Miami City Council

📅 Apr 18, 2017 | Clip #114

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[00:05] Okay, we're going to call out to all of the Mayor of the meeting of the City Council for today's date and time.

[00:43] Item 2 is public input and then schedule personal appearances in the audience.

[00:47] It wishes to address the council on any of the agenda items.

[00:52] There is none. I'm Teresa Gistent, consent agenda staff has recommended items 4, 3, 7 for the consent agenda.

[00:59] If there are no questions, I would entertain a motion.

[01:02] About 3.5.

[01:03] And a second?

[01:04] Second.

[01:05] Will a ball please?

[01:06] Something.

[01:07] Right.

[01:08] What's the time?

[01:09] What's the time?

[01:10] I'm sorry.

[01:11] Item 8 is a profoundly presentation by Profordman Associates.

[01:23] Thank you.

[01:24] Mayor and members of the council.

[01:26] I'm here to talk about everybody's favorite subject, which is accounting.

[01:29] I know you're sitting on the edge of your seat.

[01:34] I'm very quickly.

[01:39] My name is Frank Crawford.

[01:41] Those of you that are on the council before are probably familiar with me.

[01:45] Our firm assist the City in preparing its annual financial statements and getting it audited and getting everything

[01:53] straightened up and ready for audit.

[01:56] And one of the things that we do is aside is we prepare an analysis of the audited financial statements

[02:01] once they're issued in order to try to explain the financial health and success of the city as a whole,

[02:08] in a concept that non-accountance can understand.

[02:13] If you were to grab the hard report that I know you've probably seen and probably haven't read all the way through

[02:20] since it's exactly 100 pages long.

[02:23] If you were to flip through it, you would notice an immense number of pages that all the pages have

[02:28] or columns and columns and columns and rows and rows and rows and rows of numbers.

[02:33] And in motion accountants it's very difficult to read and interpret what that really means

[02:39] when you're looking at a government set of financial statements.

[02:42] For that purpose, we came up with this model that we call the performer, which is only about 20 pages long

[02:48] and it's much simpler to read.

[02:50] And basically what it does is it takes all the results of the financial statements and using some analysis of ratios

[02:56] and other information.

[02:58] It reduces the financial health.

[03:00] health and success of a government on a scale of 1 to 10, how are we doing on a scale of 1 to 10?

[03:06] Everybody seems to understand that concept and so, once the financial statement was

[03:11] regime would get a chance to look at them, analyze them and then come to you with this

[03:15] performative report. So literally it's kind of a grade card, if you will, if you wanted

[03:20] to look at it that way, our scale is basically zero to 10 with zero being representative

[03:26] of very poor financial health and very poor success and in being what we would consider

[03:33] excellent financial health and excellent financial success.

[03:36] But above five right in the middle is deemed as what we would consider to be satisfactory.

[03:41] What we end up doing is we take about 15 different financial ratios that are

[03:46] unique to the government or very important to a government and we analyze those

[03:52] and then basically score them ratio by ratio and then collectively score those overall

[03:58] ratios together to come up with this score. So I'll flip you to page five which is

[04:04] the summary overall page even though it's at the very beginning which talks about your overall

[04:09] score and then I'll probably take a little bit of time to go through some of the

[04:12] slides that represent each of those ratios. It seems like we're doing this at a very important

[04:18] time. I know you have some discussions next week related to rates and a rate study

[04:22] that has been done. I know we're talking about some potential debt

[04:26] issuances. All of those things will have an impact on the score.

[04:30] So the way to read this is really there's three ways to do it. Some people prefer to see

[04:36] grass and charts which you can kind of see on the left. We've done this now for eight

[04:41] years in a row ever since we became involved with the city eight years ago. We have

[04:46] eight years of analysis and you can kind of see on that chart where the score or

[04:50] the overall score has gone between 2008 all the way through 2016 and actually

[04:58] nine years in a row now. There's one way to look at it. The second way is to actually

[05:03] read the text on the right side which gives a little bit of a narrative of explaining

[05:08] the ratio and then for those that just protectors there's a little speedometer up in the

[05:13] corner with red, yellow and green which kind of indicates red's not so good, yellow is

[05:18] kind of caution and green obviously being in the code. The score that you have at the end of

[05:24] your last fiscal year was a 7.7. That was down just a tad from the 8.0 that was there

[05:31] in 2015 and up just a little bit from the 7.6 that was there in 2014. The movement from

[05:38] an 8.0 to a 7.7 literally can be traced to one single ratio. It's not really that much of

[05:45] a movement but it related to sales tax collections which we'll talk about here on a slide.

[05:50] The sales tax collections are a little good in 2016. We're not as good as they were in

[05:55] there for the score took a bit of a hit but you're scoring at a 7.7 right now.

[09:00] at June 30, 2016.

[09:03] That set of ratios is your lowest score at a 6.2, in other words, financial position

[09:10] still above average, but not as good as both your performance and your capabilities,

[09:15] which were both scoring in the eights.

[09:17] In other words, you had a very good performance in fiscal 16.

[09:21] However, it wasn't quite as good as the performance in 15.

[09:25] And that's why the score took a little bit of a dip from an 8.0 to a 7.7.

[09:29] But overall, the summary is, how does our financial position compare to some of those

[09:34] other communities around average, should you say?

[09:37] Most of the financial positions are relatively the lower score in all of the communities.

[09:43] I have one community that we prepared a informative for that set the all time low record just

[09:49] last week of a 3.5 overall, and their financial position was a 0.6.

[09:57] In other words, it didn't even get to a 1.

[09:59] Now that's indicative of your general fund being in a deficit, of your overall position being in

[10:05] a deficit, literally having no rainy day funds, high taxes, and debt burdens per capita.

[10:12] In other words, this is a community that has dug itself into a little bit of a hole, but at

[10:18] 6.2, as long as you're a both side of factory with your position, if you continue to

[10:23] perform at an 8, that will raise the position every year, typically, so that's actually better

[10:33] than most even though it's one of your lower scores.

[10:39] Some of these slides that I'll go through very quickly are just leaders slides, like the next one

[10:44] on slide 6, which literally shows you the 7 ratios that we're looking at, and it uses

[10:51] the technical term for the ratio on the left, such as unrestricted net position, and then if you

[10:57] look at the right, you'll see more common language, like how does our rainy day funds look.

[11:02] In other words, do we have enough money set aside?

[11:06] Is it truly restricted?

[11:07] Is it truly unrestricted?

[11:10] And so on and so forth.

[11:11] And so starting on page 7, you'll basically see a number of the ratios that we look at.

[11:16] And again, you can kind of see the graphs on the left, the language on the right, or the

[11:21] speedometer above.

[11:24] Slide 7 actually is one of the more trickier slides, in that it appears to be that your level

[11:29] of unrestricted net position is in the red, in other words, it's not scoring very well.

[11:34] However, remember, this is unrestricted net position.

[11:39] Not too long ago, you had passed an ordinance, where you basically set aside $6.8 million

[11:47] in rainy day funds.

[11:48] Well, by setting it aside, you've restricted it, therefore I can't count it in this equation.

[11:55] So when you look at this ratio, it might look like you're scoring artificial.

[12:00] a little lower than you really are, so the issue here is that in addition to the 21% level

[12:09] of reserve that you have, you have an additional 6.8 million in rainy day, that literally

[12:15] with a stroke of a pen with another ordinance, you could unrestrict however, if you unrestrict

[12:22] it and then spend it, you will score in the red again the very next year and then you'll

[12:28] have no way out of that score. So this slide, although scoring in the red is tempered a little

[12:35] bit with the fact that we actually have $6.8 million set aside in rainy day activity and

[12:42] we've restricted that money in other words. We can't just use it for anything, you have written

[12:46] some terms in your ordinance about what it can be used for and it's fairly restrictive and

[12:52] so therefore it doesn't get counted.

[12:54] And I just want to add to Frank and I, we went over this a second and again, as he indicated

[12:59] with a stroke of a pen, you could unrestrict it. Now I'm not advocating doing that in any way

[13:03] shape or form, but if you did that, the dashboard would be well into the green. So just that perspective.

[13:12] One thing you can consider doing and you may want to consider this as you go forward in the future,

[13:18] you can sort of use those funds without using them. I know that sounds crazy, but you've set

[13:25] $6.8 million of cash aside. So we know it's there. You could go to the bank and buy a two year

[13:31] CD, you could go to the market and get a three year treasury bill, you could do whatever you want

[13:36] to do. You could also invest it in yourself. In other words, set up terms to where you borrow a portion

[13:43] of that money and pay that money back over some type of promissory note with or with that interest.

[13:49] Almost like a collateral. In other words, you're your own bank in that situation. You wouldn't be spending

[13:55] the rainy day money because instead of 6.8 million in cash, let's say you borrowed 2 million. It had 4.8 million in cash,

[14:02] but it also had a big receivable from the general fund or from the city that would be worth 2 million dollars.

[14:08] As long as I get to pay back over some period of time, that's still considered set aside in rainy day.

[14:15] You don't have any restrictions on how you can invest that money. You just have restrictions on how you can spend it.

[14:21] So you can invest that in yourself. At some point in time, if that money needs to be looked at or touched, it's certainly there for you to do that.

[14:29] And of course, that ties into the city hall project.

[14:34] The next slide talks about the general funds, what we call unassigned fund balance, which is the general fund is our main operating fund,

[14:42] which we run most of the city operations through. At the end of the day, we like to see enough money left over so that we have some leeway, some cash flow, some money for one time expenditures,

[14:55] or if something were to pop up. In the general fund fund balance, notice you're scoring in the green.

[15:00] at about 17% of your annual revenue stream. That's great. I'd like to see it a little higher,

[15:08] but I'd understand the parameters around that. 17% is about 7% above what I would consider the minimum

[15:16] reserve ought to be, which is about 10%. Any time that general fund reserve drops below 10%

[15:23] something needs to be done to get it back up because 10% of annual revenues can disappear in

[15:29] a month when your revenue streams drop or your expenditures have a one-time hit. Notice that in the chart

[15:37] on the left in the two years that we did drop below 10% immediately in the very next year it jumped

[15:43] back up above the 10% limit simply because at that point action had to be taken expenses needed to

[15:50] be trimmed or revenues needed to be enhanced or some combination of both had to occur in order for

[15:55] that to happen. So general funds unassigned fund balance looks pretty good. The next slide on slide 9 deals

[16:03] with your capital assets, which are mainly consist of infrastructure. Most of your dollars of

[16:09] capital are tied up in waterline, sewer line, electric lines, infrastructure related to utilities

[16:16] along with streets, bridges, roadways, drainage systems. Of course we have equipment, we have vehicles,

[16:22] we have other things but the largest bulk of the dollars are tied up in infrastructure.

[16:27] What this chart measures is how much life is left in those capital assets. And as you'll notice,

[16:32] you're not scoring well here simply because we are depreciating those assets quicker than we're replacing

[16:40] them. And so at this point in time you only have about 37% of your life left, which if I were to look at

[16:47] this slide by itself and analyze it I would say at some point in the future there needs to be some

[16:53] infrastructure investment or reinvestment done, which again I think is one of the items that you'll be talking

[17:00] about very soon. This indicates that we've kind of deferred our replacement or our maintenance on the

[17:07] bulk of our capital assets to the point where now we're going to have to worry about getting those ratios

[17:13] back in our favor. If you were to borrow money and you were to spend all of that money on capital you should

[17:19] see this ratio improve right away simply because whatever we spend will have 100% of its life left

[17:27] starting on that day and that should affect the averages over time especially if it's infrastructure.

[17:33] So how long you depreciate the new street? Typically streets can depreciate I think most of the

[17:41] time we put them at about 20 to 25 years and that's assuming that the street is going to be patched and it

[17:47] is going to be overlaid once or twice within that 25 years and not completely reconstructed in that 25 year

[17:54] period. So basically you appreciate the initial investment over 20 to 25 years.

[18:00] or so, and then as you continue to improve the street and patch it and overlay it, you might add a few more years of life to it and then that gets to appreciate it also.

[18:09] Some of our streets appreciate it out, so what is it?

[18:13] Yeah, some of your streets probably have zero but value.

[18:16] So you don't appraisals it?

[18:18] No.

[18:19] If it's got a zero but value, that's probably what's affecting the 37%

[18:24] You've got some things that have 60% of their life left and you've got some things that have zero percent of their life left.

[18:30] And so the average of everything together is about 37%.

[18:34] Okay.

[18:35] So, what do you typically see in Oklahoma and in what would you consider a good percentage?

[18:42] Not unbelievably good percentage, but just a reasonably good.

[18:46] If you wanted to score right on a five on this ratio, you'd need to be at 50%.

[18:51] In other words, it's about average to have half of your useful life in your capital left over.

[18:57] And if you can hover around that 50% level, then you'll score adequately.

[19:03] You know, be great if everything we had was new and had 75% of its life left.

[19:08] Of course, then you're driving on pristine roads.

[19:10] You're using pristine water sewer and electric lines, but nobody scores 75%.

[19:18] So back to the first part of my question, Frank.

[19:21] What do you typically see?

[19:23] It's the ballpark average.

[19:25] In Oklahoma, I would say the ballpark average is about 55%.

[19:30] Okay.

[19:31] Roughly.

[19:32] That's about norm.

[19:33] I would say for Oklahoma.

[19:35] Did we on our straight pipe?

[19:37] Didn't I start in 2011, late 2011, around that time?

[19:44] I guess my question is since 2011, late 2012, with all the street projects we've done, we're basically staying the same.

[19:55] Yeah, staying below the line probably because you might not be doing any utility infrastructures.

[20:00] But this is also another big question.

[20:01] That's what I was going to say is remember, we are way behind on utilities, both electric and water.

[20:07] And that ratio is not just streets.

[20:09] It's everything that's capital related.

[20:12] Buildings, electric lines, water lines, sewer lines.

[20:15] It's everything.

[20:16] Streets are a big component though.

[20:18] So that was my question.

[20:21] Okay.

[20:23] Slide 10, where we're going to talk about the pension system is another kind of a tricky slide.

[20:28] This is the non-uniformed employee pension plan, not the uniformed employees, which is part of the state plan.

[20:35] We are hovering right around a 67% ratio of what we call a funded ratio.

[20:42] However, the way this got measured changed in 2015,

[20:46] pensions probably up until 2015 were calculated with an actual ratio based on what we call the funding perspective.

[20:55] In other words, the accounting was driven based on how well you funded the plan.

[21:00] And you've always funded the plan well, you've always paid a hundred percent of the contributions in.

[21:06] The reason your plan is not fully funded in either perspective is because of the investment performance over the years.

[21:14] In other words, it's not quite kept up with the average of what they would project it.

[21:20] Let's say 7.7.5.7.3 quarters of a percent return.

[21:26] However, in 2015 the accounting rules changed to where the governments now have to book their liability for pension systems in their own balance sheets.

[21:37] And the way it got measured changed to what we call more of an accounting perspective, which removed what we call investment smoothing.

[21:45] It's very complicated, but the point is that the last two years of this at the bottom here are percentages that are measured under an accounting perspective

[21:54] as opposed to a funding perspective.

[21:56] And if we were to hold apples to apples with the all the previous years, your percentage from a funding perspective is about 73 percent, not 67 percent.

[22:06] So there's literally two ways, pensions gets measured now, I'm stuck with the way that has to be shown in the audit.

[22:14] You guys basically don't use that number, but instead use the funding perspective, which is the correct perspective from an administrative standpoint.

[22:24] I can't use it, I have to use the accounting perspective.

[22:27] And so you're not going to get much credit for your pension system until it gets upwards around 85 percent funded.

[22:33] Again, that sounds high, but remember, this scale is to where we ought to be, not where we want to be.

[22:40] So we need to get that perspective up.

[22:42] However, I can guarantee you that if you follow the instructions of the actuary every year when they say you need to contribute 14 percent into the system,

[22:52] whether it's 7 percent employee and 7 percent city, or whatever the combination is, if they say 14, put 14.

[22:59] If you can put 15, that'd be even better.

[23:02] If they say 18, put 18, or 19, as long as you do that consistently, you'll see this percentage tick up over time.

[23:11] Now, in the past, up until two years ago, three years ago, we ran our own pension system.

[23:17] We didn't have the Oklahoma Municipal League or the Oklahoma Municipal Retirement System running our show.

[23:24] And for a number of reasons, your percentage is kind of a main relatively stagnant and actually declined a little bit.

[23:30] However, in the last couple of years, outside of the investment performance, you should see those percentages tick up over time.

[23:38] If it continues to stairs step down, something's not right.

[23:41] And we'll need to watch that.

[23:43] Even the two methods of actual accounting should start evening up.

[23:47] The closer it gets to fully funded, so that gap between 67 percent and 73 ought to narrow as we continue to go forward.

[23:55] So that's one thing I do want to keep an eye on.

[23:57] I think you should keep an eye on also.

[24:00] Slide 11 is a ratio where we basically say we're comparing assets to death or the cash phrase for that is who really owns the city?

[24:09] In other words, do we own the city or are we leveraged that we borrowed so much that somebody else owns the city?

[24:15] And you'll notice here that we score right around Satisfactory on here where we have 47% of our $70 million of total assets being offset or funded with debt.

[24:26] That's about, as I said, about normal about Satisfactory. However, in the last two years, you'll notice that the last two years are up on the graph a little bit further than where they were in the previous four or five years before that.

[24:40] Remember, in the last two years, the pension liability has got rolled into your balance sheet where in the prior years they did not, so that's what explains the uptick in that ratio.

[24:52] Slide 12 and 13 are kind of looked at together. It's a good thing because you score 10 on both of them. This is cash flow.

[25:02] In other words, do we have enough cash flow or do I have enough receivables that are going to turn into cash flow or investments that I can cash in to pay all my liabilities?

[25:13] And the answer on slide 12 is, yes, actually, I would prefer $2 of current assets for every $1 of current liabilities. You have $3.84 to $1.

[25:25] So, again, that's why you score 10 as you're well above the threshold of average of which is what I would call $2 to $1.

[25:33] And then on slide 13, I don't care about receivables or investments I look at your liquid cash.

[25:39] And as long as we have $1 of cash for every $1 of current liabilities, then that's okay.

[25:44] You have $2.21 for every $1 in liability. So, on both of these ratios as far as financial position is concerned.

[25:55] And remember these are two of the seven that relate to position you're scoring at 10. So, the city does have very good cash flows.

[26:02] That means employees are happy that they get paid, unpaid, and your vendors are happy that they're getting paid within a one operating cycle, usually a month or a month and a half.

[26:12] Slide 14 is literally the summary of everything we just talked about for the last eight years or nine years.

[26:20] So, you can kind of see how the scores have looked overall and for each ratio.

[26:24] Notice that at the very bottom box, if you're looking at the financial position score, remember how I said you scored a 6.2 on those seven components?

[26:32] That's exactly the same score that we scored last year, a 6.2, and it's only one off from the 6.1 that we had scored in 14.

[26:40] So, you've had very, very consistent financial position over the last three years and the same financial position over the last two years.

[26:50] And was that also that particular ratio affected by the change in the laws with respect to the retirement fund?

[27:00] Yes, I would say both 14 and 15 would have would the slides that were affected by the

[27:06] pension would have affected that 6.2, so probably when you look at maybe some of the higher

[27:13] ratios like the 6.7 and 13 the pension information wasn't in there at that time, neither

[27:20] was it in a slide 14, so 15 and 16 they rolled in but again the model already knew about

[27:27] the pension liabilities and already scored them, so whether they were in the balance

[27:31] heater not, it didn't really matter because we already knew they existed, so we had already

[27:35] kind of affected that in the overall score, but now that they rolled into the balance,

[27:40] we want to make sure that the city doesn't get punished twice for the same issue,

[27:44] so we had to amend that model a little bit.

[27:49] Slide 15 is the five slides or so that the deal with financial performance, which again

[27:55] remember is where you scored the 8.6 notice that as we talk about most of these all

[28:00] of these are going to be pretty much in the green, the change in net position in other words net

[28:08] position is the sum result of everything we own minus everything we owe, so my positive net position

[28:16] did it go up or did it go down, do I have more stuff left stuff about the same amount of stuff

[28:22] that I started the year with, that's what we measure here, notice that we ended the year with

[28:28] an increase in our net position of about 2.1 million, which is about 5.8% from the prior year,

[28:36] so the governmental side of everything, the city activities which sales tax funds pretty much,

[28:42] they went up, net position went up about 796,000 nearly 800,000 and the utility side, the

[28:48] business type activities went up about 1.3 million, so 800 and 1.3, that's the 2.1 that

[28:55] we increased our net position in the corporate world, you hear the term profit here, we don't

[29:01] use the term profit, we just call it an increase in net position because governments don't really

[29:07] work on a profit motive, but that's the same word and equivalent of what we would consider to be a profit.

[29:13] And you can look down at the bottom over the last 9 years to see which years you have

[29:17] a plus or an increase in net position, and then which years had a minus in that position and

[29:23] it should correspond with that graph, that's right above, but sitting right around an 8 in the green

[29:29] on this one.

[29:32] Slide 17 talks about inter-period equity, the easiest way to explain this is if I'm a tax payer

[29:39] or a rate payer that lives in my Emma, I would like to know that for every dollar that

[29:44] I pay in in taxes or rates that I'm getting at least a dollar of services back, I don't want

[29:50] to pay in a dollar and then you only return 87 cents of that to me in services, that means that

[29:56] some other generation is going to have to be covering.

[30:00] some of these expenses, and so here are the interplayed equity measures at least $1.00 for

[30:06] dollar.

[30:07] And here you'll notice that for every $1 in expenses that you're incurring, you're generating

[30:12] $1.00 basically in revenues.

[30:15] So again, that's not just utilities, it's sales taxes, utilities, it's everything all mesh

[30:20] together.

[30:21] So right now, $1.00 for a dollar, that's kind of why on the previous slide, you saw an increase

[30:27] in net position.

[30:29] We collect or earn more revenues than what we spend, so therefore the current your revenues

[30:33] are paying for current your costs, and generating a little bit of extra so that you can

[30:38] then set that extra aside, which is where the rainy day money came from at some point

[30:43] in time.

[30:44] So as you do that over a period of years, that's what generates that excess.

[30:48] You don't want to drop below 100% here.

[30:51] That means you're not achieving intergenerational equity and you're passing on some cost

[30:56] to a past generation or a future generation.

[31:00] Again, score to 10 there.

[31:03] On slide 18, this measures your business type activities.

[31:07] So when I say business type activities, think of utilities that your main business type activity.

[31:12] Does it pay for itself?

[31:13] Is it self-sufficient?

[31:15] And you'll notice here that we want to be $1.00 for dollar also.

[31:19] In other words, for every dollar cost to run the utility system, I want to generate at least

[31:23] a dollar in revenue.

[31:25] Here, we're generating a dollar 26 for every dollar of utility expense.

[31:31] At first, you're going to think of a way to second.

[31:33] So it costs a dollar to run the utility system, which are at a dollar 26.

[31:37] Well, remember what those rates and fees are also paying for.

[31:40] They are subsidizing the general fund, they are subsidizing a number of other funds that you

[31:45] transfer money to, in addition to paying for themselves, paying for their own debt service,

[31:51] then trying to save and set money aside for rainy days or for reserve expenses.

[31:57] So right now, overall, we're sitting at a dollar to 26.

[32:01] But remember, that 26 is pretty much already taken up.

[32:04] Or most of it is taken up by subsidies or transfers to other funds and other needs.

[32:11] I just want to emphasize debt service.

[32:15] I mean, because that's what we consider primary purpose to be, is to be investing in this infrastructure

[32:23] that we're behind on.

[32:24] The absolute land is to generate extra money, so we can invest that infrastructure.

[32:31] That's right.

[32:32] As you incur debt to improve the infrastructure of the utility systems, you're going to have to pay that

[32:37] debt back off with principal and interest payments.

[32:40] Really, the only way you're going to be able to do that is to adjust the rates sufficiently

[32:44] so that it covers that debt service and any other anticipated expenses that you might think

[32:49] that you're going to need in the future.

[32:51] That's probably what that rate study is going to bring to you.

[32:53] I haven't looked at it or seen it, but I want to imagine that there is going to be a built-in

[32:58] subsidy.

[33:00] built-in debt service schedules of future debt and built-in capital needs that we may

[33:06] find out of cash. But right now on that self-sufficiency scale, we are self-sufficient.

[33:11] We're generating more than $1.00 so again we score a 10 on the BTA activity schedule.

[33:19] The next slide deals with the credit or community and debt service coverage. If I were

[33:24] banked I would loan money to pay. That's what this slide basically says. Our revenue

[33:30] bond and vectors happy with our ability to pay them back based on the debt that we have.

[33:35] In other words, most debtors or creditors look to see whether or not you can generate

[33:41] net revenues of about a dollar and a quarter or maybe a dollar and a half of the multiple

[33:47] times of debt service. In other words, can you generate one and a half times the average debt

[33:51] service payment. You're generating not one and a half times but five dollars and 48 cents

[33:57] for every dollar of debt service. So in other words, nearly five point five times the debt

[34:03] service. So the creditor community would love to lend you money simply because you have a capacity

[34:10] to pay it back. That's very, very proven and very large and again that's why you score it in on

[34:17] the debt service coverage. Slide 20 is the only slide that actually although still above

[34:25] satisfactory, it's not a satisfactory as it was last year. Remember how I said your score overall

[34:31] dropped from an eight to a seven point seven. If I had to pick one ratio that that was the slip,

[34:37] it was the sales tax growth. Notice that in 2015 your sales tax had grown by 3.4% well that

[34:45] obviously scores a 10, nearly a 10 in our model. However, in 2016 it only grew 0.4% so literally

[34:54] 3% less growth than what it had the year before. So that's the ratio that kind of knocked the overall

[35:01] score down which if you look on slide 21 you see the summary of those slides of those five ratios

[35:11] and you'll notice that in 2016 we scored an 8.6 which I said that was actually very good performance

[35:18] but look at the year before it where you scored a 9.5 and the only difference of any significance here

[35:25] is the sales tax in that last next to last box of 3.4% and 15 versus the 4.4% growth that was there.

[35:36] So still a very good performance just not as good as it was in 15 therefore that affected that overall

[35:43] score just a tad. The next slide looks at the six ratios that make up your capability.

[35:51] Now let me explain financial capability. The capability is looking at the taxes per capita, the debt per

[36:00] capital whether or not you have bonded debt that you're living a property tax

[36:05] for and whether you've got your limit of property taxes or you've hit your

[36:10] limit of geodet. In other words it's measuring whether or not the citizens would be

[36:15] more likely to accept rate increases or sales tax increases. In other words do we

[36:24] have a very low sales tax rate? Do we have a very low property tax rate? If any, do we

[36:28] have low debt per capita tax per capita margins and measures whether or not

[36:33] they'd be willing to accept it based on how low they are. Again remember this is

[36:36] another one that you score all in 8.4 on which means you have quite a bit of

[36:40] capability left. However most of your capability is driven by the fact that you

[36:44] don't have any bonded debt right now. You have revenue bond debt but the only thing

[36:49] that secures the revenue bond debt are the utility revenues. You have no general

[36:54] obligation bond debt or geobond debt which requires a vote of the people to

[36:59] pass and then once the people vote for that debt they also vote for a property tax

[37:05] levy that then pays that debt off. Well you have no general obligation bond debt which

[37:10] means you have 100% of your geodet limit left and means you don't levy any property

[37:15] tax. Well those three things alone you score tens on which is what heavily

[37:20] influences this capability issue. So the slides other than geodet I just talked

[37:25] about I'll mention very quickly. Slide 23 on revenue dispersion simply looking at

[37:31] how much of our total revenue stream do we have control of? You have control and about

[37:36] 73% of your revenues. That's actually very good for Oklahoma most of the time

[37:41] it's usually in the 50s because most governments have about half of their revenues

[37:45] coming from utilities, half coming from sales tax. You're 73% business type or charges for

[37:53] services and only about 27% that's taxes that are outside of your controls. That scores really

[38:00] well in our model and it's probably well above what I would consider most Oklahoma governments

[38:05] that are probably scoring somewhere in the 50s. The reason we measure this is that if taxes were

[38:11] to drop off if people quit buying stuff in your sales tax doesn't come in what are you going to do?

[38:17] Well you have control of 73% of your other streams of revenue that you could then either attempt

[38:22] a raise or cut back expense in the general fund. You can do a number of things but you have the ability

[38:28] control rates on 73% of your revenue stream and that's more than likely where the rate increases

[38:35] would come in to make the difference. On slide 24 it looks at your debt service load,

[38:44] simply what this means is I try to look at your budget every year and I take all the capital

[38:49] purchases out of it which will ease me just your operating budget and then I say to myself okay now

[38:54] how much of that operating budget is tied up for debt service? Kind of like how much of your

[39:00] net check, you take home, you have to pay to the credit card companies to pay your bill.

[39:04] You scroll very well here in New York, New York, New York, New York, New York, New York,

[39:08] and simply because you only have about $2.7 million of debt service on a non-capital expenditure

[39:16] budget of about 32 million.

[39:17] So, that's only 8%.

[39:20] So 8% of your budget a non-capital budget is tied up in debt service and that's obviously

[39:28] a very good or a very low debt service load, which is a very good ratio of the score on.

[39:35] I think Slives 2526 and 27, I've already talked about, they deal with the GO debts.

[39:41] Notice that on your bonded debt per capita, you don't have any bonded debt per capita because

[39:47] there are no GO bonds that are outstanding.

[39:50] On slide 26, it means that you have 100% of your legal debt margin remaining because there

[39:56] is no GO debt and then on slide 27, your property taxes per capita are zero because we

[40:04] don't love it, any property taxes for operational purposes.

[40:07] And since we have no debt, then we don't love any property taxes at all.

[40:12] The last slide looks at your local sales tax rate, you know, how much of every dollar

[40:16] are we, the city, getting, and you're right now at 3.65 cents, in other words, 3.65 cents

[40:23] of every dollar you get on retail sales, you get as your local sales tax.

[40:30] That's a little bit on the high end of our model.

[40:33] I want a little on the high end.

[40:35] It's a 3.5, 3.5 cents is about where I cut the five.

[40:40] So you're at 3.65, which sends you a little bit below the five line.

[40:45] It's a little high when compared to other local governments, but not as high as some.

[40:52] So again, in our model, we use the benchmark for a five to be about 3.5 cents.

[40:58] So you're right at that level a little bit high of it.

[41:03] And so it scores about a satisfactory score.

[41:07] On page 29, you notice the summary of those six again and notice that between 15 and 16 overall

[41:15] nothing changed.

[41:16] So literally of the three categories, two of them were the exact same scores last year.

[41:21] And then the one that changed, only changed because of sales tax, not being collected

[41:25] as well as it was the year before.

[41:29] So that's kind of the performer.

[41:30] I don't know if that's what you had gotten when you read this hundred pages of the audit report.

[41:34] I'm sure you didn't say at the end of the hundred pages.

[41:37] Oh well, I'm worried about it 7.7 on scale of one to 10.

[41:40] Did you do it?

[41:41] I'd like to hire you because you nailed it.

[41:45] But that's the performer.

[41:49] So I'll answer any questions that you may have or and then we'll see where this thing kicks up next year.

[42:00] I don't have any questions in the comment.

[42:02] I think this is a very useful tool.

[42:04] Yeah.

[42:05] I think it's a very useful tool.

[42:07] We have these general ideas.

[42:09] And we look at these fun balances.

[42:11] And we say, oh, maybe we need this.

[42:13] It's on a side of world mining.

[42:15] But also, the thing that I think that was the most in science,

[42:20] was the inter-appearing at that thing.

[42:22] Isn't it a period equity?

[42:24] Yeah, because, you know, we're all trying to build for the future.

[42:29] And we have to be prudent in how we do that.

[42:32] And we don't want the current generation to come

[42:36] for everything in the future.

[42:38] We've got to move forward.

[42:40] At least with efforts, not putting away.

[42:42] So I think that's an interesting perspective.

[42:45] Sure.

[42:46] We're good.

[42:47] I'm glad it's of some use.

[42:49] I just got one more reason to shot my Emma.

[42:53] And as we all did, I think we take care of some of the injuries we have.

[42:59] I agree.

[43:00] The more you can invest in that perspective, the better I'll feel

[43:08] be, because all that money comes back to you.

[43:11] So, entered that sales tax ban.

[43:15] I hear you.

[43:16] And you had a question for Frank?

[43:20] Thanks Frank.

[43:21] Thanks Frank.

[43:22] Thank you.

[43:23] Thank you.

[43:24] Thank you.

[43:25] I also want to just thank Frank.

[43:27] Yeah.

[43:28] Thank you.

[43:29] This is something to keep in mind.

[43:30] Next week, we'll start talking about rates.

[43:33] And also, we're just about to get into budget.

[43:36] And all these decisions we make are going to be affecting this great car.

[43:40] disagree.

[43:41] Okay.

[43:43] I have nine.

[43:44] City Council accepted the donation of British flyers number of beer.

[43:47] Beer.

[43:48] You're from Paula K. Denson.

[43:49] City of Miami.

[43:50] J. R. Summator.

[43:52] Kim.

[43:56] So, this is part of the website.

[43:59] We're going to go to the community and see what's our office manager.

[44:02] And then we're doing this as a team, because this is kind of a team passion and this project's been done as a team.

[44:08] These items were donated by Paula Denson.

[44:11] Paula bought the bulk, the Royal Air Force and Oklahoma.

[44:14] She did research for years before she did that.

[44:17] Went to England, went around and visited with different people that had trained.

[44:21] Both of Miami and Pancasiti, she's from Pancasiti.

[44:24] And when she did that, a lot of these people were older.

[44:27] They would give her these items that they had when they trained.

[44:30] So, we brought a few tonight.

[44:32] And we have the jacket, which is a full dress jacket for an RAF cadet.

[44:38] Hat.

[44:39] The camp that we brought is actually from Pancasiti.

[44:42] This is like a camera and he took it with him on every mission in World War II.

[44:46] And then donated it to Paula.

[44:48] There's a flight suit behind Mr. Klein.

[44:50] And we've got some great pictures of some of the train.

[44:53] Drawings on the flight suit and then a dress coat behind Mr. Kutov.

[44:57] We have probably about...

[45:00] authority, other items, and Lori Roberts is here tonight and we're moving from the

[45:05] docks in New Zealand. Larry Collins and said, hey, we've thought do you have any

[45:08] memorabilia that we can display at the docks in? So we're going to do a longer

[45:13] program with these, but things will become city property. And they will be ours not only

[45:19] to take to the docks in, but we will display some of the airport, and we're going to put them

[45:24] into display cases. And Marshall and Gloria in the genealogy department at the library

[45:29] department then up there. There's an honor for us to receive these items, these are

[45:35] things that Paula said, you know, next to her children and her grandchildren. She's held

[45:39] onto these for 30 years, but she's getting over and wanted them to go someplace that

[45:44] she knew they'd be taking care of. So we're asking you to accept them tonight. Also.

[45:49] And I know many around that's too many times if there's anything in your building and you've

[45:54] told me no, but we're still out there. There's something up in the air and I've got

[45:59] to go up there for the last two days and those just lots of plastic on board. So we're just

[46:08] asking you to accept these items tonight. So you need a motion from us. Yes. Where I'm

[46:12] going to be on in my motion to put it down. Okay. Second. I'll second it. Go call

[46:16] please. I. Lewis. I. Weston. All right. Okay. Thank you. Thank you. Thank you. I am Tim,

[46:26] the signed form of certificate of charter change approved by our voters on April 4th, 2017.

[46:32] Dan, I think that's why you're here tonight. Talk about. I just wanted to thank you. This is the document

[46:39] that is committed again. There's office. That is the one remaining step in this process.

[46:46] I have our charter change. So what. What we would ask is that that this thing is off my

[46:56] in Mr. Mayor. And then I will paint that and deliver it to the Governor's office.

[47:03] And I believe we've got four copies of it. We'll deliver those together's office. And then

[47:12] what the Governor signed off. We will have completed the process. Okay.

[47:20] Is there. Is there an effective dating in there being? I don't remember. Is it just effective?

[47:27] As soon as the Governor signs it. Okay. All right. Well, then we will give it sign

[47:36] on I and the list and I will sign and get those to you to present to the Governor's office.

[47:43] Do that next week. Okay. Any other comments?

[47:49] Okay. I just want to thank everyone that did turn out the vote. It was about 75% in favor.

[47:55] And I can assure you this is going to make staff life.

[48:00] year A, but it's really a protection for the citizens. I mean there were important changes in

[48:06] that document that I think saved the citizens a lot of money over time and head off maybe

[48:13] some legal foreign trees. And then thank you and David also for all the work that you guys did on

[48:22] that getting it straightened out, helping us get it straight out. Okay? So we don't need to vote on

[48:31] the thing on that. We just need to sign it, right? Right. Right. So it's just a matter of time.

[48:36] And like I say, we want to deliver to the younger generation, he signed it off. Then we are done

[48:42] with this process. Okay, thanks Ben. I'm going to move to item 11, which is three-way stop sign

[48:47] at the intersection of H. North West at Velen's Boulevard. And no clocking signs along

[48:52] the North Road way and parking signs directing to overflow for some well soccer stadium.

[48:58] Chief Anderson, how are you? Good. We've had several groups approaches on that intersection of

[49:04] veterans and H. Currently there's a yield sign headed eastbound and another two are totally

[49:13] and controlled. We do have a few works there, several cloth calls and several complaints about

[49:21] that intersection. And every spring and fall with soccer, it becomes very much more congested. I don't

[49:28] know if you're ever given that veterans Boulevard on a Saturday morning. It comes to about a five-month

[49:33] hour very slow, one-lane road. And we want to try to alleviate something that could just make a safer

[49:39] for soccer folks and just make the intersection safer itself. The proposal is to put a three-way

[49:47] stop sign in that intersection and then no parking signs along the North Edge of Veterans Boulevard

[49:55] on the Saturday at the airport. And we do have over four parking four of the San Wells soccer

[50:01] complex. On the west side of the incinerator and there's some pictures of the intersection

[50:11] that's looking westbound on the road. So there'll be no parking along the map one and the next intersection

[50:17] or the next that's back. That's the only control for that intersection of the yield sign. So if you're

[50:23] going north and say turning west, you have the right way because there's no control, but yeah,

[50:27] traffic could be coming from the east and it just needs to be weird a little bit. And then this

[50:33] area will make or propose to make as no parking along the fence line on the north side, which would be

[50:40] the south edge of the airport property. And then there is the overflow parking and that's the

[50:48] red leads to the incinerator and they have a lot of parking over there for over four of the soccer

[50:55] field. So we're not taking away the parking not offering somewhere else. We're just one.

[51:00] do someplace safer and better for the soccer participants? I think it's a great idea and I

[51:08] had to call a couple of weeks ago when they, I guess they had a tournament schedule but

[51:14] and they were concerned. Yeah, last week when they didn't come in. Yeah, so that's what

[51:18] called like the day before, I don't know if we could work it and put officers out there and unfortunately

[51:22] we weren't able to work that out. We did spot check there a little bit. The no part of the old

[51:28] time will affect anybody is during soccer season and they just make it safer for those folks because

[51:35] there's just a ton of pass we're trying to walk in four kids during the cross. Same we're just trying

[51:40] to eliminate that to make it safer for the citizens. Okay. I've just noticed I've seen a lot of people

[51:46] just don't even pay against that you know so on. Yes. That's an issue. Yeah, it is a safety issue and I think

[51:53] the three way stop signs will alleviate something that I'd make it safer. And it didn't just stop

[51:59] before they go into that soccer area. It's going to make the right answer and hopefully it's

[52:04] slump down a little bit so I think it's just a good safety concern for the area. Okay. And

[52:09] you know, the question is, would you control that pretty steadily the first couple of weeks that

[52:14] that's in place to say that? Yes. And we generally, when we change stuff like that, we give warnings for

[52:18] couple of weeks to make sure people are aware every time we make a big change like that. We do that.

[52:27] Okay. I'm not getting motion. I'm not getting motion. I'm not saying the motion.

[52:36] Welcome.

[52:39] Hi.

[52:41] Maybe she got to take her son.

[52:43] I don't know.

[52:46] I'm 12 is a big number of C-17, 102 for Croxy.

[52:52] Oh, well, I'm going to have to ask you to pull that item.

[52:56] We did not get bits, and we're going to be working with Sean, and I'm trying to kind of

[53:01] about the different companies that we've informed that we're going out to bet on this.

[53:06] So we're asking for no access.

[53:07] So we're asking for no access.

[53:09] No access whatsoever.

[53:10] No action.

[53:11] I'm 12 on 13.

[53:12] Resolution C-2017, 11, improving the community financial support and freeway to the region of

[53:17] the chamber.

[53:18] For the renovation of structures located at 9 and 11 or with main and the future home of the regional

[53:24] chamber.

[53:25] Hi, Christine.

[53:26] Hello.

[53:27] This is very much like what we've brought to you before from the economic development

[53:30] incentive standpoint.

[53:32] This is just for your reference.

[53:35] The old Harvey's building in the trophy shop next door.

[53:40] And the regional chamber has that building, and they are in the process of renovating it.

[53:48] I think there's some pictures.

[53:51] That basically what we're asking for is the waiver on the permits that are required.

[54:00] from an inspection standpoint, but not again, not actually

[54:05] waving, getting the permits and having the inspections done.

[54:09] We'll also be waving the tipping fees,

[54:13] rental of the roll off and the delivery setup and all of that on the tipping fees.

[54:22] It'll probably come to slightly under $10,000 in

[54:30] things that we're asking the way.

[54:32] But I did behind the building is to really renovate

[54:37] and turn it into not only a use for the regional chamber,

[54:41] but also use for citizens in the design.

[54:45] It'll be very modern and industrial in appearance,

[54:50] that the way that they have it set up,

[54:52] there's several conference rooms that will be available for citizens

[54:57] to use.

[54:59] And, basically, we'll be also used as an event

[55:04] center for special events, if needed.

[55:08] So, they have a couple of plans in place

[55:11] or that they're reviewing right now as a way

[55:14] to maybe even possibly generate a little revenue,

[55:17] offered them building.

[55:21] So, what you're looking at here is that I've said

[55:25] in some of these meetings, so I'll just talk for a minute

[55:28] what you're looking at here is the first floor.

[55:30] The second floor is going to be demoed

[55:33] and but not built out yet.

[55:35] We're going to wait and see how everything goes to the first floor.

[55:40] Steve Gilbert, our chamber CEO and a couple of others.

[55:47] Drizity.

[55:48] So, an incubator and also in Clemmel.

[55:52] There's some real neat ideas about how people

[55:56] are using space, but even more importantly,

[55:58] how the citizens are utilizing the spaces.

[56:02] People are coming in there using the internet.

[56:05] They're running offices to for meetings.

[56:08] They're it's an incubator for businesses.

[56:11] To some really great ideas around that.

[56:15] And I'm really excited about it.

[56:17] I think it's going to be, first we're taking two.

[56:20] I don't know, maybe Darrellx, two strong or more.

[56:22] But two overall building downtown.

[56:24] Really got one building and the sub divided.

[56:27] And we're innovating in and really moving the.

[56:31] The news of our downtown that direction.

[56:34] Now in the middle blocks, we've had some new construction and renovation.

[56:38] So this takes it that direction.

[56:40] And I think once this is up and running,

[56:43] which is scheduled for a round August.

[56:47] They're going to have an event to invite the community.

[56:50] And it's going to, it's really going to be a neat facility.

[56:53] The science housing and chamber needs, which you'll continue to do.

[56:56] But it's going to be a community asset.

[56:58] I'm really excited about it.

[56:59] I think.

[57:00] if anybody watching this or if you're not aware, this is the old Harvey's.

[57:04] So if somebody's wondering what is that, that's the old Harvey's that we're talking about.

[57:09] They're expecting or anticipating to have open house around the festival event,

[57:16] in conjunction with the occupying space before that.

[57:21] So Tyler, if you'll go on to the next, just to give you an idea of what the inside,

[57:27] inside these are a couple of the places wanting clear more and more in Tulsa

[57:31] that they, as Rudy mentioned, that they visited to get an idea of how they would like to structure

[57:39] and design the inside of the building.

[57:51] The total cost on the project is estimated or investment in the project

[57:56] is estimated to be over $500,000.

[58:11] Any questions for Christie?

[58:14] No, I'm okay.

[58:18] Stabby, Raid Mo?

[58:20] Yes.

[58:25] I know that the council's willingness to support economic development,

[58:36] instrumentus, and one of the things that we're going to do here,

[58:40] in addition to the things Rudy talked about as far as supporting small businesses

[58:44] and entrepreneurs and people that are trying to start companies,

[58:49] using our revolving loan fund resources and the like.

[58:53] This will be a place where we can host prospects, who are looking at bringing industrial jobs

[58:58] and new investment into our community.

[59:01] And I'm very, very excited because when we start hosting prospects here,

[59:07] this is going to be a place that will make an impact

[59:11] and I think make a difference to show the commitment of our community

[59:16] and what we want to try to accomplish going forward with economic development.

[59:20] So all the way around from small businesses and entrepreneurs to recruiting industrial prospects

[59:26] and hosting site selectors and those kind of things, all of that will be a hub.

[59:30] This building will be a hub for all of those activities to have.

[59:33] So the bottom line is this will eventually aid us tremendously in helping to attract new jobs,

[59:41] keep the jobs we have, help companies here grow and bring new investment to our community.

[59:47] Thank you.

[59:49] Thank you.

[59:50] Thank you.

[59:51] Be in before we call for a vote of just occurred to me, since I served on that board,

[59:55] also should I abstain, you think.

[60:00] would not be in the end yet.

[60:05] All right.

[60:08] So we have a request or we are trying to find my agenda item here.

[60:16] Item 13 is a request for fee waiver.

[60:20] And the financial support in the form of a fee waiver.

[60:24] Do we have a motion to approve?

[60:25] I'll make a motion, sir.

[60:26] Yeah, I'll second it.

[60:27] Will call a please?

[60:28] My sin.

[60:29] Hi.

[60:30] Lewis.

[60:31] Johnson.

[60:33] All right.

[60:34] And I abstain.

[60:35] Okay.

[60:36] Thank you, Christy.

[60:37] And Steve.

[60:38] Item 14 is a resolution.

[60:41] CC2017 that's one two.

[60:44] Opposing your question rate height by empire.

[60:47] Electric company opinion before you go on a corporation commission.

[60:50] Then that has your name next to it.

[60:53] So best.

[60:55] You'll recall that last fall.

[60:57] We had a similar resolution.

[61:00] That was in regards to the rate height method that empire was using at that point in time.

[61:09] They were wanting to go through a very simplified procedure.

[61:17] Asking the corporation commission to simply adopt the rates that were used in the

[61:23] dirt, we injected it as well as universal individuals and businesses and community organizations

[61:34] in the community and the corporation commission did exactly what we were hoping they would do.

[61:41] And reject that proposal and just tell empire now you have to go through a full blow right high procedure.

[61:50] And so that was what we were trying to accomplish at that point.

[61:56] And so now empire has filed their new rate height requirement.

[62:02] It has been reduced somewhat.

[62:07] But in the opinion of many people and hopefully the city council, it is still way too high.

[62:17] Basically there's some people who have 3.2 million dollars taken out of our local economy.

[62:26] And there's still the shareholders of the parent corporation that had a candidate.

[62:33] You will note that in the resolution there are a couple of blanks.

[62:39] And that's because at the point of crafting that we can have the exact figures for what we're wanting to put in there.

[62:55] And if you are wanting those exact figures like that, I think.

[63:00] to the end on those, but basically what we're asking,

[63:03] yet the council sees that this is the appropriate thing

[63:07] to do to oppose this rate hike.

[63:11] We would have to decide on which is on the Senate page

[63:17] and before it's admitted to the corporation,

[63:19] the mission level, that will end those exact percentages

[63:24] and dollar amounts.

[63:26] So they just give us to revise number from what it was.

[63:29] You know, the average number for retail dollars.

[63:36] I think the original request was $1.7 million.

[63:41] They paid back with a $3.8 million request,

[63:46] but as the cost of this has gone along,

[63:50] the empire itself has reduced their request

[63:53] to $3.2 million.

[63:55] And I think that the sense of the most critical

[64:00] figure is what they're asking to have taken out

[64:03] of our local North East Oklahoma primarily

[64:07] all the county economy.

[64:09] Okay.

[64:11] And so Ben is asking for approval of this resolution

[64:17] in general, and he'll certainly fill in the blanks

[64:22] to be specific a little bit lighter.

[64:27] But certainly as a general statement,

[64:30] we are in all in support, we didn't.

[64:33] So we have a motion to approve this resolution

[64:37] at Mr. and agenda item 14.

[64:40] And a second.

[64:41] Second.

[64:42] Royal call please.

[64:43] I didn't.

[64:44] I didn't.

[64:45] I didn't.

[64:46] Johnson.

[64:47] I.

[64:48] Okay.

[64:49] Item 15.

[64:50] What is 2017-06?

[64:52] I'm ending sections.

[64:54] Having to do it with deposits.

[64:56] And.

[64:58] Article two, having to do with rates of charges

[65:02] for the purpose of reducing the positive requirement,

[65:05] reducing the timing for disconnecting and telling

[65:07] surface.

[65:08] More clearly defining dispatch fees,

[65:10] including authority to waive fees to become

[65:12] effective July 1.

[65:14] Heather Bailey.

[65:15] Hi.

[65:16] Good evening.

[65:17] I'm the customer service supervisor.

[65:19] This is the first time before you started

[65:21] as well as they hello.

[65:22] I'm a little background on this BA.

[65:25] Our department staff was tasked with lowering

[65:28] our accounts receivable.

[65:30] Currently, the outstanding utility balance is

[65:33] 1.7 million.

[65:35] A little over 811,000 of that,

[65:39] 1.7 is unrecoverable.

[65:42] We started reaching out to Oklahoma.

[65:45] Other Oklahoma municipalities.

[65:48] Inquiring about what their timing was

[65:51] that they disconnected customers for non-payment,

[65:54] find out what their timing was.

[65:56] The average consistency came back that it was about 10 to 20.

[66:00] 11 days past a due date when a customer did not pay that they would go ahead and disconnect

[66:04] their utility service.

[66:07] So there are stuff got together, we wrote the comparison table that's included in your

[66:13] BA.

[66:14] It's on the very back.

[66:15] On the left-hand side of that table is what we currently, what our current procedure is, on

[66:21] the right-hand side of the table, is what we're proposing.

[66:26] So our current procedure will allow a customer to go have 89 days of utility usage without

[66:35] a payment to the city before we would make a disconnect of their utility service.

[66:40] And we're proposing to decrease that to 56 days of utility usage before without payment

[66:46] before we would make a disconnection.

[66:48] A couple of things about the table that we put together, it is worst case scenarios,

[66:53] so there is some flux in there as far as weekends, holidays, implement weather and that

[66:59] kind of thing.

[67:00] So there's a little bit of flux of days in there, but that's the general term and length of the term.

[67:07] A couple of the ordinance changes that we're requesting approval on that I want to point out, section

[67:12] 24, ordinance number 33, and talks about our shut-off for non-payment procedure.

[67:18] We currently, we will shut off a customer, then go 30 days, pass a do, pass their due date of

[67:25] their bill without payment before we'll disconnect them.

[67:28] We're asking to reduce that to 10 days, pass the due date on their bill without payment.

[67:34] We would then go ahead and disconnect them.

[67:36] That's even a little first time.

[67:38] I'm sorry.

[67:39] That's even on the first time.

[67:41] Yes, they're first.

[67:42] Yes.

[67:43] This would be full payment, full payment, yes ma'am.

[67:48] Then, what we're selling in section 24, number 28, talks about our deposit requirements

[67:53] for customers and for standing.

[67:56] Currently, a poor standing customer with the city of Miami, we require three times the average

[68:00] utility bill of the property that they're looking to move into as their deposit.

[68:05] What we're requesting, we're proposing, is that we lower that from three times the average

[68:10] utility to two times the average utilities.

[68:12] We felt that that was fair, and that we're shortening the time frame, that the balances

[68:18] would be smaller, therefore we'd like to request a smaller deposit for those in more standing

[68:25] with the city.

[68:28] Number 1, number 25, we're requesting a revision to the language of our activation charges.

[68:34] We would now like to call them dispatch fees and also included in that language would allow

[68:40] the city manager to waive a dispatch fee upon recommendation from our office, and we have

[68:46] a process for that.

[68:48] In our agenda language, in our agenda language, we are asking for an effective start date of July

[68:54] first, 2017.

[69:00] to put out as much public education as we possibly could, allowing us to get the public education

[69:06] out in our billing statements for at least two months and allow our customers to have

[69:10] enough time to prepare.

[69:11] So, I'm a little confused on the different in 56 days and we'll cut you off on day 11.

[69:24] How do we get to that, Matt?

[69:26] How do we get to that?

[69:28] 50, 60s, when a customer comes into set their service, they don't get a bill right then.

[69:34] They will use it depending on how they fit into our billing cycle.

[69:37] So they'll start service, they'll use some service depending on how they fall into that

[69:42] cycle, then they'll get their bill, and they have two weeks to pay that bill.

[69:48] And if they don't, then that's where you're looking at the 50, 60s.

[69:52] And again, that table, that rate total, that talks about the 50, 60s, they're splattered

[69:56] in there.

[69:57] On the day that just happens to be the day after the billing cycle started for the billing

[70:03] was done for the way they live, there's 29 days and then 14 days and then 10 days, and that's

[70:10] about how you get to the 50s.

[70:12] Yes.

[70:13] And if I remember right, that 1.7 million is kept on our books as bad dead expense.

[70:21] You can't write it all correct, because they're potentially forever.

[70:26] So what are we doing to actively try to recover these bad deaths?

[70:30] Do we have anything in place?

[70:33] Well, the 8,000 or 11,000 of that bad dead is unrecoverable, it's already passed the time frame

[70:40] to be able to pursue it.

[70:41] Two limitations.

[70:42] Yes.

[70:43] I mean, we have collection process and small claims that we're looking to pursue those deaths

[70:51] that we can pursue.

[70:52] And we have a collection agency that we work with American Municipal Service as well.

[70:57] As well.

[70:58] We also at one point in time talk about, by shortening this, it doesn't give people the opportunity

[71:02] to let that bill get so high.

[71:04] Correct.

[71:05] Yes.

[71:06] Yes.

[71:07] That is a fact.

[71:08] Yes.

[71:10] Okay.

[71:11] What are the things?

[71:12] Yeah.

[71:13] And we have not been filing collection efforts in court, actually, since I was in a court,

[71:25] in an effort to try to get all this work out.

[71:28] But certainly, we intend to start doing that as to this, we get everything resolved as to our

[71:38] procedure here.

[71:41] And one of the things I'd like to add to one of the reasons, the other discussion with

[71:46] the court, and putting in a smart grid system, is that with technology out there, we can potentially

[71:54] go to a system in which some locations where you have bad debt, they pay in advance.

[72:00] electricity instead of intererears. So we can be in a situation where we can collect our

[72:05] money very quickly and in some cases not even allow people to always money. They have to

[72:10] pay an advance in order to get the service. So that's one of the reasons for changing the

[72:14] technology as well. That's further down the road. We need to have this ordinance right now

[72:19] as more of a stock gap. But down the lines we really have to do some things. If we had that

[72:25] one point seven million right now, we wouldn't be worried about a budget too much. Any other

[72:33] questions? So being you've looked at all this and it sounds like what part of what you're saying

[72:39] is that you've made sure that if we end up in court, everything that we need to have done

[72:48] from a legal standpoint is in place. Yes, that's part of it. Another part of why we have not

[72:56] filed is, in my opinion, I believe Mr. Anderson also shared this in the same opinion. There were

[73:05] maybe some incorrect interpretations of the law made by the judge. But we want to do everything

[73:14] we can to minimize the possibility of that same incorrect interpretation being made in the

[73:22] end. And so these language changes will help with that. Yes. Okay. I would encourage you about it too.

[73:33] It would help to such a worse amendment to do automatic draft. You have a lot of people still not doing

[73:39] that. I would encourage you. Neil, for many people, if they would do automatic draft, I agree

[73:46] with that. Unfortunately, when we start getting into the system with bad debts, there are people that

[73:52] intentionally do not want automatic draft. And that's the difficult thing. I don't want to get into

[73:58] the average bill in health too. Yes, sure does. Okay. So Heather's asking for approval of the

[74:10] changes in the ordinance 2017 06, the various sections in chapter 24. Do we have a motion to

[74:22] approve the changes recommended in agenda out of 15. Oh, my motion there. And a second.

[74:29] A second. Will. Call, please. Susan. Lewis. Hi, western. Hi.

[74:33] Worker and Schulz. Hi. Okay. Thank you. Heather. Item 16 orders 2017 to show yourself in public

[74:43] drunkenness. That's all we have for you. And now there are a bunches that can probably be

[74:48] seen in morality, etc. This is a public intoxication. Anybody who checks Microsoft Mondays knows

[74:58] one of those statutes that we use a lot.

[75:00] And this is a attempt to clarify that a little bit in our ordinance, basically the last sentence,

[75:09] said that creating the disturbance, in the interest creating the disturbance can be a rough public

[75:14] hot station.

[75:15] It did not specify in a public place and it gave kind of a great interpretation.

[75:21] So in an effort to protect the city and our staff, we want to just better define that and

[75:27] it's something we approach ban and I keep read on and it's to reward that to put some more

[75:33] clarity into the statute to protect our staff.

[75:37] Okay.

[75:38] We certainly want to do that and ban you reviewed this also.

[75:42] I have worked with the Chief Anderson in making these changes and it's something that

[75:48] quite frankly, I think it's a better problem for many years in the city of Miami and

[75:55] I think there's to clarify things for benefit of our country and it helps us to

[76:03] have the process for the court.

[76:06] Terrific.

[76:07] Do we have most of you?

[76:09] I will make that motion.

[76:10] A second.

[76:11] We'll call a place.

[76:12] Lewis.

[76:13] Hi.

[76:14] Rest in Johnson.

[76:15] Hi.

[76:16] Hi.

[76:17] Thanks, Chief.

[76:19] I'm 17.

[76:20] We're in application for a concrete hard stand without anyone there or in our commission.

[76:24] Chief.

[76:25] I'm going to come back.

[76:26] I'm going to come in.

[76:27] We're ready.

[76:29] You want to merge your calls on that, didn't you?

[76:32] I did not have our permission.

[76:33] I'm not going to.

[76:34] Okay.

[76:35] There's no emergency.

[76:36] Okay.

[76:37] Sorry.

[76:38] I know I'm going to miss some of you.

[76:39] I have enough.

[76:40] I have to.

[76:41] I have to.

[76:42] I have to.

[76:43] I have to.

[76:44] I have to.

[76:45] We approve the Bitterworld last week and we just didn't formalize the ground, gas, for the

[76:54] OAC to get that in to pay for our concrete hard stand.

[76:57] So what is a concrete hard stand?

[76:58] It is a jet parking spot.

[77:00] It's going to be a reinforced area.

[77:03] It's running front of the parking lot area of the airport, where business manager and corporate

[77:09] jets come in.

[77:10] We'll have specialized type-outs for them.

[77:12] And a better area, because the way to the aircraft.

[77:15] Just a facility to better, and then take better care of the planks that get right up to the parking lot.

[77:21] If our cars pick them up and that'd be able to serve some better.

[77:25] I do say for the benefit in by watching if you haven't been out of the airport lately, it's really looks nice.

[77:31] It's not. I went out a few months ago when they had the house and it really looks nice.

[77:35] But we started to take care of that cam.

[77:37] I know.

[77:39] And Tyler, when they did that, I put the mural on just to clean it up a lot and it's done an amazing job with it.

[77:45] Okay, so you just need approval?

[77:49] Yes, we don't have to sign the actual grant application.

[77:53] The OEC is approved.

[77:55] We just have to sign the formal grant application.

[77:57] So I'll make a most of your approval.

[78:00] application with the OEC.

[78:02] That's right.

[78:03] Go call please.

[78:04] Aye.

[78:05] Johnson.

[78:06] Aye.

[78:07] Lewis.

[78:08] Aye.

[78:09] OK.

[78:10] Automate team is new business.

[78:12] Dean, do you have any new business?

[78:14] You want else?

[78:15] Mr. Mayor, five minutes.

[78:17] Mr. Chairman.

[78:18] You may.

[78:19] Please.

[78:20] Dean brought it.

[78:21] I think there are some issues with regards to the approval that you gave up

[78:27] even the last meeting for the City Engineer to study all the approaches through the 125

[78:37] Bridge in the House that we could do the work have the work done for the

[78:45] BIP thing of the bridge and the approaches at the same time.

[78:50] I have to talk with Director Patterson today.

[78:56] And he informed me that with the way things are going with the state budget.

[79:05] I don't know who's responsible for that.

[79:08] Anyway, with.

[79:10] There is zero possibility that we will be able to accelerate the profit of fixing the approaches at the same time

[79:25] as the state budget.

[79:26] And so I just wanted to bring that to you all of your attention.

[79:32] Because I think that that many just that's the case is the next council meeting.

[79:37] We may want to undo the approval of that engineering study.

[79:43] Because it's not going to accomplish anything.

[79:48] It would appear at this point.

[79:50] I also just add.

[79:51] I want to thank you for that.

[79:53] I had talked about this afternoon to check with Director Patterson.

[79:57] That's exactly what I was concerned about.

[79:59] Sean with also was one of the first ones that told me that this was an issue that might be coming up.

[80:05] There was some discussion with the staff and also an Oklahoma City Director Patterson.

[80:10] And Ben just confirmed it.

[80:11] I do want to tell you at this point we have not spent one penny on that study.

[80:16] So I think it's very unfortunate.

[80:19] I think it's very short-sighted.

[80:21] But we have not wasted any money on this process at all.

[80:24] And frankly, that means we have another 47,000 to put into our roads.

[80:28] So Ben, you're recommending the re-end order as our next meeting.

[80:33] I would recommend that that the energy does to discuss the next week.

[80:38] And so I think what I would ask also to come prepared to tell us is if there's some way they can still

[80:53] be very well-cost.

[80:56] Give us a rough estimate.

[81:00] So the last thing in the conversation was, okay, I don't remember what it was, 48, 54 were approving this, but we certainly don't want to spend it all until we have some idea, you know, so if we're going to spend six or eight thousand dollars kind of finding out.

[81:18] There are other pools of money available and some of it being tribal money, there may be other things that we, other pockets we can go to, but without knowing any number at all we don't have any options for that.

[81:34] So you might just talk for Sean about that this week and say, we're almost being very much money, but is there somewhere we can get a ball of bar?

[81:42] I'd be very happy to do that. One of the other concerns and Ben, I don't know if you see Director Patterson if we're going to be looking at that.

[81:50] You might remember some of the other issues that they had were things like the permitting, the full full permits and all that.

[81:56] Now if they're willing to at least spend the time to get the permits with no commitment on the funding, we might be able to find that.

[82:04] But the impression I got and I don't know if Ben got any other oppression was, I mean, they're already declaring another revenue shortfall.

[82:14] And when I'm getting out of Oklahoma City and I'm sure Ben knows this better than I do is everybody's basically saying there's no money anywhere.

[82:22] So, but if we can, if you want to try to keep it alive a little bit, I'd be more than happy to do somewhere.

[82:28] Ben is it likely at all that the state would dedicate time to the permitting process if they didn't have funds to do the job?

[82:42] I mean, I know they do advance work on other projects that might be in a future calendar year.

[82:49] If there's no chance of that at all, then I don't know that we should pursue it at all. I'm just thinking out loud here.

[82:57] Well, I would be happy to discuss that with Dr. Patterson. Our conversation today was based on the premise that we thought that the Department of Transportation would be the ones that would be putting up the money for the approaches.

[83:21] So, I can I can direct that with if we see what could happen if we were able to come up with other sources of money for that aspect of it.

[83:32] Okay, this has a question that Ben, let Ben know if you don't mind.

[83:37] Okay.

[83:38] Okay.

[83:39] We'll do anything else under new business and announcements.

[83:47] Dean, city manager, please.

[83:50] I thought items I wanted to bring up here on a first off, I wanted to talk about mural fest.

[83:55] I think everybody's seen the notifications on that mirror. I think you've got to...

[84:00] call about this and I know we've been working with a nation with Marsha on this and your

[84:05] stubborn city manager has changed his mind. You might remember I don't know if any of

[84:10] you are aware but this meal fast I've seen this in other cities and it can be a really

[84:16] transformative. This is a neat project in which there are going to be five outside murals painted

[84:22] on the buildings that are right by the railroad tracks on central. What I call the old

[84:26] building, the old, the old co-op that had been and also there was a basically an office building

[84:35] kind of a tan office building in some of my first national bank. These murals are going to be

[84:40] very unique in that I think they're going to highlight my industry, the 266, the 266 mural

[84:48] fast. But there was a request at one point or a discussion at one point and I adamantly said

[84:53] let's not do that and that is doing the event which is April 29. I didn't want to close off

[84:59] central avenue. I was just concerned that it's an east west arterial that some people maybe

[85:05] upset that they have a detour and said let's just not close that off in fact some of our discussion

[85:11] was even people could drive by and see what's going on. But we started looking at the logistics of doing

[85:19] this. A lot more than just a mural fest. There's going to be food trucks, there's going to be a

[85:25] petting zoo, there's going to be a stage with five music, there's going to be children's art programs

[85:30] going on, there's going to be chalk art. This is going to be a community event and we're going to have

[85:35] a lot of youngsters there and frankly trying to mix that with one of our arterial streets can be very

[85:41] dangerous and this is something that's new and unique. It might be an inconvenience to some but I think

[85:48] in the long run this is going to be something very positive for my Emma. Now we want to put in a kind

[85:54] of a kind of a plug for a mural fest because I think it's going to be a very fun event. We've had a lot of

[85:59] fun working on it. I know Marsha has done just an incredible job on this but then secondly I didn't want

[86:04] you to be aware that I'm going to approve the closing of central on the 29th probably from about mid-morning

[86:11] until about seven in the evening. Now what's actually? We're going to be closing it from the truck

[86:17] route at D Street probably just beyond F Street so that's going to be the section that will be closed.

[86:24] We're probably going to close also a few segments right by those buildings on F because we're going to be

[86:30] inviting people to watch the mural list actually paint the murals so we want to make sure that it's very

[86:35] safe from that standpoint. Alicia is already working on detour signs so people will know where to be

[86:41] able to detour around that neighborhood and do that kind of communication in the fact that's why

[86:47] I'm bringing it up tonight so we can start letting people know that we will be closing off the street.

[86:53] I think this is going to be a very positive aspect and one of the reasons somebody says,

[87:00] it something like this in a less busy area where the whole point is to do it in an area

[87:04] that is busy so people will be able to see these murals and it's also going to be a very

[87:09] nice way to start linking the cities downtown to any because that's one of the aspects of our

[87:16] comprehensive plan which indicated we need to start having that linkage as well.

[87:20] It's going to be parking anywhere right now what we're hoping to do when we're working with

[87:28] Pelevan is to have parking at the Baptist Student Center and on any of campus and those

[87:33] parking areas and for those people that want to shuttle will have a Pelevan that will shuttle

[87:38] into the area and shuttle them back. It's really going to be neat. We hope so.

[87:45] If any I had absolutely nothing to do with this during my time in Fort Smith that happened

[87:51] after I was in Fort Smith but if you ever online sometime look up the unexpected event

[87:57] and this was a mural project in downtown Fort Smith and it was just absolutely remarkable

[88:02] and the pictures don't do it just as I've seen it personally and it's terrific as I said my

[88:07] finger prints on it all I wish I could take credit for it. You know with the artist you're going to be

[88:12] from Marsha do you want to come up and kind of give a high-wide on this because she's been

[88:18] glad that she's a daughter that's a gifted artist too and I think she'll want to actually

[88:23] there to be some opportunities for her to participate as part of this.

[88:35] For the artists kind of from up on the city and this is what they do and they're

[88:42] recently completed some murals for a project called Plaza Walls in Oklahoma City and it was kind of a

[88:50] derelict area that you know there were a lot of problems in that area and they went in and painted these murals

[88:57] and after that point they would bring in pop up restaurants you would see mothers pushing

[89:05] and baby buggy. They said that was one of the most exciting things is when I saw mothers and young

[89:09] children walking through that area where before people were afraid to go through but these four artists

[89:16] are part of the Oklahoma mural Syndicate. Now the fifth artist is our own Jessica Stout and she will be

[89:24] doing art along with some for any of the students and they're as I understand it there could be

[89:31] you know potential for community to participate in her wall as well. I don't know how a lot about her

[89:39] plans but that was what she had talked about. The walls have been primed now as of today as a matter of

[89:50] fact and that's all the artists said that they needed they said it didn't need to be washed ahead of time

[89:55] just to primate and they would paint. We're going to be helping with the life.

[90:00] for the food trucks. And of course we're going to be blocking off the streets and making

[90:05] sure it's as safe as can be. So the idea too is that this is not a one-off. If this

[90:11] is successful, we're helping you do it year after year. That's some of these murals that

[90:15] are being painted now. We might re-enemble, resurface them next year or go to other locations

[90:21] or other buildings.

[90:23] All right, thanks for your attention.

[90:26] So anyway, I am not that stubborn that I can't see that. It was a good idea, not mine.

[90:31] The third, I just wanted to bring that up. I think everybody's aware that I wanted

[90:35] to just announce that Glinda Longden is back on board on a part-time basis working on grants.

[90:41] And she's in the office on Tuesdays, Wednesdays, and Thursdays, and she's already shaking

[90:46] the bushes at all possible. So even projects like the one we were just talking about

[90:52] on the approaches. I'll be talking to Glinda about helping us with that. A number of other

[90:56] capital projects that we've had that we wanted to help us with. So it's nice to, I think often

[91:03] times we talked about having somebody focus on grant opportunities for us. And Linda's background

[91:08] and knowledge, she's just really the right person. So we have that done. And last and

[91:13] absolutely not least, I think I want to speak for all city staff members and everybody when I

[91:17] say Vicki, it's really good to have you back. Thank you. You'll mention that. Oh, sorry, I stopped.

[91:25] Neil asked me to also bring up that we're going to have the ribbon cutting of the Travel Information

[91:31] Center for Neil. I'm sorry I skipped over that. That's going to be on May 11th. That's another

[91:36] great activity. And also I think Neil and Amanda have already told Ann and Ron Gilbert that

[91:42] the gallery that you've already approved is going to be named after them. So I'm hoping that they

[91:47] will be able to be there for that ribbon cutting. All reports we got and we'll probably give you an update

[91:53] in the not too distant future. But everything out there seems to be running well. I think we're having

[91:57] to modify a few things here and there. For example, one thing that we've got to do is probably we'll

[92:04] probably have to put some janitorial service out there just to make sure that the restrooms are clean

[92:09] because there's a problem if you have all females out there having to clean the men's restrooms.

[92:13] You have to close down the restrooms. I'm also starting to have a lot of our partners that are already

[92:20] signing up that Amanda has been working on. So we have a lot of people that are approving their

[92:26] partnerships with us and giving us checks, which is hugely important. And we've already had a meeting

[92:32] with the InterTravel Council where it presented us. And they're starting to discuss working with us on

[92:36] some of the billboards that are on I-44 between the Missouri line and my Emma that we may be able to

[92:43] use some of those billboards to be able to identify this too and talking to them about increasing the

[92:49] product line and the gift shop, especially some Native American products, through readership of

[92:55] the whole way to it a few food products that are being developed by the chair.

[93:00] try it for example they're just incredible and I think people visiting Oklahoma when they see that

[93:04] that's available at their first stop in Oklahoma it gives it gives a good message both for the

[93:10] state and also I think will help operate this facility. So I'm feeling very positive. I mean

[93:16] can you help me with the time I don't think I think the cook ass starts by 1130 in the road

[93:21] cuttings at two and the plums are right now we're left or two after we're cutting we're going to

[93:28] the start along with Dr. Ron and Anne shortly after. So Neil has been helping in his position

[93:36] as chairman of the CVB a lot. I haven't been involved in some of these plans so I'm sorry I didn't have

[93:40] that detail. That's fine. It's been fun. It was fun. It is. And that's my report. Okay thanks Dean.

[93:48] And there are no questions I think we are ready for the last time on Neil would treat the

[93:54] emotions to the terms. I'll make that motion. I'll second that roll call.

[93:59] That's him. All right. Sure. All right. Lewis, I'm John. All right. Thank you.