Sep 29, 2020 Special Commissioners Court

[Opening prayer by Rabbi Jonathan Siger of Congregation Jewish Community North in Spring.]

[00:00:07]

COMMISSION -- COMMISSIONER'S COURT TO ORDER. COMMISSIONER CAGLE.

>> R. JACK CAGLE: YOUR HAHN -- HONOR, IT IS MY PRIVILEGE TODAY TO INTRODUCE FOR OUR

OPENING PRAYER RABBI JONATHON SIGER. >> LINA HIDALGO: COMMISSIONER, IT LOOKS LIKE YOUR AUDIO IS ACTING UP. COMMISSIONER CAGLE, CAN YOU

HEAR ME? >> R. JACK CAGLE: -- JEWISH UH SEN -- ASCENDANT.

LUCINDA, CAN YOU HEAR ME? >> WE CAN HEAR YOU NOW. HE MIGHT BE HAVING SOME

CONNECTIVE TEE ISSUES THERE. >> STEVE RADACK: THIS IS RADACK, CAN YOU HEAR ME?

HELL -- HELLO? >> R. JACK CAGLE: CAN YOU HEAR ME BETTER NOW? I JUST TURNED MY VIDEO OFF FOR A SECOND AND THAT MAY HAVE HELPED BOOST MY AUDIO.

IT IS MY PRIVILEGE TO INTRODUCE RABBI JONATHON SIGER AT CONGREGATION JEWISH COMMUNITY NORTH. JUDGE, HE SERVES OUR COMMUNITY IN SPRING, TEXAS.

I HAD THE PRIVILEGE OF BEING AT HIS SYNAGOGUE THIS LAST YEAR WHEN WE HAD A TRAGEDY IN THE OTHER PART OF THE COUNTRY. WE GATHERED TOGETHER FOR SOLIDARITY THERE. AND HE SINGS QUITE WELL. OUR RABBI WAS RAISED IN BOSTON AND MOVED TO NEW YORK CITY AND GRADUATED FROM BRANDEIS. HE ALSO GRADUATED FROM THE CONSERVATORY OF I'M PRO VAGUESAL THEATER IN CHICAGO. HE SERVES AS THE LEAD CHAPLAIN FOR HARRIS COUNTY DISTRICT 1 OFFICE. AND SO HE IS MARRIED TO JENNIFER AND IS THE FATHER OF TWO. RABBI, IF YOU CAN HEAR ME, WHEN YOU ARE DONE LEADING US IN OUR OPENING INVOCATION WE ARE GOING TO DO A PROCLAMATION AND I HEAR THE JUDGE WILL ALLOW US TO TAKE THAT OUT OF ORDER AND YOU CAN RECEIVE THAT

PROCLAMATION. >> THAT'S WONDERFUL. THANK YOU FOR THE INVITATION.

IT IS INDEED A PRIVILEGE AND AN HONOR TO BE HERE WITH YOU THIS MORNING.

I NOT WASTE ANYMORE TIME ON THE POLICE CENTURIES AND WE WILL GET -- PLEASES CENTURIES. I PRAY FOR THE STATE OF MY COUNTY LEADERSHIP.

MAY GOD HEAR MY PRAYER. ETERNAL ONE, SOURCE OF POWER AND SPIRIT IN THIS UNIVERSE BE WITH US THIS DAY. BLESS THIS COURT AND ITS COURT WITH GRACE, WISDOM, INSIGHT AND COMPASSION. BLESS ALL OF US IN COMMUNAL LEADERSHIP WITH THE STRENGTH WE NEED TO BE PERSONAL EXAMPLES OF DIGNITY AND INTEGRITY AND REASONABLENESS.

GIVE US THE COURAGE TO COMPROMISE AND THE TRUST IN EACH OTHER TO RESPECT EACH OTHER'S DEEPLY HEALTH -- DEEPLY HELD VALUES AND IDEALS.

GRANT US THE WISDOM TO NEVER READ THE COMMENTS ON SOCIAL MEDIA AND WATCH OVER OUR EGOS AND WATCH OVER OUR FIRST RESPONDERS AND ALL OF THOSE WHO SHIELD US FROM VIOLENCE AND DANGER. IN THIS TIME OF A NEW PLAY AND THE OLD PLAY OF ANGER AND RESENTMENT AND CYNICISM, MAY OUR COUNTY DEMONSTRATE RESILIENCY AND EMBRACE DIVERSITY AND ENJOY THE BLESSINGS OF THE ONES WHOM OUR FATHERS AND MOTHERS CALLED OUR FATHER, OUR KING. BLESS THESE SERVANT LEADERS OF YOUR CHILDREN.

BLESS US ALL, HEAL US ALL AND HELP US HEAL OTHERS. WE ASK THIS FOR THE SAKE OF

YOUR HOLY NAME. >> R. JACK CAGLE: AMEN. JUDGE, WOULD YOU LIKE FOR ME

[I. Departments]

TO GO FORWARD WITH THE PROCLAMATION AT THIS TIME? >> LINA HIDALGO: THANK YOU,

COMMISSIONER, CAGLE. OF COURSE. >> R. JACK CAGLE: ALL RIGHT.

IT IS OUR PRIVILEGE TO RECOGNIZE TODAY THE CELEBRATION OF THE HIGH HOLY DAYS. OUR PROCLAMATION READS AS FOLLOWS.

WHEREAS WITH CELEBRATION, ROSH HASHANAH, ONE OF THE HOLLIEST FESTIVALS -- HO LIE -- HOLIEST FESTIVALS FOR THE JEWISH PEOPLE. WHILE YOM KIPPER THE DAY OF ATONEMENT WHERE THE JEWISH PEOPLE SEEK FORGIVENESS FROM GOD FOR THE SINS OF THE PAST

[00:05:01]

JEWISH BROTHERS AND SISTERS AT THIS TIME. >> IT IS WITH PROFOUND GRATITUDE AND APPRECIATION FOR OUR COUNTY AND FOR THE LEADERSHIP OF OUR COUNTY THAT I AM HUMBLED TO ACCEPT THIS RESOLUTION AND EXPRESS GRATITUDE ON BEHALF OF MYSELF AND ON BEHALF OF MY CONGREGATION. IF I MAY BE SO BOLD, THE GREATER JEWISH COMMUNITY WITHIN HOUSTON. YOU ARE ALL TESTING MY ABILITY TO IMPROVISE, ALTHOUGH IT HAS BEEN AWHILE SINCE I DID THAT PROFESSIONALLY.

ON THE OTHER HAND, CONSIDERING THE HIGH HOLIDAY SEASON WE JUST WENT THROUGH WHICH IS MOSTLY REMOTE WE DID A LOT OF IMPROVE VAW SWRAITION -- I'M PRO -- I'M PRO VAW SWRAITION.

I ACCEPT THIS RESOLUTION AND I CAN SPEAK FOR MYSELF AND MY FAMILY AND THE FAMILY OF FAMILIES THAT I LEAD AS A RABBI THAT THE SUPPORT OF OUR LEADERS AND FELLOW CITIZENS HAS MEANT A GREAT DEAL IN THESE DIFFICULT TIMES. GOD BLESS YOU ALL.

THANK YOU FOR THIS. >> R. JACK CAGLE: RABBI, ANOTHER QUICK QUESTION FOR YOU. HAVE YOU DONE "SAILING AWAY" OR ANY OTHER SIMILAR 80S

SONGS IN YOUR VIRTUAL SERVICES? >> I DO AN AWFUL LOT OF TOM PETTY AND SOME BUD CRUTCH. I DO DO SOUTHERN CROSS WHICH YOU HAVE HEARD.

THAT'S IN THE REPERTOIRE. I TRY TO DO SOME OUT OF THE BOX STUFF.

WE ARE NORTH SO WE HAVE TO BE CAREFUL HOW DARING I GET. >> R. JACK CAGLE: THANK YOU,

RABBI. >> ADRIAN GARCIA: SHALOM, RABBI.

>> JUDGE AND COMMISSIONER, WE DO HAVE A SPEAKER ON THE LINE IN REGARDS TO THIS

RESOLUTION. >> LINA HIDALGO: GO AHEAD, LUCINDA.

THANK YOU. >> CARRIE DUNN SARATOFSKI WITH THE GREATER JEWISH FEDERATION

OF HOUSTON. GO AHEAD, PLEASE. >> GOOD MORNING.

THANK YOU SO MUCH AND THE RABBI DID A WONDERFUL JOB IMPROVISING SO I THOUGHT I WAS OFF THE HOOK. JUDGE HIDALGO AND COMMISSIONERS, THANK YOU FOR THE HONOR OF BEING WITH YOU BRIEFLY THIS MORNING. I APPRECIATE COMMISSIONER CAGLE'S INVITATION TO ADDRESS YOU. I SAY THAT ON BEHALF OF MORE THAN 55,000 JEWS WHO LIVE ACROSS HARRIS COUNTY IN THE GREATER HOUSTON METRO AREA WE APPRECIATE TODAY'S PROCLAMATION AND RECOGNITION OF THE HIGH HOLY DAYS.

WHILE THE HOLIDAYS ARE DEFINITELY A TIME OF DEEP PERSONAL RE -- REFLECTION AND RENEWAL THEY ARE A TIME FOR FAMILY AND CONNECTION AND OF COURSE GOOD FOOD WE MAY HAVE STOOD PHYSICALLY APART BUT WE STOOD AS A COMMUNITY TO PLEDGE TO DO BETTER IN THE COMING YEAR. IF I CAN ZOOM OR YOUTUBE AND IT IS A CALL TO ACTION LIFE IS AND AS WE SAY AT THE BEGINNING OF THE JEWISH NEW YEAR, ENJOY AND THANK YOU SO MUCH.

>> THANK YOU SO MUCH. >> I HAVE A COUPLE THAT I CAN BLOW.

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>> WE STARTED EARLY AS YOU KNOW BECAUSE WE HAVE A REVIEW AND A DISCUSSION ABOUT THE COUNTY'S FINANCIAL DECISION AND ABOUT THE TAX RATE. WE HAVE THE MATERIALS.

[1. Tax Rates]

>> LET'S DISCUSS THE TAX RATE DISCUSSION AND I HAVE A REQUEST FOR COMMISSIONER GARCIA TO WALK THROUGH THE REVENUE OUTLOOK PORTION OF THE DISCUSSION.

COMMISSIONER GARCIA, DID YOU WANT TO SAY SOMETHING? >> ADRIAN GARCIA: JUDGE, WITH YOUR PERMISSION AND THERE WAS A MULTI-YEAR PROJECTION BY THE STATE OF OUR FINANCES.

WE NEED TO PLAN HOW WE DO BUSINESS IN THE COUNTY AND HOW WE SHOULD CHECK ON THE VARIOUS ISSUES WORK. THEY ARE MAKING ONE OF THE PRIORITIES.

I THINK THIS IS SO CRITICAL. ACTUALLY I THINK MAYBE TO LEAD WITH THAT CONVERSATION.

BEFORE WE GET TO THE OTHER MATTERS. >> LINA HIDALGO: I THINK WE CAN GET THAT OVERVIEW BEFORE WE GET TO DISCUSSING SO WE HAVE THE CONTEXT.

>> I BELIEVE LUCINDA HAS SHARED HER SCREEN SO CAN FOLKS ON THE WEBEX SEE THAT?

>> YES, I CAN SEE IT. AND ALSO IF ANYONE IS DIALING IN REFER TO THE PAGE NUMBERS AND THIS DOCUMENT IS AVAILABLE ON THE WEB AS A BACK UP TO THE FINANCIAL CONDITION.

WE WILL FOLLOW ALONG EVEN IF IT IS NOT ON THE WEEX. THIS IS -- WEBEX.

THIS IS SLIDE 11. COMMISSIONER GARCIA MENTIONED ONE OF THE THINGS THEY WANT TO DO AS BUDGET DIRECTOR IS TO START LOOKING AT THINGS ON A MULTI-YEAR BASIS.

AND WE ARE NOW IN A SITUATION THAT WE ARE MANAGING THROUGH CYCLES AND ALSO WORKING ON PROJECTS AND PROGRAMS THAT ARE SINGLE YEAR IN NATURE. WE HAVE PURVEYED THIS FIRST YEAR IN A MULTI REVENUE FORECAST. AND I'LL SPEND A MINUTE ON OUR GENERAL APPROACH AND ASSUMPTION AND THEN GET TO THE RESULTS.

IN GENERAL WE AGREE WITH BOTH THE CONGRESSIONAL BUDGET OFFICE AND MOST MAINSTREAM ECONOMISTS THAT WE ARE IN A RECESSION. WE ARE LIKELY IN A U-SHAPED RECESSION. THAT MEANS THE ECONOMY DOESN'T BOUNCE BACK LIKE A V AFTER IT TOOK THE INITIAL THUMP FROM COVID. IT WILL TAKE AWHILE TO GET BACK TO FULL CAPACITY. AND THAT RECOVERY IS SHAPED LIKE A U.

AND IT IS THE GENERAL FUND REVENUE THAT IS A HIGHER PERCENTAGE FOR FLOOD CONTROL.

AND IN THE FUTURE WE WILL BUILD OUT OUR CAPABILITIES ON THE OTHER REVENUE SOURCES AND THIS IS THE BIG ONE. THE KEY DRIVER OF PROPERTY TAXES IS PROPERTY VALUES.

AND IT IS IMPORTANT TO KNOW THAT PROPERTY VALUES ARE A LAGGING INDICATOR OF THE OVERALL ECONOMY. WE HAVEN'T SEEN THAT. AND THAT'S SOMETHING THAT IS

[00:15:21]

IT IS NOT ALL TOGETHER NEW, BUT IT IS NEW OVER THE LAST DECADE.

AND BECAUSE THERE IS UNCERTAINTY WE HAVE PREPARED THREE SCENARIOS FOR THE PROPERTY FORECAST. AND THAT'S AS YOU WEIGH YOUR OPTIONS ON TAXES.

WE PREPARED THREE DIFFERENT AND WE WILL HAVE THE OPTION IN THE TAX BASE IN 2021 AND 2022.

WE WILL EXPECT TO SEE A RECOVERY IN 2023 IN 2025. WE ARE LIKELY TO SEE THE BIGGEST DECREASED -- DECREASES. IT WAS DRIVEN BI-LO INTEREST RATES AND LOW MORTGAGE RATES AND MOST OF THE REVENUE COMING TO HARRIS COUNTY.

WE LOOKED AT THE NO NEW REVENUE RATE AND THE VOTER APPROVAL RATE.

AND IT IS WITHOUT GOING TO AN ELECTION. IT IS WHAT I CALL THE REVERSION RATE OR THE DEFAULT RATE WHICH IS THERE IS NO NEGOTIATION OR COMPROMISE FOR VOTE AND REQUIRED FORM ON THE TAX RATE. AND THAT'S THE LOWER OF THE NO NEW REVENUE RATE FOR THE PRIOR YEAR RATE. THREE SCENARIOS MOST LIKELY IN WORST CASE. NO NEW REVENUE RATE AND VOTER APPROVAL RATE AND THE REVERSION RATE AND THERE ARE A NUN -- A NUMBER OF OTHER ASSUMPTIONS HERE IN THE DOCUMENT AND I WON'T GO THROUGH THESE AT THIS MOMENT IN TIME, BUT HAPPY TO TAKE QUESTIONS. WRY -- WE CAN MOVE ON TO SLIDE 12.

WE ARE FOCUSED ON THE GENERAL FUND HERE AND THE OUTLOOK WOULD BE SIMILAR FOR FLOOD CONTROL. PROPERTY TAXES ARE ON 25% AND THERE ARE MORE REVENUE FACTORS. WHAT WE SEE HERE IS THAT WE DO HAVE CONTROL.

THE COMMISSIONER'S COURT HAS CONTROL OVER THE REVENUE WE RAISE.

THERE IS VERY LITTLE VARIATION ACROSS THE ECONOMIC SCENARIO IN THE VOTER APPROVAL RATE WHICH IS THE GRAY LINE AT THE TOP OF THIS GRAPH. AND THE SAME IS TRUE OF THE NO NEW REVENUE RATE. THERE IS NO VARIATION ACROSS THE ECONOMIC SCENARIO.

AND THEN THEY CALCULATE BASED ON LAST YEAR'S REVENUE. IT IS NOT DRIVEN BY THE VALUE. IT IS DRIVEN BY THE AMOUNT OF REVENUE.

WE ONLY SHOWED THOSE FOR THE MID-ECONOMIC CASE BECAUSE THE DIFFERENCE ACROSS THE ECONOMIC CASES IS TRIVIAL AND WE DIDN'T WANT TO CLUTTER UP THE GRAPH. IF WE DON'T NEGOTIATE AND AGREE ON A DIFFERENT RATE THEN WE REVERT TO THE LOWER OF THE CURRENT YEAR'S NO NEW REVENUE RATE OR THE PRIOR YEAR'S TAX RATE. AND THOSE ARE THE THREE LINES ACROSS THE BOTTOM OF THIS GRAPH. WHAT WE'LL SEE IS THAT IF WE

[00:20:05]

WE DO SEE SOME DECREASE. MY MESSAGE IS THAT WE NEED TO CONTINUE TO WATCH THIS AND MANAGE OUR SPENDING IN LINE WITH THISY VEN FEW -- WITH THIS EVENTUALITY.

AT THE SAME TIME WE HAVE TOOLS TO MANAGE THROUGH IT. AND WE WILL TALK ABOUT THIS MORE IN THE REST OF THE MID-YEAR REVIEW PRESENTATION. THE COUNTY IS STARTING FROM A STRONG FINANCIAL SPOT THAT WILL POSITION US WELL TO WEATHER A SCENARIO LIKE THE ONE WE MAY BE HEADED INTO. I'LL STOP THERE AND I AM HAPPY TO TAKE QUESTIONS AND THEN WE CAN TURN BACK TO THE TAX RATE DISCUSSION WHEN FOLKS ARE READY.

>> LINA HIDALGO: THANK YOU, DAVE. GO AHEAD.

DO FOLKS HAVE QUESTIONS? >> ADRIAN GARCIA: JUDGE? >> LINA HIDALGO: YES,

COMMISSIONER GARCIA. >> ADRIAN GARCIA: THANK YOU. MR. BERRY, YOU TOUCHED ON THE NEW STATE CAP BRIEFLY. ARE THERE ANY OTHER DETAILS THAT WE NEED TO KEEP IN MIND AS WE UNDERSTAND WHAT THE COMING IMPLICATIONS OF THE REVENUE CAP COULD BE?

>> SURE. ONE OTHER FACTOR THAT I MENTIONED HERE IS THERE IS A CONCEPT IN SENATE BILL 2 CALLED THE UNUSED INCREMENT RATE.

THE SENATE PUT IT THERE IF YOU CAN DIVIDE THEIR ATTEMPT WHICH WE ALL TRY TO DO SO THAT COMMISSIONER'S COURT CAN ELECT IN SOME YEARS NOT TO RAISE RATES, BUT NOT LOSE FLEXIBILITY IN FUTURE YEARS. IF YOU DON'T INCREASE RATES IN A PARTICULAR YEAR, YOU CAN EFFECTIVELY BANK THAT FLEXIBILITY FORWARD AND RAISE RATES BY THAT PERCENTAGE WITHOUT GOING TO AN ELECTION. SO YOU DEFINITELY DO HAVE CONSTRAINTS, BUT THE CONSTRAINTS ARE FLEXIBLE OVER A THREE-YEAR PERIOD. I THINK THAT IS TO -- THAT'S WORTH KEEPING IN MIND AS YOU SET RATES THIS YEAR THAT EVEN IF YOU DON'T INCREASE RATES, YOU WOULD HAVE SOME FLEXIBILITY IN THE FUTURE YEARS IF YOU DETERMINE IT IS

IN THE BEST INTEREST OF THE COUNTY TO DO SO. >> ADRIAN GARCIA: THANK YOU.

>> LINA HIDALGO: THANK YOU, DAVE. GO AHEAD, COMMISSIONER.

>> STEVE RADACK: MR. BERRY, IT IS RADACK. AN ABALORUM TAX, IS THAT WORTH

ABOUT 50 MILLION FOR EACH CENT? >> THAT'S PRETTY CLOSE.

SO LET'S THROW INTO THE CONVERSATION THIS TOLL ROAD BEING ABOUT 300 MILLION WHICH IS A CORPORATION. WOULD IT BE 300 MILLION TOTAL FOR THE FIRST YEAR, OR WOULD

IT BE 300 MILLION PLUS 90 MILLION? >> THE PROPOSAL THERE, COMMISSIONER RADACK, WOULD BE 300 MILLION IN CLOSING WHICH WOULD BE LATER THIS YEAR AND

THEN THE 90 MILLION WOULD START THE NEXT FISCAL YEAR. >> STEVE RADACK: SO IT WOULD

[00:25:01]

>> I WOULD SAY -- I AGREE WITH YOUR MATH. THE ONE DISTINCTION IS I THINK OF PROPERTY TAXES AS RECUR -- RECURRING REVENUES AND EVERY TIME WE SET A RATE WE ARE CARRYING THAT INTO THE FUTURE VERSUS THE 300 MILLION IN THE ONE-TIME PAYMENT.

I AGREE WITH YOUR MATH THAT IT IS EQUIVALENT ONE-TIME REVENUE DEPENDING ON HOW YOU WANT TO LOOK AT IT. THEREFORE WHAT WE SEE IS WE ARE BASICALLY -- CORRECT ME IF I AM WRONG, BUT IN ACTUALITY I ASKED YOU LAST WEEK TO COME UP WITH THE 300 MILLION YOU ARE GOING TO BE ISSUING BONDS FOR THAT 300 MILLION, ARE YOU NOT?

>> WE ARE ISSUING BONDS AS PART OF THE TRANSACTION. WE WILL BE PAYING THE FRANCHISE FEE OUT OF THE SURPLUS REVENUE AND NOT NEW MONEY BOND PROCEEDS.

BUT THEY ARE ALL PART OF ONE TRANSACTION. >> WHEN WE WERE DISCUSSING THIS, WE WERE DISCUSSING THE DEBT OF THE TOLL ROAD AND THAT WAS APPROXIMATELY -- EXCUSE ME 2 BILLION. AND THEN IT IT WAS 400 MILLION TO COMMERCIAL PAPER BRINGING IT TO 2.4 BILLION. SO MY QUESTION IS THIS. I ASKED YOU WHEN ALL OF THE DUST SETTLES AND YOU CONVERT -- IF THAT'S THE RIGHT TERM, THE REFUND THE COMMERCIAL PAPER AND SO WE HAVE A 2.4 BILLION TOLL ROAD DEBT, AND THEN I SAID OKAY WHEN ALL OF THE DUST SETTLES HOW MANY DOLLARS IN BONDS WILL WE HAVE AND IT IS A MINIMUM OF 2.8 BILLION AND MAYBE UP TO THREE BILLION. IS THERE SOMETHING WRONG WITH

MY MATH? >> AND YOU CAN STAY WHERE THE MONEY IS COMING FROM AND YOU ARE -- RIGHT NOW WE HAVE 2.4 AND THEY END UP WITH A DEBT OF ABOUT THREE BILLION IN THE TOLL ROAD. I AGREE WITH THAT, BUT I WOULD MAKE CALF VEE -- CAVEAT THERE. MOST IS REVENUE BOND DEBT SO IT IS ONLY SECURED BY REVENUES OF THE TOLL ROAD. THERE ARE TOTALS THAT ARE TAX SECURED.

THE VOTERS ARE 83. AND WHAT THEY ACTUALLY DID -- YOU ACTUALLY ABOUT 800 -- CORRECT ME IF I'M WRONG 800 MILLION OF THE TOLL ROAD DEBT IS BACKED, CORRECT?

>> THAT'S CORRECT. >> STEVE RADACK: IT IS LIKE THE PORT.

I SAID THE PORT CAN ISSUE REVENUE BONDS AND THERE IS NO REASON FOR THE COUNTY TO GET BOND MONEY AND PAY THE DEBT OF THE PORT BECAUSE THEY HAVE ENOUGH OF THEIR OWN MONEY.

BUT WHAT IS GOING TO HAPPEN IS THE TOLL ROAD IS GOING TO BE ON THE HOOK FOR THE 300 MILLION THAT YOU WANT TO TRANSFER TO THE GENERAL FUND AND THE 90 BILLION A YEAR PLUS , WHAT, TWO AND A HALF PERCENT GOING UP TWO AND A HALF PERCENT IN THE YEARS AFTER THAT. MY POINT HERE IS THIS. WE ARE BORROWING FROM THE TOLL

[00:30:01]

ROAD, ARE WE NOT? >> I THINK IT IS FAIR THAT WE ARE INCREASING THE DEBT LEVEL

ALT -- A LITTLE BIT ON THE TOLL ROAD. >> WITHOUT ANY VOTER APPROVAL THIS IS JUST -- THIS IS THE SHIFT. THIS IS JUST THE SHIFT OF COMING UP USING THIS CORPORATION AS A MEANS FRANKLY TO CIRCUMVENT VOTER APPROVAL.

AND ACTUALLY THE VOTERS REALLY HAVE NO SAY EXCEPT WHO THEY ELECT ON COMMISSIONER'S COURT.

DO YOU AGREE? >> I DON'T LOOK AT IT THAT WAY.

WE HAVE PREPARED OUR TAX RATE FORECAST AND OUR RECOMMENDATION WITHOUT BANKING ON THAT TOLL ROAD MONEY. SO WE MIGHT LOOK AT IT DIFFERENTLY IN THE FUTURE YEARS. IT IS POSSIBLE COMMISSIONER'S COURT COULD SAY A NEW SOURCE OF REVENUE CAN HAVE FLEXIBILITY ON TAX RATES. THAT'S NOT THE WAY AT LEAST

THE BUDGET OFFICE IS TACKLING TAX RATES TODAY. >> THANK YOU.

I WOULD URGE YOU THIS. I WOULD URGE, I AM GLAD YOU SAID WHAT YOU JUST SAID.

I DON'T BELIEVE THAT YOU'RE GONNA GET THE 300 MILLION. I THINK IT IS WISE TO NOT PAY IT FORWARD. THANK YOU FOR YOUR COMMENTS. WE DO HAVE SPEAKERS.

I DON'T KNOW IF YOU WANT TO TAKE THAT UP NOW OR WAIT UNTIL AFTER THE TAX RATE.

THAT'S WHAT WAS INDICATED. >> LINA HIDALGO: WHY DON'T WE HEAR -- DAVE, IF YOU CAN PRESENT THE BASICS AND THEN WE WILL HAVE -- [INAUDIBLE]. WE BARELY COVERED THE

BEGINNING OF THE FINANCIALS. >> SURE, JUDGE. I'LL WALK YOU THROUGH WHERE WE ARE IN THE PROCESS AND THE BUDGET OFFICE'S RECOMMENDATION.

I WILL BE BRIEF SO HAPPY TO TAKE QUESTIONS. WE ARE LOOKING FOR COMMISSIONER'S COURT TO SET TAX RATES THAT WOULD SET IN MOTION TO FINALIZE THEM.

IT WOULD BE MORE OR LESS NOTICE EXPDZ MEETING -- NOTICES AND MEETINGS.

WHEN WE LAST DISCUSSED THE TAX RATE IN AUGUST WE WERE WORKING OFF IF YOU RECALL A PRELIMINARY TAXABLE VALUE THAT THE APPRAISAL DISTRICTS HAVE PROVIDED US.

WE NOW HAVE THE FINAL CERTIFIED APPRAISAL. IT CAME IN WITH 1% SO THEY DID A GOOD JOB ON THE ESTIMATE. WE PRESENTED OUR RECOMMENDATION IN A TAX RATE DOCUMENT THAT WAS TRANSMITTED TO COMMISSIONER'S COURT. OH, WOW.

LUCINDA, NICE JOB. WE ARE SCREEN SHARING AGAIN. IF YOU WANT TO FLIP TO SLIDE TWO THERE THIS SUMMARIZES OUR RECOMMENDATION. OVERALL THE RECOMMENDATION WOULD RESULT IN A TAX RATE DECREASE COMPARED TO LAST YEAR.

IT IS 1.3 TO 2 CENTS. IT KEEPS REVENUE RELATIVELY CONSTANT AND THERE IS ANY ADDITIONAL REVENUE FOR OUR APPROVED BUDGET. WITH RESPECT TO FLOOD CONTROL WE RECOMMEND THAT GOING OUT TO 103.5% OF WHAT IS CALLED THE NO NEW REVENUE MAINTENANCE AND OPERATIONS RATE. THAT'S A CONSTRUCT WITHIN SP2.

AND IT IS IN CONNECTION WITH THE 2.5 BILLION ISSUE. WE ARE SET TOMORROW, ACTUALLY, TO CLOSE ON THE FIRST 300 MILLION DOLLARS AND THE DEBT SERVICE FOR THAT WILL BEGIN SHOWING UP. WE HAVEN'T MADE A SINGLE RECOMMENDATION, BUT SUGGESTED

[00:35:03]

OR WITH THE SPEAKERS. >> MR. BARRY -- MR. BERRY THIS IS JUDGE CAGLE.

THIS IS JACK JACK CAGLE. WOULD YOU TELL US WHAT THE CLOSING IS AND WHAT THE

FINANCIAL IMPACT OF THAT CLOSING IS? >> THAT'S THE 300 MILLION OF FLOOD CONTROL BONDS. COMMISSIONER'S COURT APPROVED THE ISSUE ON SENATE PRICE, BUT

WE WILL FUND THE BOND ISSUANCE WE HOPE TOMORROW. >> LINA HIDALGO: COMMISSIONER

GARCIA? >> ADRIAN GARCIA: HOW DO THEY VIEW THE PRACTICE OF UTILIZING ANY OTHER -- ANYTHING OTHER THAN THE PAYMENT OF DEBT SERVICE.

>> COMMISSIONER GARCIA, ARE YOU ASKING IN THE CONSTRUCT OF -- THE CONTEXT OF FLOOD

CONTROL? >> CORRECT. >> I WOULD SAY THAT IS CREDIT NEGATIVE. THERE ARE EXPECTATIONS AND THE FLOOD CONTROL BONDS IS THAT WE WOULD RAISE -- CONSISTENTLY RAISE THE TAXES TO PAY THE BONDS.

THAT'S PART OF THE REASON THEY ARE RATED TRIPLE-A. I THINK IT WOULD HAVE A

NEGATIVE REFLECTION. >> GOOD DEAL. AND IF THE COUNTY DOES SET A TAX RATE FOR THE FLOOD CONTROL DISTRICT THAT IS SUFFICIENT TO PAYING DEBT SERVICE AND MAINTENANCE AND OPERATION NEEDS IN RESERVES OR OTHER SOURCES, WHAT WOULD THE IMPACT

ON THE FLOOD CONTROL DISTRICT 'S RATING BE? >> IF YOU -- I'M SORRY.

IF YOU COMPARE THIS RATE TO THIS YEAR'S PROPOSE -- PROPOSED RATE WHICH INCLUDES THE CONCEPTS YOU MENTIONED AND PAYING THE DEBT SERVICE, THEN YOU WOULD BE LOOKING AT A ..5

IN-- A 3.5 INCREASE RELATIVE TO LAST YEAR'S RATE. >> AND IF THE CREDIT RATING WERE TO WORSEN IT WOULD MAKE IT MORE EXPENSIVE FOR THE FLOOD CONTROL DISTRICT TO

ENGAGE IN CAPITAL PROJECT AND MITIGATE FLOODING, CORRECT? >> AGREED.

>> AND MEANING ULTIMATELY WE WOULD BE ABLE TO DO LESS MITIGATION WITH A SINGLE

AMOUNT OF DOLLARS, IS THAT CORRECT? >> AGREED.

IN TERMS OF -- DO THE CREDIT RATING AGENCIES REVIEW THAT THEY COULD HAVE ADDITIONAL

GROWTH IN THE RATE? >> YES. >> AND WHAT FACTORS ARE USED

TO REVIEW WHETHER A TAX BASE IS SUSTAINABLE? >> THEY LOOK AT THE SIZE OF THE BASE RELATIVE TO THE TAXES YOU NEED TO RAISE. THAT'S A LIMIT TO HOW MUCH TAXES COULD BE RAISED. THEY LOOK AT THE DIVERSITY OF IT.

IS IT WITH ANY PARTICULAR INDUSTRY OR SEGMENT. >> ADRIAN GARCIA: IF A JURISDICTION LIKE US IN RECENT YEARS SUCH AS FLOODING AND IT IS UNABLE TO HAVE THE SAME

[00:40:05]

UNSUSTAINABLE? >> YES. I THINK THAT'S RIGHT.

AND IN FACT I WOULD JUST ADD THAT THEY ARE DOING A SEPARATE DISASTER.

IF YOU PICK UP THE REPORT YOU WILL SEE THERE IS A DISCUSSION OF FLOODING RISK AND WHAT THE IMPACT COULD BE AND WHAT THE COUNTY IS DOING TO MITIGATE IT.

>> ADRIAN GARCIA: AND IF HARRIS COUNTY SUFFERS A CREDIT RATING AGENCY SETBACK, WILL THAT IMPACT THE COUNTY'S ABILITY TO ENGAGE IN CAPITAL PROJECTS IN THE FUTURE

INCLUDING ROAD AND BRIDGE AND PARKS? >> WE ARE STARTING FROM SUCH A STRONG SPOT THAT IF WE WERE DOWN GRADED WHICH I AM NOT SAYING IT IS GOING TO HAPPEN, WE WOULD STILL BE ABLE TO ISSUE DEBT, BUT OUR RATE WOULD BE A LITTLE HIGHER.

I THINK YOU SAID IT CORRECTLY EARLIER. FOR THE SAME DOLLARS WE COULD

DO LESS. >> ADRIAN GARCIA: GOTCHA. NOT UNLESS WE DON'T WANT TO GO

BACKWARDS, RIGHT? >> AGREED. >> ADRIAN GARCIA: THANK YOU.

THANK YOU, JUDGE. >> LINA HIDALGO: COMMISSIONER ELLIS?

>> RODNEY ELLIS: THANK YOU. I KNOW WE WANT TO HEAR FROM THE PUBLIC, BUT I APPRECIATE THE TIME YOU SPENT ON ZOOM WALKING ME THROUGH YOUR RECOMMENDATION.

WOULD YOU JUST BRIEFLY FOR US AND FOR THE PUBLIC OUT THERE WALK THROUGH THE PROTS -- THE PROCESS WITH THE NEW PROCEDURE LAID OUT IN STATE LAW WHAT HAPPENS NEXT WITH YOUR RECOMMENDATION AND THEN AFTER THAT I ASK MY COLLEAGUES OR CONSIDER WHAT HAPPENED LAST YEAR I THINK WE OUGHT TO KIND OF LAYOUT -- OBVIOUSLY WHAT THE ELEPHANT IN THE ROOM IS

AND IF NOT WE CAN HAVE A DISCUSSION ON ALL OF THIS. >> ADRIAN GARCIA: ACTUALLY,

THAT'S TWO ELEMENTS -- ELEPHANTS IN THE ROOM. >> RODNEY ELLIS: ALL FIVE OF US. I DON'T MEAN IT IN A PARTISAN SENSE.

WE ARE WAITING AND TRYING TO BE PATIENT, BUT I'M SORRY THAT'S WHAT YOU CALL 26 YEARS OF BEING UP IN AUSTIN WHERE AT LEAST PEOPLE TELL YOU WHERE THEY ARE COMING FROM.

REGARDLESS OF WHICH POINT I OPERATE THAT WAY AND THEN GO TO WHAT SCENARIO COMES IN PLACE IF FOUR OF US DON'T SHOW UP, OR IF SOME OF MY COLLEAGUES WANT US TO HAVE VOTES ON SEPARATE ITEMS. JUDGE AND COLLEAGUES AND ALL COMMISSIONERS, RADACK, GARCIA, JUDGE HUH DOLL -- JUDGE HIDALGO, I JUST WANT TO LAY IT OUT THAT WAY.

>> YOU CHALLENGED ME TO BE BRIEF TALKING ABOUT SENATE BILL 2 SO THAT IS QUITE A CHALLENGE SO I WILL DO MY BEST. AT THE HIGHEST LEVEL THERE NEEDS TO BE AN ADDITIONAL VOTE IN ALL CIRCUMSTANCES NO MATTER THE RACE -- NO MATTER THE RATE WE NEED FOUR PEOPLE PRESENT. IF WE ARE AT A NO NEW REVENUE RATE, THAT WOULD BESET BY OPERATION OF LAW -- BE SET BY OPERATION OF LAW AND IF THERE IS NO SCORE RUM -- QUORUM AND NO VOTE. IF COMMISSIONER'S COURT CAN'T GET TOGETHER AND CAN'T GET FOUR PEOPLE THERE, BY OPERATION OF LAW YOU WOULD GO TO THE NO NEW REVENUE RATES.

WITH RESPECT TO ANYTHING ABOVE THE VOTER APPROVAL RATE, THAT'S WHAT WE ARE TALKING ABOUT HERE BECAUSE AS WE DISCUSSED IN AUGUST WE ARE NOW OUT OF TIME IF YOU WANTED TO GO TO AN ELECTION AND THERE ARE ADDITIONAL NOTICE HAD AND -- NOTICES AND A PUBLIC HEARING AND THEN A SUBSEQUENT MEETING TO VOTE ON THOSE. YOU WOULD NEED FOUR MEMBERS OF COMMISSIONER'S COURT AT THAT VOTE TO APPROVE SOMETHING AND IF YOU DIDN'T HAVE IT, WE WOULD BE BACK TO A NO IF YOU REVENUE RATE BY OPERATION OF LAW.

IT COMMISSIONER'S COURT SHALL ADOPT THE LOWER RATE OR THE NO NEW REVENUE RATE WHICH WOULD BE THE NO NEW REVENUE RATE HERE. WE BELIEVE WE DO HAVE THE ABILITY TO SPLIT MEETINGS FOR THE PURPOSE OF FACILITATING A QUORUM.

[00:45:01]

>> SO I WOULD LIKE TO STATE THAT I SHOW UP AND I VOTE YAY OR NAY.

IT IS 26 YEARS OF BEING IN AUSTIN, I THINK THE SIX YEARS BEING ON COUNCIL, I CAN'T REMEMBER WALKING THE VOTE. I SHOW UP. I WOULD JUST LIKE TO ASK MY COLLEAGUES SO WE KNOW. AND IF A PREFERENCE FOR ANYONE OF THE FIVE OF US IS TO DO SEPARATE MEETINGS, I MEAN HERE IS YOUR OPPORTUNITY IN TERMS OF FULL DISCLOSURE, I JUST THINK THAT WOULD BE HELPFUL, JUDGE, TO KNOW WHERE WE ARE. I AM JUST TRYING TO SHUT -- YOU KNOW, CUT THE DISCUSSION SHORT SO WE CAN GET TO THE PUBLIC.

ARE WE GOING TO SHOW UP? I AM. >> LINA HIDALGO: SAVE FOR THE COUNTY PROPOSAL, WHAT YOU ARE PROPOSING -- I THINK WHAT YOU ARE SAYING, COMMISSIONER IS

TAKE IT ONE BY ONE. >> RODNEY ELLIS: OR IF OUR COLLEAGUES WILL SAY IT, WILL YOU BE THERE, COMMISSIONER GARCIA, COMMISSIONER RADACK AND COMMISSIONER RAY GEL -- COMMISSIONER CAGLE? OR DOING SEPARATE MEETINGS. WE KNOW YOUR RECOMMENDATION.

WE KNEW IT BEFORE WE CAME IN. YOU SAID IT OUT. YOU ARE TRYING TO GET SOME SENSE, I THINK SOME GUIDANCE ON WHAT TO DO NEXT. OR DO WE JUST FALL INTO WHAT THE LAW REQUIRES IF WE DON'T HAVE FOUR PEOPLE. I THINK THAT IS CORRECT, COMMISSIONER ELLIS. AGAIN, WE TRIED TO LISTEN TO THE FEEDBACK FROM ALL OF THE MEMBERS OF COMMISSIONER'S COURT. AND WE TRIED TO REACH SOMETHING THAT COULD BE ACTED UPON RATHER THAN JUST GOING BACK TO THE RIGHTS SET BY OPERATION OF LAW. BUT WE NEED -- WE NEED AN INPUT VOTE AS TO WHERE WE WANT TO PROPOSE RATES, WHERE COMMISSIONER'S COURT WANTS TO PROPOSE RATES.

>> YOU NEED GUIDANCE YOU CAN ONLY GUESS. EVEN YOU CAN'T GO IN A COUNTER VOTE. WHAT I AM PROPOSING FOR COMMISSIONERS RADACK AND

CAGLE, WHAT IS YOUR PREFERENCE? >> STEVE RADACK: THIS IS RADACK AND MY PREFERENCE IS LET'S HEAR WHAT THE PUBLIC HAS TO SAY.

>> RODNEY ELLIS: OKAY. >> LINA HIDALGO: COMMISSIONER GARCIA?

>> ADRIAN GARCIA: THANK YOU, JUDGE. COMMISSIONER ELLIS, THANK YOU FOR RAISING THE QUESTION ABOUT WHAT IS THE IMPACT OF A NO QUORUM COULD BE.

AND THAT WAS ACTUALLY THE REASON FOR MY QUESTIONS EARLIER.

WE WOULD ACTUALLY BE HURTING OUR ENTITIES LIKE THE FLOOD CONTROL DISTRICT TO DO THE WORK THEY HAVE DONE. I MEAN, WITH THE 2.5 BILLION DOLLARS, THE TAXPAYERS GAVE US THAT MONEY SO WE COULD FINALLY WORK TO ADDRESS CHRONIC FLOODING IN HARRIS COUNTY AND THOSE INFRASTRUCTURE PROJECTS ARE ABOUT TO HIT OUR BUDGET. THEY ARE ABOUT TO NOW EFFECTIVELY BE OWNED BY THE COUNTY WHICH MEANS THAT UNLESS WE WANT THAT TO BE A WASTE OF MONEY, WE NEED TO CONSTRUCT SOMETHING AND DO SOMETHING AND WE DON'T MAINTAIN IT AND THEN WE NEED THE REVENUE AND WE NEED SOME REVENUE TO MAINTAIN A LEVEL OF MAINTENANCE SERVICE.

AND IN ORDER FOR RUSS TO DO THAT WE WILL HAVE A CHANCE TO ASK HIM ALT LATER -- A LITTLE LATER. THAT MEANS THE FLOOD CONTROL DISTRICT WOULDN'T BE ABLE TO MOVE FORWARD LIKE THE VOTERS WANT US TO MOVE IT FORWARD. THANK YOU FOR LAYING THAT OUT. THAT WAS REASON FOR THE QUESTIONS I HAD EARLIER.

I'VE GOT SOME QUESTIONS REGARDING THE CONVERSATION OF THE TOLL ROAD AND SO IF IF I MAY, I WOULD LIKE TO COME BACK TO THAT REAL QUICKLY. I THINK THAT WILL BE A PART OF

THE BROADER CONVERSATION LATER. >> LINA HIDALGO: OF COURSE.

>> ADRIAN GARCIA: MR. BERRY, WITH THE RESTRUCTURE OF HCTRA, WOULD YOU AGREE THAT WE ARE

UTILIZING IT AS A ONE-TIME PAYMENT TO HARRIS COUNTY? >> I THINK IT IS A ONE-TIME

[00:50:07]

PAYMENT AND AN ON GOING PAYMENT. >> ADRIAN GARCIA: THE

300 MILLION? >> YEAH, THAT'S A ONE-TIME PAYMENT.

>> ADRIAN GARCIA: AND WOULD YOU AGREE THAT WE WILL BE MAXIMIZING -- EXCUSE ME, A COUNTY RESOURCE LIKE HCTRA TO ASSIST WITH OTHER COUNTY NEEDS?

>> THAT'S WHY WE SUPPORTED THE PROPOSAL IN THE BUDGET OFFICE.

WE THOUGHT IT WAS GOOD FOR COMMISSIONER'S COURT TO HAVE FLEXIBILITY TO ADDRESS THE

MOST URGENT NEEDS. >> ADRIAN GARCIA: GOOD DEAL. AND WOULD YOU AGREE THAT DURING THESE TIME OF LOW INTEREST RATES IT IS A GOOD IDEA TO USE THIS CORPORATION,

THIS STRATEGY TO FUND PROJECTS? >> YES, IT IS A GOOD TIME TO REFINANCE AND IT IS A GOOD TIME IF WE WILL DO PROJECTS TO ISSUE THE BOND.

AND IS IT CORRECT OTHER COUNTIES ARE USING OGC'S SIMILAR TO WHAT WE ARE

PROPOSING TO UTILIZE REVENUE TO MEET NEEDS? >> THEY ARE CERTAINLY USING LGT. I DON'T KNOW ONE WAY OR THE OTHER WHETHER THEY HAVE A SIMILAR FRANCHISE STRUCTURE. I DO KNOW THAT THERE HAVE BEEN SOME OTHER KINDS OF ENTITIES THAT HAVE THESE KIND OF CONTRACT PAYMENTS. I DON'T KNOW IF ADJACENT

COUNTIES HAVE CONTRACT PAYMENTS AS WE ARE PROPOSING. >> ADRIAN GARCIA: GOOD DEAL.

IT IS NOT A UNIQUE STRUCTURE TO HARRIS COUNTY IN TERMS OF THE STRATEGY WE ARE

PROPOSING. >> IT IS A COMMON STRUCTURE. >> LINA HIDALGO: DID YOU HAVE

SOMETHING TO ADD? >> RODNEY ELLIS: WE'LL HEAR FROM THE PUBLIC AND WE WILL ASK MY COLLEAGUES TO THINK ABOUT IT SO AT THE END OF THE DAY WE CAN GIVE SOME GUIDANCE. ONE THING I CAN DO IS HOW TO COUNT.

I WAS AT THE SEGREGATED SCHOOLS, BUT ONE, TWO, THREE, FOUR, FIVE.

I CAN GET TO FIVE. I WANT TO GIVE HIM THE GUIDANCE AND US THE GUIDANCE

AND PROCEED. >> STEVE RADACK: MR. BERRY, THIS IS RADACK.

DAVID, I THINK WE NEED TO DEFINE SOMETHING. MONEY THAT HAS NOT BEEN COLLECTED CERTAINLY THAT IS NOT COUNTY RESOURCES. THAT'S OUR CONSTITUENT'S RE -- RESOURCES. MY POINT HERE IS THAT SAYING THAT SOME MONEY THAT MAY COME TO US IN THE FUTURE IS COUNTY RESOURCES IS JUST UNFAIR AND THE REALITY IS THIS.

THE FUTURE I AM -- THE FUTURE INCOME IS COMING FROM THE VERY PEOPLE WHO LIVE AND WORK AND I THINK IT IS IMPORTANT THAT WE DON'T GO OUT AND SAY, WELL, WE OUGHT TO GRAB -- WE SHOULD PUT OUT A NET TO GET THE RESOURCES THAT MAY NOT MAKE SENSE FOR US TO EVEN COLLECT AND IT WILL WE COLLECT IT I AGREE THAT IT IS OTHER PEOPLE'S MONEY AND IN FACT WE HAVE COLLECTED.

AND I WANT TO TREAT IT AS OTHER PEOPLE'S MONEY. SO APPRECIATE YOUR COMMENTS.

>> THANK YOU. >> STEVE RADACK: THIS -- >> R. JACK CAGLE: THIS IS

CAGLE. >> LINA HIDALGO: GO AHEAD. >> R. JACK CAGLE: AS A SIDE, I REMEMBER WHEN COMMISSIONER ELLIS DID MAKE A WALK WHEN HE WAS A SENATOR.

HE SAID THE FAMOUS GANG OF 13 OR WHATEVER THE NUMBER WAS ON THE REDISTRICTING ISSUE.

IT UTILIZED THE CONSTITUTION AND THE LAWS AT THAT TIME TO VOTE.

I THINK THIS IS A PROVISION UNDER THE CONSTITUTION. I HAVE A COUPLE OF QUESTIONS ON THE R -- ON THE HCTRA ISSUE AND I WANT TO COME BACK TO MR. BERRY ON THE RECOMMENDATIONS ON THE PROCEDURE FOR THE TAX RATE. WITH REGARD TO THE HCTRA TRANSFER, ONE OF THE THINGS I UNDERSTAND MR. BERRY THAT YOU ARE THINKING IS A GOOD THING AND WHAT HAS BEEN SAID IS THAT WE CAN BEND THE TRANSFER FUNDS OVER TO A -- ANOTHER MECHANISM BY WHICH WE CAN HAVE FLENSES -- FLEXIBILITY. ISN'T IT CLEAR THAT UNDERNEATH

[00:55:01]

OF MOBILITY, CORRECT? >> SURPLUS REVENUE AS DEFINED -- AND COUNTY ATTORNEY, CORRECT ME IF I AM WRONG. IT CAN ONLY BE FOR TRANSPORTATION-RELATED PURPOSES AND THAT WOULD CONTINUE TO BE THE CASE. WE BELIEVE THAT THE CONTRACT PAYMENT WE RECEIVED FROM THE LBGC IS NOT SUBJECT TO THE SAME RESTRICTIONS.

>> R. JACK CAGLE: SO THE 300 MILLION INITIALLY AND THE 90 MILLION PLUS 2.5% GROWTH PER YEAR, THAT WOULD NOT BE SUBJECT TO THE MOBILITY OR THE TRANSPORTATION RESTRICTIONS THAT EXIST ON THESE FUNDS NOW SO THAT WHEN WE IN ESSENCE CHARGE A USER FEE TO THE USERS OF THE TOLL ROAD SYSTEM, THEY KNOW THAT THEIR DOLLARS ARE GOING TO THE SUPPORT OF TRANSPORTATION. THAT WILL NOT BE THE CASE IF THIS DEAL GOES THROUGH.

>> FOR THE PORTION OF THE REVENUE THAT'S WOULD GO TO PAY THE CONTRACT FEE, I AGREE WITH

WHAT YOU SAID. >> THE 300 MILLION PLUS THE 2.5%.

NUMBER TWO, IS IT POSSIBLE SINCE WE ARE TALKING ABOUT REFINANCING AND REFINANCING RATES AND IT LOOKS LIKE WE ARE GOING TO BE INTO THIS AS A U AS OPPOSED TO A V.

INTEREST RATES ARE LOW AS WE GO INTO THE U. WE DON'T HAVE TO CREATE A LIMITED GOVERNMENT CORPORATION TO DO THE REFINANCE. WOULDS THAT NOT ONE OF YOUR RECOMMENDATIONS? THAT WE CAN REFINANCE IN PLACE?

>> IT IS ONE OF THE OPTIONS. YES. SO TO SAY THAT WE HAVE TO TAKE THESE FUNDS OUT TO GO CREATE THIS CORPORATION THAT WOULD GIVE US FLEXIBILITY TO SPEND IT ON WHATEVER THE THREE OUT OF FIVE OF US CHOOSE TO SPEND IT ON, THAT'S NOT AN ACCURATE STATEMENT. IT CAN BE REFINANCED RIGHT WHERE IT IS AT AND IT CAN STAY

IN TRANSPORTATION. >> I AGREE THAT'S AN OPTION. >> R. JACK CAGLE: AND THEN WITH REGARD TO THE PROCESS, YOU ELUDED TO IT BRIEFLY, BUT WALK US THROUGH HOW -- IF WE WERE TO DO A -- TWO SETS OF HEARINGS WITH NOTES BECAUSE WE HAVE TO GIVE A -- WE HAVE TO PUBLISH, AS I UNDERSTAND IT, AND WE HAVE TO PUT IT -- WE HAVE TO POST IT AND WE NEED TO MAKE SURE THE PUBLIC KNOWS EXACTLY WHAT WE ARE VOTING ON.

IT IS POSSIBLE TO HAVE OPTIONS , BUT IF YOU SHOW UP WITH OPTIONS, PEOPLE MAY CHANGE WHAT THEY SAY THAT THEY MIGHT WANT TO DO. I'M NOT MAKING ANY COMMITMENT IN ADVANCE OF I WAS DOING OR NOT DOING. WE ARE WAITING TO SEE WHAT WAS GOING TO OCCUR, BUT IT APPEARS TO ME THAT THERE MAY BE SOME CONSENSUS ON THE FLOOD CONTROL.

THE PUBLIC HAS VOTED OVERWHELMINGLY FOR THESE BONDS AND THE BONDS NEED TO BE PAID FOR. THERE MAY NOT BEACON CENSUS ON OTHER ITEM THAT'S ARE ON THE BUDGET. WALK US THROUGH HOW WE WOULD MECHANICALLY SET THIS UP TO WHERE IF WE SEED -- IF WE SAID, LOOK, WE WILL GIVE OUR NOTICE RATE.

THIS IS IT. WE ARE GOING TO VOTE ON FLOOD CONTROL.

WE HAVE GIVEN -- I THINK WE HAVE GIVEN FOUR DATES THAT WERE AGO -- ACCESSIBLE IN THESE THINGS. AND THEN WE CAN HAVE A DIFFERENT SET OF DATES FOR THE GENERAL FUND. IN THEORY I GUESS WE CAN HAVE A THIRD AND FOURTH DATES FOR THE HOSPITAL DISTRICT AND FOR THE PORT. BUT THOSE TWO DATES COULD PROBABLY BE RULED INTO ONE OR OTHER OF THE OTHER TWO OPTIONS.

>> COMMISSIONER CAGLE, I DON'T KNOW IF I HAVE A LOT MORE TO SAY THAN I ALREADY SAID ON THE PROCEDURE, BUT I AGREE THAT THERE ARE A COUPLE OF DECISIONS.

WHAT RATE OR SET OF RATES TO PROPOSE FOR A MEETING OF COMMISSIONER'S COURT.

AND OBVIOUSLY -- I THINK WHERE ARE YOU GOING IF YOU SET ONE RATE THERE IS ONLY, MY UNDERSTANDING IS THERE IS AN UP AND DOWN RATE. THEN YOU CAN PUT -- COMMISSIONER'S COURT CAN CONSIDER THE RATES. IT DOES HAVE TO BE NOTICED IN ADVANCE AND THEN I DO BELIEVE THAT YOU CAN SPLIT MEETINGS. SO YOU CAN HAVE DIFFERENT

MEETINGS FOR THE RATES ON THE DIFFERENT DISTRICTS. >> R. JACK CAGLE: I WOULD BE

[01:00:07]

>> RODNEY ELLIS: THANK YOU, COMMISSIONER CAGLE. YOU DID ANSWER MY QUESTION.

IF WE ARE GOING TO DO SEPARATE MEETINGS FOR THE RACE DO WE NEED TO DO THEM ON DIFFERENT DAYS? IF SOMEBODY IS PRESENT AND IF SOMEBODY WANTED TO BE PRESENT HOW DOES THAT WORK. I AM JUST TRYING TO GET THE CARDS ON THE TABLE.

IF YOU KNOW, MR. BERRY OR MR. SOARD. GENE

>> LINA HIDALGO: GO AHEAD, ROBERT. >> IT IS OUR VIEW YOU COULD DO THE MEETINGS ON THE SAME DAY, BUT THERE MAY BE PRACTICAL REASONS WHY YOU DON'T WANT TO.

SPEAKING BLUNTLY, IF YOU HAVE A COMMISSIONER WHO DOES NOT WANT TO BE PRESENT DURING A MEETING THERE MAY NOT BE ENOUGH SPACE BETWEEN THE MEETINGS TO ACCOMPLISH THAT.

WE DON'T KNOW IF PRACTICE PARTICULARLY IT WILL WORK. >> RODNEY ELLIS: YOUR

RECOMMENDATION IS TO DO IT ON SEPARATE DAYS. >> I THINK IT IS CLEANER AND

EASIER TO ACCOMPLISH WHAT YOU ARE TRYING TO ACCOMPLISH. >> RODNEY ELLIS: I AM JUST TRYING TO GET THE CARDS ON THE TABLE. I KNOW COMMISSIONER CAGLE IS A GREAT HISTORY BUFF. IN 2003, THE SENATE DEMOCRATS DID NOT WALK A VOTE.

WE SKIPPED A WHOLE SESSION. AND WE WERE FOLLOWING THE GREAT TRADITION OF A WONDERFUL REPUBLICAN, ABRAHAM LINCOLN, WHO DID THAT WHEN HE WAS IN THE ILLINOIS LEGISLATURE.

AS IT RELATES TO SPENDING MATTERS, COMMISSIONER CAGLE AND YOU WERE TALKING ABOUT THE TOLL ROAD MONEY, I GOT THE IDEA FROM YOU. YOU PAID FOR A BUILDING.

IT IS BECAUSE YOU HAVE SOME TRANSPORTATION. I DO THINK IT IS HELPFUL FOR US TO KNOW WHERE WE ARE, AND I WOULD STATE IN TERMS OF BEING TRANSPARENT, I DON'T WANT THESE VARIOUS DEPARTMENT HEADS OR OTHER COUNTY AGENCIES THAT WE CUT THE BUDGET FOR TO HAVE TO CUT THE SERVICES THAT THEY PROVIDE BECAUSE WE ARE THE ONE THAT'S HAVE THE POWER TO SET THE TAX RATES. SO AT THE APPROPRIATE TIME ASSUMING THAT WE DO HAVE TO CUT THE GENERAL REVENUE, I AM GOING TO PROPOSE THAT WE TAKE THAT AMOUNT.

MR. BERRY, WHAT IS IT? IS IT 20 MILLION TO 40 MILLION IF WE LEAVE THAT RATE? IF THERE IS NO NEW GENERAL REVENUE. WHAT ARE YOU TALKING ABOUT,

COMMISSIONER? >> RODNEY ELLIS: FOR US. FOR THE GENERAL REVENUE.

>> IF WE GO TO THE NO NEW REVENUE WE HAVE 40 MILLION RELATIVE TO THE BUDGET FOR PROPERTY TAXES. I WOULD ADD AND OF COURSE YOU HAVE THE DISCRETION TO DO WHAT YOU WISH, BUT OUR OTHER REVENUE AS WE WILL TALK ABOUT THE MID-YEAR REVIEW IS DOWN SLIGHTLY. SO IT IS TO MEET OUR BUDGET AND SOME OF THAT WE MAY NEED TO OFFSET THE OTHER DECREASES IN REVENUE. WE'LL TALK ABOUT THAT IN

MID-YEAR REVIEW. >> RODNEY ELLIS: IF OTHER DEPARTMENTS HAVE TO MAKE A CUT BECAUSE OF A DECISION WE MADE, WHAT I HEARD FROM CONVERSATION WAS IT MIGHT BE A CONSENSUS ON FLOOD CONTROL. ON THE OTHERS IF THERE'S NOT, I'M GONNA MAKE A MOTION AT THE APPROPRIATE TIME WHEN WE GET TO IT THAT WE TAKE THAT OUT OF THE PRECINCT BUDGET.

SO THE OTHER COUNTY DEPARTMENTS DON'T HAVE TO SUFFER AND PUT IT IN A RESERVE FUND. IF THERE IS SOMETHING THE PRECINCTS NEED, BRING IT TO COMMISSIONER'S COURT AND LET THE COMMISSIONERS DECIDE. I DON'T WANT THE LEGAL DEPARTMENT AND OTHER COUNTY DEPARTMENTS TO SUFFER BECAUSE WE, THE FOLKS WHO SET THE RATE, MADE A DECISION TO HOLD THEM TO NO NEW REVENUE IF THERE ARE THINGS THEY BELIEVE.

THAT'S MY OPINION. WE WILL CROSS THAT BRIDGE WHEN WE GET TO IT.

THANK YOU. >> LINA HIDALGO: LUCINDA, LET'S HEAR FROM THE SPEAKERS.

>> YES, MA'AM. EYE LANE -- ELAINA MARKS FROM THE EPISCOPAL HEALTH

FOUNDATION. GO AHEAD, PLEASE. >> THANK YOU.

CAN YOU HEAR ME? >> YES, MA'AM, GO AHEAD. >> OKAY.

I AM ELAINA MARKS AND I AM THE PRESIDENT AND CEO OF THE EPISCOPAL HEALTH FOUNDATION.

[01:05:03]

HARRIS COUNTY IS OUR HOME, AND IT IS WHERE OUR GREATEST INVESTMENTS ARE MADE.

IN 2019 WE AWARDED OVER $38 MILLION IN GRANTS. THE LARGEST PART OF THOSE DOLLARS WENT TO COMMUNITY-BASED SAFETY NET HEALTH CARE PROVIDERS WHO OFFER PRIMARY CARE AND MENTAL AND BEHAVIORAL HEALTH SERVICES TO LOW INCOME, UNINSURED AND VULNERABLE POPULATIONS. THE SAME POPULATIONS SERVED BY HARRIS HEALTH.

OVER SIX YEARS OF GRANT MAKING WE AWARDED GRANTS TO HARRIS HEALTH AND THE HARRIS CENTER AND THE HARRIS COUNTY PUBLIC HEALTH. 2020 HAS BEEN A DIFFICULT YEAR FOR ALL OF US. IN APRIL, OUR FOUNDATION RETOLD OUR ENTIRE BUDGET TO SUPPORT OUR COMMUNITY AND COVID-19 RESPONSE. WE DID THIS BY MAKING AN ADDITIONAL $6 MILLION AVAILABLE IN GRANTS AND $5 MILLION IN LOANS TO OUR SAFETY NET CLINIC PROVIDERS. WE DID THIS BECAUSE WE WANTED TO ENSURE THAT THESE ORGANIZATIONS CAN KEEP THEIR DOORS OPEN AT A TIME WHEN THE NEED FOR THEIR SERVICES IS AND WILL BE GREATER THAN EVER. SO MANY PEOPLE IN OUR COMMUNITY HAVE LOST THEIR JOBS BECAUSE OF COVID AND THE DOWNTURN IN THE ENERGY SECTOR.

WHEN THEY LOSE THEIR JOB THEY OFTEN LOSE THEIR HEALTH INSURANCE AND SOMETIMES WHOLE FAMILIES. THERE ARE SUBSIDIZED HEALTH PLANS AND MANY WILL ADD THEIR NAME TO THE INCREASING NUMBER OF UNINSURED TAXES. AND THEY WILL LOOK TO OUR GRANTEES AND HARRIS HEALTH FOR THEIR HEALTH CARE NEEDS. FOUNDATIONS LIKE OURS HAVE DUG DEEP THIS YEAR TO HELP OUR COMMUNITIES THROUGH THIS DEVASTATING PERIOD.

AND SO I URGE YOU ON BEHALF OF THOSE WHO HAVE GIVEN WHETHER THEY ARE FOUNDATIONS LIKE EPISCOPAL HEALTH OR GENEROUS NEIGHBORS LIKE MATTRESS MAX TO ENSURE HARRIS COUNTY CAN DO ITS PART. THOSE OF US IN THE PRIVATE SECTOR ARE HERE TO HELP, BUT WE CAN'T DO IT ALONE. PLEASE DON'T LET HARRIS HEALTH TAX RATE DECLINE THIS YEAR AGAIN. OUR COMMUNITY IS IN NEED OF HARRIS HEALTH.

PLEASE ENABLE IT TO SERVE. THANK YOU FOR LETTING ME SPEAK TODAY.

>> LINA HIDALGO: THANK YOU. COMMISSIONER ELLIS? >> RODNEY ELLIS: THANK YOU, MS. MARKS. OBVIOUSLY THE OPTIONS WOULD BE TO GO UP TO THE EXTENT THE LAUPER MITTS -- LAW PER MITTS, LEAVE THE TAX RATES WHERE IT IS AND TAKE NO REVENUE ROUTE.

WHICH OF THE THREE ARE YOU RECOMMENDING? >> I AM RECOMMENDING WHICH EVER OF THE THREE WILL PROVIDE THE MOST FUNDING TO HARRIS HEALTH.

WHILE IT MAY BE IN A STRONG POSITION RIGHT NOW, IT IS NOT NECESSARILY GOING TO BE IN A STRONG POSITION GOING FORWARD. WHEN THE COMMUNITY IS LOOKING FOR HEALTH, PARTICULARLY IN COMMUNITY CARE, HARRIS HEALTH IS IT.

>> RODNEY ELLIS: LOOK, I APPRECIATE IT, MS. MARKS, AND I KNOW YOU CAME UP AND TESTIFIED WHEN THIS ISSUE CAME UP BEFORE AND WE ARE IN THE MIDST OF A PANDEMIC AND IT IS ALWAYS A CHALLENGE, BUT OBVIOUSLY IF THE PARTY IN CONTROL OF STATE GOVERNMENT OPTED TO TAKE $10 BILLION A YEAR OVER THE LAST -- IS THAT 12 YEARS? THAT'S ABOUT $120 BILLION A GOOD PERCENTAGE OF THAT WILL HAVE COME TO HARRIS COUNTY, AND THAT WOULD HAVE MADE LIFE A LOT EASIER FOR HARRIS HEALTH AND OUR NOT FOR PROFIT AND FOR PROFIT HOSPITALS, AND IT COULD HAVE BEEN A LOT OF TAX RELIEF WE WOULD HAVE HAD THE OPTION TO GIVE PEOPLE. I APPRECIATE YOUR LEADERSHIP ON THAT AS WELL.

>> LINA HIDALGO: COMMISSIONER GARCIA? >> ADRIAN GARCIA: THANK YOU, JUDGE. AND THANK YOU, MS. MARKS FOR SPEAKING UP TODAY.

YOU ARE ABSOLUTELY CORRECT. WE NEED TO INVEST AND SUPPORT HARRIS HEALTH.

HAVING BEEN THROUGH THIS PANDEMIC, WE ARE NOT DONE WITH IT YET, BUT IT JUST REALLY STRIKES A NERVE WITH ME THAT HAD WE INVESTED IN PUBLIC HEALTH AND HAD WE DONE MORE TO HELP THE VULNERABLE, HAD WE DONE MORE TO OPEN THE DOORS AND ENGAGED THE COMMUNITY AND GOING OUT TO THE COMMUNITIES AND REACHING OUT TO THEM, YOU KNOW, HOW MUCH MORE RESILIANT HARRIS CON -- RESILIENT HARRIS COUNTY WOULD HAVE BEEN. AND THEN SPECIFICALLY THE NUMBER OF LATINOS THAT HAVE DIED IN THE AREA AND PEOPLE OF COLOR, IT JUST STRIKES A NERVE

[01:10:04]

OF WE HAVE ALL OF THE EVIDENCE IN RECENT DAYS WHY THIS IS SO CRITICAL.

I WANT TO THANK YOU FOR ALL OF THE WORK YOU DO RELATED TO HEALTH AND THANK YOU FOR YOUR SERVICE ON THE HARRIS HEALTH BOARD. WE WILL HAVE SOME QUESTIONS IN TERMS OF SOME OF THE RESERVES THAT ARE THERE TO UNDERSTAND WHAT IS THE PICTURE GOING FORWARD. I MADE IT PRETTY CLEAR THAT DR. MASSEY WAS HERE I WAS FRUSTRATED THAT WITH THE PARTNERSHIP HOSPITAL THAT WAS INCREASING DUE TO THE FLOODING ISSUES, THAT HE WERE TO PRESENT A CIP THAT HAD REALLY NOTHING PROPOSED FOR PRECINCT TWO AND THE VULNERABILITIES WE HAD IN THE AREA. I UNDERSTAND CONSTRUCTING A NEW HOSPITAL ISN'T THE WAY TO GO, BUT IF WE SPENT $30 MILLION FOR A PRECINCT BUILDING, MAYBE WE OUGHT TO CONSIDER SPENDING SOME MONEY FOR HOSPITAL.

I JUST HOPE -- I LOOK FORWARD TO HAVING THAT CONVERSATION, BUT I WANT TO THANK YOU AGAIN

FOR ALL YOU DO AND FOR ADVOCATING FOR PUBLIC HEALTH. >> LINA HIDALGO: COMMISSIONER

ELLIS. >> RODNEY ELLIS: QUICKLY -- I MENTION THEY HAD -- I MENTION THIS AND NOT AGAIN. IF THE NO NEW REVENUE RATE IS SELECTED OR THE HOSPITAL DISTRICT, THE REVENUE WOULD DECREASE 2% LEADING TO A 17.1 MILLION REDUCTION IN REVENUE AND THAT TRIGGERS A LOWER RATE GOING FORWARD UNDER THE LAW.

IS THAT CORRECT? >> THAT'S CORRECT. YOU ARE SETTING A NEW BASE

LINE. >> RODNEY ELLIS: AND AS IT RELATES TO THE PORT, JUDGE, I AM GOING TO SUGGEST -- ALTHOUGH OURS IS ON DEBT SERVICE AND MAYBE OUR COLLEAGUES WILL LET US KNOW, AND COMMISSIONER CAGLE, I APPRECIATE YOUR CANDOR, BUT IF THEY WANT THE ABILITY TO VOTE SEPARATELY ON EACH ONE AND THEY WOULD PREFER WE MEET ON FOUR SEPARATE DAYS, IT IS NOT AS THOUGH I AM GOING ANYWHERE. I WANT TO GIVE THEM THE OPPORTUNITY IN THE MIDDLE OF A PANDEMIC TO VOTE NO ON HEALTH CARE AND TO VOTE NO ON THE COUNTY'S GENERAL FUND AND VOTE NO ON THE PORT IF THEY WOULD LIKE TO.

I JUST WANT TO BE -- YOU KNOW, IF SOMEONE WANTS TO VOTE YES, I WANT TO MAKE SURE WE FIGURE THIS OUT AT THE END OF THE DAY. IT IS JUST SO WE KNOW WHAT WE OUGHT TO DO. I KNOW WOO ARE ONLY SERVICING THE DEBT -- BUT IF YOU DIDN'T

HAVE FOUR PEOPLE IN TERMS OF SERVICING THE PORT TODAY -- >> I DON'T KNOW.

TO BE HONEST I HAVE NOT THOUGHT ABOUT THAT. >> HERE IS WHAT WE USED TO SAY WHEN I WAS IN THE LEGISLATURE. WE DON'T WANT TO DO IT. WE DON'T WANT TO FIND OUT WHAT SOMEBODY IS TRYING TO BUILD. IF IT IS A BILLION DOLLAR BRIDGE AND SEPARATE MONEY.

>> I DIDN'T THINK ABOUT IT VERY MUCH BECAUSE IT WAS NOT -- IN MY OPINION IT WOULD

NOT BE A GOOD CHOICE. >> YOU KNOW, ALL OF THOSE YEARS IN THE LEGISLATURE, YOU KNOW, THE LEGISLATURE EXEMPTED ITSELF AND YOU CAN WALK AROUND ON THE FLOOR AND PEOPLE WILL TELL YOU, YES, NO, I DON'T KNOW. AND THEY WILL CALL YOU RIGHT BEFORE THEY VOTE AGAINST YOU. BUT WE DO NEED TO KNOW WHICH IS WHY I WANTED TO JUST LAY THE CARDS ON THE TABLE AND IT IS WHAT IT IS. THANK YOU.

>> LINA HIDALGO: DO WE HAVE OTHER SPEAKERS? >> YES, ANDREA COSCOSTAS.

>> CAN YOU HEAR ME? >> YES, MA'AM, GO AHEAD, PLEASE.

>> GOOD MORNING. THANK YOU FOR ALLOWING ME TO SPEAK.

[01:15:01]

WE ARE ONE OF THE EQUAL DASH -- ONE OF THE QUALIFIED CENTERS.

WE ARE A HEALTH CARE PROVIDER AND OFFERS PRIMARY CARE FOR ALL AGES.

WE PROVIDE MENTAL AND BEHAVIORAL HEALTH AND DENTAL EYE CARE SERVICES AND LOW INCOME AND UNINSURED POPULATIONS. WE SERVE ABOUT 23,000 PEOPLE THROUGH 140,000 VISITS A YEAR. WE SHARE MANY OF OUR PATIENTS WITH HARRIS HEALTH. WE DEPEND ON HARRIS HEALTH FOR SPECIALTY CARE REFERRALS AND THE HOSPITALIZATIONS. IT HAS HELPED TO MANAGE OUR PATIENTS AND TO SERVE US OUR IN PATIENT HUB. DURING THE TRYING TIMES, HEALTH CARE SHOULD BE PRIORITIZED. HARRIS HEALTH IS THE BACKBONE OF HOUSTON'S HEALTH CARE, AND WE MUST GIVE THEM ENOUGH RESOURCES TO DO THEIR JOB. IN GENERAL, WE MUST INVEST MORE MONEY ON PUBLIC HEALTH AND NOT LESS. SOMETHING WE HAVE LEARNED OVER THE LAST TWO MONTHS IS WE NEED A ROBUST PUBLIC HEALTH AND SAFETY NET SYSTEM SO WE CAN REACT FAST TO THE CRISIS LIKE THIS AND KEEP OUR COMMUNITY SAFE.

I ASK YOU WE NEED OUR HOSPITAL SYSTEM. WE NEED IT WELL FUNDED AND I NEED IT -- I NEED THE HOSPITAL SYSTEM BOTH AT THE PAY -- PATIENT AND PROVIDER.

I ASK YOU TO NOT ALLOW HARRIS HEALTH TAX RATE TO DECLINE. IT IS IMPORTANT FOR OUR COMMUNITY AND IT IS VERY IMPORTANT FOR THE SAFETY NET PROVIDERS.

THAT IS ALL. >> LINA HIDALGO: THANK YOU SO MUCH.

>> BARBARA CUATRA. GO AHEAD, PLEASE. >> THANK YOU.

I AM CALLING IN TODAY TO REQUEST CONTINUED SUPPORT OF PUBLIC HEALTH CARE.

AS WE KNOW, TEXAS HAS THE LARGEST UNINSURED POPULATION IN THE COUNTRY.

AND WE STILL HAVE A RAGING PANDEMIC, AND AT THIS POINT WE DON'T KNOW THE LONG-RANGE HEALTH EFFECTS OF COVID-19. IT IS CRITICAL NOT ONLY TO THE HEALTH, BUT THE ECONOMIC WELL BEING OF OUR COMMUNITY. WE HAD -- DURING THE PANDEMIC WE HAD THREE OF THE HIGHEST -- OUR ZIP CODES HAD THREE OF THE HIGHEST RATES. PUBLIC HEALTH IS CRUCIAL TO THE WELL BEING OF OUR COMMUNITY. THANK YOU.

>> MARK TRUJILLO. GO AHEAD, PLEASE. >> MY NAME IS MARLIN TRUJILLO. WE ARE THE ONLY QUALIFIED HEALTH CENTER IN THE GREATER HOUSTON AREA WITH SIX MEDICAL CLINICS AND TWO MOBILE HEALTH CLEAN NICKS.

OUR MEDICAL CLINICS ARE IN PRECINCT 3 AND PRECINCT 4. WE SERVE MORE THAN 25,000 INDIVIDUALS WHO ARE UNINSURED BY OFFERING PRIMARY CARE AND DENTAL HEALTH AND DENTAL SERVICES. WE HAVE NOTICED A CONTINUED INCREASE FOR HEALTH CARE SERVICES IN THE GREATER WEST HOUSTON COMMUNITY THAT INCLUDES SPRING RANCH, BEAR CREEK, AND WE HAVE PARTNERED WITH MANY NONPROFITS, BUT THE RESIDENTS NEED -- THE RESIDENTS' NEEDS ARE SO GREAT. MANY HAVE LOST THEIR JOB AND LOST THEIR COVERAGE. THE HEALTH CENTER HAS INCREASED THE NUMBER OF UNINSURED INDIVIDUALS COMING TO OUR LOCATIONS. PATIENTS THAT SEEK HEALTH CARE SERVICES AND ARE ELIGIBLE FOR THE DISCOUNTED SERVICES. THE NEED IS JUST TOO GREAT.

WE CURRENTLY PARTNER WITH HARRIS SPECIALTY CARE NEEDS. OUR PROVIDERS MAKE THE REFERRALS INTO THE HARRIS HEALTH SYSTEM AND OUR CASE MANAGERS WORK WITH THE TEAM FOR THE NEW TRANSFER OF CARE. THE MAJORITY OF HOUR PREGNANT -- THE MAJORITY OF OUR PREGNANT WOMEN AND THE TWO TOP SPECIALTY REFERRALS INCLUDE CARDIOLOGY AND GI.

WE NEED CONTINUED ACCESS TO THE HEALTH SERVICES AT HAIR -- THAT HARRIS HEALTH PROVIDES.

WE ARE NOT ABLE TO BUILD A HEALTHIER COMMUNITY IF THE HEALTH RATE TAX DECLINES AGAIN. AS A PROPERTY OWNER IN ZIP CODE 77 INTRR 5 -- 77055, PLEASE ALLOW FOR THE HEALTH CARE NEEDS OF OUR COMMUNITY. THANK YOU FOR YOUR TIME THIS

MORNING. >> ADRIAN GARCIA: JUDGE? >> LINA HIDALGO: GO AHEAD,

COMMISSIONER GARCIA. >> ADRIAN GARCIA: THANK YOU FOR JOINING US TO SPEAK ON THIS. WE WANT TO THANK YOU FOR ALL OF THE WORK THAT YOU DO.

[01:20:01]

BUT WE REALLY FORCE THE HOSPITAL DISTRICT IN PARTICULAR TO CUT IN ITS UH -- ABILITY TO CREATE HEALTHIER COMMUNITIES AND TO SERVE CITIZENS LIKE THOSE THAT EXIST IN SPRING BRANCH WHO OTHERWISE WANT TO BE HEALTHY SO THEY CAN GO ON AND WORK AND CONTRIBUTE TO OUR COMMUNITY AND OUR ECONOMY. THANK YOU FORGIVING THE CITIZENS -- THANK YOU FOR GIVING THE CITIZENS IF SPRING BRANCH A VOICE.

THANK YOU FOR ADVOCATING FOR THEM. THEY HAVE LONG NEEDED SOMEBODY TO SUPPORT THEM. I AM GLAD YOU ARE DOING IT ON THEIR BEHALF.

>> THANK YOU FOR LISTENING. >> THANK YOU. I JUST WANTED TO THANK YOU AS WELL. DITTO TO COMMISSIONER GARCIA'S COMMENTS.

AND ALSO TO MENTION TO YOU UNDER THE LAW THAT PASSED IN AUSTIN, PART OF THE CHALLENGE IS IF WE TAKE THE NO NEW REVENUE RATE AT -- THE $ 17.1 MILLION WILL NOT ONLY HIT US IN TERMS OF HEALTH CARE THIS YEAR IT TRIGGERS A LOWER RATE.

IF OUR ECONOMY RECOVERS, WHICH WE ALL HOPE IT WILL, IT WILL BE MORE DIFFICULT TO TRY TO GET BACK TO WHERE WE WERE SO IT DOES HAVE A DOMINO EFFECT. LOOK, I KNOW IT IS NOT EASY FOR YOU TO SPEAK UP ON THIS. IN THIS ENVIRONMENT WHEN YOU WATCH THE ADS ON TV, EVERYBODY IS FOR MORE HEALTH CARE. IT MAKES YOU WONDER WHY WE DON'T HAVE IT.

IF EVERYBODY IS FOR IT, IT SHOWS YOU THAT WE ARE IN THE SEASON WHERE PEOPLE ARE NOT AS HONEST AS WE HOPE THEY WOULD BE. IT IS IMPORTANT.

YOU STAY ON IT AND ASSUMING THAT WE HAVE A SEPARATE VOTE ON A SEPARATE DAY.

IT WOULD BE GOOD TO HAVE A FOCUSED DISCUSSION ON HEALTH CARE AND IN A COUNTY LARGER THAN 26 STATES AND TO REALLY DIG DOWN AND FOCUS ON THAT. NO MATTER WHERE YOU ARE, IF SOMEONE LIVES IN THE POOREST NEIGHBORHOOD OR THE MOST AFFLUENT NEIGHBORHOOD, IN THE MIDST OF COVID, WE HAVE TO FIGURE OUT HOW WE WILL STOP THE SPREAD OF COVID FOR EVERYBODY BECAUSE FOLKS WHO ARE LOW INCOME AND KEEPING KIDS IN THE YARDS AND ON THE BUSES AND THE TRAINS WITH US SO IT IS IMPORTANT. THANK YOU.

>> ADRIAN GARCIA: COMMISSIONER ELLIS, JUDGE IF I MIGHT, COMMISSIONER ELLIS I WANT TO PIGGYBACK ON YOUR REMARKS. I THINK IT WOULD BE GOOD AND A FOCUSED CONVERSATION BECAUSE OF WHAT I HAVE SAID. THE PANDEMIC HAS SHOWN US WHAT THE VULNERABLE -- THE VULNERABILITIES HAVE BEEN. PEOPLE HAVE PULLED THEIR BOOT STRAPS UP AND GONE TO WORK IN SPITE OF NOT BEING WELL. THIS PANDEMIC FORCED MANY OF THEM INTO AN EMERGENCY ROOM THAT THEY OTHERWISE WEREN'T VISITING. AND NOT VISITING BECAUSE -- NOT BECAUSE THEY DIDN'T WANT TO, BUT BECAUSE POLITICAL CLIMATE MADE IT UNCOMFORTABLE TO -- FOR SOME TO SEEK CARE. AND NOT INVESTING IN GIVING THE COMMUNITY THAT ACCESS ALSO MADE IT DIFFICULT TO GO. SO I WOULD APPRECIATE A DEDICATED CONVERSATION ON THE HOSPITAL DISTRICT. YOU KNOW, GIVE US ALL AN OPPORTUNITY TO ATTEND.

I KNOW THERE ARE OTHER ENTITIES WHERE THEY ARE HAVING COMMITTEE MEETINGS WHERE PEOPLE WHO CLAIM THEY CARE ABOUT HEALTH CARE DON'T SHOW UP.

THEY DON'T ATTEND TO THE MEETINGS. I THINK THIS WOULD BE

REALLY -- REAL, REAL GOOD TO DO. >> THE REASON I SAY IT, IF WE GET GOOD SENSE EVEN ON A PORT, I MEAN, THE DISCUSSIONS ABOUT DEEPENING AND WIDENING, I MEAN, NONE OF US WOULD BE HERE, BY THE WAY, IF YOU ARE NOT -- IF WE WERE NOT WITH VISIONARY LEADERSHIP TO DEEPEN AND WIDEN THE BAYOU AND GIVE US A PORT.

BRING IT INTO HOUSTON. AT THE END OF THE DAY I HOPE FOLKS WILL GIVE US GUIDANCE ON

[01:25:02]

>> LINA HIDALGO: DO WE HAVE ANY OTHER SPEAKERS, LUCINDA? >> JUDGE, THOSE ARE ALL OF THE SPEAKERS. DR. ISMAEL IS -- DR. IS HERE IF YOU WOULD LIKE ME TO MUTE

HIM. >> LINA HIDALGO: GO AHEAD. >> GOOD MORNING, JUDGE AND COMMISSIONERS. LET ME THANK YOU FOR YOUR SUPPORT TODAY AND THE SUPPORT FOR -- FOREVER, ESPECIALLY SINCE I HAVE BEEN HERE AS THE CEO OF THE HARRIS HEALTH SYSTEM. AND I WANT TO THANK ALL OF THE SPEAKERS.

I WAS TOUCHED BY THE OUTPOURING OF SUPPORT. MR. BERRY, THANK YOU FOR THE PRESENTATION. I REALLY ENJOYED IT. YOU DID SAY SOMETHING I WANTED TO CORRECT. YOU SAID THE TAX SUPPORT IS ABOUT 25% REVENUE.

IT IS ACTUALLY CLOSE TO 50%. SO THE TAX IS A VERY, VERY BIG PART OF OUR OVERALL.

THE ISSUES I WANTED TO TOUCH ON IS THERE IS A LOT OF UNCERTAINTY ABOUT WHERE OUR FINANCES ARE GOING TO BE COMING FROM. IT ADDS ABOUT 70 MILLION TO OUR BUDGET EVERY YEAR AND IT IS PLANNING TO END IN LESS OF -- IN DECEMBER OF THIS YEAR. THERE IS NO CLEAR DIRECTION OF HOW THAT WILL BE REPLACED.

THERE IS A LOT OF CONVERSATION AND UNFORTUNATELY NO DECISIONS HAVE BEEN MADE.

AS YOU HEARD AGAIN, THERE HAVE BEEN A LOT OF DIFFERENT MAINTENANCE AND CAPITAL IMPROVEMENT PROJECTS PUT ON HOLDOVER THE PAST FEW YEARS THAT ARE NOW IN A SITUATION WHERE THEY NEED TO BE ADDRESSED. AND I THINK ALL OF THOSE, IT IS A QUICK CHECK AND WHEN YOU ADD THEM ALL UP AND IT IS JUST TO SUSTAIN US.

I APPRECIATE EVERYBODY'S SUPPORT AND THEN HERE TO ANSWER ANY QUESTIONS.

>> ADRIAN GARCIA: THANK YOU, JUDGE. DOCTOR, THANK YOU FOR WEIGHING IN AND FOR YOUR LEADERSHIP DURING THIS PANDEMIC. GREATLY APPRECIATE YOU.

THANK YOU FOR SHARING YOUR PERSPECTIVE WITH. THE KWAN -- THE CONVERSATION WAS VERY IMPORTANT. A COUPLE OF QUESTIONS. IN TERMS OF THE ROLE YOU PLAY IN OUR COUNTY FOR THOSE WHO ARE UNDER SERVED AND WITHOUT HEALTH INSURANCE, WITH THE REPORTING THAT THERE IS AN UNEMPLOYMENT RATE OF 8% WHAT DOES THAT -- DOES THAT MEAN MORE OR LESS PATIENCE -- PATIENTS THAT ARE LIKELY TO DEPEND ON THE HARRIS HEALTH SYSTEM THAT OTHERWISE MAY HAVE HAD A MEDICAL FACILITY TO GO TO.

>> OBVIOUSLY IT MEANS MORE PATIENTS. WHAT IS IMPORTANT TO NOTE IS THAT THAT POPULATION IS NOT THE SAME AS A RUN OF THE MILL.

THAT'S ALSO PEOPLE WHO HAPPEN TO HAVE OTHER DISADVANTAGES. THEY ARE ACTUALLY SICKER THAN THE GENERAL POPULATION, IF YOU WILL. THE NUMBERS ARE GOING TO GO UP AND THESE ARE SICKER PATIENTS REQUIRING A HIGHER LEVEL OF CARE.

THEY ARE GOING TO BE MORE EXPENSIVE IN THE LONG RUN. >> ADRIAN GARCIA: AND IN TERMS OF THE IMMEDIATE FUTURE, AND I ASSUME IF WE WANTED TO CONSIDER THE IMMEDIATE FUTURE WE WOULD CONSIDER WHAT MR. BERRY HAS PROVIDED US WITH AND THAT IS AT LEAST A FIVE-YEAR PRO -- PROJECTION THAT WE CAN ACTUALLY SEE. WHAT IS THE INCREASE IN THE DEMAND OF SERVICES THAT YOU ARE LIKELY TO EXPECT THAT THE COMMUNITY IN HARRIS COUNTY WILL BE COMING TO YOU FOR. I REMEMBER HAVING A CONVERSATION WITH DR. MASSEY.

HE SAID IF THERE IS ONE THING I CAN DO TODAY, I WOULD WANT TO INCREASE -- WHAT WAS IT?

[01:30:01]

THERE YOU GO. IF HE COULD INCREASE ANYTHING IT IS DIALYSIS.

I THINK SOME PATIENTS ARE GETTING AT BEST TWO DAYS OF DALLAS' TREATMENT.

WHAT ARE THE SERVICE THAT'S RIGHT NOW ARE -- [INAUDIBLE] AND THEN GOING INTO THE FUTURE OF THE -- BECAUSE OF THE PANDEMIC, WHAT WOULD WE HAVE TO COME TO YOU AND EXPECT YOU

TO ADDRESS? >> THANK YOU FOR THAT QUESTION.

DALLAS IS ONE OF THOSE, AND THAT IS ACTUALLY A PASSION OF MINE.

THAT'S ONE OF THE FIRST THINGS THAT THE -- THAT WE ESTABLISHED WHICH IS THE EXPANSION OF THE DALLAS SERVICES. OF THE DIALYSIS SERVICES.

RIGHT NOW OUR DIALYSIS IS RUNNING UNTIL 2:00 IN THE MORNING.

THEY ARE RUNNING THREE SHIFTS AS OPPOSED TO TWO SHIFTS. IN OUR FUTURE CAPITAL IMPROVEMENT PROJECTS IS THE EXPANSION OF THE DIALYSIS PROGRAM SO THEY CAN GO BACK TO TWO SHIFTS AND PROVIDE MORE SERVICES BY INCREASING THE NUMBER OF CHAIRS AND ALSO ADDING PARATAU KNEEL DIALYSIS. IN ADDITION TO THAT, TO ANSWER YOUR QUESTION ABOUT THE OTHER SERVICES, THERE IS A LOT OF SCREENING AND EARLY MANAGEMENT OF DISEASE THAT THIS COUNTY IS CURRENTLY NOT ENJOYING. I THINK COLON NOSE ASK YOU PEA -- C HO -- COLONOSCOPY IS A GREAT EXAMPLE OF THAT. IT IS A SIMPLE TEST AND IT CAN CATCH COLON CANCER AND OTHER DISEASES EARLY. IT IS A LOT CHEAPER TO CARE FOR THEM. SLEEP LAB, SLEEP APNEA IS A HUGE BURDEN IN THE PEOPLE OF THE COUNTY. WE ARE CURRENTLY NOT ABLE TO PROVIDE THE SERVICES.

IN PATIENT REHAB. THERE IS A WHOLE LIST OF SERVICES THAT WE COULD POTENTIALLY BE PROVIDING. OBVIOUSLY THERE IS A LOT OF INFRASTRUCTURE AND CAPITAL INVESTMENT AND ALSO OPERATIONAL -- ON GOING OPERATIONAL INVESTMENTS.

>> ADRIAN GARCIA: THANK YOU. >> RODNEY ELLIS: THANK YOU, JUDGE.

DOCTOR, I WANT TO THANK YOU AS WELL. YOU KNOW, I HAVE LEARNED THAT HEALTH CARE IS KIND OF LIKE CRIMINAL JUSTICE REFORM. EVERYBODY IS FOR HEALTH CARE BEFORE THEY ARE AGAINST IT. RARELY DO YOU FIND A POLITICIAN WHO WON'T SAY THEY ARE AGAINST HEALTH CARE. EVEN NOW, THEY ARE SHUTTING IT DOWN, OBAMACARE, AFFORDABLE HEALTH CARE MONEY WE GET IN TEXAS. WHEN YOU MADE A REFERENCE TO COLON CANCER, IT REALLY TOUCHED ME. MY MOTHER DIED OF COLON CANCER. AND BECAUSE OF THAT GREAT PUBLIC HEALTH CARE PLAN I HAVE, THAT'S WHEN I GOT DR. WILLISON WHO YOU KNOW DIED NOT LONG AGO.

I I HAVE BEEN FORTUNATE SINCE 2003 TO GO EVERY FIVE YEARS AND GET A COLON NOSE ASK YOU PEA -- COLONOSCOPY, BUT SO MANY PEOPLE CAN'T DO THAT. I WANT YOU TO GET YOU -- GIVE US YOUR EXPERIENCE FROM DALLAS. I ASKED YOU THAT AND IN TERMS OF INFRASTRUCTURE NEEDS WHAT ARE OUR FACILITIES LIKE, AND WE WILL GO THROUGH IT MORE WHEN WE HAVE A HEARING, BUT I WANT TO LAY IT OUT NOW, IN TERMS OF LBJ AND BETOB, I KNOW I HAVE TO CALL AND SOMETHING BURST OVER THERE, SOME OLD PIPES.

GIVE US A SENSE OF WHAT YOU HAVE SEEN HERE. YOU MOVED AROUND THE COUNTRY, BUT WHAT IS IT IN DALLAS, BY THE WAY IN TERMS OF INFRASTRUCTURE.

>> COMMISSIONER, THANK YOU FOR THAT QUESTION. I'M TRYING TO BE FAIR AND MEASURED HERE. DALLAS COUNTY HAD THE FORTUNE OF OPENING, NOT JUST ME, BUT WHAT A LOT OF PEOPLE CONSIDER THE BEST IN HOSPITAL. IT IS CLOSE TO 870 PRIVATE ROOMS INCLUDING 96 PRIVATE ROOMS. IT IS A LARGE HOSPITAL.

[01:35:07]

WHEN IT WAS -- WHEN I WAS DOING MY TRAINING IN HARRIS COUNTY AND CURRENTLY THE CEO OF THE HARRIS HEALTH SYSTEM. OUR COUNTY RESIDENTS DESERVE THE BEST.

THEY DON'T DESERVE ANYTHING LESS THAN WHAT WE CAN PROVIDE THEM.

I AM NOT SURE WHAT ELSE YOU WANTED ME TO TOUCH ON, COMMISSIONER ELLIS.

>> RODNEY ELLIS: WE HAVE A LONG DAY, AND I WAIT. LOOK, TO BE HONEST WITH YOU, WHEN YOU CAME IN I MADE THE COMMENT TO YOU THAT I THINK FOR FAR TOO LONG THIS COURT, COMMISSIONER'S COURT WAS JUST KIND OF -- THE ATTITUDE OF SOME PEOPLE WAS DON'T TALK ABOUT WHAT YOU NEED. WE WILL TELL YOU WHAT WE WILL GIVE YOU AND YOU FIGURE OUT HOW TO MAKE IT WORK AND DON'T MAKE US LOOK BAD. YOU SHOULD SPEAK TRUTH TO POWER AND I'M LOOKING FORWARD TO THAT DAY OF HAVING A DISCUSSION ABOUT IT.

TO BE HONEST WITH YOU, I THINK IT IS IMPORTANT ENOUGH. IT IS A BIT LONGER FROM WHEN I FIRST GOT HERE. IT IS NOT BAD MEETING TWICE A WEEK, TWICE A MONTH RATHER COMPARED TO WHAT I WAS ACCUSTOMED TO FOR 140 DAYS. IT WAS HELL.

STARTING EARLY IN THE MORNING AND GOING LATE AT NIGHT. THANK YOU FOR YOUR

LEADERSHIP. >> THANK YOU. >> LINA HIDALGO: THAT'S THE

SPEAKERS, RIGHT, LUCINDA? >> YES, MA'AM. >> LINA HIDALGO: SO THE QUESTION THEN IS IF WE NEED TO SET SEPARATE DATES TO MEET ON THESE.

IT SOUNDS LIKE ROBERT AND DAVE CORRECT ME IF I'M WRONG, WE NEED TWO DATES.

IT HAG -- IT HAS TO BE A DATE WHICH THE TAX RATE IS SET, CORRECT?

>> THERE IS ONE CAVEAT. IF THE WILL OF THE COURT IS TO GO TO A NO NEW REVENUE RATE, THEN WE DON'T ACTUALLY NEED THE SEPARATE HEARING. AND I WOULD ALSO JUST QUICKLY ADD WITH RESPECT TO THE PORT OF HOUSTON, I DID RESEARCH THAT A LITTLE BIT AND I DON'T THINK COMMISSIONER'S COURT HAS A CHOICE THERE BECAUSE THERE IS A BOND TO LEVY THE TAXES.

I WANTED TO GET BACK TO YOU ON THAT. >> R. JACK CAGLE: YOUR HONOR, THIS IS CAGLE. I DON'T WANT TO SPEAK FOR ANYONE ELSE, BUT BASED UPON THE RECOMMENDATIONS I HAVE SEEN FROM MR. BERRY, I DON'T NEED NECESSARILY A QUORUM OF DATES. COURT IS WHAT IT IS. IT WAS APPROVED.

EVEN IF WE WENT TO THE NO NEW REVENUE RATES, THAT AMOUNT IS A DECREASING AMOUNT BECAUSE WE ARE PAYING DOWN ON THAT DEBT SERVICE. I THINK THAT THE FLOOD CONTROL RECOMMENDATIONS AND THE HOSPITAL RECOMMENDATIONS FROM MY PERSPECTIVE HAVE BEEN LAID OUT CLEARLY WITH PUBLIC NOTICE ARE NOT ONES THAT I HAVE ISSUES WITH.

BUT I WANT TO ADD A SEPARATE HEARING WHEN IT COMES TO WHATEVER IS PROPOSED FOR THE GENERAL FUND CATEGORY. THAT'S WHAT I WOULD LIKE TO SEE.

I DON'T KNOW THAT I PERSONALLY NEED FOUR DATES, BUT I DO WANT TO SEE TWO DATES.

>> LINA HIDALGO: COMMISSIONER CAGLE, SO YOU ARE SAYING ONE DATE FOR THE PORT HOSPITAL DISTRICT AND FLOOD CONTROL DISTRICT AND A DIFFERENT DATE FOR THE GENERAL FUND OR THE

HARRIS COUNTY -- >> THAT WOULD BE MY THOUGHTS AS PART OF DISCUSSION.

I AM CERTAINLY OPEN TO ANY ADDITIONAL THOUGHTS THAT ARE THERE.

IF WHAT HAS BEEN RECOMMENDED GOES INTO THE THUMBS UP OR THUMBS DOWN VOTE, I DON'T THINK THAT'S QUITE THE WAY MR. BERRY PUT IT, BUT THAT SHOULD BE CLOSE.

I AM COMFORTABLE WITH HAVING TWO DIFFERENT DATES. ONE FOR THE GENERAL FUND AND

ONE FOR THE OTHER THREE ITEMS. >> COMMISSIONER ELLIS AND THEN

[01:40:04]

COMMISSIONER GARCIA. >> COMMISSIONER CAGLE, THANK YOU.

I JUST WANTED TO -- >> R. JACK CAGLE: AFTER ALL THAT UGLINESS YOU ARE NOW

THINKING -- THANKING ME? >> RODNEY ELLIS: I ALWAYS THANK YOU, EVEN AFTER YOUR UGLINESS. I JUST ASK YOU IF FOR SOME REASON YOU CHANGE YOUR MIND, AND I HEARD IT AND THAT'S WHY I WANTED TO LAY IT OUT TO GET TO THE BOTTOM LINE.

YOU HAD THE GREAT SLOGAN, A MIND IS A TERRIBLE THING TO WASTE.

IF YOU CHANGE YOUR MIND I JUST ASK THAT YOU LET THE JUDGE KNOW SO WE KNOW WHETHER OR NOT WE NEED A SEPARATE VOTE ON THE PORT OF THE HOSPITAL DISTRICT AS WELL.

THAT WAS MY INTENT WHEN I RAISED THE ISSUE EARLIER. THANK YOU.

>> I'M SORRY. I AM TRYING TO GET ADVICE FROM MY TEAM OF EXPERTS.

I AM UNDERSTANDING THAT IF YOU NOTICE THE HEARINGS PROPERLY YOU COULD ADOPT THE TAX RATE.

THAT WOULD NOT REQUIRE YOU TO HAVE SEPARATE MEETINGS. THAT MIGHT REDUCE THE NUMBER OF MEETINGS. MAYBE I DIDN'T UNDERSTAND YOUR QUESTION EARLIER.

YOU DON'T HAVE TO SAY HAVE A HEARING ON THE HOSPITAL DISTRICT, FOR EXAMPLE AND THEN

A SEPARATE MEETING TO ADOPT THE TAX RATE. >> I UNDERSTAND ROBERT'S

ADVICE. >> LINA HIDALGO: I THOUGHT WHERE WE LANDED IS IF WE ARE ADOPTING ANYTHING OTHER THAN THE NO NEW REVENUE RATE THERE NEEDS TO BE ONE HEARING AND

ONE ADOPTION MEETING. IS THAT NOT CORRECT, ROBERT? >> LET ME VERIFY THAT WITH

AMY. AMY, ARE YOU ON THE LINE? >> ONE MOMENT.

>> LINA HIDALGO: AND I KNOW EITHER WAY WE HAD THIS DISCUSSION LAST YEAR WHICH WAS HAVING THIS -- IF FOLKS WANT TO HAVE -- WANT TO SKIP IT, THEY ARE NOW GOING TO WANT TO BE THERE AND THEN LEAVE. THEY ARE GOING TO WANT TO JUST NOT BE THERE THE WHOLE TIME.

THAT'S WHY I THINK WE ARE SAYING LET'S HOLD IT ON SEPARATE DAYS.

IT WOULD BE GOOD TO KNOW WHETHER WE NEED TWO MEETINGS FOR ANY OF THESE TAXING ENTITIES OR WHETHER IT IS SIMPLY FOR THE ONE WHERE THE NO NEW REVENUE RATE IS BEING

PROPOSED. WHICH IS THE GENERAL FUND. >> AND TO THROW ANOTHER --

WELL, GO AHEAD, AMY. ARE YOU ON THE LINE? >> GOOD MORNING, JUDGE,

COMMISSIONERS. CAN YOU HEAR ME? >> LINA HIDALGO: YES.

>> SO TO ANSWER THE QUESTION, IF ANY JURISDICTION IS GOING TO EXCEED THE NO NEW REVENUE RATE, THERE HAS TO BE A PUBLIC HEARING AND MEETING TO ADOPT. IF THE NOTICE GOES OUT THAT THE MEETING TO ADOPT WILL TAKE PLACE THE SAME DAY AS THE PUBLIC HEARING, YOU CAN THEN ADOPT ESSENTIALLY AFTER THE PUBLIC HEARING. SO HAVE THE PUBLIC HEARING AND THEN CLOSE THE PUBLIC HEARING AND THEN HAVE YOUR MEETING TO ADOPT.

JUDGE, AS YOU ELUDED TO IF THAT IS NOT WHAT YOU FUNCTIONALLY WANT TO DO, YOU MAY FUNCTIONALLY CHOOSE TO HAVE YOUR PUBLIC HEARING ONE DAY AND HAVE YOUR MEETING TO ADOPT A SECOND DAY. YOU CAN DO THAT AS WELL. AGAIN, AS LONG AS IT IS

NOTICED CORRECTLY. >> TO CLARIFY SO WE ARE ALL ON THE SAME PAGE, THE SECOND MEETING COULD COVER ALL OF THE TAXING JURISDICTIONS IS THAT CORRECT OR NOT CORRECT?

>> CORRECT IF ALL OF THE JURISDICTIONS ARE NOTICED CORRECTLY AND THERE IS A TIME WINDOW YOU -- WINDOW. YOU HAVE TO HAVE IT WITHIN SEVEN DAYS OF HEARING.

YOU WANT TO MAKE SURE YOU DON'T EDGE YOURSELF OUT OF THAT TIME WINDOW.

>> YOUR HONOR, FOR CLARIFICATION IF I MAY -- >> COMMISSIONER CAGLE AND THEN

COMMISSIONER ELLIS. >> R. JACK CAGLE: IF IT IS RECOMMENDED WE HAVE GO WITH THE NO NEW REVENUE RATE WHICH IS RECOMMENDED THEN WE DON'T HAVE TO APPEAR FOR THAT, IS

THAT CORRECT? >> LINA HIDALGO: WE JUST NEED ONE APPEARANCE WHICH IS ONE VOTE, AND WE CAN DO IT AT THE MEETING OF COMMISSIONER'S COURT ON OCTOBER 27TH.

>> R. JACK CAGLE: THE OTHER THREE ITEMS ARE FLOOD CONTROL, HOSPITAL PORT AND PORT OF HOUSTON. I DON'T WANT TO SPEAK FOR OTHERS, BUT THE PUBLIC VOTED SIGNIFICANTLY IN 2018 FOR THESE IMPROVEMENTS IN FLOOD CONTROL, AND I BELIEVE THAT

[01:45:04]

THE PERCENTAGE WE CHARGED LAST YEAR SHOULD BE THE PERCENTAGE WE CHARGE THIS YEAR.

I WAS WILLING TO HAVE THAT RATE ADOPTED WHICH WOULD BRING US UP TO -- AS OPPOSED TO WHAT WAS THE PERCENTAGE THERE AND WOULD HAVE INCREASED SLIGHTLY.

5.2 -- IT IS 4.2 AS OPPOSED TO THE 3.5 NUMBER. MR. BERRY VERY WISELY IN MY OPINION GAVE THE COUNCIL THAT IT ADDS $1 MILLION TO THE COFFERS AND A LAWSUIT AND YOU CAN BLOW THAT MILLION DOLLARS IN A LAWSUIT REAL QUICK. AND SO HIS RECOMMENDATION IS THAT WE STICK WITH THE SB2 RATE FOR FLOOD CONTROL AND I AM UH MEANABLE TO THAT.

WITH RESPECT TO THE HOSPITAL DISTRICT WHAT HAS BEEN PROPOSED, I AM ACTUALLY IN FAVOR OF THAT AS WELL. MY QUESTION IS -- YOU KNOW, WE HAVE TO HAVE A HEARING AND WE HAVE TO HAVE A VOTE ON FLOOD CONTROL, HOSPITAL DISTRICT AND THE PORT OF HOUSTON BECAUSE THOSE ARE NOT THE NO NEW REVENUE. THOSE ALLOW US TO GROW -- NOT QUITE AT THE RATE OF 4.2, BUT IT ALLOWS US TO GROW WITH WHAT OUR COUNTY HAS GROWN AND THOSE DEPARTMENTS WHICH HAVE SEEN ADDED NEED WITH FLOOD ON -- FLOOD CONTROL.

IT IS THE NUMBERS I SAID BEFORE BECAUSE, AND MR. BERRY, YOU CAN CHIME NBUT THE MORE YOU PAYOFF OF IT, THE LESS YOU OWE. A NO NEW NET REVENUE WOULDN'T

IMPACT THEM. >> CORRECT. THAT HAS BEEN HEADED DOWN JAM JAM AND WILL

>> R. JACK CAGLE: AND WILL CONTINUE TO DO SO AS WE PAYOFF THE PORT FUNDS.

JUDGE, SIMPLY PUT, THESE RECOMMENDED RATES FROM PAGE 2 OF THE REPORT, I'M COMFORTABLE WITH. BUT I WOULD LIKE TO STILL SEE TWO DIFFERENT DATES.

ONE DATE FOR HARRIS COUNTY AND ANOTHER DATE FOR THE OTHER THREE.

THEN I WOULD DEFER TO FURTHER DISCUSSION AS TO WHERE WE ARE GOING, BUT COMFORTABLE WITH THE NO NEW REVENUE RATE FOR HARRIS SOWN CO TOO -- COUNTY AND THE FLOOD CONTROL DISTRICT AND PORT OF HOUSTON RATE. I SAID THIS PUBLICLY OUTSIDE OF COMMISSIONER'S COURT, AND I

AM STILL IN THAT SAME MIND SET. >> LINA HIDALGO: COMMISSIONER

ELLIS AND THEN COMMISSIONER GARCIA. >> RODNEY ELLIS: MR. BERRY -- THANK YOU, JUDGE. MR. BERRY, AS I UNDERSTOOD YOUR COMMENTS EARLIER, YOU ARE NOT MAKING A RECOMMENDATION. YOU HAD THEM COME FORWARD AND SO YOU -- ARE YOU, OR ARE YOU

NOT MAKING A RECOMMENDATION? >> WE RECOMMENDED YOU EVALUATE A RANGE BETWEEN THE NO NEW REVENUE RATE AND AS COMMISSIONER CAGLE SAID, THE LET IT ROLL RATE, LAST YEAR'S RATE. I THINK IT IS USEFUL AS COMMISSIONER COURT MEMBERS TRY TO PROVIDE GUIDANCE THAT THEY SPECIFY WHERE IN THAT RANGE THEY ARE FALLING.

>> RODNEY ELLIS: AND FOR WHAT IT IS WORTH, THE REASON I RECOMMENDED A SEPARATE HEARING ON IT IS THAT LAW BILL SENATE BILL 2 PERMITS UP TO 8%, IS THAT CORRECT WITHOUT A VOTE,

FOR HARRIS HEALTH? >> WITHOUT GOING TO THE BALLOT BOX.

>> YES. I AM NOT ADVOCATING IT, BUT FOR THE COURT, JUDGE AND COMMISSIONERS, THE REASON I THINK WE OUGHT TO -- I DON'T -- WE PUT A BOARD OVER THERE.

THERE ARE 9 MEMBERS ON THE BOARD. I I KNOW WE NEED TO REVIEW.

OUR FOLKS GET ON THE BOARD AND THAT'S A SEPARATE ARGUMENT. I DON'T THINK I WAS AFFORDED THE SAME PRIVILEGES AS OTHERS IN THE PAST. I WANT TO LET THEM MAKE THEIR CASE ON WHATEVER LAW IT WAS. UNLESS THEY ARE GONNA DO THAT TODAY.

YOU GOT ME? I BELIEVE HEALTH CARE EVEN BEFORE THIS PANDEMIC WAS IN A

[01:50:06]

THEY CAN DO IT TODAY IF THEY WANT SOME GUIDE -- GUIDANCE. I AM NOT SURE I AM COMFORTABLE WITH ONE OR TWO, BUT IF THAT'S THE SENTIMENT OF THE COURT AND I UNDERSTAND THE WAY THE LAW WORKS. FOUR HAS TO BE THERE OR IT AUTOMATICALLY GOES TO THE -- WHAT WE CALL IN A PANDEMIC, THE NUCLEAR OPTION IF WE WEREN'T ALREADY THERE.

I DON'T KNOW IF THE DOCTOR IS STILL ON THE LINE BECAUSE I DIDN'T GET A CLEAR IDEA FROM HIM OR HIS ONE BOARD MEMBER HERE, WHAT ARE THEY RECOMMENDING, OR WHAT ARE THEY

ASKING US FOR? DO YOU KNOW, MR. BERRY? >> OBVIOUSLY WE WOULD LIKE TO BE [INAUDIBLE] AND LISTENING AND UNDERSTANDING THE ECONOMIC SITUATION OF THE COUNTY AS A WHOLE MY PREFERENCE IS FOR US TO REMAIN AT THE CURRENT RATE WHICH WOULD TRANSLATE TO ADDITIONAL FUNDS FOR US, BUT IF NOT IT WOULD TAKE US LOWER THAN WE ARE.

OBVIOUSLY WE WOULD LIKE TO GO BACK TO WHERE WE WERE LAST YEAR, BUT I UNDERSTAND THAT EVERYTHING HAS TO BE CONSIDERED. WE ARE PART OF THE ECONOMY OF

THE COUNTY AND THAT'S MY HUMBLE OPINION, COMMISSIONER. >> RODNEY ELLIS: AND THAT'S

OPTION TWO, MR. BERRY? >> WHAT I HEARD, AND HE CAN CONFIRM, IS THAT HIS RECOMMENDATION IS THE UPPER END OF THE RANGE THAT I PROPOSED IN MY DOCUMENT.

SO THAT WOULD BE THE OVERALL 1.3 CENTS DECREASE WITH ROLLING THE HOSPITAL RATE FORWARD WITH RESPECT TO THAT DISTRICT. DOCTOR, I WANT TO MAKE SURE I

DIDN'T MISUNDERSTAND YOU. >> WHEN YOU SAID DECREASE, I MEANT FOR US TO STAY AT THE

CURRENT RATE. >> I APOLOGIZE. I WAS TALKING ABOUT THE ALL OF THE RATES TOGETHER. YES. THE CURRENT RATE.

I'M SORRY FOR THE CONFUSION. >> RODNEY ELLIS: JUDGE, IF I MIGHT JUST SO THAT WE ARE

CLEAR, COMMISSIONER CAGLE, YOU ARE COMFORTABLE WITH THAT? >> R. JACK CAGLE: I'M COMFORTABLE WITH KEEPING THE LET IT ROLL RATE, AND I KNOW THAT'S NOT THE TERM THAT SHOULD -- THAT IT SHOULD BE CALLED, BUT IT WOULD BE THE PERCENTAGE WE CHARGED LAST YEAR TO BE THE SAME THAT WE CHARGE THIS YEAR. MY UNDERSTANDING IS IT IS 4.2 RIGHT NOW. I AM COMFORTABLE WITH THE LET IT ROLL RATE FOR THE HOSPITAL. I AM COMFORTABLE WITH THE LET IT ROLL RATE FOR FLOOD CONTROL, BUT THE LEGAL IMPLICATIONS ARE DIFFERENT FOR THE HOSPITAL THAN FOR FLOOD

CONTROL. >> ADRIAN GARCIA: I THINK I I HAVE A MOTION THAT WILL MAKE IT SIMPLER FOR A LOT OF US. JUST IN HEARING THE CONVERSATION I WOULD LIKE TO PROPOSE THIS, AND WE CAN DISCUSS IT, BUT I THINK YOU GUYS HAVE ALREADY BEEN DISCUSSING IT. I THINK THIS WOULD JUST HELP MAKE IT CLEAR WHERE WE STAND WITH THE TAX RATE. MY MOTION WOULD READ AS SUCH. TO DIRECT THE BUDGET MANAGEMENT DEPARTMENT TO PUBLISH THE FOLLOWING PROPOSED TAX RATES WHICH WOULD BE AN OVER ALL REDUCTION FOR CONSIDERATIONS AT A FUTURE HEARING IN ACCORDANCE WITH STATE STATUTE OUTS. STATUTES. FOR HARRIS COUNTY, THE NO NEW REVENUE RATE OF 0.34028 FOR MAINTENANCE AND OPERATIONS AND 0.05088 FOR DEBT SERVICE FOR A TOTAL TAX RATE OF 0.39116 AND FOR THE HARRIS COUNTY FLOOD CONTROL DISTRICT AND INCIDENTALLY THE ONE FOR HARRIS COUNTY WOULD BE THE NO NEW REVENUE RATE.

FOR THE HARRIS COUNTY FLOOD CONTROL DISTRICT, THE VOTER-APPROVED TAX RATE OF 0.02649 FOR MAINTENANCE AND OPERATIONS AND 0.00493 FOR DEBT SERVICE FOR A TOTAL TAX RATE OF 0.03142 WHICH WOULD BE THE VOTER APPROVED TAX RATE OR OPTION TWO THAT MR. BERRY HAS

[01:55:04]

SO AS A RESULT FOR ALL HARRIS COUNTY ENTITIES, A TOTAL TAX RATE OF 0-POINT -- 0.5992.

I THINK THAT'S WHAT I HAVE BEEN HEARING AND I WOULD MAKE THAT MOTION AND I HOPE I HAVE

A SECOND FOR IT. >> LINA HIDALGO: LET ME MAKE JUST A COMMENT HERE.

A NOTE FROM THAT DR. MUNDAY AGREES WITH THE LET IT ROLL RATE.

A QUESTION FOR ROBERT. IF THIS IS -- THIS SOUNDS LIKE WHAT DAVE BERRY PROPOSED WHICH SOUNDS LIKE WHAT FOLKS ARE GENERALLY ALL RIGHT WITH. THE QUESTION IS WE STILL NEED TO HAVE A HEARING ON TWO OF THOSE, RIGHT? FIRST QUESTION IS DO WE HAVE TO ADOPT A MOTION? WE NEED TO PROPOSE SOMETHING IN ORDER TO HEAD INTO THE HEARING. I ASK THIS BASED ON -- I ASKED THIS EARLIER.

HE SAYS HE WANTS TO MAKE SURE AND COMMISSIONER ELLIS SAYS WE WANT THE DISCUSSION.

DO WE NEED TO TODAY PROPOSE THESE RATES LIKE COMMISSIONER GARCIA HAS SAID SO THAT WE KNOW WHAT IT IS THAT IS UNDER CONSIDERATION AND THEN IT IS AN UP OR DOWN VOTE?

>> ADRIAN GARCIA: JUDGE, IF I MAY, I ANSWER THAT. WE DON'T HAVE TO ADOPT THIS, BUT FOR THE PURPOSE OF TRYING TO CREATE SOME UNISON AND CONGE -- CON GENE -- CONGENEALITY, THIS IS SIMPLY A MOTION TO CONSIDER THESE PARTICULAR RATES.

IT IS NOT -- IT OBVIOUSLY WE STILL HAVE TO HAVE THE HEARING.

IT IS SPECIFICALLY TO LET MY COLLEAGUES NOTE WHAT SEEMS TO BE THE SPIRIT OF WHAT WE ARE DISCUSSING. THIS IS SIMPLY A MOTION TO CONSIDER.

>> R. JACK CAGLE: JUDGE, IT IS ALMOST 11:00 AND I MIGHT BE WILLING TO DO THE SECOND TO THAT MOTION. CAN WE TAKE A BREAK AND LET ME DOUBLE CHECK AND READ THE MOTION AND TAKE CARE OF OTHER NECESSARY NICKS -- THINGS THAT WE NORMALLY NEED TO TAKE CARE

OF AT 11:00. >> LINA HIDALGO: LET'S BE BACK AT 11:15.

IT IS >> LINA HIDALGO: OKAY. WELL, WE'LL CATCH HIM UP.

IT IS 11:18 AND COMMISSIONER'S COURT IS BACK IN SESSION. MY UNDERSTANDING IS THAT WE DO NEED TO ADOPT A VOTE LIKE THE ONE COMMISSIONER GARCIA PROPOSED THAT COMMISSIONER CAGLE SECONDED. THAT IS BECAUSE WHEN WE WALK INTO THE TAX HEARING, AND THE IDEA IS NORMALLY YOU POST THIS IN THE NEWSPAPER, SO IF WE DON'T HAVE A VOTE TODAY, WHAT WOULD YOU POST IN THE NEWSPAPER? THAT WOULD ALSO MEAN THAT WE WOULD DISCUSS THESE PROPOSED TAX RATES AND WE WOULD VOTE ON THOSE AND THAT -- AND THERE WOULD BE NO SURPRISES WHEN IT COMES TO VOTING AS TO WHAT WE ARE VOTING ON.

SO WE WOULD JUST HAVE TO VOTE ON WHATEVER WE HAD THE PUBLIC HEARING ON.

NOW, IF AT THE PUBLIC HEARING THERE IS A DECISION THAT, NEVER MIND, NOW WE WANT TO VOTE ON THESE AND WE WANT TO VOTE ON SOMETHING ELSE, THEN WE HAVE TO HAVE ANOTHER MOTION AND ANOTHER PUBLIC HEARING AND A DIFFERENT VOTE. THERE WOULD NEVER BE THE SITUATION WHERE WE WOULD HAVE THIS VOTE TODAY AND A PUBLIC HEARING ON THESE NUMBERS AND THEN VOTE ON A DIFFERENT SET OF NUMBERS AS A SURPRISE. THAT'S JUST -- THAT -- WE COULDN'T DO THAT. THAT'S NOT HOW IT WOULD WORK. I JUST WANT TO LAY THAT OUT THERE. I THINK THAT SHOULD CLARIFY THE CONVERSATIONS THAT ARE SWIRLING AROUND. ROBERT OR AMY, DID I MISS ANYTHING?

>> AMY, YOU HAD A POINT TO MAKE? >> YES.

FOR THE RECORD, THE NEWSPAPER REQUIRE THAT'S IT BE INDICATED HOW THE COURT MEMBERS BE VOTED. IF THEY WANT TO VOTE DIFFERENTLY ON THE

[02:00:06]

JURISDICTIONS THAT WOULD NEED TO BE CLEAR ON THE RECORD. >> JUST TO HELP ME OUT THAT VOTE TODAY DOES NOT REQUIRE A CORE VOTE. IT WOULD BE A 3-2 VOTE AND STILL PUBLISH WHATEVER PASSES BY THE COURT MEMBERS. IS THAT CORRECT, AMY?

>> YOUR HONOR, MAY I ASK A CLARIFYING QUESTION OF AMY? >> R. JACK CAGLE: ARE YOU SAYING WE NEED TO VOTE INDEPENDENTLY ON EACH OF THESE FOUR RATES?

FOR EXAMPLE -- [INAUDIBLE] AND THEN VOTE ON THEM SEPARATELY? >> I JUMP IN AND SAY IT A DIFFERENT WAY, AMY. IF IT WERE UNANIMOUS TO ADOPT ALL OF THE RATES THEY COULD DO THAT, AND THEN IF SOMEONE WANTED TO VOTE AGAINST A RATE THAT COULD BE SEPARATE TO AVOID VOTING ON EACH ONE INDIVIDUALLY. IT IS A MATTER OF BEING ABLE

TO RECORD THE VOTE. IS THAT CORRECT, AMY? >> YES, SIR.

>> R. JACK CAGLE: AS I UNDERSTAND IT THE MOTION BY COMMISSIONER GARCIA IS THAT WE ADOPT THE TAX RATES AS WAS PUT IN BY THE BUDGET OFFICER AND I THINK THAT COMMISSIONER GARCIA'S MOTION IS OUT AND THE PRECISE NUMBERS THAT ARE IN THERE, WHAT ELSE DO WE NEED TO

HAVE BESIDES THAT? >> AND IF I COULD CLARIFY, I THINK ACTUALLY, COMMISSIONER GARCIA, IS SAYING HE WANTS TO PUBLISH THOSE RATES AND CONSIDER THEM FOR ADOPTION

BECAUSE YOU ARE NOT ADOPTING THE RATES TODAY. >> ADRIAN GARCIA: THAT'S

CORRECT. >> CORRECT. HIS MOTION IS THAT WE PUBLISH THESE FIRST AND THAT WE COME BACK FOR THE HEARING ON -- ON THE PERFECT DAY.

NOT TO PUT TOO FINE OF A POINT ON THE PENCIL, BUT SINCE WE ARE MOVING FOR THE NO NEW REVENUE RATE, DO WE HAVE TO HAVE ANY -- DO WE HAVE TO HAVE A HEARING AND A SUBSEQUENT --

I MEAN, THERE SEEMS TO BE A NUANCE WHEN WE ADOPT IT. >> IN MY VIEW, YOU DON'T NEED A HEARING ON THE NO NEW REVENUE RATE, BUT YOU NEED TO FORMALLY ADOPT IT AFTER BEING -- AFTER HAVING IT PROPERLY POSTED FOR COMMISSIONER'S COURT.

>> R. JACK CAGLE: EXCELLENT. >> IS THAT CORRECT, AMY? I WANT TO BE DOUBLE SURE WE

ARE AS CLEAR AS WE CAN BE. >> IT REQUIRES A NEWSPAPER NOTICE EVEN IF YOU ARE NOT

GOING TO EXCEED THE NO NEW REVENUE RATE. >> THERE IS NO HEARING

REQUIRED. >> THERE IS NO HEARING REQUIREMENT, SIR, THAT IS

CORRECT. >> IT COULD BE DONE WITH COMMISSIONER'S COURT IF GIVEN

A PROPER NEWSPAPER NOTICE. >> YES, SIR. >> WE COULD HAVE IT HERE IF WE

CHOSE THOUGH, CORRECT? >> CORRECT. ANY MEETING OF COMMISSIONER'S COURT IS A PUBLIC MEETING, BUT IT IS A MATTER OF WHAT YOU WOULD LIKE TO GET.

>> LINA HIDALGO: IN THAT CASE WE CAN HAVE THE MOTION AND THEN IT IS A MATTER OF FIGURING OUT THE DATES, AND WE WOULD HAVE ONE DATE FOR HEARINGS AND IF WE ADOPTED THE MOTION WE HAVE ONE DATE FOR A HEARING ON FLOOD CONTROL DISTRICT.

AND WE WOULDN'T NEED TO DO A HEARING ON THE COURT OR THE COUNTY, AND THEN WE WOULD VOTE ON ALL OF THESE AT A SEPARATE DATE, AND WE COULD -- YEAH. WE COULD VOTE ON THEM ON ONE DATE. THERE WOULDN'T BE ANY SURPRISES AS TO WHAT PEOPLE ARE VOTING ON AND WHAT THEY ARE NOT VOTING ON. WE WOULD HAVE ALREADY DISCUSSED IT AND PROPOSED IT AT THIS MEETING. COMMISSIONER ELLIS?

>> RODNEY ELLIS: JUDGE, I THINK WE ARE ON THE SAME WAVE LENGTH.

I THINK COMMISSIONER GARCIA WAS MAKING THE MOTION. WHEN I BROUGHT UP THE ISSUE -- IF COMMISSIONER CAGLE OR COMMISSIONER RADACK, IF SOMEBODY DIDN'T -- IF WE WERE NOT GOING TO HAVE FOUR MEMBERS , I JUST WANTED US TO KNOW SO WE ARE NOT GOING THROUGH

[02:05:04]

TRY TO GIVE PEOPLE A COMFORT TO PIN IT DOWN. >> ADRIAN GARCIA: THE PANDEMIC IS AN INCREDIBLE THING. I CAN'T THANK THE JUDGE ENOUGH FOR HER LEADERSHIP DURING THIS CRAZY TIME. BUT I THINK THAT THIS MEETING IN PARTICULAR AS PEOPLE ARE LOOKING AT THEIR IMMEDIATE CIRCUMSTANCES AND THE CHALLENGES THAT THE PANDEMIC HAS CAUSED FOR OUR ECONOMY, I THINK THE CITIZENS NEED TO SEE US TOGETHER AT A MEETING AND WORKING TO DEAL WITH THIS AND GIVING THEM SOME ASSURANCES THAT WE ARE BEING THOUGHTFUL ABOUT THEIR CHALLENGES, BUT OUR EFFORTS TO STRENGTHEN OUR ECONOMY AND MOVE FORWARD, I

THINK THIS IS A GOOD VOTE FOR EVERYBODY CONCERNED. >> LINA HIDALGO: SO WE HAVE A MOTION BY COMMISSIONER GARCIA AND A SECOND BY COMMISSIONER CAGLE.

ALL THOSE IN FAVOR? >> I. >> I.

>> LINA HIDALGO: OPPOSED? IS COMMISSIONER RADACK STILL OUT?

>> STEVE RADACK: I VOTED YES. I. >> LINA HIDALGO: I AM IN FAVOR

SO THE MOTION CARRIES UNANIMOUSLY. >> ADRIAN GARCIA: THANK YOU.

>> LINA HIDALGO: AS FAR AS FINDING A DATE THAT'S SOMETHING WE CAN DISCUSS.

THERE IS A SEVEN-DAY GAP. THERE IS A MEETING ON THE 27TH AND ADOPTION AND THAT WOULD GIVE US SEVEN DAYS. WHAT WOULD BE POSTED IS THIS AND WHAT WOULD BE VOTED ON IS THIS, YAY OR NAY AND EVERYBODY IS CLEAR ON THAT. AND SO I THINK THIS HAS BEEN A VERY HELPFUL DISCUSSION, DAVE AND ROBERT. THANK YOU FOR EXPLAINING ALL OF THIS. DAVE, YOU HAD ADDITIONAL PRESENTATIONS THIS MORNING.

>> CAN I ASK ONE CLARIFYING QUESTION, JUDGE? IS IT THE WILL OF COURT WE HAVE A SINGLE HEARING COVERING BOTH FLOOD CONTROL AND HOSPITAL DISTRICT, AND THEN

JUST CHECKING WITH THE COUNTY ATTORNEY THAT THAT WORKS? >> LINA HIDALGO: WE COULD DO IT THE SAME DAY. IF YOU NEED TO OPEN AND CLOSE TWO SEPARATE HEARINGS, THAT'S FINE JUST FOR THE SAKE OF EVERYBODY'S SCHEDULES AND I HAVE SEEN THAT FROM SOME

CHECKING IN, THAT IT IS NOT AS EASY TO LINEUP EVERYBODY. >> THAT'S FINE.

>> AND WE AGREE WITH THAT. YOU CAN DO IT ALL ON THE SAME DAY IF THAT'S THE WILL OF THE

COURT. >> LINA HIDALGO: WE'LL WORK WITH THE OFFICES ON

SCHEDULING. DAVE, GO AHEAD. >> NEXT UP ON OUR AGENDA IS THE REVIEW OF THE COUNTY'S FINANCIAL CONDITIONS. LUCINDA, WOULD YOU BE ABLE TO

[2. Financial Condition]

SHARE YOUR SCREEN AGAIN? >> YES, SIR. >> LET'S FLIP TO THE BEGINNING. FOR ANYBODY KNOB ON THE WEBEX THIS IS BACK UP ON THE FINANCIAL CONDITION ITEM IN THE MID-YEAR REVIEW. SO WE ALREADY COVERED THE LAST SECTION HERE THAT WILL ENABLE ME TO BE FAIRLY BRIEF HERE. ONE OF MY COMMITMENTS AS THE BUDGET DIRECTOR IS TO PROVIDE COMMISSIONER'S COURT WITH GOOD FINANCIAL INFORMATION IN AN ATTEMPT TO BUILD A FRAMEWORK THAT WE CAN EVALUATE FINANCIAL MATTERS SUCH AS DEBT ISSUANCES AND SPENDING DECISIONS AND THE BUDGET AND TAX RATES. THIS IS A FIRST PASS TO BUILD THAT FRAMEWORK. I WOULD BE HAPPY TO UPDATE IT AS OFTEN AS COMMISSIONER'S COURT WOULD LIKE. WE MAY NOT WANT TO GO THROUGH IT AT A COMMISSIONER'S COURT MEETING, BUT I SUBJECT QUARTERLY IT WOULD BE A GOOD IDEA.

I VIEW THIS DISCUSSION AS A FINANCIAL STATE OF THE COUNTY. I CAN REPORT THAT EVEN THOUGH WE ARE FACING CHALLENGES FROM COVID AND LOWER OIL PRICES, THE FINANCIAL STATE OF THE COUNTY IS STRONG. IN TERMS OF AN AGENDA, I FIRST COVER THE CREDIT RATING AND A REVIEW OF THE COUNTY'S FINANCIAL HEALTH. AND THEN I TURN TO THE IMPACTS OF COVID-19, THE FINANCIAL IMPACTS WHICH TO DATE HAS BEEN FAIRLY LIMITED.

WE WILL THEN GO INTO REVENUE AND EXPENSE PRO -- PROJECTIONS FOR THE CURRENT FISCAL YEAR WHICH IS A REMINDER THAT RUNS FROM MARCH 1ST 2020 UNTIL FEBRUARY OF -- FEBRUARY 28 OF

[02:10:04]

WE COVERED THE REVENUE OUTLOOK SO DON'T NEED TO GO OVER THAT AGAIN.

SLIDE 3 PLEASE. LET'S START LOOKING AT SOME KEY FINANCIAL METHODS.

AND THERE IS A LOT OF DETAIL ON THIS SLIDE. WE TALKED A LOT ABOUT THE COUNTY'S CREDIT RATING. I WANTED TO PROVIDE SOME TRANSPARENCY ON WHERE THAT COMES FROM. THESE ARE THE METRICS THAT MOODY'S USES TO EVALUATE OUR CREDIT RATING. THESE ARE THE METRICS THAT STAND UP OUR TRIPLE-A CREDIT RATING. AND THEY ARE ALSO A GOOD WAY FOR US TO ASSESS THE FINANCIAL HEALTH OF THE COUNTY. I WON'T GO THROUGH EVERY NUMBER HERE, BUT WE CAN THINK ABOUT FOUR AREAS. ONE IS THE ECONOMY AND THE TAX BASE.

WE ARE STARTING THIS DIFFICULT TIME FROM A STRONG PLACE. WE HAVE ALMOST A $500 BILLION TAX BASE AND THAT'S THE PROPERTY TAX BASE IN THE ENTIRE STATE OF TEXAS.

AND THAT TAX BASE HAS GROWN BOTH LARGER AND MORE DIVERSE IN RECENT YEARS AND LESS BEHOLDEN TO ANY SINGLE INDUSTRY. THE NEXT SERIES WE WILL REVIEW OR FINANCES OR FUND BALANCES. AND THIS IS HOW MUCH CASH WE ARE MAINTAINING ON HAND TO DEAL WITH ISSUES AS THEY COME UP. I TELL YOU A LITTLE MORE ABOUT THIS LATER, BUT WE SCORE EXTREMELY HIGH IN THIS AREA, AND IF ANYTHING WE HAVE EXCEEDED OUR GOALS. THE NEXT AREA IS MANAGEMENT. DO WE HAVE THE ABILITY TO MATCH REVENUES WITH EXPENSES BOTH TO PAY OUR DEBTS AND POLICIES.

THE INSTITUTIONAL FRAMEWORK IS NOT SOMETHING WE BY AND LARGE N -- CONTROL, BUT IT IS SET BY LEGISLATION. AND WE USED TO HAVE A TRIPLE-A IN THIS AREA.

IT WENT DOWN TO DOUBLE-A THAT IMPOSED MORE CONSTRAINTS ON US.

WHERE WE DO HAVE CONTROL IS OPERATING MEASURES. WHAT ARE WE BRINGING IN RELATIVE TO WHAT WE ARE SPENDING? THAT'S 1.1 TIMES OVER THE LAST FIVE YEARS. WE BROUGHT IN 1.1 TIMES WHAT WE SPENT.

THE FOURTH IS DEBT IN PENSIONS. WE HAVE A LOW DEBT LEVEL RELATIVE TO OUR TAX BASE IS RELATIVELY TO DEBT REVENUE. AND PENSION LIABILITY, WE ARE DOING FINE FOR THE MOMENT, BUT THIS IS SOMETHING WE WANT TO KEEP OUR EYE ON.

LOW INTEREST RATES HELP A LOT WHEN WE ISSUE DEBT. IT IS AN ISSUE TO MONITOR AROUND PENSION LIABILITY BECAUSE IT IS HARDER TO GET RETURNS AND WE DON'T WANT TO GET BEHIND ON CONTRIBUTIONS. NO IMMEDIATE ACTION TO TAKE, BUT I WANT TO KEEP OUR EYE ON IT SO WE DON'T GET BEHIND ON FUNDING OUR PENSIONS. NEXT SLIDE PLEASE WHICH IS SLIDE 4. THE RESULT OF THE CREDIT METRICS IS WE MAINTAIN THE TOP CREDIT RATINGS FOR THE GENERAL OBLIGATION DEBT. FOR THE HOSPITAL DISTRICT WHICH HAS A VERY LOW DEBT LEVEL AND ALSO FOR TOLL ROAD REVENUE BONDS.

A LITTLE EARLIER COMMISSIONER RADACK WAS ASKING ME ABOUT THE TOP ROAD CAPITAL STRUCTURE.

PART IS SUPPORTED BY TAXES. PART IS SUPPORTED BY REVENUE. SO FOR THE HOSPITAL AND THE TOLL ROAD REVENUE WE ARE IN THE DOUBLE-A RANGE. ONLY ONE NOTCH BELOW, BUT IT IS STILL A STRONG RATING. AND FOR THE TOLL ROAD, AND ONE OF THE BEST TOLL ROAD SYSTEMS IN THE COUNTRY. NEXT SLIDE, PLEASE. THIS IS SLIDE FIVE.

THIS IS A REPORT OF HARRIS COUNTY'S COST TO BORROW. AS WE PURSUE CAPITAL PROJECTS ROADS, BRIDGES, PROJECTS, WHAT DO WE PAY BONDHOLDERS TO INVEST IN INFRASTRUCTURE.

AS OF SEPTEMBER 21ST, THE INTEREST RATE ON OUR 10-YEAR BOND WAS 1.17%.

YOU CAN SEE ON THIS GRAPH THAT RELATIVE TO THE U.S. GOVERNMENT'S COST TO BORROW, THIS IS AN HISTORIC LOW. WE ARE GOING BACK 12 YEARS. IT IS THE LOWEST IT HAS BEEN 12 YEARS. THIS SHOWS THAT BOND BONDHOLDERS HAVE CONFIDENCE IN

[02:15:05]

WE BROUGHT FORWARD ONE OPPORTUNITY AT THE TOLL ROAD AND WE BROUGHT FORWARD ONE OPPORTUNITY WITH RESPECT TO ROAD BONDS. AND WE'LL CONTINUE TO BRING THOSE OPPORTUNITIES FORWARD WHERE WE CAN OBTAIN A LOWER INTEREST RATE RELATIVE TO OUR CURRENT DEBT. THAT WILL GIVE US MORE MONEY THAT WE CAN PUT TO WORK IN OTHER AREAS. WE WILL TURN NOW TO THE FINANCIAL --

>> R. JACK CAGLE: MR. BERRY, I JUST HAVE A VERY MINOR WHY OR SUGGESTION ON OUR SLIDE ON PAGE 5. IT IS THE GENERAL OBLIGATION DEBT AND I KNOW YOU WILL SHORTEN THAT AS GOD. BUT I DON'T THINK ANY DEBT SHOULD BE GOD.

MAYBE THERE IS A WAY YOU CAN MAKE IT GNOD OR SOMETHING LIKE THAT.

JUST A MINOR TWEAK I WOULD THROW IN YOUR DIRECTION AS A SUGGESTION GOING FORWARD.

THANK YOU. >> I VERY MUCH AGREE. THANK YOU FOR THAT SUGGESTION. NEXT SLIDE PLEASE. SO WE ARE NOW ON SLIDE I BELIEVE 5. IT IS HARD FOR ME TO SEE THE PAGE NUMBER.

>> IT IS 6. >> WE ARE LOOKING AT THE FINANCIAL IMPACT OF COVID-19.

WE RECEIVED $426 MILLION OF CARES FUNDING. UNLIKE FEMA REIMBURSMENTS WHICH IS THE OTHER MAJOR FUNDING SOURCE THAT HAS BEEN CARRYING US THROUGH THIS PANDEMIC, CARES DOLLARS WERE ACTUALLY ADVANCED FUNDED BY THE FEDERAL GOVERNMENT WHICH MEANS WE DON'T HAVE TO WAIT FOR A REIMBURSEMENT. AND OF THE ORIGINAL $426 MILLION WE HAVE NOW ALLOCATED $336 MILLION. WE HAVE 47 MILLION THAT IS UNALLOCATED UNLESS IT ALLOCATES TO A PARTICULAR PROGRAM AND $43 MILLION THAT IS HELD IN RESERVE SHOULD WE NEED TO PICK UP ANY OTHER COSTS EITHER THAT AREN'T REIMBURSED BY FEMA OR THAT COME UP IN THE COURSE OF OUR COVID RESPONSE.

KEEP IF MIND THAT WE NEED TO ACTUALLY NOT JUST ALLOCATE, BUT ACTUALLY SPEND ALL OF THIS MONEY BY THE END OF THE YEAR. IT IS USE IT OR LOSE IT. I ALSO ADD THAT THIS IS SOMETHING WE PUBLISH REGULARLY ON THE BUDGET MANAGE MEANT -- MANAGEMENT WEBSITE.

IT IS NOT JUST COMMISSIONER'S COURT, BUT THE PUBLIC CAN FOLLOW WHAT WE ARE DOING WITH

THESE FUNDS. LET'S TURN TO SLIDE -- >> R. JACK CAGLE: MR. BERRY, A QUICK QUESTION. JUDGE, CAN I ASK A QUICK QUESTION ON THIS SLIDE?

>> LINA HIDALGO: YES, COMMISSIONER CAGLE. >> R. JACK CAGLE: ON THE 43 THAT IS CONSIDERED RESERVE, ARE WE ALLOWED TO KEEP THE RESERVE AS A RESERVE BECAUSE OF THE CONTINGENCIES OF THE OTHER EXPENDITURES AND OBLIGATIONS?

>> WE -- MY RESPONSE TO THAT QUESTION, COMMISSIONER, WOULD BE WE CAN KEEP IT AS A RESERVE FOR NOW. WE NEED TO SPEND IT BY THE END OF THE YEAR.

AS WE GET CLOSER TO THE END OF THE YEAR, IF IT LOOKS LIKE WE WON'T NEED IT, WE WILL FIND A WAY TO PUT IT TO WORK EITHER THROUGH INCREASING ONE OF THESE OTHER PROGRAMS OR WE MAY HAVE SOME EXPENSES, FOR EXAMPLE OVERTIME, THAT IS CURRENTLY BEING PAID OUT OF

THE GENERAL FUND WE CAN LOOK TO COVER WITH CARES. >> LINA HIDALGO: ADDING ON TO THAT, THE PANDEMIC LOOKS LIKE IT WILL CONTINUE INTO NEXT YEAR.

WE ARE ALL HOPING FOR A VACCINE QUICKLY, BUT IF WE DON'T RECEIVE ANOTHER CARES ACT OR FEDERAL GOVERNMENT PACKAGE LIKE THIS ONE AND WE HAVE TO SPEND ALL OF THE FUNDS BY DECEMBER, IS YOUR SENSE SIMPLY THAT WE HAVE TO MAINTAIN THE CURRENT LEVEL OF -- OR THE NECESSARY LEVEL OF PUBLIC HEALTH AND RELATED SERVICES OUT OF THE PIC FUND?

HAVE YOU THOUGHT OF ANY OTHER THING WE CAN POSSIBLY DO? >> SURE.

FORTUNATELY A LARGE PERCENTAGE OF THE HEALTH COSTS WILL BE COVERED BY FEMA REIMBURSMENTS. THAT WILL PROVIDE A FUNDING SOURCE TO CONTINUE THOSE.

I DO THINK -- WE CERTAINLY WON'T BE ABLE TO CONTINUE THE SAME LEVEL OF WHAT I CALL

[02:20:04]

I THINK IT WOULD MAKE SENSE FOR US TO STUDY TOGETHER DO WE HAVE FUNDING MECHANISMS TO DO

SOMETHING AND NOT JUST STOP COMPLETELY COME JANUARY. >> R. JACK CAGLE: ANOTHER

QUESTION. >> LINA HIDALGO: GO AHEAD, COMMISSIONER.

>> R. JACK CAGLE: IF WE REQUEST -- [INAUDIBLE] TO COME TO US WITH AN ON --

[INAUDIBLE] IT IS OURS FOR THE NEXT SIX MONTHS. >> LINA HIDALGO: COMMISSIONER, YOUR SIGNAL IS NOT COMING IN ALL THE WAY. DO YOU WANT TO TRY THAT

AGAIN? >> R. JACK CAGLE: YES, YOUR HONOR.

I'M HAVING A FEW WI-FI -- CAN YOU HEAR ME NOW? CAN YOU HEAR ME NOW?

>> LINA HIDALGO: WE CAN HEAR YOU. I LET YOU KNOW IF IT CUTS

OUT. >> R. JACK CAGLE: IF WE HAD PUBLIC HEALTH GIVE US THEIR BUDGET FOR THE NEXT SIX MONTHS BECAUSE WE KNOW THAT -- [INAUDIBLE]

>> LINA HIDALGO: YOU MAY WANT TO CALL WITH THE OTHER PHONE. YOU SAID THE NEXT SIX MONTHS BECAUSE WE KNOW, AND THEN IT BROKE OFF. MAYBE YOU CAN DO THE DIAL IN.

LUCINDA CAN WALK YOU THROUGH THAT. >> R. JACK CAGLE: I TRY TO DO

THAT AGAIN. IS THIS A LITTLE BETTER NOW? >> LINA HIDALGO: WE CAN HEAR

YOU RIGHT NOW. >> R. JACK CAGLE: SAYING, IF WE COULD HAVE A SIX-MONTH REPRIEVE FUND, HEALTH OVER THAT SIX-MONTH PERIOD OF TIME WOULD IT QUALIFY FOR THIS

CARES EXPENDITURE? >> I BELIEVE, COMMISSIONER CAGLE THAT WE WOULD ACTUALLY HAVE TO SPEND THE MONEY. WE CAN LOOK AT WAYS WE MIGHT ACCOMPLISH THAT GOAL IN TERMS OF HAVING AN AMOUNT OF MONEY SET ASIDE AT THE END OF THE YEAR TO FUND PUBLIC HEALTH OVER -- I GUESS IN THE NEXT, I GUESS, THREE MONTHS. IT IS NOT AS SIMPLE AS JUST USING CARES DOLLARS, BUT WE DO HAVE SOME IDEAS. IF THAT'S SOMETHING YOU WOULD

LIKE US TO WORK ON, WE WOULD BE HAPPY TO DO THAT. >> R. JACK CAGLE: PLEASE DO.

AND MAYBE YOU AND I CAN VISIT NEXT TIME AND GO OVER SOME OF THE OPTIONS AS TO HOW WE MAY APPROPRIATELY USE THE 47 PLUS [INAUDIBLE]. THANK YOU.

>> SO LET'S GO TO THE NEXT SLIDE PLEASE. SO WE ARE NOW ON THE SLIDE ABOUT THE CONTINGENCY FUND. WE SOMETIMES CALL IT -- I AM CALLING IT THE CONTINGENCY FUND BECAUSE THE REALITY IS WE ARE NOW USING IT FOR SOMETHING BEYOND PUBLIC IMPROVEMENT.

THE CONTINGENCY FUND HAS BEEN THE MAIN FUND WE'VE USED TO COVER COVID-RELATED COSTS.

WE BEGAN THE YEAR WITH A BALANCE OF 312 MILLION. THIS IS A FISCAL YEAR SO STARTING IN MARCH. WE IMMEDIATELY ALLOCATED $44 MILLION TO DEPARTMENTS THAT COVERS SOME BAIL REFORM COSTS WHICH IS A SMALL AMOUNT AND SOME OTHER COSTS THAT WERE DEEMED TO BE APPROPRIATE USES OF THE CONTINGENCY FUNDS. SINCE THAT TIME WE HAVE ALLOCATED TO THE CONTINGENCY FUND AN ADDITIONAL $229 MILLION.

221 OF WHICH WERE COVID RELATED. 95%.

THAT LEAVES A CURRENT UNALLOCATED BALANCE OF $40 MILLION.

BUT I DON'T WANT TO FIXATE TOO MUCH ON THE $3 MILLION BECAUSE IT HARDLY TELLS THE WHOLE STORY. WE BELIEVE WE WILL GET BEFORE THE END OF THE YEAR $37 MILLION OF REIMBURSEMENT FROM FEMA DATING BACK TO HURRICANE HARVEY WHICH WOULD RE -- REPLENISH THE PIC FUND -- THE CONTINGENCY FUND, EXCUSE ME.

WE ALSO HAVE $96 MILLION OF FUNDS WE PAID FOR OUT OF THE CONTINGENCY FUND THAT WILL BE

[02:25:04]

IT IS JUST MOVING BETWEEN ACCOUNTS INTERNATIONALLY. INTERNALLY.

WE ALSO HAVE 86 MILLION OUT OF THE CONTINGENCY FUND WE BELIEVE WILL WILL BE REIMBURSED BY FEMA. TAKING INTO ACCOUNT THE REIMBURSMENTS WE ARE AT 263 MILLION WHICH IS ACTUALLY VERY CLOSE TO WHERE WE STARTED THE YEAR AFTER THOSE INITIAL BUDGET ALLOCATIONS. THE TAKE AWAY HERE IS THAT WE ARE IN SOLID SHAPE WITH RESPECT TO THE CONTINGENCY FUNDS. WE NEED TO MONITOR THE

[INAUDIBLE] AROUND FEMA REIMBURSEMENT. >> LINA HIDALGO: ONE SECOND.

COMMISSIONER CAGLE HAS A QUESTION. >> R. JACK CAGLE: THE PROJECTED FEMA REIMBURSMENTS OF 89 MILLION, I THINK YOU SAID YOU THOUGHT WE WOULD GET THAT THIS YEAR. IF WE ARE JUST NOW GETTING HARVEY REIMBURSEMENTS, THAT COULD BE A LITTLE AMBITIOUS IN TERMS OF WHEN WE WILL BE REIMBURSED BY FEMA.

IS THERE SOMETHING THAT WE MAY GET THAT THIS YEAR, OR IS THAT SOMETHING YOU ANTS -- ANTICIPATE WE WILL PROBABLY GET SOMETIME OVER THE NEXT FEW YEARS?

>> IF I DID SAY WE EXPECTED IT THIS YEAR, I MISS SPOKE, COMMISSIONER CAGLE.

I THINK IT WILL LIKELY TAKE LONGER. THIS YEAR WE MAY GET SOME OF

IT, BUT WE NEED TO PLAN IT COULD TAKE SOME TIME. >> R. JACK CAGLE: I AGREE WITH THAT. I WORKED WITH THE -- [INAUDIBLE] AND IT WAS JUST COMING IN AT THAT TIME FROM FEMA. [INAUDIBLE].

IT IS SLOW. THANK YOU FOR THAT VERIFICATION.

>> LINA HIDALGO: SO, DAVE, AT THE END OF THIS YEAR, SAY DECEMBER 31ST, HOW MUCH MONEY DO YOU THINK WE WILL HAVE IN OUR CONTINGENCY FUND? RECOGNIZING THAT THERE MAY BE

SOME RETURNS FROM FEMA, BUT IN PRACTICAL TERMS. >> SURE.

LET'S SAY THE SIMPLIFIED OPTION WE GET THE $37 MILLION BACK FROM THE HARVEY REIMBURSEMENT WHICH WE ANTICIPATE, BUT WE HAVE NOT RECEIVED ANY OF THE $89 MILLION FROM FEMA. THAT WOULD PUT US AT ABOUT $174 MILLION IN THE

CONTINGENCY FUND UNDER THOSE ASSUMPTIONS. >> LINA HIDALGO: AND WHAT --

GO AHEAD, COMMISSIONER GARCIA. >> ADRIAN GARCIA: THANK YOU, JUDGE. I WAS GOING TO BLURT OUT AND I APOLOGIZE.

WE OBVIOUSLY NEED TO GET THAT BACK UP. >> I AGREE.

I THINK WE NEED TO NAVIGATE THROUGH THE COVID CRISIS AND, AGAIN, LET'S HOPE THERE IS A VACCINE, BUT SHORT -- SHORTLY THEREAFTER WE NEED A PLAN TO REPLENISH OUR CONTINGENCY FUND. I AGREE WITH THAT, COMMISSIONER.

>> LINA HIDALGO: COMMISSIONER ELLIS? >> RODNEY ELLIS: THANK YOU, JUDGE. MR. BERRY, THERE WERE QUESTIONS EARLIER ABOUT THE TOLL ROAD REFUNDING. IT DEPENDS WHAT STRINGS WE PUT ON IT.

COULD THERE BE A SOURCE IN THE EVENT WE DON'T GET ALL OF THE MONEY WE THINK WE ARE GOING TO GET FROM FEMA OR ARE THERE QUESTIONS ABOUT THE 96 MILLION IN CARES? COULD THAT MONEY BE USED TO BUILD UP OUR CONTINGENCY FUND?

>> IT COULD. AND WHEN WE RECOMMENDED THE TOLL ROAD FRANCE ACTIONS -- TRANSACTIONS IT IS SOMETHING WE MENTIONED AS A POSSIBLE USE FOR THE UP FRONT PAYMENT.

>> IT JUST MAKES A CASE ASSUMING IT DOES GO THROUGH, PARTICULARLY DURING A PANDEMIC.

AND I MAY ADD THE WORST ECONOMIC CHALLENGES OUR REGION HAS HAD.

FLEXIBILITY IS IMPORTANT. A NOTION OF DEDICATED FUNDS THAT I LEARNED IN MY EXPERIENCE IS ALWAYS A CHALLENGE. YOU JUST NEVER KNOW WHAT TO

EXPECT. >> ADRIAN GARCIA: I JUST MENTIONED THE SAME THING,

COMMISSIONER ELLIS. >> CAN WE GO TO THE NEXT SLIDE, PLEASE.

>> SHIFTING TO THE NEXT TOPIC WHICH IS OUR BEST PROJECTION THROUGH THE END OF THIS

[02:30:02]

THIS IS SEPARATE FROM THE CONTINGENCY FUND. WE BEGAN THE YEAR WITH A 1.305 STARTING CASH BALANCE. ASSUMING WE PROCEED WITH THE NO NEW REVENUE GENERAL FUND RATE AND THAT WAS THE SUBJECT OF COMMISSIONER GARCIA'S MOTION AND WE WOULD HAVE PROPERTY TAX REVENUE ABOUT $40 MILLION HIGHER THAN THE INITIAL REVENUE ESTIMATE.

WE DO SEE AT THIS MOMENT THAT NONTAX REVENUE WOULD BE ABOUT $30 MILLION.

AND WE MADE OUR BEST ESTIMATE HERE OF EXPENSES WHICH INCLUDES OUR ACTUAL COST TODAY AND OUR CURRENT RUN RATE ON LABOR COSTS AND THEN SOME PROVISIONS FOR WHAT WE KNOW IS COMING. WE EXCLUDED COVID-RELATED EXPENDITURES BECAUSE WE WERE PAYING FOR THOSE OUTSIDE OF OUR CONTINGENCY FUNDS. BASED ON THESE ASSUMPTIONS WE WOULD END THE YEAR WITH OUR CASH BALANCE OF $1.334 BILLION.

SO ABOUT $30 MILLION HIGHER THAN WHAT WE STARTED. SO AGAIN THE MESSAGE HERE IS THAT WHILE WE HAVE SEEN AN IMPACT TO THE CONTINGENCY FUND THERE IS A PATH TO RESTORE THAT. THE GENERAL FUND, APART FROM THE CONTINGENCY FUND IS FOR

THE MOMENT IN VERY SOLID SHAPE. >> STEVE RADACK: MR. BERRY,

THIS STEVE RADACK. CAN YOU HEAR ME? >> YES, I CAN.

>> STEVE RADACK: MY QUESTION IS WHAT ABOUT ALL OF THE LAWSUITS THAT ARE PENDING WITH THE APPRAISAL DISTRICT. HOW MUCH MONEY ARE YOU ANTICIPATING THAT WE ARE GOING TO -- HOW MANY MILLS DO YOU ANTICIPATE WE HAVE TO REFUND TO PEOPLE?

>> I DON'T HAVE THE NUMBER OFF THE TOP OF MY HEAD. WE WILL WORK WITH THE

APPRAISAL DISTRICT ON THAT AND GET BACK TO YOU ON THAT. >> STEVE RADACK: PLEASE GO.

IT WILL GIVE US AN IDEA HOW MUCH -- WHAT IS THE MAX WE COULD LOSE.

THANK YOU. >> AND SO ON SLIDE 9 -- >> LINA HIDALGO: GO AHEAD,

COMMISSIONER GARCIA. >> ADRIAN GARCIA: THANK YOU, JUDGE.

MR. BERRY QUICKLY BEFORE WE MONTH -- MOVE OA QUICK QUESTION ON YOUR 30 MILLION LOWER THAN INITIAL REVENUE ESTIMATE, WHAT DO YOU ATTRIBUTE TO THAT LOSS?

>> I WOULD SAY WE HAVEN'T DONE A COMPREHENSIVE ANALYSIS IS THAT A LOT OF THE REVENUE IS FROM THINGS LIKE FINES AND FEES AND WITH PEOPLE STAYING HOME MORE AND DOING LESS, THERE IS LESS ACTIVITY. I EXPECT THAT DE -- DECREASE TO BE TEMPORARY IN NATURE.

SO THEY WOULD REBOUND WHEN WE ARE ON THE OTHER SIDE OF THE PANDEMIC.

>> ADRIAN GARCIA: GOOD DEAL. THANK YOU. >> ON SLIDE 9, THIS IS A LOOK AT THE COMPREHENSIVE GENERAL FUND CASH BALANCES. WE'VE TALKED ALREADY ABOUT THE GENERAL FUND BALANCE. WE'VE TALKED ABOUT THE CONTINGENCY FUND.

WE ALSO BEGAN THE YEAR WITH OUR BALANCE AND OUR MOBILITY FUND OF 283 MILLION.

AND THERE IS A BALANCE IN OUR HEALTH FUND THAT IS USED TO COVER OUR SELF-INSURED HEALTH CLAIMS. THE TOTALITY IS WE BEGIN WITH JUST UNDER $2 BILLION.

THERE ARE A COUPLE OF WAYS TO PUT THIS IN CONTEXT. ONE IS, IT HAS BEEN THE GOAL

[02:35:06]

[3. Capital Improvements Program status report]

WE HAVE A BRIEF STATUS REPORT. WE ARE NOT GOING TO GO THROUGH THAT NOW IN THE INTEREST OF TIME, BUT ON THIS SLIDE YOU HAVE A SNAP SHOT THAT WE SPENT -- WE INVESTED $940 MILLION OVER THE 12 MONTHS ENDING AUGUST 31ST AGAINST A BUDGET OF $1.418 BILLION.

A COUPLE OF COMMENTS ON THAT. ONE IS A MAJOR DRIVER WAS THE POSTPONE MEANT IN THE TOLL ROAD NUMBER HERE WITH THE POSTPONE MEANT OF THE PHASE 2 OF THE DOWNTOWN CONNECTOR AND ADDITIONAL COMMUNITY ENGAGEMENT UNTIL THE PROJECT WAS DONE.

AND WE HAVE ALSO SEEN SOMEWHAT THAN LOWER PLANNED FLOOD CONTROL EXPENDITURES.

AND I DO THINK YEAR TO YEAR VARIATIONS IN FLOOD CONTROL EXPENDITURES ARE TO BE EXPECTED GIVEN THE NATURE OF LARGE INFRASTRUCTURE PRODUCTS.

AND I ADD IN THE INTEREST OF TRANSPARENCY, ONE THING THAT WE NEED TO IMPROVE ON IS THE CONSISTENCY OF OUR BUDGETING FOR CAPITAL PROJECTS. SO AS WE WORK THROUGH THE CIP, WE SAW SOME PROJECTS IN AND DEPARTMENTS THE -- HAD BEEN USING A CASH-BASED CONVENTION. SOME WERE USING A CONFERENCE-BASED CONVENTION.

>> ADRIAN GARCIA: ARE YOU STANDARDIZING ALL OF THAT? >> THAT'S THE PLAN.

I AM NOT POINTING FINGERS. I THINK WE NEED TO PROVIDE CLEAR INSTRUCTIONS IN THE WAY

WE WANT TO DO IT. >> ADRIAN GARCIA: ABSOLUTELY. MR. BERRY, BEFORE YOU GO ON, IN THE CIP I NOTICE AS AN EXAMPLE, PROPOSED ESTIMATED COSTS FOR CIP.

AND ACCORDING TO THE NUMBERS IT IS JUST THE SAME NUMBERS ACROSS THE BOARD AND IT DOESN'T LOOK LIKE THERE HAS BEEN A THOUGHT TO WHAT EACH LOOKS LIKE.

ARE YOU SCRUBBING THESE DETAILS? I REMEMBER WHEN I WAS SUBMITTING MY BUDGET IT ALWAYS GOT THE UTMOST REVIEW. I CAN'T SEE HOW THE NUMBERS DON'T CHANGE WITH THE EXCEPTION OF ASSET MANAGEMENT. IN EVERY CATEGORY IF I AM NOT MISS -- MISTAKEN IT IS THE SAME NUMBERS FOR FIVE YEARS. HOW CAN THAT BE?

[02:40:04]

>> I MAY BE LOOKING AT DIFFERENT INFORMATION, COMMISSIONER GARCIA.

I AM LOOKING AT THE REPORT. I GIVE UH GENERAL -- GIVE YOU A GENERAL ANSWER AND THEN I CAN LOOK INTO. IT WE DID ATTEST TO DOING A YEAR BY YEAR FORECAST THAT SHOWS SOME VARIATION BY YEAR. I CAN SAY THAT WE HAVE MORE WORK TO DO ON THAT.

AND TO REALLY WORK COLLABORATIVELY WITH THE DEPARTMENTS TO FULLY VET AND CHALLENGE, AND I MEAN IN A CONSTRUCTIVE WAY, THE BUDGET TO GET THE BEST INFORMATION WE CAN. WE MAKE SOME PROGRESS ON THAT, BUT WE HAVE HAD LIMITED TIME

AND WE ARE NOT WHERE I WANT TO BE. >> THANK YOU.

>> AND LUCINDA IF YOU COULD FLIP QUICKLY TO THE LAST SLIDE HERE.

WE HAVE ALREADY BEEN THROUGH THE REVENUE OUTLOOK. I WON'T MAKE FOLKS SIT THROUGH THAT AGAIN. SORRY, NOT THAT LAST SLIDE. THE CONCLUSION SLIDE.

THIS IS SLIDE 13 FOR THOSE FOLLOWING AT HOME. THIS IS THE CONCLUSION OF OUR MID-YEAR REVIEW. THE FINANCIAL STATE OF THE COUNTY IS STRONG.

WE HAVE STRONG CREDIT RATINGS AND VERY GOOD ACCESS TO CAPITAL AND GOOD LIQUIDITY RESERVES. WE ARE SEEING LOW INTEREST RATES IN BOND YIELDS AND IT MEANS IT IS A GOOD TIME TO INVEST AND REFINANCE. WITH CARES FUNDING AND WHAT WE EXPECT FROM FEMA, THEY HAVE GREATLY SOFTENED THE IMPACT OF COVID-19 AND KEPT OUR CASH BALANCE STRONG. THE JUDGE WAS ASKING ABOUT WITHOUT ADDITIONAL CARES FUNDING WHICH HAS BEEN UP IN THE AIR FOR SOME TIME, WE WOULD NOT BE ABLE TO SUSTAIN THE SAME LEVEL OF ECONOMIC AND SOCIAL RESPONSE TO COVID-19. THE PUBLIC HEALTH RESPONSE WOULD LARGELY BE COVERED BY FEE -- BY FEMA. WE NEED TO CONTINUE ALONG THE LINES OF COMMISSIONER CAGLE'S COMMENT TO DILIGENTLY MONITOR THE TIMING OF REIMBURSMENTS FROM FEMA AS WELL AS DISALLOW WEDNESDAYS TO MAKE SURE WE DON'T GET ANY SURPRISES THERE. AND THEN FINALLY WE WENT OVER THE REVENUE OUTLOOK, AND I WOULD SAY IT IS UNCERTAIN. IT IS LESS ROSY THAN IT HAS BEEN IN PAST YEARS FROM WHERE WE ARE TODAY. IT IS MANAGEABLE. PROPERTY TAX IS A RELATIVELY STABLE FORM OF REVENUE COMPARED TO, FOR EXAMPLE SALES TAX THAT RELIES ON RESTAURANTS. AND GIVEN THE WAY SB2 TESTS THE FRAMEWORK FOR SETTING RATES, COMMISSIONER'S COURT WILL HAVE WITHIN ITS DISCRETION TO KEEP REVENUES AT A STABLE LEVEL. AND WE ARE STARTING FROM A VERY STRONG PLACE THAT HELPS US TO ABSORB DIFFICULT PERIODS. ALL THAT SAID, COMMERCIAL AND INDUSTRIAL VALUES DO APPEAR TO CLIMB WHICH IS SOMETHING WE HAVEN'T SEEN FOR A LONGTIME

AND WE WILL HAVE TO WORK THROUGH IT. >> LINA HIDALGO: COMMISSIONER

ELLIS. >> RODNEY ELLIS: MR. BERRY, SO THAT POINT ABOUT COMMERCIAL AND INDUSTRIAL VALUES APPEARING TO DECLINE, I KNOW THAT'S AN ITEM WE WILL GET TO LATER, BUT I THINK IT IS RELEVANT HERE AS WELL. IS THAT ESSENTIALLY -- YOU THINK THAT THE PRICES ON A LOT OF THESE BUILDINGS ARE GOING TO BE PRETTY LOW? I KNOW IN TERMS OF CAPITAL IMPROVEMENTS THAT THERE ARE A NUMBER OF ENTITIES WHO HAVE BEEN TALKING ABOUT BUILDING BUILDINGS AND I KNOW WE WILL GET TO IT LATER, BUT IT DOES SOUND LIKE WE HAVEN'T HAD THIS IN A LONGTIME. MAYBE THERE ARE SOME REAL OPPORTUNITIES OUT THERE. THE COUNTY CAN PLAY A ROLE IN TRYING TO PLAY -- TO ACQUIRE SOME OF THESE PROPERTIES IF WE NEED THEM AS OPPOSED TO BUILDING THESE THINGS.

>> I AGREE WITH THAT AND I THINK IT IS WORTH EXPLORING. THERE IS ONE CAVEAT AND THAT IS SOMETIMES IT IS -- SOMETIMES IT TAKES PEOPLE SOME TIME TO SELL AT A LOWER PRICE. IF WE ARE WILLING TO BE PATIENT I THINK THERE ARE REALLY GOOD OPPORTUNITIES. BUT FOLKS DON'T ALWAYS SELL IMMEDIATELY.

WE ARE ALL OPTIMISTIC ABOUT BUSINESS COMING BACK. >> I KNOW WE WILL TALK ABOUT

IT LATER. >> LINA HIDALGO: GREAT. THANK YOU.

ANYTHING ELSE? >> NOTHING TO ADHERE. >> LINA HIDALGO: IF FOLKS DON'T HAVE OTHER QUESTIONS ON THE PRESENTATION, JUST A BIG THANK YOU FOR THE WAY YOU

PRESENTED THIS. >> ADRIAN GARCIA: ABSOLUTELY. >> LINA HIDALGO: IT WAS VERY

[02:45:03]

I KNOW THAT SOME SPEAKERS MAY BE WAITING AND THEN WE CAN DECIDE WHETHER TO BREAK FOR

LUNCH OR WHETHER TO START THE COVID. >> JUDGE?

>> LINA HIDALGO: YES, LUCINDA. >> KEY CAN ANNOUNCE THE TIME

WE ARE ENDING HERE AND THEN STARTING THE NEW MEETING. >> LINA HIDALGO: YES.

IT IS 12:05 P.M. AND THAT CONCLUDES THE MID-YEAR REVIEW.

AND ALSO IT STARTS THE MEETING OF

* This transcript was compiled from uncorrected Closed Captioning.