKE WITH SOME OF THOSE PROPERTY OWNERS .

>> THANK YOU, MAYOR. JAKE SHIELDS WITH GREY FOX CAPITAL.

I HAVE REACHED OUT TO THEM THREE OR FOUR TIMES AND I HAVE NOT HEARD ANYTHING BACK . I AM HAPPY TO MEET WITH THEM IN PERSON OR OVER THE PHONE . WHEN WE SPOKE AFTER THE MEETING, THAT WAS THE MAIN CONCERN, THEY WANTED TO BE ABLE TO-- THEY DIDN'T WANT US CLOSING ON THEM AND THEY DIDN'T WANT TO CLOSE ON US SO FROM OUR STANDPOINT, LEAVING THE CURRENT WOODS AS THEY ARE TO THE NORTH AND ADDING SOME SUPPLEMENTAL TREES AND BUSHES, WE THOUGHT THAT WOULD BE SUFFICIENT ENOUGH , ESPECIALLY EVERGREEN TYPES TO MAKE SURE THAT EVEN IN WINTERTIME THERE'S GOING TO BE PLENTY OF BUFFER.

>> THESE THREE DOTS ARE TREES, NOT BUSHES, RIGHT?

>> YES. >> I DON'T THINK THAT IN MANY DEVELOPMENTS , THEY ARE DILIGENT ENOUGH OF MAKING SURE THAT WE HAVE ADDED TREES IN THE DEVELOPMENT . OXYGEN IN THE AIR, YOU KNOW? TOWNHOUSES OR WHATEVER .

>> WE WANTED IT TO -- LOOK NICE FOR ALL OF THE RESIDENTS. WE WANT TO MAKE SURE IT LOOKS NICE FROM OUTSIDE AND INSIDE.

>> MARK ? >> YOU SAID THIS IS ZONED

RESIDENTIAL? >> PLANNED RESIDENTIAL.

>> AND THEY HAVE INCREASED THE BUFFER? HOW DOES THAT COMPARE

TO OTHER BUFFERS? >> IT IS ABOUT TWICE AS WIDE AS MOST OF THE RESIDENTIAL SUBDIVISION BUFFERS.

>> AND THIS IS THE PRODUCT THAT LOOKS SIMILAR TO THE RESIDENCES BEING BUILT BY NANCY? I LIKE THE PROPOSAL. AND I APPRECIATE YOU BEING WILLING TO WORK WITH RESIDENTS TO INCREASE THE

BUFFERING. THANK YOU SO MUCH. >> I APPRECIATE IT.

>> AND WE'VE ALREADY HAD THE PUBLIC HEARING ON THIS CORRECT? SO THIS WOULD BE A PUBLIC HEARING.

>> I'M SORRY ABOUT THAT. >> THERE WERE A COUPLE THAT WE HAD BUT I FORGOT THIS IS THE ONE WE HAD POSTPONED BECAUSE OF

THE BUFFER ISSUE. >> THANK YOU, MAYOR. I ASKED GOOGLE HOW MANY FEET IN A FOOTBALL FIELD AND THEY HAD 350' LONG SO IF WE MAKE IT OUT TO 360' THAT'S THE FOOTBALL FIELD BETWEEN THE HOUSES. THANK YOU FOR ACCOMMODATING OUR

RESIDENTS. >> I WAS JUST GOING TO ASK IF YOU HAD ANY QUESTIONS BECAUSE I KNOW THAT THE BUFFERING WAS A CONCERN OF YOURS THE LAST MEETING SO HOPEFULLY IT SATISFIES WHAT SOME OF YOUR QUESTIONS OR CONCERNS ARE .

>> YOU MENTIONED CONTACTING RESIDENTS. I HOPE IF ANY RESIDENTS ARE LISTENING THEY UNDERSTAND THIS IS A PUBLIC HEARING AND THAT WOULD BE THE TIME TO SPEAK.

>> THANK YOU. ANY OTHER QUESTIONS? ARE THERE ANY OBJECTIONS TO MOVING THIS TO MONDAY FOR PUBLIC HEARING?

>> AARON, WOULD YOU BE LOOKING TO DO TWO OR TO WAIVE THE

SECOND -- WAIVE THE SECOND ? >> IT WOULD BE HELPFUL TO THE DEVELOPER IF WE WERE TO WAIVE THE SECOND READING BUT IT IS

NOT A DEAL KILLER. >> THEY WOULD PREFER TO MOVE

IT. >> ANY OBJECTIONS? SEEING NONE

[01:20:04]

[ Canal Heights - Development Agreement]

AGREEMENT. >> WE TALKED ABOUT THIS IN THE LAST WORK SESSION. THIS IS A DEVELOPMENT AGREEMENT TO ASSIST IN THE DEVELOPMENT OF 208 SINGLE-FAMILY HOMES ALONG CHAMBERSBURG ROAD. THE ORIGINAL DEVELOPMENT AGREEMENT CONTEMPLATED A 15 - YEAR CRA EXEMPTION AS WELL AS A 15 - YEAR TIF TO HELP OFFSET THE COST-- SORRY LET ME REPHRASE.

WOULD BE TIF REVENUE BOND THAT WOULD BE SECURED BY 15 YEARS OF SERVICE PAYMENTS AND REALLY TIF INCOME THAT WOULD HELP OFFSET THE COST OF INFRASTRUCTURE NECESSARY FOR THIS DEVELOPMENT.

THIS SITE IS DIFFICULT TO DEVELOP AND EXPENSIVE TO DEVELOP. THAT WOULD HAVE GENERATED APPROXIMATELY $8.6 MILLION IN BOND REVENUE TO ASSIST THAT DEVELOPMENT. RIGHT NOW THE GAP FOR THE PROJECT IS APPROXIMATELY $11 MILLION GIVE OR TAKE. IN RECENT CONVERSATIONS , AS IN THE LAST SEVEN DAYS OR SO THE DEVELOPER HAS ASKED FOR US TO INCREASE THE TERM OF THE BOND ISSUANCE TO 30 YEARS. THAT WOULD GENERATE APPROXIMATELY $10.1 MILLION IN REVENUE TO FILL THAT GAP . THEIR COSTS ARE ROUGHLY $136,000 PER LOT. THEY CAN SELL THEM FOR ROUGHLY 60,000 AND $80,000 AND THAT DELTA IS THE $10 MILLION GAP. ANDY IS THE ONE WHO HAS GENERATED ALL OF THESE PROJECTIONS AND WE'VE BEEN WORKING CLOSELY WITH CHRIS ON THIS AS WELL. THIS IS NOT TYPICALLY HOW WE APPROACH DEVELOPMENT IN THE PAST. TYPICALLY WE HAVE DONE 15 - YEAR CRA'S AND WE HAVE BENEFITED FROM THAT FINAL 15 YEAR PERIOD ON A 30 - YEAR TIF . BUT THE DEVELOPER WHO IS HERE , FORESTART , IS REQUESTING WE GET OUT OF OUR COMFORT ZONE BECAUSE OF THE HIGH COST OF DEVELOPING THIS PROJECT. THEY HAVE INTIMATED THAT IF WE CANNOT GET CLOSE TO FILLING THIS GAP , THE PROJECT IS UNTENABLE . THEY DO HAVE A PRESENTATION IF YOU WOULD LIKE , THAT GOES INTO THE DETAILS OF WHERE WE WERE IN MARCH TALKING ABOUT THIS PROJECT AND THE BOND, THE REVENUE BONDS WHERE WE ARE TODAY AND THE CHANGE IN MILLAGE RATES THAT HAVE DROPPED THE AMOUNT OF BOND REVENUE TO AROUND 70 MILLS TO NOW AROUND 57 WHICH REALLY CUT INTO THE PROCEEDS OVER THAT 15 YEAR PERIOD.

>> AND YOU SAY BOND COUNSELORS ARE OKAY WITH THIS PROPOSAL?

>> I WOULD SAY THAT ANDY HAS SAID THAT HE RECOMMEND WE STAY WITH OUR 15 - YEAR , TIE THE BOND ISSUANCE TO OUR 15 - YEAR TAX EXEMPTION BUT HE HAS RUN PROJECTIONS SHOWING THAT, WHAT A 30 YEAR BOND COUPLED WITH MINIMUM SERVICE PAYMENTS AND NET STATUTORY PAYMENTS WOULD YIELD. HE WOULD PREFER, AND HE EXPRESSED THAT TO ME, THAT WE STAY AT 15 BUT THIS IS THE 30 YEAR APPROACH AND IT IS POSSIBLE. IT IS NOT HOW WE'VE DONE THINGS IN THE PAST BECAUSE WE WOULD BE FORGOING THE BACK HALF OF THAT REVENUE. THIS IS REALLY A POLICY CONVERSATION ABOUT THE IMPORTANCE THAT THIS COUNCIL PLACES ON EITHER ASSISTING DEVELOPMENT OF THIS PROJECT VERSUS THE FACT THAT WE ARE GIVING UP 30 YEARS OF TIF REVENUE FOR OTHER PURPOSES.

>> IS THERE ANY OTHER OPTION? >> NOT THAT I CAN SEE. THIS IS

[01:25:05]

BECAUSE OF STREAMS. >> I MEAN FOR FUNDING.

>> NOTHING THAT WOULD NOT SUBSTANTIALLY CHANGE THE PROJECT. THIS IS PROBABLY THE BEST WAY TO DO IT AND ENSURE A

MARKET RATE PRODUCT. >> MARK?

>> AARON, AND HIS RECOMMENDATION IS THE 15 - YEAR

CRA? >> HIS RECOMMENDATION IS THE 15 - YEAR CRA. I DON'T WANT TO PUT WORDS IN HIS MOUTH BUT,

YES. >> WHEN YOU WERE HERE LAST, THE CITY'S BACKEND AMOUNT TOTAL WOULD BE ABOUT 3 - $3.5

MILLION? >> FOR THE ENTIRE LIFE OF THE REMAINING 15 YEARS OF THE STATUTORY PAYMENTS, IT WOULD BE CLOSE TO $9 MILLION OVER THAT FULL-TERM PERIOD . SO, YES.

THAT IS THE 30 - YEAR PERIOD. >> WHEN YOU ARE HERE AT THE LAST MEETING AT TALKED ABOUT THIS I REMEMBER 3 1/2 MILLION DOLLARS THAT THE CITY WOULD RECEIVE.

>> I BASICALLY DISCOUNTED PHASE 5 SO OVER THE FULL 30 YEARS WE WOULD GET ABOUT $9 MILLION. BUT I THINK THAT THERE IS A CHANCE THAT IF MILLAGE RATES CHANGE AGAIN AND GO DOWN, WHAT WE ACTUALLY WILL RECEIVE WILL BE LESS THAN THE $9 MILLION.

>> DID I REFLECT THAT LAST MEETING , THE WRONG NUMBER, OR

DID WE TALK ABOUT IT? >> WE TALKED ABOUT $3 MILLION.

YOUR RECOLLECTION IS CORRECT. I WAS BEING CONSERVATIVE IN MY

APPROACH. >> IN THE PROPOSAL THAT WE ARE ABOUT TO HEAR TONIGHT, WHAT WOULD OUR PEACE BE?

>> NONE. >> ARE WE READY TO SEE THE

PRESENTATION? >> GOOD EVENING EVERYONE, THANK YOU FOR INVITING US TO TALK ABOUT THE PROJECT. MY NAME IS MIKE UBER AND I AM OUTSIDE COUNCIL AND WITH ME TONIGHT I HAVE BILL MILLER WHO IS THE VICE PRESIDENT OF REAL ESTATE INVESTMENTS AND MARKET LEADER FOR OHIO AND MARK CONNOR WHO IS THE VICE PRESIDENT OF LAND ACQUISITIONS, ENTITLEMENTS FOR THE OHIO VALLEY. AS AARON VERY WELL PUT TOGETHER, WE ARE HERE TO REQUEST THE 30 - YEAR BOND ISSUANCE AND WE WILL GO INTO SOME OF THE REASONS WHY WE ARE HERE MAKING THAT REQUEST NOW BASED ON SOME OF THE FACTORS THAT HAVE COME TO LIGHT AS WE HAVE DEVELOPED THE PROJECT. BUT BEFORE WE GET TO THAT I WOULD LIKE TO IN-- I WOULD LIKE TO INVITE BILL TO SPEAK MORE ABOUT WHO FOUR-STAR IS AND WHAT THE PROJECT THAT WE ARE TRYING TO

DEVELOP HERE, LOOKS LIKE. >> THANK YOU MAYOR, BOARD AND CITY MANAGER RUSSELL. I WANT TO SPEAK VERY BRIEFLY, 30 SECONDS OR LESS. AS YOU CAN SEE, FORESTART IS ONE OF THE LARGEST SINGLE-FAMILY COMMUNITY DEVELOPERS. WE FOCUS ON AFFORDABLY PRICED SINGLE-FAMILY PROJECTS AND CURRENTLY DEVELOP ONE OUT OF EVERY SINGLE-FAMILY DETACHED HOME LOT IN THE UNITED STATES. IN FISCAL YEAR 2024 WE DEVELOPED A LITTLE OVER 15,000 RESIDENTIAL LOTS. AS A MATTER OF PUBLIC RECORD, DR-- OWNS ABOUT 60% OF OUR STOCK AND I WOULD LIKE TO BRING MY COLLEAGUE MARK UP TO DISCUSS THE SPECIFICS OF THE PROJECT.

>> GOOD EVENING, EVERYONE. LOCATION MAP, HAPPY TO BE HERE AND GLAD TO BE TALKING ABOUT THIS. WE ARE EXCITED TO BE A PART OF HUBER HEIGHTS AND IT'S ABOUT AS BIG OF A PRIORITY AS FORESTART HAS IN THIS PART OF OHIO. IF WE WANT TO FLIP TO THE SITE PLAN TO GIVE SOME BACKDROP THIS IS NOT THE FIRST TIME AND FORESTART WAS NOT THE FIRST DEVELOPMENT GROUP WHO BROUGHT THE PROJECT TO THE CITY. IT'S A COMBINATION OF WIDE LOTS GIVE OR TAKE 30% OF LOTS IN THE ENTIRE 200 OF LOTS IN THE ENTIRE 203-- 283 TOTAL . SO AS WE SPEAK A LITTLE FURTHER DOWN THE ROAD HERE IN A FEW MINUTES, THE ASSESSED VALUES THAT WE HAVE TRIED TO BE INTENTIONALLY CONSERVATIVE WITH ON BOND PROJECTIONS LIKELY HAVE SOME UPSIDE. WITH ITEMS SUCH AS BASEMENTS AND WHAT NOT. TRIED TO BE CONSERVATIVE. 283 LOTS, TWO THIRDS ARE 51' WIDE AND THE BALANCE ARE 70' WIDE. MY

[01:30:08]

BILL. >> AS WE MENTIONED EARLIER -- LET ME GET OVER HERE TO IT. THE HEADWINDS THAT WE HAVE ON THIS PARTICULAR PROJECT , THERE ARE THREE BRIDGES. IF I COULD TROUBLE YOU, CAN YOU GO BACK TO MAYBE THE SECOND SLIDE WHICH SHOWS THAT THERE IS THREE BRIDGES FOR THREE ACCESSES. THE TOP RIGHT, THE BOTTOM RIGHT AND THE LOWER LEFT AND EACH ONE OF THOSE IS $750,000 OR $800,000 PROPOSITIONS. TO BECOME LESS COMPLICATED, THERE'S A LOT OF SLOPE ON THIS LAND AND SLOPE LAND IS EXPENSIVE AND DIFFICULT TO DEVELOP AND THAT'S WHAT DRIVES UP THE COST. I DON'T HAVE ENCYCLOPEDIC KNOWLEDGE OF WHY THE LAST DEVELOPER FAILED TO DEVELOP THIS LAND BUT I WOULD SAY THERE'S A HIGH PROBABILITY THEY CANNOT FIGURE OUT THE SLOPE AND IT WAS TOO EXPENSIVE TO DEVELOP. WE'VE BEEN WORKING CLOSELY WITH AARON AND STAFF THE PAST NINE MONTHS AND ESPECIALLY THE PAST FEW WEEKS AND I THINK THE SHORT VERSION IS , IF WE DO A 15 YEAR DURATION, WE ONLY GET $8 MILLION AND CHANGE. 30 YEARS WE GET $10.1 MILLION AND THAT'S THE DIFFERENCE BETWEEN US DOING THE PROJECT AND NOT DOING THE PROJECT. IF YOU FORGET ABOUT ALL THE THINGS WE ARE GOING TO TALK ABOUT AND HAVE TALKED ABOUT THE LAST FIVE MINUTES, IT ALL COMES DOWN TO IF WE CANNOT GET $10 MILLION IN SUPPORT WE LOSE MONEY TO BUILD THIS PROJECT. AS WE SIT HERE IN EARLY DECEMBER WE ARE READY TO GO TO CLOSING IN JANUARY. TAKES US USUALLY 8 TO 12 MONTHS OF DOING HORIZONTAL THINGS BEFORE WE GO VERTICAL AND HOUSES ARE BUILT. BUT WE ARE ON THE ONE YARD LINE. IT DOESN'T WORK WITHOUT DOING A 30 YEAR DURATION. WE'VE GONE THROUGH THE GYMNASTICS ON THIS WITH YOU

. >> WE PROBABLY WENT THROUGH THREE DIFFERENT MODELS IN THIS PROJECT.

>> BUT IN SHORT, THE HEADWINDS , WE ARE PURCHASING 171 ACRES AND WE ARE DONATING 90 TO THE CITY. AT THE COST PER ACRE THAT IS A $2.25 MILLION DONATION. AGAIN I WANT TO REITERATE THAT THAT WE ARE PURCHASING 171 ACRES AND WE ARE DONATING FOR FUTURE USE , GREEN SPACE, WHATEVER YOU WANT TO DO WITH IT. THE FACT THAT IT IS SLOPED GIVES US LIMITED DENSITY. THE HIGHER THE DENSITY THE EASIER IT IS TO DO THINGS WITHOUT ANY TIF SUPPORT OR WITHOUT MUCH. SITE CONDITIONS ARE TOPOGRAPHICALLY DIFFICULT AND THE PREVAILING WAGE REQUIREMENT, IT IS WHAT IT IS BUT THEY MAKE THIS PARTICULAR

PIECE OF DIRT EXPENSIVE. >> THESE ARE ITEMS THAT FIGURE INTO THE HIGH COST OF THE LAND THEREBY REQUIRING A HIGHER COST FOR PUBLIC FINANCING TO HELP FILL SOME OF THOSE GAPS. THIS SLIDE HERE IS GOING TO SHOW YOU A LITTLE BIT OF, SORT OF, WHAT HAS GONE ON TO MAKE IT SO THAT WE NEED TO DO THE 30 - YEAR. IN MARCH 2024 WHEN WE FIRST STARTED WORKING WITH AARON WE HAD A GREAT SYSTEM WORKED OUT. WE HAD 14 1/2 MILLION DOLLARS BOND ISSUANCE, 15 YEARS ON THE TERM AND PLEASE FEEL FREE TO CORRECT ME IF I AM OFF BASE ON ANY OF THESE. AT THAT TIME, EFFECTIVE MILLAGE WAS ABOUT 73.36 MILLS AND WE WERE GOING TO GET A PROCEED OF ABOUT $11 MILLION SO WHEN WE PENCILED OF THAT IN, GREAT. AWESOME. THAT MAKES EVERYTHING WORK ON THAT TIMELINE. WHAT HAS CHANGED SINCE TODAY? THE TRIANNUAL ASSESSMENT HAS GONE ON IN THE STATE OF OHIO. MILLAGE HAS DROPPED. THAT DECREASE RESULTED IN ABOUT A 20% DECREASE OF POTENTIAL REVENUE. PROCEEDS FOR THE INFRASTRUCTURE GO DOWN TO

[01:35:05]

THESE GO UP THE CHAIN AND YOU HAVE DECISION-MAKERS WHO LOOK AT THESE ON A BLACK AND WHITE BASIS. WE HAVE BEEN PERMITTED TO WALK BACK A LITTLE BIT ON THAT RATE OF RETURN FOR THIS PROJECT AND I KNOW THAT MARK AND BILL HAVE GONE TO BAT FOR THIS PROJECT KNOWING HOW BADLY THEY WANT TO BE HERE. GETTING TO THE 30 YEAR ASK, THAT IS BASICALLY , THE MILLAGE WENT DOWN, WE NEED TO FIND A WAY TO RAISE BOND PROCEEDS FOR THE INFRASTRUCTURE AND THE BEST WAY TO DO THAT WORKING THROUGH MANY DIFFERENT MODELS , WE'VE GONE BACK AND FORTH A LOT OF TIMES AND WE FINALLY GOT TO THE 30 YEAR ISSUANCE BEING THE KIND OF , KEY TO GET US TO THAT $10 MILLION STOPGAP THAT WE NEED IN ORDER TO MAKE THE PROJECT VIABLE.

>> I ALSO WANT TO REITERATE THAT WE REALLY WANT TO DO IT AND WE WOULD LIKE TO START NEXT MONTH. IF WE CAN GO TO 30 YEARS , WE THINK WE CAN MOVE FORWARD, GO TO CLOSING IN JANUARY AND GO FORWARD. IF YOU ALL CHOOSE NOT TO DO THAT AND YOU STICK WITH 15 YEARS, WE'RE DONE. THERE'S NO CHANCE. IT IS CUT SO CLOSE TO THE BONE RIGHT NOW . WE HAD ANTICIPATED $11 MILLION BACK IN MARCH AND WE'VE DONE EVERYTHING WE CAN DO. AT $8.6 MILLION, IT IS DEAD. I'M NOT TRYING TO NEGOTIATE FOR MORE MONEY FOR OUR COMPANY. THE DEALS EITHER PENCIL OUT OR THEY DON'T AND SOMETIMES THEY DO THAT WELL. AND SOMETIMES WE CUT THEM CLOSE TO THE BONE. WE ARE CUT SO CLOSE TO THE BONE IT'S GOING TO BE TIGHT GETTING IT THROUGH AT 10.1 AND WE NEED THE 30 YEAR ISSUANCE TO GET TO THAT. YOU ARE WELL WITHIN YOUR RIGHTS TO DO WHATEVER YOU WANT TO DO BUT IF YOU STICK WITH 15 YEARS WE ARE GOING TO SAY GOOD LUCK, WE HAVE TO WITHDRAW. AND I AM SORRY TO BE THAT BLUNT BUT WE ARE ON THE ONE YARD LINE AND CAN GO TO CLOSING IN JANUARY AND GET GOING IF WE CAN GET THE 30 YEAR ISSUANCE. WE WOULD APPRECIATE YOUR SUPPORT ON THAT

. >> I WOULD REITERATE THAT THAT IS NOT AND ASK TO SAY MAKE THIS PROJECT EXTRA PROFITABLE FOR US. IT IS JUST TO MAKE IT VIABLE. THIS IS NOT SOMETHING WE ARE SAYING WELL YOU KNOW, WE CAN MAKE A HUGE RATE OF RETURN IF WE JUST HAD A LITTLE BIT OF TAX MONEY. THAT IS NOT THE CASE AT ALL. THIS IS JUST TO MAKE THE PROJECT VIABLE.

>> ONE FINAL SLIDE FOR YOU GUYS. AS AARON MENTIONED, WITH THE 30 YEAR KICKBACK TO THE CITY NEAR THE END DOES GO AWAY BUT I DO WANT TO HIGHLIGHT -- THANK YOU VERY MUCH. I WANT TO HIGHLIGHT THAT THERE ARE SUBSTANTIAL BENEFITS TO THE CITY BESIDES THAT TAX REVENUE THAT COMES IN ON THE END IF WE ARE DOING THE 15 YEAR. YOU WILL HAVE SOME ELEVATED HOUSING FOR THE CITY. THESE ARE 50 AND 70 FOOT LOTS SO THEY ARE PREMIUM.

FAMILY SIZE, 283 LOTS IS 283 FAMILIES. EVEN IF YOU HAVE A FAMILY LIVING HERE IN THE CITY AND THEY DECIDE TO MOVE ON. I THINK WE ALL KNOW THAT WE ARE IN A MASSIVE HOUSING SHORTED-- HOUSING SHORTAGE. IT SHOULD NOT BE A SUBSTANTIAL INCREASE IN INCOME TAX REVENUE. AS YOU KNOW, THIS FINANCING DOES NOT IMPACT THE INCOME TAX REVENUE. PURELY REAL ESTATE. THE PREVAILING WAGE REQUIREMENT RESULTS IN HIGH-PAYING CONSTRUCTION JOBS. YOU HAVE THE 90 ACRE DONATION FOR PARKLAND, GREEN SPACE USAGE. HOWEVER YOU SEE FIT . I WOULD REITERATE THAT BONDS ARE NOT GUARANTEED OR BACKED BY THE CITY. THERE IS A DEVELOPER GUARANTEE HERE FOR COMPLETION AND THE PROPERTY OWNER IS THE BACKSTOP HERE. NOT THE CITY. ALSO AS A FINAL POINT, WE ARE NOT UTILIZING ANY TAX REVENUES OR DIVERTING ANY TAX REVENUES THAT EXIST TODAY. THE ONLY TAX REVENUES THAT WILL BE GOING TOWARD SERVICE PAYMENTS, NET STATUTORY PAYMENTS ARE THOSE CREATED BY THE PROJECT. SO IF THE PROJECT DOES NOT HAPPEN, THOSE WOULD NOT BE IN PLAY ANYWAY BECAUSE THERE WOULD BE NO NEW HOMEOWNERS OR INCREASE OF PROPERTY TAX FROM THOSE LOT JUST TO REITERATE WHAT BILL SAID, WE ARE COMING HERE AT THE 11TH HOUR ASKING FOR YOU TO

[01:40:06]

>> WE HAVE A CONTRACT WITH THE SELLER?

>> IT'S A CONTRACTUAL TIMELINE, NOT ARTIFICIAL .

BASED ON OUR CONTRACT WITH THE CURRENT PROPERTY OWNER. FINALLY I WOULD LIKE TO THANK AARON FOR BEING A PLEASURE TO WORK WITH THROUGH THE WHOLE PROCESS. THE ENTIRE CITY HAS BEEN. WE ARE EXCITED ABOUT THIS PROJECT AND WE HOPE YOU WILL CONSIDER OUR OFFER AND REQUEST. NOW I WILL OPEN IT UP FOR QUESTIONS.

>> I HAVE A FEW. SO, YOU GUYS HAD THE ADVANTAGE, OR THE DISADVANTAGE OF SITTING THROUGH OUR BUDGET PRESENTATION AND WE CERTAINLY DID NOT GET INTO THE FINANCIAL SHAPE THAT THIS CITY IS IN BY GIVING AWAY ALL OF OUR MONEY ON DEVELOPMENTS. SO AS MISTER CAMPBELL POINTED OUT, IT IS NOT TYPICALLY HOW WE'VE DONE BUSINESS IN THE PAST. I KNOW THAT ALL OF MY COLLEAGUES ARE PROBABLY SCRATCHING THEIR HEADS RIGHT NOW THINKING WHAT IS THIS? WHAT ARE WE GETTING OURSELVES INTO HERE? I UNDERSTAND THAT THERE IS NO RISK TO THE CITY ON THESE BONDS, BUT WE ARE IN A POSITION AND A SITUATION WHERE WE HAVE A LOT OF HOUSING STOCK ONLINE AT MIAMI COUNTY. A LARGE SUBDIVISION NORTH OF HERE. A LOT OF NEW CONSTRUCTION WITHIN MONTGOMERY COUNTY , AS WE HAVE SEEN, ARE SOME TOWNHOMES AND WE'VE SEEN A LOT OF MULTI- FAMILY DEVELOPMENTS THAT HAVE HAPPENED AND RENT IS UPWARDS OF $2000 A MONTH AND THEY CAN'T HOLD THEM FAST ENOUGH. BUT, I UNDERSTAND THE LONG-TERM GOAL OF ANOTHER HOMEOWNER . NOT NECESSARILY ANOTHER RENTER . I APPRECIATE WHAT 283 NEW FAMILIES WOULD DO FOR THOSE SCHOOLS. THOSE ARE PEOPLE WHO CAN AFFORD A $400,000 HOUSE.

THEY UNDERSTAND THE VALUE OF EDUCATION, THEY ARE GOING TO INSTILL THAT IN THEIR KIDS WHEN THEY GO TO SCHOOL. SO, I DO SEE SOME ADVANTAGES THAT MIGHT BE NON-TANGIBLE ADVANTAGES TO A PROJECT LIKE THIS . I APPRECIATE AND RESPECT ALL OF THAT AND WHAT IT CAN DO FOR THIS COMMUNITY. ON THE FLIPSIDE OF THAT, WHAT I AM HEARING IS THAT I NEED TO KNOW, AND I AM PROBABLY GUESSING , WHY. IF THIS PROJECT IS SO THIN AND WE ARE LITERALLY WITHIN A COUPLE MILLION DOLLARS OF MAKING A PROJECT OF THIS SIZE WORK , TO USE YOUR WORDS THERE'S NOT A LOT OF MEAT ON THE BONE. WHAT IS IT ABOUT HUBER HEIGHTS AND THIS PROJECT THAT IS SO APPEALING THAT IT IS WORTH THE INVESTMENT THAT YOU ARE CLEARLY PUTTING INTO THIS , BUILDING 2 1/2 MILLION DOLLARS OF BRIDGES BEFORE YOU EVER GET THE FIRST HOUSE OUT OF THE GROUND? I NEED TO KNOW WHY YOU WANT TO BE IN MY COMMUNITY SO BAD THAT I AM WILLING TO GIVE UP THE MONEY TO MAKE IT HAPPEN , TO WHERE THE ONLY BENEFIT TO THIS COMMUNITY IS THE NON-TANGIBLE ITEM OF ADDITIONAL HOMEOWNERS AND WHAT THAT BRINGS TO THE CITY LONG-TERM. I REALLY NEED TO UNDERSTAND WHY IF WE ARE BUILDING -- ONE OUT OF EVERY 50 HOUSES IN THE COUNTRY? I PAID ATTENTION TO YOUR PRESENTATION, WHY HERE, WHY NOW? WHAT IS IT ABOUT THIS PROJECT THAT IS SO APPEALING IF THERE IS VERY MINIMAL MEAT ON THE BONE THAT WE ARE LITERALLY A YES OR NO OR WE ARE OUT OF HERE?

>> CERTAINLY. LET'S TAKE OUT FINANCIALS FOR A SECOND. BILL, MYSELF AND MIKE WERE HERE EARLIER AND WE HEARD A COUPLE

[01:45:02]

THIS IS ABOUT AS EXCITED AS FORESTART IS TO BE IN AN AREA THAT HAS THIS MUCH GOING ON WITH LEADERSHIP THAT CLEARLY GETS IT FROM THE BUDGET PRESENTATIONS DOWN TO DECISIONS THAT ARE BEING MADE, THAT WE WANT TO BE HERE. IT IS REALLY LESS ABOUT -- THOUGH I CAN APPRECIATE AS LEADERS WHERE IT IS COMING FROM, IT COSTS AN EXTRAORDINARY AMOUNT TO DEVELOP THIS PARTICULAR PROJECT BASED ON WHAT WE THINK HOMES WILL SELL FOR . THERE IS A HOME BUILDING INDUSTRY THAT'S BEEN AROUND FOR 100 YEARS THAT SUGGESTS YOU CAN SELL A LOT FOR X AMOUNT THAT CAN EQUATE TO A RETAIL HOME PRICE. WE WOULD BE LOSING UPWARDS OF $30,000 FOR EVERY LOT WE SOLD WITH NO TIF DOLLARS. THE $10 MILLION GETS US TO $2 MILLION PROFIT FOR FORESTART OVER FIVE YEARS ON AN INVESTMENT THAT IS NORTH OF $25 MILLION. SO THE MEAT ON THE BONE AND THE THIN MARGINS, YOU'VE GOT BIGGER FISH TO FRY THAN HOW MUCH MONEY A DEVELOPER MAKES. WE THINK THERE IS UPSIDE AND LOT PREMIUMS AND MAYBE HAVE BEEN INTENTIONALLY A LITTLE CONSERVATIVE ON AVERAGE HOME SALE PRICES WE ARE RUNNING BOND PROJECTIONS ON. IN THIS MARKETPLACE I THINK THE LAST SET OF PROJECTIONS WERE RUN ON A 50 FOOT LOT AT $360,000 AND THEN GOES $410,000 ON THE BIGGER LOTS. THERE IS UPSIDE AND I THINK THERE'S CUSHION IN A LOT OF AREAS ON ULTIMATELY THE REVENUES GENERATED DURING THE PROJECT. THAT WAS A LONG-WINDED WAY TO SAY WE WANT

TO BE HERE. WE REALLY DO. >> SO WHAT WERE THE PROJECTED PRICES? I AM THINKING , LEXINGTON PLACE , NOT LEXINGTON PLACE BUT-- QUAIL RIDGE. THOSE THINGS WERE GOING FOR WHAT, UP INTO THE 4 1/4 ON SOME OF THOSE?

>> I THINK SO. SOME OF THE BASEMENT LOTS WENT FOR NORTH OF

$400,000. >> SO IS THERE AN OPPORTUNITY, IS THERE A WAY WHERE -- I DON'T WANT TO USE THE WORD CAP , BUT IF THERE IS POTENTIAL UPSIDE ON YOUR END AND THOSE NUMBERS HAVE BEEN CONSERVATIVE, WE REACH A LEVEL WHERE SOME OF THAT REVENUE IF, FOR EXAMPLE HOME PRICES GO UP AND MILLAGE RATES CHANGE AGAIN, WILL WE REACH A POINT THAT YOU ARE SATISFIED , AND SOME OF THAT REVENUE STARTS TO FLIP BACK TO THE CITY AND WE START TO FLIP? IF THOSE THINGS CHANGE OR SOMETHING. AGAIN, BECAUSE IF WE WALK AWAY AND WE DON'T DO NOTHING AND DON'T DO NOTHING, WE DON'T KNOW ANY BETTER. IT IF THERE'S OPPORTUNITY FOR MONEY TO BE MADE, WHERE BOTH OF US CAN BE SATISFIED AND HAPPY, IS THERE A WAY THAT WE CAN REACH A POINT WHERE SOME OF THAT REVENUE DOES FLIP ONCE WE REACH A CERTAIN POINT? I CAN TELL YOU THAT A BIG PIECE OF HEARTACHE THAT A LOT OF MY COUNCILMEMBERS HAVE IS THAT WE HAVE A TREMENDOUS AMOUNT OF RESPECT AND TRUST IN-- COUNCIL AND STILL RECOMMENDING A 15 YEAR. I UNDERSTAND THAT DOESN'T DO ANY GOOD TO YOUR PROJECT BUT WE PUT A LOT OF FAITH AND TRUST AND WORKED A LOT OF DEALS THROUGH, YOU HAVE GOT US AN EXTRA $80 MILLION IN RESOURCES OVER THE LAST FEW YEARS. SO IF WE ARE TALKING ABOUT THIS, AND I'M GLAD THIS IS AT A WORK SESSION SO WE CAN WORK THROUGH THIS AND TALK ABOUT IT RATHER THAN JUST SAY WE ARE DONE. CUT AND DRY AND IT'S OVER. IS THERE OTHER ROOM FOR US TO WORK ON THE BACKEND OF THIS THING IF WE REACH A LEVEL THAT IS OKAY WITH YOU AND US WHERE THE REVENUE STARTS TO SPLIT?

>> THE WAY THAT THE REPAYMENT LETTER WORKS IS, DEBT SERVICES COVERS FIRST AND IF THERE'S GRAVY, THAT GRAVY FLOWS TO US.

[01:50:01]

WOULD TYPICALLY PAY. >> WAS THAT 950 OR 350 A YEAR? OF COURSE I JUMBLE NUMBERS ALL THE TIME SO PLEASE EXCUSE ME

BUT I THOUGHT WE WERE AT 950. >> TO COVER THE GAP BETWEEN 8.6 AND 10 POINT SOMETHING, AT $1.5 MILLION WOULD BE 353 PER YEAR

FOR 15 YEARS . >> JUST A COUPLE OF COMMENTS.

TO CLARIFY, I BELIEVE THE NUMBERS WERE CONSERVATIVE. WHEN WE WERE LOOKING AT NUMBERS IN MARCH WE WERE USING AVERAGE SALES PRICE FOR TWO LOT SIZES AND WHEN WE HAD BEEN STRATEGIZING IN THE PAST WEEK ABOUT HOW CAN YOU TURN THE DIALS AND MAKE IT WORK INSTEAD OF FALLING OVER, THAT'S WHEN WE TOOK A LOOK AT THE CURRENT MARKET AND THE MARKET HAD MOVED A BIT. I THINK THAT'S WHAT MARK WAS REFERRING TO BEING CONSERVATIVE WITH THE NUMBERS FROM MARCH UNTIL NOW, NOT JUST BEING CONSERVATIVE NOW IN GENERAL. I WOULD RESPECTFULLY ARGUE THAT I KNOW ANDY. HE'S GOT A GREAT REPUTATION, I HAVE ONLY GREAT THINGS TO SAY ABOUT HIM. DONE BUSINESS WITH HIM AND OTHER JURISDICTIONS. THAT IS ONE WAY TO LOOK AT IT. ANOTHER WAY TO LOOK AT IT IS WE ARE THE SECOND DEVELOPER ON THIS PIECE OF LAND AND WE ARE HAVING A HARD TIME FIGURING IT OUT AND IT MIGHT FALL OVER. IF WE DON'T DO IT, I AM NOT TERRIBLY OPTIMISTIC THAT THE THIRD DEVELOPERS GOING TO HAVE SUCCESS WHERE THE FIRST AND SECOND DEVELOPMENT FAILED. AND MY SECOND COMMENT IS WHY ARE WE SO EXCITED TO BE HERE? WE'VE GOT RELIGION ON HUBER HEIGHTS. WE WANT TO BE HERE FOR 1 MILLION DIFFERENT REASONS AND THAT'S WHAT MAKES PEOPLE

EXCITED . >> WELL WE LOVE HEARING ABOUT WHY PEOPLE ARE EXCITED ABOUT US.

>> WE'VE GOT RELIGION. WE ARE READY. NOW IT'S A TOTALLY DIFFERENT CONVERSATION, THIS PIECE OF DIRT. THIS PIECE OF DIRT BETWEEN THE BRIDGES AND THE SLOPE, AND THE LACK OF DENSITY, THAT'S LIKE GOOD MORNING, GOOD AFTERNOON, GOOD NIGHT. WE ARE DONE. AND WE ARE TRYING TO FIGURE IT OUT BECAUSE WE REALLY WANT TO BE HERE AND WE'VE HAD SUCCESS WHERE OTHER DEVELOPERS HAVE FAILED DEPENDING ON MORE THAN A DOZEN PROJECTS GOING IN OHIO RIGHT NOW. WE ARE GOOD AT WHAT WE DO AND WE BEEN DOING IT A LONG TIME. WE FEEL LIKE WE ARE NOT AFRAID TO TRY WERE SOMEONE ELSE HAS FAILED BECAUSE WE CAN GET TO THE FINISH LINE. IT'S JUST MY PERSONAL OPINION. IF WE CAN'T GET TO THE FINISH LINE ON THIS NO ONE ELSE WILL

EITHER, IS MY OPINION. >> I RESPECT THE BLUNTNESS AND WE PROBABLY HAVE PEOPLE IN THE COMMUNITY THAT WOULD PREFER TO SEE THAT IT STAYS THAT . SO THERE'S ALWAYS THE FLIPSIDE OF BOTH OF THOSE . I THINK THE DECISION IS REALLY WEIGHING WHAT -- IF THE REVENUE IS GONE , WHAT ARE THE INTANGIBLE BENEFITS TO THE COMMUNITY? THAT IS WHAT WE ARE GOING TO HAVE TO THINK ABOUT . SO MARK HAD HIS HAND UP AND THEN WE WILL COME

BACK. >> I AM GOING TO JUMP AROUND HERE. I THINK TO ANSWER THE QUESTION ABOUT WHY ANDY RECOMMENDED 15 IS THAT HE'S LOOKING OUT FOR THE BEST INTEREST OF HIS CLIENT, HUBER HEIGHTS AND WHOEVER OWNS THE LAND . HE'S LOOKING AT US AS A WHOLE, AS A CITY JUST LIKE WAS PRESENTED EARLIER TONIGHT . MY QUESTION TO THE TEAM HERE IS , HAVE YOU OR ANY OF YOUR SUBSIDIARIES DONE BUSINESS HERE

[01:55:02]

>> DR HORTON IS NOT A SUBSIDIARY.

>> DO YOU HAVE ANY SUBSIDIARIES?

>> FORESTART IS A PUBLICLY TRADED ON WALL STREET AND FROM A STOCK OWNERSHIP STANDPOINT, DR HORTON OWNS THE MAJORITY OF

FORESTART 'S STOCK. >> OKAY. OKAY. NOT SUBSIDIARY BUT-- A LARGE MINORITY OWNERSHIP .

>> A MAJORITY OWNERSHIP . >> SO HERE'S MY QUESTION. IS FORESTART WHICH IS PUBLICLY TRADED OR DR HORTON , DONE

BUSINESS IN HUBER HEIGHTS? >> THE PROJECT WE BROUGHT UP IN THE CONVERSATION AND WHERE THEY ENDED UP PRICEWISE , THAT WAS A DR HORTON PROJECT, NOT FORESTART .

>> OKAY. YOU ARE FROM FORESTART . YOU ARE THE DEVELOPMENT.

>> LAND DEVELOPER. >> YOU'RE GOING TO DEVELOP A PIECE OF LAND AND MAKE SHOVEL READY LOTS FOR DR HORTON .

>> YES, YOU SAID IT PERFECT. >> I'M A LITTLE CONFUSED WHY

WE BROUGHT IT UP. >> I'VE BEEN WORKING YOUR A LONG TIME AND I'M STILL CONFUSED.

>> I FIGURED IT OUT AFTER A WHILE. D.R. HORTON IS A POPULAR NAME BUT THEY HAVE NOTHING TO DO WITH THIS.

>> THEY OWN 62% OF OUR PUBLICLY TRADED STOCK AND THEY ARE THE

PREFERRED BUILDER. >> THEIR MAJORITY OWNER?

>> 62% I BELIEVE. >> D.R. HORTON WHICH IS A MAJORITY OWNER OF YOUR COMPANY DID NOT DO BUSINESS IN HUBER

HEIGHTS? >> THEY DID .

>> AND WHEN THEY DID WORK, IT WAS NEXT TO THE OAKS?

>> YES. >> AND I DID NOT FIND THAT VERY EASY TO CONTEND WITH AS A COUNCILMEMBER. I'M NOT TALKING PERSONAL BUT AS A COUNCILMEMBER, BECAUSE I THINK IT HAS HARDY BOARD? INSTEAD OF RICK , BECAUSE THEY WERE ABLE TO DEFINE A DEFINITION SUCH THAT IT WAS ALLOWED. SO YOU HAVE THE ORIGINAL HOMES IN THE FIRST PHASE WHICH HAVE RICK AND THEN YOU HAVE THE D.R. HORTON 'S WHICH ARE WRAPPED WITH HARDY BOARD. THAT'S THE FIRST THING. THE SECOND THING, AARON, WE TALKED EARLIER. I THOUGHT THESE WERE SOMETHING SPECIAL.

DIFFERENT THAN WHAT WE HAVE IN OUR COMMUNITY. I ALMOST THOUGHT THESE WERE STATE HOMES BASED ON WHAT THE AVERAGE LOT PRICE

WOULD BE TO THE BUILDER. >> I WOULD SAY THIS IS A

STANDARD SUBDIVISION. >> BUT MAYOR I REMEMBER WHEN WE TALKED, YOU HAVE THESE HOMES ALL OVER HUBER HEIGHTS. THESE ARE NOTHING SPECIAL. THIS IS NOT GOING TO BRING A NEW CLASS OF HOMEOWNER OF ANY TYPE. NEXT, WE CANNOT BY ANY MORE TIME. WHO OWNS THE PROPERTY THAT FORESTART IS PURCHASING? BECAUSE IT'S PUBLIC. IT'S ON THE TAX WEBSITE. NOT A MYSTERY

OR A SECRET. >> I DON'T KNOW THE LLC

OWNERS. >> AND WHAT THEY PAID FOR THE PARCEL WITH THAT --? IT SOUNDS ALMOST LIKE THEY PAID TOO MUCH FOR IT. BECAUSE THE DEVELOPMENT COST IS SO HIGH THAT THE PRICE THAT THEY ARE HAVING TO SELL IT TO FORESTART , THE DEVELOPMENT COSTS ARE SO HUGE THAT THEY CANNOT AFFORD TO DEVELOP. WE ARE TALKING $30,000 AN ACRE DEFICIT THAT WE ARE HAVING TO FILL THE GAP WITH. $30,000 AN ACRE. I WOULD SAY THERE ARE SOME DEVELOPERS THAT SELL SHOVEL READY LOTS FOR $40,000.

>> NONETHELESS, 10 YEARS, WITH ALL DUE RESPECT--

>> YOU WERE THERE . I WOULD SAY THAT PEOPLE ARE SELLING RAW LAND AND THEN TO DEVELOP THE LOTS, I AM HARD-PRESSED TO FIND

ANYTHING-- >> AARON, WHEN YOU GO ON TO THE MIAMI COUNTY WEBSITE YOU CAN SEE THE HOMES THAT HAVE BEEN SOLD AND IT'S GOING TO HAVE A PRICE THAT THE HOMEBUILDER PAID

FOR THE LOT. IS THAT CORRECT? >> YES.

>> MAYBE YOU CAN LOOK THAT UP. >> SO THE RECENT PRICES THAT I WAS LOOKING AT WHEN I WAS LOOKING AT ANOTHER TIF PROJECT, WERE BETWEEN , THEY RANGED BETWEEN 45 AND 55.

[02:00:10]

>> SO 40,000 IS IN THE NEIGHBORHOOD. IT'S NOT

RIDICULOUS. >> YOU WERE CLOSE.

>> WHAT SIZE ARE THOSE LOTS? >> THANK YOU SO MUCH, YES.

>> IT BOILS BACK TO THE POINT WHERE WE ARE DEALING WITH DENSITY. ULTIMATELY THIS IS EXTRAORDINARILY EXPENSIVE BUT ULTIMATELY WE ARE BUILDING 283 LOTS ON 171 ACRES WHICH IS LESS THAN TWO UNITS TO THE ACRE. TO GET TO $45,000 A LOT, I DON'T KNOW WHAT CARRIAGE TRAILS IS. IT'S EITHER VERY NARROW SINGLE-FAMILY DETACHED LOTS OR TOWNHOMES OR SOMETHING DESIGNED CLOSER TO 8 UNITS TO THE ACRE.

>> IT'S CLOSER TO 5. 60 X 120 IS THE STANDARD LOT.

>> THERE ARE A COUPLE OF 70S. >> BUT THE MAJORITY ARE 60'.

>> IN YOUR CLAIM TO FAME , THIS PROJECT IS GOING TO BE 70?

>> THEY ARE A COMBINATION OF 50' AND 70' WIDE.

>> NOTHING SPECIAL HERE EITHER. IT'S NOT LIKE YOU'RE GOING TO

HAVE AN 80 FOOT WIDE LOT. >> I WOULD RESPECTFULLY ARGUE THAT DENSITY IS IMPORTANT. HOW MANY UNITS PER ACRE. A CLAIM TO FAME DEPICTED IS 1.7 UNITS PER ACRE.

>> IS IT BECAUSE OF THE DEVELOPMENT? YOU MENTIONED YOU ARE GIVING 90. ARE WE ASKING FOR THAT OR ARE YOU GIVING IT

TO US UNDEVELOPED? >> IT WAS A COMBINATION OF OLD.

WE WERE LOOKING TO BUILD A PARK IN THE SOUTHEAST QUADRANT.

THERE WAS ALSO NON-BUILDABLE LAND THAT WE WERE GOING TO LINK WITH TRAILS SO IT WAS A COMBINATION OF, WE THOUGHT WE NEEDED A PARK AND THERE WAS RESIDUAL LAND THAT THEY WERE

SETTLED WITH. >> YOU NEEDED 10 OR 15 ACRES?

>> YES AND THEN THE NATURE TRAILS WERE THE OTHER 80.

>> SO SOME OF THOSE WOULD BE BUILDABLE?

>> WE WILL BE ABLE TO PROGRAM ALMOST ALL OF THAT 90.

>> SO WE COULD RAISE THEIR PROFIT. BACK TO BUYING MORE TIME. WE HAVE A DECISION TONIGHT AND THE CLOCK IS TICKING. I DON'T FEEL COMFORTABLE WITH THAT. WHEN WE TALK ABOUT HOW THIS IS OF THE SECOND DEVELOPMENT LIKE THAT MEANS SOMETHING TO US, IT SHOULD MEAN SOMETHING TO THE FELLOW OR THE GAL WHO OWNS THE PROPERTY RIGHT?

>> THAT WOULD BE CORRECT. >> THEY PROBABLY HAVE AN OPTION AND THEY ARE GOING TO HAVE TO RENEW THAT OPTION , AND IT'S BASED ON A PURCHASE PRICE, RIGHT?

>> I DON'T KNOW THE DETAILS BUT MOST LIKELY.

>> AND WHAT THEY DON'T HAVE ANY EXTRA TIME FOR IS BECAUSE THE OWNER OF THE PROPERTY APPARENTLY WILL NOT SELL IT FOR LESS THAN THE PRICE THEY ARE SELLING IT FOR AND BASED ON YOUR EXPERIENCE OF DEVELOPING WHICH SEEMS THE BEST IN THE BUSINESS, IT'S GOING TO COST YOU $30,000 MORE PER LOT TO DEVELOP IT. SO I DON'T KNOW WHAT YOU ARE PAYING PER ACRE FOR THAT, THAT IF WE'VE HAD TWO DEVELOPERS IN YOUR THE BEST IN THE BUSINESS AND YOU CAN'T MAKE A GO OF IT, I THINK WE OUGHT TO BE ALARMED AS THE PERSON WHO OWNS THIS PARCEL.

HAVE WE TALKED WITH THEM? >> WE HAVE NOT.

>> DO YOU HAVE ANY IDEA WHAT THE TRACT OF LAND IS SELLING

FOR? >> TOTAL PRICE NO. I BELIEVE ROUGHLY FORESTART ESTIMATED ROUGHLY THEY WERE PAYING ABOUT

$22,000 AN ACRE. >> DEVELOPABLE LAND PURCHASED IN THE LAST SIX MONTHS RUNS FOR THAT MUCH.

>> THE 36 ACRES TO THE SOUTH ARE ASKING ABOUT $24,000.

>> YOU CAN CHECK WITH THE COUNTY. THERE HAS BEEN ACRES THAT YOU CAN BUILD ROADS AND LOTS.

>> THE FARMLAND TO THE NORTH IS CHEAPER.

>> AND YOU DON'T HAVE TO PUT $80,000 A LOT.

>> CERTAINLY EASIER TO DEVELOP.

>> MAYOR, I DON'T KNOW WHY BUT THIS CAUGHT ME OFF GUARD. THE FIRST TIME WE TALKED ABOUT IT DID NOT SEEM RIGHT AND PASS THE TEST AND AFTER HEARING THIS TONIGHT, ESPECIALLY MY EXPERIENCE WITH THE PROJECT NEXT TO THE OAKS AND THEN THE,

[02:05:05]

THANKS, AARON. >> DON AND THEN SCOTT HAD HIS

HANDS RAISED. >> AARON MY QUESTION SPECIFICALLY IS WITH ANDY'S RECOMMENDATION. AND HE RECOMMENDS 15 OVER THE 30. I NEED TO KNOW SPECIFICALLY THE REASONS WHY. WHAT ARE THE NEGATIVES TO THE CITY FOR THE

30 AS OPPOSED TO THE 15? >> THE MAIN REASON IS THE 15 YEAR COINCIDES WITH THE 15 YEAR TAX EXEMPTION SO THERE IS MORE REVENUE TO SERVICE THE DEBT. THE ADDITIONAL 15 YEARS, 15 - 30, THE ADDITIONAL 15 YEARS OF NET RESIN VALUE YIELDS ABOUT $1.5 MILLION COMPARED TO 8. AS MISTER CAMPBELL OR MR. MAYOR SAID, LOOKING OUT FOR THE CITY'S BEST INTEREST AND FEELS IT'S A BEST PRACTICE TO ALIGN THE MINIMUM SERVICE PAYMENTS AND TAX EXEMPTION TO THE TERM OF THE BOND ISSUANCE.

>> THANK YOU. THANK YOU MAYOR. >> MISTER CAMPBELL , I KNOW THIS AREA VERY WELL. I LIVE ACROSS THE STREET. THIS WOULD BE MY WARD SO I AM INTERESTED IN THIS PIECE OF PROPERTY. 90 ACRES, I KNOW THERE'S A LOT OF WETLANDS AND PLACES YOU CANNOT DEVELOP. TRYING TO PUT A PARK IN THOSE AREAS, CAN YOU BRING

BACK UP THE MAP ? >> THIS IS THE SITE PLAN.

>> SO THE PURPLE AREA, IT'S WETLANDS THAT YOU CAN'T DEVELOP AND WE ARE PROBABLY TALKING ABOUT THE PINK FOR THE PARK?

>> THE ACTUAL PARK WAS GOING TO BE IN THE SOUTHEAST CORNER IN THE YELLOW ALONG CHAMBERSBURG ROAD AND WE WERE PLANNING TO WEAVE HIKING TRAILS AND PATHWAYS THROUGH THE BALANCE OF THAT SAY, 92 ACRES. MAINLY ON THE PERIMETER NORTH OF THE

SITE. >> MOST OF THE PURPLE IS THE

WETLANDS, CORRECT? >> THERE'S A STREAM THAT

BISECTS THE AREA. >> I DON'T SEE THAT BEING DEVELOPED. I THINK IT'S GENEROUS TO GIVE THEM 90 ACRES BUT I DON'T THINK IT WOULD BE ANYTHING FOR THE CITY OTHER THAN A BIKE TRAIL ON THE OUTSKIRTS. THE NEXT QUESTION I HAD IS THE THREE BRIDGES. ONCE A STREET IS DEDICATED WITH THE CITY BE RESPONSIBLE FOR MAINTENANCE AND EVERYTHING?

>> YES. >> AND THAT WOULD BE EXPENSIVE

LATER ON? >> IT WOULD DEPEND ON THE WAY THE BRIDGE IS DESIGNED BUT IT WOULD BE AN ADDED EXPENSE OVER STANDARD PAYMENT -- PAVEMENT ON A GRADE.

>> THAT'S ONE OF MY CONCERNS AS WELL. THAT'S ALL I HAVE

MAYOR, THANK YOU. >> THE NUMBER ONE QUESTION THAT COMES TO MY MIND IS WHY THIS LOT? WE HAVE LOTS OF PROPERTY.

WHY WOULD YOU PICK THIS REALLY DIFFICULT LOT THAT WOULD REQUIRE YOU TO PUT $1 MILLION IN BRIDGES AND WAS SO MANY OBSTACLES? IF YOU REALLY WANTED TO COME TO HUBER HEIGHTS WHY

THIS LOT? >> IT'S A VALID QUESTION. WE THINK THERE'S HUGE VALUE HERE . THERE IS SIGNIFICANT UPSIDE ON OPEN SPACE AND PREMIUMS. THERE IS NOT A BAD LOOKING LOT THE ENTIRE LAYOUT. IT'S GOT ITS CHALLENGES. WE HAVE ALWAYS LIKED IT, WE'VE BEEN TRYING FOR 12 - 14 MONTHS TO MAKE IT WORK AND SINCERELY APOLOGIZE FOR WHAT SEEMS LIKE AN 11TH HOUR ASK THAT WE BEEN ATTEMPTING ON OUR END TO WORK DILIGENTLY FOR THE LAST SEVEN OR EIGHT MONTHS WITH CITY STAFF. I SUPPOSE THERE'S ALWAYS ANOTHER SITE SOMEWHERE .

>> IF I COULD ADD A COMMA WE LIKE A LOT OF GREEN SPACE IN A

[02:10:05]

WELL. >> YOU HAD SET I CAN'T BUY MORE TIME SO I MAY HAVE MISUNDERSTOOD . DO YOU HAVE 30

DAYS TO CLARIFY? >> YES, --

>> LESS THAN 30? >> WE HAVE 30 DAYS BUT THAT'S

ONE CALENDAR OF CONTRACT. >> WHAT CONTRACT DO YOU HAVE 30

DAYS? >> WE HAVE UNTIL THE END OF THE MONTH. THE ISSUE BECOMES LINING UP TO GET ON THE CITY'S AGENDA.

>> SO THAT'S WHAT YOU ARE HERE FOR?

>> I APOLOGIZE. >> HOW MUCH IS THE OPTION

RENEWAL IF YOU DON'T PASS IT? >> I BELIEVE-- IT'S NOT NECESSARILY AN OPTION RENEWAL. CONTRACTUALLY WE ARE OUT OF EXTENSIONS ON THE UNDERLYING AGREEMENT.

>> HOW MUCH WAS THE LAST EXTENSION?

>> 20 GRAND BUT IF WE DO NOT PROCEED PAST JANUARY 2, OR IF

WE DID PROCEED -- >> YOU CAUGHT ME SAYING D.R.

HORTON. WHOEVER OWNS THIS PIECE OF LAND HAS TO. SO IF D.R.

HORTON OR FORESTART SAYS WE NEED ANOTHER PERIOD OF TIME , YOU'VE BEEN IN THE BUSINESS A LONG TIME HERE. DO YOU THINK THEY ARE GOING TO SAY NOPE, WE'RE NOT GOING TO RENEW .

>> IF I WERE THIS PROPERTY OWNER THERE HAS BEEN TWO DEVELOPERS THAT HAVE TRIED TO TAKE A BITE OF THE APPLE AND THIS DEVELOPMENT TEAM PROBABLY HAS THE MOST CAPACITY SO IF I WERE THEM, I DON'T THINK THERE'S ANYONE BITING AT THE BIT FOR THIS PROPERTY SO I WOULD BE FLEXIBLE IN MY APPROACH. I APPRECIATE THE INSIGHT . WE CAN CERTAINLY BRING THE LANDOWNERS TO CITY COUNCIL AND HAVE A CONVERSATION

. >> THERE'S ABSOLUTELY NO NEED TO DO THAT. WHAT WAS THE LAST PERIOD OF TIME FOR THE LAST

OPTION RENEWAL? >> IT WAS A 30 - DAY EXTENSION.

IT WAS $20,000, BY THE END OF JANUARY I SUPPOSE I WILL BE OPEN ABOUT IT THOUGH I'M NOT REALLY SURE IN THE CONTEXT THAT IT MATTERS, BUT BY THE END OF THE MONTH IF WE DON'T MAKE A DECISION A GOES TO A CLOSING AND 30 DAYS THEREAFTER WE ARE PROBABLY AT A QUARTER OF $1 MILLION. AS A GROUP FROM ENGINEERING, DUE DILIGENCE, ON COUNCILS BACK AND FORTH WE ARE PROBABLY AT ANOTHER QUARTER MILLION. SO IF WE CAN'T MAKE THE PROJECT WE ARE PROBABLY OUT HALF $1 MILLION WHICH ADMITTEDLY SELFISHLY PUTS ME IN A TERRIBLE SPOT . TO BE

TRANSPARENT I THOUGHT-- >> WE CAN START NEGOTIATING. WE ARE GETTING TO A PLACE WHERE WE CAN NEGOTIATE.

>> I AM CONFUSED. WHAT WOULD YOU BE NEGOTIATING?

>> I DON'T KNOW. YOU ARE HERE ASKING US TO DO SOMETHING AND I'D LIKE TO FIND SOME WAY TO NEGOTIATE DOING SOMETHING.

>> AND I APPRECIATE THAT-- >> IF YOU ARE TELLING ME TONIGHT THAT WE DON'T HAVE A POSITION OF NEGOTIATION AS THE CITY OF HUBER HEIGHTS, THAT IT IS TAKE IT OR LEAVE IT, I AM GOOD WITH EITHER POSITION BUT I WOULD LIKE TO KNOW WHICH ONE WE

ARE IN. >> WE ARE HAPPY TO HEAR ANY POSITIONS THAT THE CITY HAS. THIS WAS NOT A PROPOSITION THAT CAME FROM US TO AARON TO TRY TO SHUT DOWN THE CITY'S THROAT.

THIS IS A PROSPECT WE BEEN WORKING WITH HIM ON SINCE MARCH TO MAKE IT WORK. AND IT WAS NOT AN ITEM WHERE WE ARE ALL OF A SUDDEN SAYING LET'S DO 30 YEARS TO PAD THE BOTTOM LINE.

IT'S REFLECTIVE OF THE MILLAGE RATE AND THE DECREASE. IT IS NOT AN ATTEMPT BY US FOR ANY SORT OF CASH GRAB OR TO PAD OUR BOTTOM LINE. WE ARE HAPPY TO CONSIDER ANYTHING THE CITY HAS TO OFFER AND THE GOAL HERE IS NOT TO CONVEY SOME SORT OF ULTIMATUM. THREAT. IT IS JUST TO BE TRANSPARENT . HERE IS WHERE WE ARE AT WITH CONTRACTUAL TIMELINES. WE CANNOT GUARANTEE THAT A SELLER WILL BE REASONABLE IN GIVING US ANY SORT OF EXTENSION. WE HAVE TO GO WITH THE SITUATION THAT WE KNOW OF NOW AND WHAT WE KNOW NOW IS THE 30 YEAR TERM IS WHAT IS GETTING US TO THE PLACE WE CAN BE AT TO MAKE THE PROJECT

VIABLE. >> SO 20 YEARS IS A NO GO?

>> WE LOOKED AT 15, 20. 30 WAS REALLY WHAT GOT US OVER THE

HUMP . >> PROJECTIONS AT 15 IS WHAT WE ALL FIGURED IT WOULD BE ON DAY ONE .

[02:15:01]

>> ONE TO THESE TAX RATES CHANGE?

>> APRIL IS WHEN THE NEW TAX RATES CAME OUT.

>> AND WHEN DID WE FIND OUT IT NEEDED TO BE 30 YEARS RATHER

THAN 15? >> ABOUT A WEEK AGO.

>> FOR 7 1/2 MONTHS THE RATES HAVE CHANGED AND WHEN YOU WERE HERE LAST YOU SAID 3 1/2 MILLION WAS THE BACKEND NUMBER.

AND TONIGHT YOU SAY THAT IT'S 0?

>> CORRECT. >> THE AMOUNT OF THE BOND ISSUANCE, I KNOW THAT YOU HAD BEEN WORKING WITH MY COLLEAGUE WHO CANNOT BE HERE BECAUSE HE HAD A CONFLICT, AND HAS BEEN WORKING MORE IN CONCERT WITH AARON ON THESE NUMBERS. SO WHEN WE WERE FIRST LOOKING AT IT, THE BOND ISSUANCE , WAS THAT LARGER AND THAT'S WHY WE WERE ABLE TO MAKE IT WORK?

>> WHAT REALLY CHANGED WAS , ALL COSTS WERE INCLUDED IN THE ISSUANCE OF THE BOND. WE INCREASED THE RESERVE FUND TO BE MORE CONSERVATIVE ON OUR END. THE CAPITALIZED INTEREST IS $2 MILLION AND THE COST OF ISSUANCE IS $630 MILLION. SO THE MAXIMUM BOND CAPACITY THAT COULD BE ISSUED BASED ON MINIMUM SERVICE PAYMENTS IS CLOSE TO $12.6 MILLION. BUT WHEN YOU TAKE OUT CAPITALIZED INTEREST, THE DEBT RESERVE AND ISSUANCE IT DROPS DOWN USABLE PROCEEDS AT A NET VALUE OF $8.6 MILLION. SO SOME OF OUR REQUEST BASICALLY TO PROTECT THE CITY DID DRIVE DOWN THE NET PRESENT VALUE.

>> SO HOW MUCH DID WE AFFECT THAT?

>> PROBABLY BY, I WOULD SAY -- >> UP UNTIL TWO WEEKS AGO , FROM MARCH UNTIL TWO WEEKS AGO IT WAS 10 MILLION. NOW IT'S 8.6. WE ARE NOT ASKING FOR ANY MORE THAN WE THOUGHT WE WERE GOING TO CITY COUNCIL FOR A FORMAL DEVELOPMENT FOR MONTHS NOW. IS THAT FAIR? WE WERE JUST TOLD TWO WEEKS AGO, WHICH IS WHY WE ARE COMING TO YOU HAT IN HAND WITH WHAT LOOKS LIKE AND ASK THAT WE THOUGHT WAS GOING TO BE IN THE DEVELOPMENT AGREEMENT. I APPRECIATE PROTECTING THE CITY, CAPITALIZING ON MORE INTEREST BUT WE JUST FOUND OUT ABOUT IT . THAT'S WHY WE ARE HERE. I WOULD NOT PUT IT EXACTLY THAT WAY. I WOULD SAY THAT THEY WERE CAUGHT OFF GUARD , THAT MIGHT BE THE RIGHT WORDS. MOST OF THIS -- IT WAS AROUND 10.

>> IT WAS A .610 DAYS AGO. >> PART OF THAT WAS ANDY RERUNNING THE NUMBERS BASED ON OUR REQUEST .

>> THAT'S WHAT CAUSED US TO LOOK AGAIN AT HOW MILLAGE AFFECTS THAT AND THAT WE WOULD BE REALIZING SHORTFALLS THAT MAKE THE PROFIT UNMANAGEABLE. SO I WANT TO BE CLEAR WE DID NOT SIT ON OUR HANDS FOR MONTHS AND MONTHS. WE BEEN WORKING OVER THE DEVELOPMENT AGREEMENT WITH AARON AND ANDY AND HAVING

BIWEEKLY CALLS ON THIS ONE. >> WE SPENT MORE TIME ON THE DEVELOPMENT AGREEMENT THEN FOCUSING ON WHERE THE BOND PROCEEDS WERE GOING TO BE. AND THEN WHEN WE GOT TO THAT PART OF THE DOUBLE CHECKING THE AMOUNTS OF THE BOND PROCEEDS,

THAT'S WHEN THEY DROPPED. >> SO $30,000 ON 283 LOTS IS

$8.5 MILLION? >> YEP .

>> THAT'S WHAT THE SHORTFALL IS?

>> IT IS CLOSER TO $10 MILLION. >> SO IT'S OVER $30,000 PER

LOT? >> FOR ALL OF TRAN14-- FOR ALL THE FORESTART EXPENSES. IT STARTED AT $13 MILLION AND HAS COME DOWN TO ABOUT 10 MILLION AND CHANGE.

>> WHAT WOULD YOU BE SELLING THESE LOTS FOR?

[02:20:05]

>> THE LATEST PROJECTION IS 51 , ON AVERAGE 83,000 AND ON THE

70 FOOT LOTS, $93,000. >> AND YOU WILL FIND HOMEBUILDERS TO FIND THAT AND PAY YOU FOR THOSE LOTS?

>> AND THAT ROLLS UP IN THE HOMEBUILDER EQUATION MATH THE LOT PRICE IS ROUGHLY 20 - 24% OF THE HOUSE PRICE WHICH IS WHY WE ARE SUGGESTING $94,000 FOR BOND ANALYSIS PROJECTIONS.

WE'VE SUGGESTED THOSE WOULD YIELD HOUSES ON AVERAGE FOR $410,000. WE THINK THAT'S THE MARKET FOR THAT LOCATION, THAT SIZE . BASED ON THE PACE OF LOT SALES AND ULTIMATELY HOME SALES

BEING PROJECTED . >> CAN YOU TELL ME THE ESTIMATED SQUARE FOOTAGE OF THAT HOUSE?

>> LIKE AND VERIFY THE ELEVATION BUT I'M GOING TO SUGGEST 2300 FT.÷ WITHOUT A BASEMENT.

>> THANK YOU, MAYOR. >> ANY OTHER QUESTIONS?

>> I WANTED TO REITERATE ONE MORE POINT. WHY HUBER HEIGHTS? AT THE END OF THE DAY WHO WE HAVE TO THINK ABOUT IS THE END-USER WHO IS A HOMEBUILDER AND WHO THEY HAVE TO THINK ABOUT US IS GOING TO PURCHASE THE HOME. WHEN YOU GET OFF OF 70 YOU SEE NEW COMMERCIAL DEVELOPMENTS, YOU HEARD ABOUT THE WONDERFUL NEW MAYBE DORA DISTRICT. SO WHEN THE HOMEBUILDER THINKS WHAT ARE THE END-USERS GOING TO SAY WHEN THEY COME TO THE COMMUNITY? THAT'S GOING TO AFFECT WHAT THEY ARE WILLING TO PURCHASE THE HOME FOR AND THAT'S WHY IT MAKES SENSE TO TAKE A LITTLE BIT OF A HIT AND HAVE A SKINNIER PROJECT VERSUS GOING 30 MINUTES, 30 MILES OUTSIDE THE MIDDLE OF NOWHERE AND TAKING SOME GREEN FARMLAND AND PROPPING IT ALL UP. WE HAVE TO THINK ABOUT WHO IS THE HOMEBUILDER BRINGING WHEN THEY GO TO SELL THEM IS THIS A PLACE THEY ARE GOING TO WANT TO LIVE? AND THAT COMES BACK TO THE PRICE WE CAN CHARGE PER LOT TO THE HOMEBUILDERS.

>> OTHER QUESTIONS? SO I GUESS THE BOTTOM LINE HERE IS , I THINK WE SHOULD MOVE IT FORWARD TO THE COUNCIL MEETING AND HAVE A FORMAL VOTE THAT GIVES EVERYONE SOME TIME TO GET WITH AARON IF YOU HAVE QUESTIONS. GET WITH JOHN. GIVES US TIME BETWEEN NOW AND MONDAY'S MEETING TO GET ANY QUESTIONS ANSWERED AND GET THEM BACK FOR WE BRING THIS TO A VOTE ON MONDAY. THAT WOULD BE MY RECOMMENDATION. ARE THERE ANY

OBJECTIONS? >> DO WE HAVE TO HAVE A PUBLIC

HEARING FOR THIS? >> NO. THIS IS JUST THE

DEVELOPMENT AGREEMENT. >> THANK YOU FOR CLARIFYING.

>> IT'S THE ACTUAL TERMS OF THE AGREEMENT WITH THE

DEVELOPER. >> MAYOR GORE, ON THE AGENDA WOULD BE FOR THE 30 YEAR? UNLESS SOMETHING COMES BACK .

WOULD NOT WANT TO PUT SOMETHING ON THE AGENDA THAT I THINK IS GOING TO FAIL. WE WILL LOOK AROUND AND SEE. I DON'T KNOW WHAT QUESTIONS COUNCIL MAY COME UP WITH AT THE MEANTIME TO FIND IF THERE IS ANYTHING ELSE WE WANT TO TALK ABOUT TO GET BACK TO YOU PRIOR TO MONDAY'S MEETING , IF ANY CHANGES NEED TO BE MADE . IF WE CANNOT COME TO ANY KIND OF AGREEMENT.

>> WE ARE HAPPY TO PROVIDE SUPPORTING DOCUMENTATION AND ANY FIGURES THAT COUNCILMEMBERS NEED TO EVALUATE CLAIMS. WE APPRECIATE YOU HAVING US OUT HERE TONIGHT AND WHAT WE ARE ASKING FOR IS THE BACKEND , CONSIDERING FOR GOING THE 15 YEAR IN FAVOR OF SOME OF THE BENEFITS OF HAVING INCOME TAX PAYING FAMILIES AND THE COMMUNITY. WE ASK THAT YOU GIVE

[02:25:01]

>> THAT'S PROBABLY WHAT EACH MEMBER NEEDS TO CONSIDER. IS THERE A BENEFIT AND WHAT IS THE BENEFIT? TO FORGO THE DOLLARS?

>> AS THE CLERK SAYS, IF SOMETHING CAME OUT OF THAT WHERE WE THOUGHT WE HAD ROOM TO GO, WE COULD MOVE TO ANOTHER READING AND I KNOW WHAT THAT DOES ON YOUR END WITH THE PROPERTY OWNER BUT MY GOAL WOULD BE TO HAVE AN ANSWER ONE WAY OR ANOTHER ON SOMETHING COME MONDAY.

>> ARE WE ABLE TO WAIVE THE SECOND READING?

>> IT'S JUST THE DEVELOPMENT AGREEMENT . IS THERE A MAJORITY OR OBJECTION TO MOVE THIS TO MONDAY? OKAY, THANK YOU.

>> THANK YOU FOR YOUR TIME. AARON, WHO DOES A WONDERFUL JOB AND THIS IS A COMPLICATED MATTER, WE APPRECIATE HIS

[ Carriage Apartments, LLC - Development Agreement]

>> WE APPRECIATE YOU BEING HERE.

>> THE 3I. WHICH IS CARRIAGE APARTMENTS, LLC DEVELOPMENT

AGREEMENT. >> THIS IS A DEVELOPMENT AGREEMENT TO FACILITATE THE CONSTRUCTION OF A $27 MILLION, 240 - UNIT APARTMENT COMMUNITY ON THE NORTHWEST CORNER OF CARRIAGE TRAILS PKWY. AND BRANDT PIKE. WE HAVE A PURCHASE AGREEMENT THAT WAS ENTERED INTO IN 2024, WHERE THE DEVELOPER WAS GOING TO PURCHASE 14.9 ACRES FOR JUST OVER $1 MILLION AND AS A CONDITION TO THE DEVELOPMENT AGREEMENT, THE CITY WILL GRANT A 15 - YEAR 100% TAX EXEMPTION AND IN EXCHANGE THE DEVELOPERS GOING TO MAKE MINIMUM SERVICE PAYMENTS WITH THE TOTAL JUST UNDER $1.3 MILLION TO THE CITY. SO THE TOTAL REVENUE BETWEEN THE PURCHASE PRICE AND THE MINIMUM SERVICE PAYMENTS IS ABOUT $2.3 MILLION.

>> ANY QUESTIONS? ANY OBJECTIONS TO MOVING THIS TO

[ City Christmas Tree]

WILL TURN THIS OVER TO YOU. >> AFTER THE LAST WORK SESSION THIS CAME UP IN THE LAST COUNCIL MEETING. IN JUST DOING SOME SITE PLANNING EXERCISES TO SEE WHAT WE COULD FIT IN THE LAND WEST OF THE GOVERNANCE CENTER. SO BASICALLY, A CHRISTMAS BAZAAR OR WHAT WE HAD LAID OUT WAS A TALL 44 FOOT TREE AT THE SOUTHERN END OF THE AREA. WE'VE GOT ROOM FOR A BEER GARDEN OR SOME SORT OF FOOD TENT AREA AS WELL AS SIGNIFICANT ROOM FOR POP UP SHOTS. THOSE ARE EACH 20 BY 8 CONTAINERS TO CREATE THAT MARKETPLACE AND THEN WE WERE SO INCLINED , THIS IS JUST 80 X 100' SKATING RINK BUT WE COULD GET CLOSE TO 80 80 X 150. JUST TO SEE WHAT WE CAN DO AS FAR AS PLACE MAKING OPTION. THE TREE WE ARE PROPOSING WOULD BE ARTIFICIAL SO THAT WE CAN MOVE IT AROUND OR IF WE DECIDED THERE WOULD BE A BETTER SPOT IN THE FUTURE. THIS IS JUST ONE CONCEPT THAT I PUT TOGETHER TO IMAGINE WHAT THIS SPACE BEHIND THE GOVERNANCE CENTER AND LIBRARY COULD BE .

>> WHY WOULD WE DO AN ARTIFICIAL TREE?

>> ONE IT IS RESISTANT TO-- IT ALLOWS US TO BE MORE FLEXIBLE WITH THE LAYOUT . WHEN YOU GET TO VERY LARGE TREES LIKE THAT

[02:30:03]

TALKING ABOUT. >> HAVE YOU SEEN AN ARTIFICIAL

TREE THAT BIG? >> YES WE HAVE STARTED PRICING

THEM. >> THEY LOOK PRETTY GOOD. MY MOTHER LIVES IN ABBEVILLE, SOUTH CAROLINA AND THEY HAVE A CENTERED DOWNTOWN, ALMOST LIKE TROY . AND IN THE CENTER IS A LARGE 40 - FOOT TREE. AND YOU CAN TAKE IT DOWN WHEN IT'S NOT IN USE, WE CAN MOVE IT. IF WE WANT TO DO THIS LATER WE HAVE A STRUCTURE THAT WE CAN ERECT AND MOVE IT SOMEWHERE ELSE.

>> THAT'S WHAT I WAS GOING TO ASK, IF WE WERE GOING TO LEAVE

IT UP LONG TERM. >> THE IDEA IS THIS WOULD BE A TEMPORARY HOLIDAY VILLAGE AND WHEN THOSE RENOVATIONS ARE DONE MAYBE IT MOVES TO THEIR AND THIS IS KIND OF THE CENTER OF TOWN APPROACH WHILE WE RENOVATE OUR OTHER PARKS. WE REALLY DO NOT HAVE A RE-USAGE IDEA YET. WE HAVEN'T LANDED ON A FULL-TIME REUSE FOR THIS PROPERTY SO THIS WOULD BE AN INTERIM SOLUTION UNLESS PEOPLE FELL IN LOVE WITH IT.

>> WHERE WOULD IT BE STORED? >> WE WILL FIND A PLACE. THE NEW PUBLIC WORKS BUILDING PROBABLY HAS PLENTY --

>> AARON HAVE YOU BEEN TO DISNEY WORLD?

>> I HAVE . >> ARE YOU TALKING ABOUT LIKE AN ARTIFICIAL TREE THAT THEY HAVE?

>> THAT'S WHAT I WAS THINKING. SOMETHING SIMILAR. WHAT IS ON

THIS PHOTO-- >> NOT WHAT YOU'RE TALKING

ABOUT. >> THAT'S KIND OF THE CONVERSATION WE NEED TO HAVE. A TREE THAT LOOKS DECORATED DURING THE DAY OR MORE OF A NIGHTTIME ACTIVITY. THAT DRIVES

THE DECISION. >> SO IF YOU ARE TALKING ABOUT A TREELIKE AT DISNEY IT'S 24/7.

>> IT DOES. >> COULD YOU DO THAT?

>> WE COULD. >> AND STORE IT SOMEWHERE?

>> YES. >> OKAY. I LIKE THAT.

>> IT DOES GIVE US FLEXIBILITY. IF WE DECIDE THAT WE DON'T LIKE IT IN THAT CORNER AND NEXT YEAR WE MOVE IT TO WHERE THE ICE-SKATING RINK IS, IT GIVES YOU FLEXIBILITY.

>> OR WE COULD DRIVE THEM CRAZY AND PUT IT EXACTLY WERE--

>> MIKE IS IN FAVOR OF THIS OPTION.

>> IS HE IN FAVOR OF STORING THAT?

>> 'S BROCHURE, THE NEW BUILDING. SO THIS IS JUST

LIGHTS? >> THIS PARTICULAR IMAGE JUST LIGHTS. I WAS GOING THE COST-EFFECTIVE APPROACH.

>> I LOVE THAT. >> SARAH HAD PRICED OUT A FULL ARTIFICIAL TREE THAT LOOKS GOOD DURING THE DAY AS WELL.

>> I KNOW WE HAVE SOME NICE PINE TREES THAT COULD BE USED AS REAL TREES. I DON'T KNOW HOW MUCH IT IS TO MOVE THEM.

>> MORE EXPENSIVE THAN THIS. MAKING SURE I UNDERSTAND.

>> IF WE CAN FIND SOMEONE WITH A SPADE, WHEN YOU MOVE A MATURE TREELIKE THAT THE LIKELIHOOD OF STRESS AND DAMAGE IS PRETTY

HIGH. >> COULD WE HAVE THAT THIS YEAR AND PUT IT UP LIKE ON A FLAGPOLE BASE MAYBE?

>> THAT ONE IS KIND OF A CENTER PILLAR WITH STRANDS COMING ACROSS. WE COULD ORDER ONE AND HAVE A REGULAR ARTIFICIAL TREE IN PLENTY OF TIME FOR NEXT DECEMBER.

>> THEY WILL BE ON SALE IN A MONTH.

>> I DON'T THINK THERE'S A BIG LEAD TIME FOR THOSE.

>> I LIKE IT BUT I ALSO LIKE THAT WE CAN MOVE IT AND WE HAVE OTHER CITY BUILDINGS WITH FLAGPOLES SO WE COULD MAYBE USE THAT. LIKE THIS BUILDING HAS A FLAGPOLE AND WE COULD MAKE A

TREE OUT OF THIS. >> WE COULD ALWAYS STRING

LIGHTS IN A TREELIKE FASHION. >> I LOVE IT. THANK YOU.

>> JUST TO RECAP, WE HAD TALKED ABOUT DOING IT AT THE NEW GOVERNANCE CENTER AND TALKED ABOUT DOING WHERE WE CAN SEE IT

FROM THE STREET. >> THAT ONE THAT I LOOKED AT

[02:35:03]

>> I'D LIKE TO DECIDE ON WHAT TYPE OF TREE. THERE WERE RENDERINGS OR PICTURES OF HOW TO MAINTAIN IT AND CUT IT OUT AND REUSE IT. BUT IF IT'S AN ARTIFICIAL TREE AND LOOKS LIKE A TREE AT DISNEY , I WOULD LIKE TO DECIDE TONIGHT WHAT WE ARE GOING TO DO AND GET IT ON THE AGENDA.

>> I LIKE EVERYTHING ABOUT THIS FROM THE PERSPECTIVE OF A CHRISTMAS VILLAGE OF THAT'S WHAT WE WANT TO CALL IT, HAVING THE ICE-SKATING RINK AND DIFFERENT FOOD OPTIONS.

THERE'S PLENTY OF PARKING THAT'S AROUND THERE. OVERALL FROM THE CONCEPT THERE'S NOTHING ABOUT IT THAT I DISLIKE . I LIKE THE IDEA OF THE ARTIFICIAL TREE . I THINK WHAT WE WOULD PROBABLY NEED WOULD BE MAY BE A NOT TO EXCEED AMOUNT ON WHAT WE THINK THE TREE AND THE OTHER THINGS WOULD COST AND THEN WE WOULD HAVE AN AMOUNT OF MONEY THAT CAN BE DEDICATED TO THAT. IS THAT POSSIBLE TO COME UP WITH AN OVERALL AMOUNT? YOU MAY FIND 40' DOES NOT WORK . YOU MAY NOT BE ABLE TO SEE UNTIL YOU ARE RIGHT UP ON IT SO MAYBE WE NEED A 50 OR 60 FOOT TREE BUT TO GET IT ON THE AGENDA FOR MONDAY WE HAVE SOME

FLEXIBILITY. >> I BET AN ORNAMENT IS NOT

CHEAP . >> PROBABLY NOT.

>> OR A STAR . >> OR THE PERSON WHO PUTS IT ALL UP. SO IF WE GET DIRECTION ON WHICH WAY TO GO, WE CAN GET IT PRICED. I DON'T KNOW IF WE CAN GET IT PRICED BY MONDAY WITH ANY REAL CERTAINTY BUT CERTAINLY BY THE JANUARY

MEETING. IT'S UP TO YOU. >> PRICE IT BY MONDAY AND HAVE

A NOT TO EXCEED? >> I AM WITH MISTER CAMPBELL. I WOULD RATHER SEE IT SO IF WE DECIDE I WOULD RATHER GO THAT

WAY. >> ANY OBJECTION TO HAVING COST

WITH NOT TO EXCEED, BY MONDAY? >> I WAS JUST GOING TO SAY, COUNCILMEMBER CAMPBELL BRINGS UP A GOOD POINT. PEOPLE ARE GOING TO BE COMING TO THE CITY BUILDING ALL THROUGHOUT THE DAY. I THINK SOMETHING VISUAL THAT APPEALS TO PEOPLE DURING THE DAY AS WELL, AND I KNOW THE TREE THAT YOU ARE TALKING ABOUT AT DISNEY. WE SHOULD GET COST ESTIMATES ON IT.

>> WE WILL DO THAT . >> PERFECT, ANY OBJECTIONS FOR

THE NOT TO EXCEED AMOUNT? >> WE HAD TALKED ABOUT TRIMMING

THE LIGHT POLES . >> WE WILL JUST DO THAT BECAUSE REALLY THEY ARE JUST BRACKETS THAT WE CAN ADD. COMPARED TO THE LARGE TREE THAT'S GOING TO BE AN INCONSEQUENTIAL COSTS.

>> WHEN WE LOOK AT THAT TREE AND ADVERTISE IT AND TO THE PRESENTATION OF WHAT IT'S GOING TO COST--

>> WE WILL GET THE EXPECTED LIFESPAN FOR THE COMPANY.

>> PERFECT. THE ONE AT MY HOUSE IS WORKING ON YEAR 18 AND STILL

LOOKS GOOD. >> OKAY. NEXT UP HIS BOARD AND

[ Board And Commission Appointments * Arts And Beautification Commission - Appointment]

COMMISSION APPOINTMENTS. >> WE HAVE TWO APPOINTMENTS TONIGHT FOR THE BOARDS AND COMMISSIONS AS YOU MENTIONED.

FIRST IS AN APARTMENT TO THE ARTS AND BEAUTIFICATION COMMISSION. WITH REQUEST A MOTION TO APPOINT SARAH CHAPMAN TO THE COMMISSION FOR THE TERM ENDING JUNE 30, 2027. THE APPROPRIATE BACKGROUND CHECK HAS BEEN COMPLETED. REALLY EXCITED PARTICULARLY ABOUT THIS PERFORM -- APPOINTMENT BECAUSE MISS CHAPMAN IS A VICE CHAIR AND BOARD MEMBER FOR CULTURE WORKS -- AND WITH THE DISCUSSION WE HAD SEVERAL WEEKS AGO ABOUT THE REFOCUSING OF ARTS AND BEAUTIFICATION TO ITS TRUE MISSION, I THINK THIS IS A GOOD FIT IN TERMS OF MEMBERSHIP. SO WE WOULD ASK FOR THE MOTION TO BE PLACED ON THE

AGENDA. >> ANY OBJECTION? OKAY. WE WILL MOVE THAT ON. NEXT FOR MILITARY AND VETERAN COMMISSION.

>> THIS IS ALSO A NEW APPOINTMENT FOR GREGORY

[02:40:04]

[ First Suburbs Consortium - Bylaws Revisions]

MONDAYS AGENDA. >> ANY OBJECTION? WE WILL MOVE THAT FORWARD. NEXT IS ITEM 3L. AND THESE ARE THE BYLAW REVISIONS THAT NEED TO BE BROUGHT UP AT THE LAST MEETING AND I BELIEVE TONY GOT THOSE AND THAT'S WHAT THESE ARE.

>> THAT IS CORRECT. THERE'S A RESOLUTION IN YOUR PACKET THAT WOULD FORMALLY ADOPT THESE BYLAW REVISIONS FOR THE FIRST SUBURBS CONSORTIUM BY THE CITY. THE FIRST SUBURBS IS A COG SO EACH OF THE MEMBER COMMUNITIES HAS TO ADOPT BY RESOLUTION THE BYLAW REVISIONS BEFORE THEY CAN GO INTO EFFECT. SEVERAL COMMUNITIES AS MISS KITCHEN MENTIONED, HAVE ALREADY DONE THAT STEP . SO THIS IS BEFORE COUNCIL. I DID INCLUDE IN THE PACKET THE RED LINE VERSION OF CHANGES AS WELL AS THE RESOLUTION AND THE EXHIBIT THAT HAS THE REVISED BYLAWS

ATTACHED. >> ANY OBJECTIONS? OKAY. SEEING NONE WE WILL MOVE THAT. BEFORE WE ADJOURN THERE IS NEED FOR -- IS THERE A NEED FOR EXECUTIVE SESSION?

>> THERE IS. >> SO SOMEBODY TEXT -- CAN YOU

READ THE MOTION? >> IT WOULD BE A MOTION TO GO INTO EXECUTIVE SESSION FOR DISCUSSIONS WITH AN ATTORNEY FOR THE CITY CONCERNING DISPUTES THAT ARE THE SUBJECT

OF PENDING OR BOARD ACTION. >> MOTION?

>> MOVED TO GO INTO EXECUTIVE SESSION.

>> SECOND. >> DISCUSSION? TONY?

>> MISS BAKER? YES. I WILL NOT CALL MISTER CAMPBELL BECAUSE HE HAS APPARENTLY LEFT. MISSES BYRGE? YES. MISTER AIKENS? YES.

MISTER LOONEY? YES. MISTER WEBB? YES. MISTER DAVIDSON?

YES. >> MOTION CARRIES 6 - 0. WE

* This transcript was compiled from uncorrected Closed Captioning.