[00:00:09] >>> WELCOME TO THE WEDNESDAY MAY 20TH 2026 FINANCE UTILITIES [a. Ordinance D-2820-26; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 3, Article 2, Section 3-58 and Chapter 8, Article 5, Section 8-45 of the Carmel City Code; Sponsor(s): Councilor(s) Minnaar, Taylor, and Worrell. ] AND RULES COMMITTEE MEETING IF FIRST IS ORDINANCE D-2820-26. ORDINANCE OF THE COMMONS COUNCIL OF THE CITY OF CARMEL, INDIANA AMENDING CHAPTER 3 ARTICLE 2 AEKZ 3-58 CHAPTER 8 ARTICLE 5 SECTION 8-45 OF THE CARMEL CITY CODE. WE HAVE OFFICER HASTY HERE FROM THE CARMEL POLICE DEPARTMENT TO PRESENT HOW THEY CAME UP WITH THESE FEE STRUCTURES AND OPEN FOR DISCUSSION. FOR THE PUBLIC, THIS ALL STARTED WITH A PARKING STUDY THAT WAS CONDUCTED IN THE CENTRAL CORE RELATED TO COMPLAINTS AND SO FORTH IN PARKING. CARMEL PD THEN INVESTIGATED WAYS TO INENFORCEMENT. AND THIS IS PART OF CREATING SOME SOLUTIONS AND HOPEFULLY ENSURING SOME COMPLIANCE WHEN IT COMES TO PARKING IN OUR CENTRAL CORE AND THROUGHOUT THE T CITY. >> SO I MEAN. DO YOU WANT ME TO START AT THE BEGINNING HOW WE GOT HERE? >> THAT WOULD BE-- YEAH. IF YOU WOULD JUST GIVE A BRIEF OVERVIEW OF HOW WE GOT HERE. AND THEN WHY CHIEF AND YOURSELFER RECOMMENDING THESE. >> OKAY. I'M ZACH HASTY SERGEANT-- WE'VE BEEN LISTENING TO OUR RESIDENTS AND THE COUNSELLORS. AND WE SAW A NEED TO EXPLORE OPTIONS TO INCREASE OUR PATROLS OF TIMED PARKING SPACES IN THE CITY. HISTORICALLY WE HAV NOT HAD THE TOOLS TO DO THAT. SO WE STARTED LOOKING AT OPTIONS THAT WE WERE GOING TO BE ABLE TO HELP TURNOVER THOSE SPOTS THAT WERE IN FRONT OF SOME MORE BUSINESSES TO ENCOURAGE MORE VISITATION FROM THE COMMUNITY TO THEM. AND THEN ALSO TO TARGET-- NOT NECESSARILY TARGET BUT TO HELP INCREASE PATROLS AROUND THE RESIDENTIAL NEIGHBOURHOODS SO WE STARTED LOOKING AT ALL ENCOMPASSING TYPES THAT COULD OFFER A WAY WE COULD EFFE EFFECTIVELY DO THE PATROLLING THAT WOULD COVER OUR PERMITTING NEEDS FOR OUR RESIDENTIAL PARKING. SO WE STARTED THIS PROCESS ABOUT 18 MONTHS AGO. WE INTERVIEWED MANY DIFFERENT COMPANIES AND STYLES. ONCE WE GOT THE PARKING STUDY BACK, IT WAS RECOMMENDED IN THE PARKING STUDY AS WELL THAT AN LPR BASED WHICH IS LICENSE PLATE-- BASED SYSTEM WAS RECOMMENDED. SO THAT WAS THE ROUTE WE STARTED LOOKING AT TO BEGIN WITH. SO WE DOVE ALL IN ON THAT. THE EQUIPMENT, IT ESSENTIALLY MOUNTS ONTO A PRE-EXISTING VEHICLE THAT WE HAVE. THERE'S BETWEEN THREE AND FOUR CAMERAS THAT MOUNT AT ABOUT EYE LEVEL AROUND THE VEHICLE. ONE MIGHT BE A LITTLE LOWER. BUT ESSENTIALLY WHAT IT DOES IS AS THE PARKING ENFORCEMENT OR CSO WOULD DRIVE AROUND THE CITY, IT'S COLLECTING LICENSE PLATE DATA. WHAT THAT WILL DO IS WE'RE WORKING WITH PASSPORT NOW TO BUILD OUT WHAT THE INFRASTRUCTURE LOOKS LIKE IN THE SYSTEM. ESSENTIALLY THEY TOOK OUR LOCAL ORDINANCES THAT HAVE ALL OF OUR LOCATIONS FOR THE TIMED PARKING LOCATIONS ALREADY IN IT. THEY ARE GOING TO MAP OUT THE ENTIRE CITY. SO WHENEVER YOU SCAN A LICENSE PLATE, IT USES GPS, LATITUDE AND LONGITUDE TECHNOLOGY TO KNOW EXACTLY WHERE THAT VEHICLE IS. AND KNOW WHAT TIME SPOT IT IS IN. AND THEN IT WILL START A TIMER BASED ON THAT. SO IF IT'S IN A THREE HOUR SPOT OR TIMER BASED ON THE EXACT LATITUDE AND LONGITUDE AND GPS COORDINATES OF WHERE THAT VEHICLE IS PARKED. AT THAT POINT, IT DOES THIS INSTANT INSTANTANEOUSLY. SO IF THEY DO THEIR DRIVING AROUND AND PATROLS IF THEY COME UPON A VEHICLE THAT'S PASS TIME THEY CAN TAKE ENFORCEMENT ACTION. WARNING TICKET OR EDUCATION. WHATEVER THAT LOOKS LIKE. BUT THEY'LL BE ALERTED FROM THE SYSTEM THAT HEY THIS CAR HAS NOT MOVEED. IT'S BEEN HERE FOR FOUR HOURS IN A THREE-HOUR SPOT. SO THEN AT THAT POINT, THE PARKING ENFORCEMENT OFFICER CAN TAKE ENFORCEMENT ACTION. WHETHER LIKE I SAID IT'S A TICKET WARNING EDUCATION. BUT THEY CAN TAKE THE TICKET OFF THE COMPUTER. BUT TICKETS ESSENTIALLY GOING TO GIVE THEM A LINK TO THE PASSPORT PAYMENT PORT. THAT'S ONE OF THE THINGS WEESH WORKING THROUGH TO COLLECT THOSE FUNDS. BUT ONCE THAT HAPPENS, PAYMENT WILL GO TO PASSPORT. WE HAVE ELECTED TO GET PAYMENT REMITTED BACK TO US ONCE A [00:05:01] MONTH FROM THE COLLECTED FINE REVENUE THAT COMES FROM THAT. MINUS THE FEES THAT WE PAY PASSPORT TO RUN THEIR-- TO USE THEIR DATA BASE. TO USE THEIR SOFTWARE. TO USE THEIR PAYMENT PORTAL. SO WE WOULD PAY A FEAR THE THAT AND THAT WOULD BE TAKEN OUT OF FINES COLLECTED FOR THE MONTH. AND THEN WE WOULD GET WHATEVER IS LEFT OVER OR IF WE'RE IN THE RED THEN WE WOULD CUT A CHEQUE FOR THE DIFFERENCE. WHATEVER THAT WOULD BE ON A MULTI-BASIS. WE'RE ALSO LOOKING AT GETTING THREE HANDHELD DEVICES THAT ARE LPR AS WELL. SO IT RUNS OFF OF AN ANDROID PLATFORM. AND IT'S GOT A CAMERA ON IT AND A PRINTER. SO IT'S A NICE DAY. WE'RE GOING TONE COURAGE OFFICERS TO WALK AROUND, BE INVOLVED IN THE COMMUNITY. HAVE CONVERSATIONS WITH FOLKS. BUT IT DOES THE SAME THING BUT IT'S JUST A HANDHELD UNIT. SO WHAT THEY WOULD DO IS SCAN THE VEHICLE AND THE LICENSE PLATE. MARK ON THE APPLICATION. WHATEVER IT WOULD BE. TAKE A PHOTO OF THE VEHICLE. IT WOULD START THE TIMER AND THEY WOULD KEEP DOING THEIR PATROLS KEEP WALKING AROUND. THE HANDHELD DEVICES AND THE MOBILE DEVICE WE'RE LOOKING AT WILL COMMUNICATE WITH EACH OTHER. PARKING OFFICERS SCANNED EARLIER THEY WILL COMMUNICATE WITH EACH OTHER. AND THEN THEY'LL ALERT THEM IF THERE'S A VIOLATION. SO THAT'S THE 30,000 FOOT VIEW. LOOKING AT TWO PART-TIME FOLKS IN THE PROCESS OF DOING THAT NOW. THERE IS AN APPLICATION PROCESS. THROUGH TOMORROW. AND THEN WE'RE DOING SOME MORE INTERVIEWS AND TRY TO IDENTIFY A COUPLE FOLKS TO COME ON BOARD PART-TIME. >> WE HAD THE RED LINE ORRED COORDINATES IN OUR PACT. AND THEN THERE WAS SOME-- WE SORT OF GIVE AN OVERVIEW OF JUST THE RED LINE CHANGES AND HOW THAT IMPACTS. AND SERGEANT HASTY WILL PROBABLY HAVE A COUPLE OTHER QUESTIONS. YES, SIR. >> OKAY-- BENJAMIN-- CORPORATION COUNCIL. IF I MAY JUST ADD A BIT OF FRAMEWORK TO THIS. A PARKING TICKET WHEN ISSUED NOW IS UNDER THE JURISDICTION OF THE ORDINANCE VIOLATION BUREAU. THE ORDINANCE VIOLATION BUREAU IS A STATUTORY CREATURE. IT'S ALLOWED FOR UNDER CITY CODE WHICH MEANS THAT IT DOESN'T GENERATE THE TICKET IN COURT. IT GOES TO AN ADMINISTRATIVE BUREAU. THE COUNCIL HAS ADOPTED BY ORDINANCE TO HAVE ORRED NATION VIOLATION BUREAU. IT HAS DESIGNATED THE CITY CLERK TO BE THE ORDINANCE VIOLATION CLERK. AND IT HAS SET TO FINES SET FORTHER IN THERE. SO IF A PERSON GETS A TICKET THEY CAN GO AHEAD AND PAY THAT TINE. AND ONCE THE FINE IS PAID, IT NEVER-- IT DOESN'T GO BEYOND THAT. IF THEY DON'T PAY THE TICKET OR IF THEY DENY IT, IT THEN GETS REFERRED TO THE OFFICER CORPORATION COUNCIL. WHERE WE WILL THEN FILE IN COURT. AND IT WILL GENERATE A COURSE NUMBER. FEES. THEY WILL GET AN INITIAL HEARING IN FRONT OF THE JUDGE TO ADMIT OR DENY AND THEN IF THEY DENY ORRER IT IN, PAY THE FINE WITH THE COURT FEES. AND/FORTHEY DENY THEM THEY'LL GO TO TRIAL. SO THIS ISN'T AN ADMINISTRATIVE PROCESS THAT ENABLES FOR EFFICIENCY. HOPEFULLY TO REMEDY THOSE UNAWARE OFFENDERS THAT THEY'VE BECOME AWARE. IT'S A MUCH LOWER FINE. THE COURT COSTS ARE $139. JUST ALONE. AND SO CURRENTLY SET AT $25 FOR THESE TYPES OF OFFENSES. YOUR REGULAR PARKING OFFENSES. $ $50. SO WHAT THIS DOES IS THE CLERK IS DESIGNATED AS THE ORDINANCE VIOLATION CLERK WHO WOULD COLLECT ORDINARILY COLLEC THE FEES. STATUTE SAYS THAT IT'S EITHER THE CLERK OR AN AGENT OF THE CLERK AS SET FORTH BY THE LEGISLATIVE BODY. SO THERE NEEDS TO BE AN AMENDMENT TO THE ORDINANCE BY THE CITY COUNCIL TO GIVE ORDINANCE VIOLATION CLERK THE ABILITY TO BE ABLE TO HAVE AN AGENT. IN THIS CASE IT WOULD BE PASSPORT TO BE ABLE TO COLLECT THE FEES. OTHERWISE FEES WOULD NEED TO BE COLLECTED DIRECTLY BY THE CLERK. SO THAT IS THE FIRST PORTION OF 359B3 DESIGNATES, ALLOWS THE CLERK TO BE ABLE TO DESIGNATE AGENTS. TO COLLECT. AND IT'S GENERAL HERE. BECAUSE THE GOAL IS TO NOT HAVE TO COME BACK TO COUNCIL EVERY TIME SOMETHING CHANGES. SO IT'S THE TAENT. AT THIS POINT IT'S PASSPORT. THAT IS ABLE TO UNDER CONTRACT WITH THE CITY TO PROVIDE ASSISTANCE WITH PARKING ENFORCEMENT. IN THIS CASE IT'S PASSPORT THAT [00:10:02] MAY CHANGE AT LATER POINT. WE DON'T KNOW. BUT THAT'S TO PROVIDE THE FLEXIBILITY. THE NEXT PORTION UNDER SECTION THREE. THIS IS UNDER A45 AMENDS C1. CURRENTLY THIS IS THE PROCESS WHERE IT OUTLINES HOW OFFICERS ISSUE TICKETS. SO WHAT WE HAVE DONE-- AND THE COST OF THOSE TICKETS. THE FINE. SO IT CURRENTLY HAS-- POLICE OFFICERS AND COMMUNITY SERVICE OFFICERS. AS THE ONLY TWO INDIVIDUALS THAT CAN GO AHEAD AND ISSUE THESE TICKETS. WE'RE GOING TO HAVE PARKING ENFORCEMENT OFFICERS WHO WON'T BE SWORN POLICE OFFICERS. TO BE ABLE TO DO THIS. AND ALSO THIS IS A NEW TERMINOLOGY WE'VE USED IT ELSEWHERE. TO GIVE FLEXIBILITY. TO ANYONE. MULTIPLE DIFFERENT ENFORCEMENT OFFICERS WITHIN THE CITY. FROM DIFFERENT DEPARTMENTS TO GIVE A LEVEL OF FLEXIBILITY AS THE CITY'S RESOURCES DEMAND. THE NEXT THING IS IT MAKES IT SO THAT IT DOESN'T JUST-- YOU CAN EITHER PLACE IT ON THE VEHICLE. THE TICKET. PRINT IT OFF OR IT CAN BE MAILED. THIS ALLOWS FOR TWO-FOLD REALLY. IT ALLOWS FOR THE FLEXIBILITY OF INCREMENT WEATHER TO KEEP THE TICKET ON THE VEHICLE. SO THE OFFICER CAN THEN USE THEIR JUDGMENT TO ASK POLICE RECORDS TO SEND OUT THE TICKET. STL IS ALSO A MECHANISM WHERE THAT PASSPORT IF A PAYMENT IS NOT MADE WITHIN A CERTAIN TIME PERIOD WILL MAIL OUT THE TICKET TO THE INDIVIDUAL. NOW THE INFORMATION WE HAVE WHEN IT COMES TO A VEHICLE THAT'S LEFT IS WE DON'T NECESSARILY HAVE-- THE INFORMATION WE HAVE IS A LICENSE PLATE THAT IS THE REGISTERED OWNER. AND THAT MAY NOT NECESSARILY BE THE PERSON WHO IS THE PERSON WHO HAS LEFT THE VEHICLE FOR OVER THE TIME PERIOD. SO WHEN IT GOES TO THE REGISTERED OWNER THAT PROVIDES AN OPPORTUNITY FOR THE REGISTERED OWNER TO ALSO SAY HEY-- THIS WAS NOT ME. OR TYPICALLY IT WOULD BE SOMEONE WITHIN THE HOUSEHOLD. SOMEONE WHO HAS ACCESS. IT MIGHT VERY WELL BE THAT. IN WHICH CASE THAT THEN GIVES THEM THE OPPORTUNITY TO PAY THE SMALL MONETARY FINE. REMEDY THE PROBLEM GOING FORWARD. BEFORE IT ESCALATES TO OUR OFFICE AND THAT TAKES THEM TO COURT WITH $139 COURT FEES PLUS AN ESCALATED FINE. BECAUSE THE FINE ESCALATES BEYOND THAT POINT IT CAN BE UP TO 2500. SO WHAT THIS ALSO DOES SIT INCREASES THE CURRENT FINE. WHICH IS $25. WHICH IS A VERY SMALL NUMBER RIGHT NOW FOR THE FINE AND THAT WOULD BE-- ONCE IT'S PAID IT'S DONE. IT INCREASES THAT TO $50. AND IT DOES THE SAME FOR OVER $25 INCREASE. AND IT DOES THE SAME FOR THOSE VIOLATIONS WHERE THEY ARE PARKED WITHIN HANDICAPPED DISABLED ACCESS SPOT. SO PRT OF THE REASONS FORMAT REQUEST IS THERE IS ADDITIONAL COST INVOLVED IN HAVING THE ABILITY TO BE ABLE TO MOVE FORWARD. AND ALSO QUITE FRANKLY, I DON'T REMEMBER THE LAST TIME THAT WE INCREASED THIS FINE. I THINK IT HAS BEEN $25 FOR A VERY LONG TIME. I THINK IT WAS THE INITIAL AMOUNT. AND SO THAT IS THE PLACEHOLDER THERE. SO THAT IS UP TO WHAT IT ULTIMATELY DECIDES IT WISHES TO SET AS THE FINE. BUT THAT IS THE PLACE HOLDER THE RECOMMENDATION IS BEING INCREASED FROM 25 TO 50 RESPECTIVELY TO A LEVEL. THAT COVERS THE COST. TO PUSH INTO ENFORCEMENT IN THESE MATTERS. HAPPY TO TAKE ANY QUESTIONS. >> QUESTIONS? COUNCILLOR? >> THANK YOU MR. CHAIR. BENJAMIN, COUPLE THINGS. ONE, I WANT TO ASK YOU-- SOME SPECIFIC LEGAL QUESTIONS. SO-- LET'S SAY THE LICENSE PLATE READER PICKS UP A CAR. AND THEN THE POLICE OFFICERS LEAVES. THE COMMUNITY OFFICER WHERE THE DESIGNEE LEAVES. AND THEN THEY COME BACK. FOUR HOURS LATER. WHATEVER THE CAR IS STILL THERE. HOW DOES LEGALLY, HOW DOES THE POLICE DEPARTMENT THEN-- COULDN'T THEY CONTEST THAT IN COURT. AND SAY WELL I LEFT AND I CAME BACK. I MEAN HOW DOES THAT WORK? >> I MEAN THEY CAN TRY AND DO THAT OF COURSE. I MEAN THE PRESUMPTION IS THAT THEY WERE THERE-- THERE IS A TIME PERIOD THAT THEY WERE THERE FOR THE START. AND THEY'VE REMAINED THERE [00:15:03] SINCE. >> IT WOULD BE FOR OUR STANDARD. IT'S PREPONDERANCE OF THE EVIDENCE. RIGHT? IT'S THE LOEFT THRESHOLD. MORE LIKELY THAN NOT THEY SAY THAT'S OUR BURDEN TO PROVE. THEY VIOLATED THE ORDINANCE. THE VEHICLE WAS THERE AT X TIME AND IT REMAINED THERE UNTIL Y TIME. AND THEN IT WOULD BE ON THEM TO BE ABLE TO EXPLAIN THEY WERE NOT THERE OTHERWISE. NOW I WILL TELL YOU TYPICALLY THEY ARE PRETTY REASONABLE. IF THEY CAN PROVIDE EVIDENCE THAT THEY WERE NOT THERE FOR THAT LENGTH OF TIME. AND THEY ACTUALLY WERE ONLY THERE FOR FIVE MINUTES. LEFT FOR THE THREE HOURS AND THEN CAME BACK FOR THE TIME PERIOD. WE'LL LOOK AT THAT EVIDENCE. I CAN'T MAKE ANY PROMISES TO IT. BUT IT WILL BE SOMETHING WE'LL BE ABLE TO REVIEW. SO THIS IS THEIR ABILITY TO BE ABLE TO DENY THE TICKET. IT'S ALSO DEEMED DENIED WHEN YOU DON'T PAY IT. SO TIME PERIOD IF THEY DON'T DO ANYTHING, IT WILL BE DEEM DENIED AND FORWARDED TO OUR OFFICE. WILL BE BRINGING AN ACTION IN COURT AND FINALLY SPEAK TO SOMEONE ON IT. AND WE SEE THE EVIDENCE. PROSECUTORS DETERMINATION AS TO WHETHER OR NOT WE TAKE IT FURTHER. IF WE TAKE IT FURTHER THEN IT'S UP TO THE JUDGE TO MAKE THAT DETERMINATION AS TO WHETHER OR NOT THE EVIDENCE IS MORE F FAVOURABLE ON ONE SIDE VERSUS THE OTHER. SO WE'RE COMFORTABLE WITH IT. THAT WAY. >> IT JUST SEEMS TO ME. JUST ONE OF THE LOOPHOLES I'M SURE SOMEBODY COULD POSSIBLY TAKE ADVANTAGE OF. BUT THAT'S OKAY. WE'RE TRYING TO CHANGE BEHAVIOUR HERE NOT GO THROUGH THOSE THINGS. THE OTHER QUESTION HI FOR YOU IS I NOTICED THAT WE DIDN'T PUT ANYTHING IN THE ORDINANCE AT ALL REGARDING CONSTRUCTION VEHICLES BEING IN PARKING SPOTS. OR MAYBE EXPANDING THE FEES OR FINES. BECAUSE WE DO HAVE AROUND THE CITY VEHICLES THAT ARE COMMERCIAL VEHICLES PARKING IN ONE TWO. WHICH I KNOW WE HAVE AN ORDINANCE FOR. BUT THERE IS NOTHING IN THE LANGUAGE THAT TALKS ABOUT THAT AT ALL. IS THERE A REASON WHY THAT WASN'T A PART OF THE ORDINANCE? >> IT JUST WASN'T ASKED TO BE ADDRESSED. ULTIMATELY THIS IS ABOUT N NARROW. AMENDMENT. IT IS TO ENABLE TO MAKE THOSE SMALL CHANGES THAT ARE REQUIRED TO ENABLE THE FUNCTIONALITY OF THE NEW PROCESS. THERE ARE A LOT OF THINGS THAT CAN BE FINE TUNED WHEN IT COMES TO PARKING. BUT THESE ARE THE ONLY THINGS THAT NEED TO BE. WITH THE EXCEPTION OF A FINED AMOUNT. THAT IS SOMETHING THERE'S FLEXIBILITY THERE. WHAT IS ABSOLUTELY REQUIRED IF WE WANT TO HAVE PASSPORT TO BE ABLE TO PROCESS PAYMENTS. WE NEED TO HAVE THAT PART INCLUDED. AND TO ALLOW FOR FLEXIBILITY. WE NEED TO HAVE OTHER CITY ENFORCEMENT OFFICERS AND THE MAILING ABILITY THE FINE ITSELF IS SOMETHING THAT IS RECOMMENDED TO BE IMPROVED INCREASED. BUT IT'S ENTIRELY UP TO THE COUNCIL. BUT IF THE COUNCIL DECIDES TO NOT GO THIS ROUTE, WE TODAY, WE HAVE A PASSPORT CONTRACT THAT IS PENDING. PPW. WE ASK THEM TO THEN TABLE THAT BECAUSE IT CAN'T MOVE FORWARD. UNDER THE WAUGH IT'S CURRENTLY SET FORTH IF THE CLERK CANNOT ASSIGN THEM AS AN AGENT TO COLLECT FEES. ALTERNATIVE IS WE CAN USE RESOURCES BUT THEN THE FEES WILL HAVE TO BE PROCESSED THROUGH THE CLERK'S OFFICE WHICH IS A HUGE ADMINISTRATIVE BURDENEN TO RUN IT THAT WAY. THE GOAL HERE IS TO USE THE ENTITY. AND ALSO THE EASIEST WAY FOR PEOPLE TO PAY. BECAUSE WHEN THE TICKET COMES, IT WILL HAVE A QR CODE. AND A WEBSITE THAT THEY CAN THEN CLICK AND IT WILL ENABLE THEM TO QUICKLY MAKE THOSE PAYMENTS. >> AND I JUST WANT TO SAY I'M REALLY GRATEFUL THAT YOU RAISED THE FEES. BECAUSE I'LL PAY $25 ALL DAY LONG TO SIT IN A PARKING SPOT FOR FOUR SIX EIGHT HOURS. SO I'M REALLY GRATEFUL THAT YOU MADE THAT JUMP AND THAT PRICE. I DON'T KNOW HOW MY OTHER COUNCILLORS FEEL ABOUT THAT PARTICULAR DOLLAR AMOUNT. BUT WE'RE TRYING TO CHANGE BEHAVIOUR HERE. NOT TRYING TO GRAB MONEY. JUST LITERALLY TRYING TO DO SOMETHING THAT CAN HELP EVERYBODY IN THE COMMUNITY. AND SATISFY THOSE CONCERNS. >> CHANGED BEHAVIOUR COME AT A COST. SO THE BURDEN ISN'T NECESSRILY PLACED BACK ONTO THE CITY. I THINK WOULD BE THE GOAL HERE. BUT AGAIN IT'S THE DISCRETION OF THE COUNCIL. THIS IS WHAT WE'VE RECOMMENDED. BUT IF THE COUNCIL WISH TO INCREASE IT OCCURRED. OR IF NOT CHANGE IT AT ALL IT COULD AS WELL RIGHT. THERE IS FLEXIBILITY HERE. BUT WHILE WE WERE IN IT WE THOUGHT IT MADE SENSE THE TIMING BECAUSE THERE IS GOING [00:20:02] TO BE ADDITIONAL EXPENDITURE THAT COMES FROM HAVING THE CONTRACT TO BUY THE EQUIPMENT. BECAUSE IT'S NOT E EQUIPMENT CURRENTLY OWNED. PRINTING EQUIPMENT THAT WILL HAVE TO BE UPDATED. AND TO HAVE ACCESS TO THE DATA BASES AND FOR THE SERVICE THAT'S BEING PROVIDED AS WELL. >> OKAY AND THEN MAY I HAVE ONE MORE QUESTION MR. CHAIR. I APPRECIATE THE TIME. SO THE OTHER-- I GUESS THE OTHER QUESTION I HAVE EITHER ONE OF YOU CAN ANSWER THIS QUESTION. WHEN IT COMES TO THE FEES THAT PASSPORT IS GOING TO BE COLLECTING FROM THE CITY OF CARMEL, WE SPOKE ABOUT IT A LITTLE BIT. BUT WE CAN TALK ABOUT IT SO IT'S ON THE RECORD. WHEN THOSE PARKING TICKETS ARE PAID, THAT PAYMENT GOES TO PASSPORT. THEN CAN YOU EXPLAIN-- I'D LIKE FOR YOU TO EXPLAIN THAT ON THE RECORD HOW THAT'S GOING TO WORK. IF YOU DON'T MIND. SO THAT PEOPLE UNDERSTAND HOW THAT PROCESS WORKS. THANK YOU. >> YEAH NO PROBLEM. ZACH HASTY CARMEL PD. SO WHEN PAYMENT IS MADE TO PASSPORT. PAS PASSPORT-- THEY ARE GOING TO REPAY US ON A MONTHLY BASIS. SO THEY'LL RECEIVE PAYMENTS AS THE MONTH GOES ON. ONCE IT'S TIME TO REMIT PAYMENT TO US, THEY WILL THEN SUBTRACT WHATEVER THE FEES ARE. AND I CAN PROVIDE YOU GUYS MORE DETAILED INFORMATION ON THAT. I DON'T HAVE IT WITH ME RIGHT NOW. BUT IT'S AROUND A DOLLAR PER TICKET. IS WHAT PASSPORT CHARGES TO USE THEIR SYSTEM AND ALL OF THEIR SOFTWARE. SO THEY'LL TAKE THEIR PAYMENT OR WHATEVER FEES WE OWE THEM OUT OF THE COLLECTIVE FINE REV REVENUE. AND THEN THEY WILL SUBMIT THE ON A MONTHLY BASIS MINUS WHATEVER THE FEES WERE TO RUN THAT FOR THE MONTH. >> I'M SORRY, I LIED. I HAVE ONE MORE QUESTION. SORRY-- AND I'M GOING TO ASK MY FELLOW COUNCILLORS HERE. WOULD BIT WORTH RELEGATING THOSE FUNDS TO A SPECIFIC-- POT OF MONEY? YEAH. OPPOSED TO THE GENERAL FUND? IS THAT SOMETHING A NON-REVERTING FUND FOR COST REC RECOVERY? OR I GUESS LIKE-- BENJAMIN. >> SO BY STATUTE THEY GO TO THE GENERAL FUND. >> OH, OKAY. THANK YOU. WELL THAT ANSWERS THAT QUESTION. THANK YOU. AND THANK YOU MR. CHAIR. >> COUNCILLOR GREEN? THANKS. HI, SINCE YOU'RE UP. FIRE AWAY. SO ARE THERE ANY OTHER-- WHO ELSE HAS THE LPR BASED SYSTEM? >> SO DENNYSON PARKING HAS BEEN THROWN AROUND. NOBLE USES IT AND WEST VVILLE THERE'S OTHER AGENCIES. THOSE ARE THE TWO CLOSEST. UTILIZES THE PASSPORT SWEEP. SO THE MANAGEMENT COMPANY WHEREAS THE POLICE DEPARTMENT WILL BE MANAGEMENT COMPANY BUT THEY ARE STILL USING PASSPORT SPOFT WARE AND LPR SYSTEMS FOR PARKING ENFORCEMENT. IT'S PRETTY MUCH THE INDUSTRY STANDARD FOR BIG CITY. JUST BECAUSE OF THE FISH BSY AND HOW QUICKLY AND EFFICIENTLY YOU CAN SCAN A LOT OF PLATES AND BE ABLE TO ENFORCE LARGE AREAS WITH MINIMAL AMOUNT OF RESOURCES. SO THERE ARE SEVERAL THAT ARE AROUND US. BUT AS FAR AS BOOTS ON THE GROUND LPR IS THE INDUSTRY STANDARD. SO THIS TYPE IS THE INDUSTRY STANDARD. >> IF YOU DON'T MIND I'D LIKE TO EXPAND ON THAT A BIT. SERGEANT HASTY, COULD YOU SORT OF TALK ABOUT PHILOSOPHICALLY WHY IT'S IMPORTANT TO KEEP THIS IN-HOUSE VERSUS OUTSOURCING IT? >> SURE. WHERE WE STARTED TALKING ABOUT THIS WE WERE LOOKING AT IT THE WHOLISTIC VIEW OF HOW WE HANDLE THINGS IN CARMEL. SO OUR GOAL HERE IS NOT A MONEY GRAB. THIS IS TO CHANGE BEHAVIOUR. AND THIS IS AN UNTAPPED AREA WHERE WE'VE JUST LOGISTICALLY NOT BEEN ABLE TO DO IT BEFORE. SO I THINK WE OWE IT TO OUR RESIDENTS AND OUR BUSINESS OWNERS TO DO SOMETHING ABOUT THIS. TO BE ABLE TO TURN OVERER THOSE PARKING SPACES. TO ALLOW THE MAXIMUM VISITORS. ALLOW THEM TO THE BEST OPPORTUNITY TO SUCCEED THERE. AND BY KEEPING IT INOHOUSE, WE'RE ABLE TO-- LIKE BENJAMIN SAID, WE'RE ABLE TO REVIEW THINGS ON A CASE BY CASE BASIS. [00:25:02] IF THERE WAS A TICKET THAT WOULD COME ACROSS OR IF THERE'S EVIDENCE TO THE CONTRARY OF WHAT THE TICKET MIGHT SHOW. WE'RE ABLE TO REVIEW THAT IN-HOUSE AND MAKE A DECISION N OUTSIDE MANAGEMENT COMPANY. WHOSE PRIMARY OBJECT SV TO GENERATE REVENUE BY PARKING CITATIONS. THAT IS NOT WHAT WE WERE INTERESTED IN. WE QUICKLY REALIZED THAT'S NOT THE CARMEL WAY OF DOING THINGS. WE JUST WANT TO CHANGE BEHAVIOUR. A LOT OF INFORMATION SHARING. A LOT OF EDUCATION AND THIS WAS THE BEST WAY WE COULD STILL REMAIN HANDS ON AND HAVE THE ABILITY TO APPLY THIS THE WAY THAT WE APPLY THINGS HERE IN CARMEL. >> ALL RIGHT SINCE WE'LL MAINTAIN I GUESS FUNCTIONAL CONTROL OVER IT. ANY PROTECTIONS TO THE DATA WILL BE STAYING WITH US. >> THAT'S A GREAT QUESTION. AND I DO NOT HAVE A SALAD ANSWER FOR YOU ON THAT. DO YOU KNOW FOR SURE? WHAT'S THAT? SO THE DATA THAT'S GOING TO BE PULLED UP IS GOING TO GO TO PASSPORTS THEY ARE GOING TO BE PULLING FROM THEIR CONNECT DAD THAT BASES THAT THEY HAVE. AND WE HAVE DATA PROTECTION LANGUAGES WITHIN THE CONTRACT THERE THAT HAS BEEN REVIEWED. WE'RE COMFORTABLE WITH IT. I DO WANT TO MAKE A POINT AS WELL IN RELATION THIS IS MORE GLOBALLY AS WELL. AND I'M SORRY TO KIND OF STEP AWAY FROM IT. BUT I JUST-- THERE'S BEEN COMPLICATIONS IN THE PAST WITH THOSE INDIVIDUALS THAT HAVE BEEN GRANTED PERMITS TO PARK IN CERTAIN AREAS FROM MERCHANT VEHICLES OR RESIDENTIAL VEHICLES. AND THAT TYPE OF PROGRAM. THE ABILITY OF HAVING THE INFORMATION TIED TO THE CAR RENNING STRAGS IS THAT INFORMATION AND THE INFORMATION OF THOSE PERMIT HOLDERS WILL BE IN THE DATA BASE TO BE FLAGGED FOR THE OFFICER TO KNOW WHETHER OR NOT THAT VEHICLE IS ALLOWED TO BE THERE. SO THEY'LL BE A LOT MORE-- IT WILL BE MUCH EASIER TO MANAGE. AND IT WILL BE EASIER TO OBTAIN AND BE ABLE-- SO FOR THE PERSON WHO HAS TO FEEL COMFORTABLE, TO KNOW, THAT THEY ARE NOT GOING TO BE ABLE TO GET IT. AND THEY WON'T GET A TICKET BECAUSE THEY HAVE A PERMIT. EVERYTHING WILL BE INCLUDED AND ASSIGNED. IT WILL TAKE A LITTLE BIT TO GET THAT RUNNING. BUT THAT INFORMATION WILL BE MUCH MORE STREAMLINED. >> COUNCILLOR GREEN, I WANTED TO EXPAND ON THAT A LITTLE BIT. IS THIS AS IMPORTANT. SO CURRENTLY THOSE WHO APPLY FOR RESIDENTIAL PARKING STICKERS. FOR WHICH THEIR ROAD IS RESTRICTED FOR RESIDENTIAL PERMIT ONLY, MUST COME INTO THE RECORDS DIVISION OF CARMEL PD. FILL OUT PAPERWORK. AND THEY KEEP TALKING ABOUT THE EASE OF USE FOR PEOPLE IN THESE RESIDENTIAL PARKING AREAS. AND ALSO FOR THEIR VISITORS ET CETERA OR HOWEVER THEY APPLY FOR THE PERMIT. HOW IT WOULD BE SO MUCH EASIER NOT ONLY FOR YOU BUT FOR THE RESIDENTIAL PERMIT HOLDERS. >> SURE. SO THE WAY THAT THIS WILL WORK IS THE RESIDENT WILL CONTACT THE POLICE DEPARTMENT. AND VERIFY THEY DO LIVE IN THIS AREA AND THROUGH PASSPORT GIVE THEM UNAUTHORIZATION TO CREATE AN ACCOUNT. SO ONCE THEY CREATE AN ACCOUNT ON PASSPORT, THEN THEY CAN SUBMIT PICTURES OF THEIR REGISTRATION. SO THEN WE CAN VERIFY THAT YOUR SUBARU BELONGS IN FRONT OF YOUR HOUSE. IT BELONGS TO YOU, YOUR WIFE, YOUR DAUGHT, WHATEVER. WE CAN VERIFY THAT THAT INDEED DOES BELONG THERE AND THEN BASED ON WE'RE NOT GOING TO LIMIT HOW MANY CARS. BUT WE'RE GOING TO BE ABLE TO VERIFY AND MAKE SURE THAT THAT REGISTRATION DOES INDEED BELONG AT THAT HOUSE. AND THEN SAME GOES WITH THE VISITOR PARKING. SO THEY CAN GO-- THE HOMEOWNER WILL BE ABLE TO ACCESS THEIR ACCOUNT TO DIGITALLY AND PUT A LICENSE PLATE FOR A, VISITOR PARKING PASS. WE DO HAVE TIME LIMITS IN PLACE FOR THAT. SO WE PLAN ON KEEPING THAT. JUST SO WE DON'T HAVE SOMEONE HAVING 100 OF THEIR FRIENDS COME AND PARK IN FRONT OF THEIR HOUSE EVERY DAY. SO WE APPROVE THOSE AT THE MRIT DEPARTMENT LEVEL. SO WHENEVER WE APPLY FOR THAT WE REVIEW IT AND MAKE SURE EVERYTHING IS GOOD TO GO. WE APPROVE IT. AND EVERYTHING IS GOING TO BE DONE. THEY CAN DO IT FROM THEIR PHONE. THEY DON'T HAVE TO PHYSICALLY COME TO THE POLICE DEPARTMENT. THEY CAN UPLOAD ALL OF THEIR INFORMATION THROUGH THEIR ACCOUNT. WE'LL BE ABLE TO VERIFY IT ON OUR END. AND THEN IT WILL BE SMOOTH SAILING FROM THERE. SAME WITH MERCHANT PARKING. SO WITH MERCHANT PARKING NOW, THEY WOULD HAVE TO COME-- AN [00:30:02] AGENT FROM THE COMPANY WOULD HAVE TO COME TO THE POLICE DEPARTMENT. AND THEN BRING THE LICENSE PLATES THAT THEY NEED-- OR THAT THE VEHICLES THEY NEED TO GET PERMITS FOR, WE WOULD VERIFY THAT YEAH OKAY WE BELIEVE YOU THAT THIS PERSON WORKS FOR YOU. AND THEN WE WOULD ISSUE THOSE PERMITS ON AN ANNUAL BASIS. THE SAME WOULD APPLY WITH THIS. SO LET'S SAY RICH'S DELI, YOU WANT TO HAVE TEN OF YOUR EMPLOYEES BE ABLE TO PARK IN MERCHANT PARKING SPOT. >> THEY DRIVE SUE BAA RUES TOO. >> YEAH IF THEY DRIVE SUBARUS YEAH WE CAN ACCOMMODATE THAT AS WELL. SO WHAT THEY'L DO IS YOU'LL APPOINT SOMEONE AT YOUR BUSINESS TO BE THE ACCOUNT HOLDER ESSENTIALLY. AND THEN YOU WILL BE THE ONLY ONE. YOUR ACCOUNT HOLDER WILL BE THE ONLY ONE THAT WILL HAVE ACCESS TO THAT ACCOUNT TO BE ABLE TO MANAGE YOUR EMPLOYEE'S PLATES WITHIN THE MERCHANT PARKING PART OF YOUR ACCOUNT. SO IF YOU FIRE AN EMPLOYEE YOU CAN DELETE THAT PLATE OUT OF THERE. IF YOU HIRE A NEW EMPLOYEE YOU'LL CONTACT US LIKE HEY I NEED TO ADD THIS NEW ONE IN. HERE TEASE INFORMATION. WE APPROVE IT AND IT'S ADDED IN. MUCH MORE STREAMLINE PROCESS FOR THE CONSUMER AND FOR THE ENFORCEMENT SIDE. >> THAT WAS MY QUESTION. THANK YOU. >> AND THEN ALSO I'M ASSUMING IT'S MUCH EASY FOR THEY BUY A NEW VEHICLE, RIGHT. >> YEAH SO THEY WOULD JUST NEED TO UPLOAD THAT PICTURE OF THEIR REGISTRATION THAT'S GOT THEIR NAME ON IT. THEIR ADDRESS. THE VEHICLE. AND THEN WE VERIFY THAT ALL THAT STUFF IS CORRECT. APPROVE IT AND IT'S DONE. >> COUNCILLOR GREEN? >> ONE MORE QUESTION FOR THE OFFICER BEFORE I GO BACK. ASSUMING WE APPROVE THIS, WHEN WILL IT BE OPERATIONAL? >> SO WE'RE JUST-- I MEAN WE'RE IN THE FINAL STAGES OF-- WE'VE GOT THE CONTRACT IN. ONCE WE CAN GET THE ACCOUNT STUFF SET UP AND GET THE FINAL DETAILS OF THE ORDINANCE SET UP, WE'RE READY TO TAKE THIS TO BPW TO GET THE MONEY RELEASED AND THEN START GETTING THE EQUIPMENT PURCHASED AND THE SOFTWARE SET UP. THEY WILL-- THE COMPANY ACTUALLY COMES TO US AND DOES BOOTS ON THE GROUND IMPLEMENTATION. THEY HELP US WITH EDUCATION. THEY HELP US WITH TRAINING. SO THAT'S ALL INCLUDED IN THE PACKAGE AS WELL. SO THEY WILL COME TO US AND HELP US GUESS EVERYTHING SET UP. HELP US WORK THROUGH THE KINKS IN THE FIRST LITTLE BIT. HOWEVER LONG IT TAKES TO GET UP AND RUNNING AND THEN SUPPORT US THROUGH THAT PROCESS AS WELL. YEP. >> BENJAMIN, FOLLOWING UP ON COUNCILLOR MENARD COUPLE QUESTIONS ABOUT THESE OR PENALTIES. ON COUNCILLOR MINNAAR. HOW DO WE DEFINE IT I GUESS. WHEN'S THE LAST TIME WE RAISED THE FEES OR FINES? >> I THINK THE $25 FINE HAS BEEN IN PLACE SINCE THE BEGINNING OF THE OWNER VIOLATION BUREAU. IT IS POTENTIALLY WE INCREASED FRIT $10 POTENTIALLY. BUT IT'S BEEN AWHILE SINCE WE HAVE UPDATED THIS. >> AND THE INCREASE WILL TAKE IT TO WHAT? >> IT WOULD TAKE IT TO 50. $25. >> AND YOU MENTIONED EARLY FOR SOMEONE PARKS IN THE HANDICAP. >> THAT'S CURRENTLY 15. AND THAT WILL GO 75. ZMRU KNOW YOU GET HANDCUFFED AND DO WHATEVER. BUT OKAY. >> THAT'S A PERSONAL PET PEEVE OF MINE. SOME PEOPLE I KNOW THAT ARE DISABLED. MAYBE WE SHOULD LOOK AT INCREASING THAT FINE FOR PEOPLE ILLEGALLY PARKING IN HANDICAP SPACES. >> YEAH, ALL RIGHT SO ASSUMING WE RAISE IT TO AT LEAST 50, HOW IS THAT COMPARED TO OTHER MUNICIPALITIES? >> YOU KNOW I'M NOT SURE. >> ALL RIGHT. DIDN'T WORK OUT. >> NO-- I'M GLAD. THIS IS WHAT WE'RE HERE FOR. LET'S IRON IT OUT. SO WHEN I WAS MAKING RECOMMENDATIONS TO-- WHEN CHIEF WENT TO PRESENT THIS TO THE MAYOR, I LOOKED AT THE NICHE TOP PLACES TO LIVE. AND THEN THERE WAS LIKE TWO OTHER I LOOKED AT. THE LIST TO SEE COMPARABLE CITIES BASED ON VISITORS AND POPULATION AND ALL THAT STUFF. SO I THEN REACHED OUT TO I THINK SIX DIFFERENT PLACES AROUND THE COUNTRY. THAT THEY ARE SIMILAR TO CARMEL. AND WE WERE-- AS FAR AS ALL OF THEM GO, WE WERE WAY TOO LOW ON ALL OF OUR PARKING FEES. BUT THAT'S WHERE-- AND WE WERE-- THERE'S SOME THAT LIKE IN WESTFIELD IT'S A MUST APPEAR. SO THEY HAVE TO APPEAR IN COURT. BUT SOME OF THE OTHER COMPARABLE CITIES TO US, IT WAS ANYWHERE BETWEEN 40 AND $75 FOR A GENERAL PARKING VIOLATION. AND THEN FOR HANDICAP IT WAS ANYWHERE FROM $100 TO $500. SO WE WERE JUST TRYING TO SPLIT THE DIFFERENCE THERE. THAT'S WHERE WE STARTED WAS WITH THE RESEARCH JUST LOOKING AT COMPARABLE CITIES. >> THAT MAKES SENSE. GOOD TO BE AS EFFICIENT AS POSSIBLE. WHERE WAS I GOING WITH THIS? SO IT'S BEEN DISCUSSED A COUPLE TIMES,ER THE INTENT TO CHANGE BEHAVIOUR. AND THE FEES ARE GOING TO HELP US PAY FOR THE COST? [00:35:02] SO IF WE ARE SUCCESSFUL IN CHANGING THE BEHAVIOUR, AND THERE'S LESS FEES, WHAT WILL BE THE POTENTIAL IMPACT DOWN THE ROAD? >> SO YEAH. THAT'S A GREAT QUESTION. AND THE WAY THAT WE HAVE THIS SET UP, IT'S A FIVE-YEAR CONTRACT FROM THE JUMP. SO WE'LL BE ABLE TO RE-EVALUATE THIS ONCE WE GET TO THE POINT WHERE HEY, IS THIS WORKING? ARE WE ABLE TO SCALE DOWN? ARE WE ABLE TO MANAGE IT WITH SOMETHING ELSE? WHERE DO WE WANT TO GO FROM HERE? AND FIVE YEARS IS ALSO ABOUT THE SHELF LIFE OF SOME OF THE EQUIPMENT. SO THE LPR CAMERAS ARE GOING TO BE MOUNTED ON THE EXTERIOR OF THE VEHICLE. SO THEY ARE GOING TO BE EXPOSED TO THE ELEMENTS. THEY LAST ABOUT FIVE YEARS. SO THAT'S KIND OF THE SWEET SPOT OF THE CONTRACT THAT WE DID A FIVE-YEAR CONTRACT WITH THEM. SO-- IS IT THREE? DID WE SETTLE ON THREE? OKAY. OKAY ALL RIGHT. SO THAT WAS AMENDED THEN. SO YEAH WE INITIALLY LOOKED AT FIVE AND IT'S BEEN AMENDED DOWN TO THREE. I'M SORRY. SO WE'LL BE ABLE TO EVALUATE THE SUCCESS OF THE PROGRAM AND HOW WE WANT TO MOVE FORWARD AT THAT POINT. SO WE CAN RE-EVALUATE AND SEE WHAT'S WORKING BEST. ONCE IT COMES TIME TO DO THAT. BUT IF WE DO CHANGE BEHAVIOUR, THAT'S WHAT WE WERE LOOKING FOR. SO WE CAN RE-EVALUATE HOW WE'RE GOING TO GO FORWARD. DEPENDING ON THE SUCCESS OF THIS. >> MR. CHAIR, WOULD YOU ENTERTAIN A MOTION? >> YES, COUNCILLOR MINNAAR. >> FIRST OF ALL I WOULD LIKE TO AMEND THE FEE FOR PARKING IN A HANDICAP SPOT FROM $75 TO $150? >> GOING ONCE. >> IT NEEDS TO BE LESS THAN $250. YOU COULD ALSO TAKE IT OUT OF THE ORDINANCE VIOLATION IF YOU WANTED TO. THAT'S ALSO THE FLEXIBILITY. AND SO IT WOULD THEN JUST GO DIRECTLY TO COURT. THIS IS JUST SOMETHING THAT HAS BEEN PLACED IN FOR THEM TO PAY THE TICKET. >> I'LL SUSPEND MY MOTION. AND CAN WE DISCUSS THAT? WOULD YOU GUYS LIKE TO DISCUSS THAT? >> YES. WHY DON'T WE. >> COULD YOU ARTICULATE THE KEY DIFFERENCES OF TAKING IT OUT OF THE ORDINANCE VIOLATION BUREAU? >> SO YEAH WITHIN I THINK IT IS CITY CODE 358 DESIGNATES WHAT ORDINANCE VIOLATIONS ARE UNDER THE JURISDICTION OF THE ORDINANCE VIOLATION BUREAU. SO WE HAVE GOLF CARTS. WE HAVE ALARM PERMIT VIOLATIONS. WE HAVE A LOT OF THE PARKING STUFF SOUTHERNED IT. TO THE EXTENT THAT THIS COUNCIL AND THE HANDICAPPED DISABLED PARKING ACCESS PARKING IS SOMETHING THAT IS THERE RIGHT NOW. BECAUSE IT HAS HISTORICALLY YOU COULD TAKE IT OUT OF IT BY AMENDING THAT PARTICULAR PROVISION TO TAKE OUT. I THINK IT'S 850 THAT WOULD BE TAKEN OUT AND IT WOULD THEN GO TO COURT. SO THEN IT WOULDN'T BE UNDER PASSPORT. IT WOULD BE UP TO THE OFFICER WHO SEES IT. TO THEN WRITE THE TICKET AS A MUST APPEAR. >> WHO WOULD THEN SET THE FINE. THE COURT? >> SO THAT IS THE COUNCIL'S DISCRETION TO SET THE FINE. IT CAN BE A SET AMOUNT. WHICH IS SOMETIMES HELPFUL FOR THE COURT. AND FOR THE PROSECUTOR AS WELL AS TO WHAT IT WOULD BE. THE FINE ITSELF SUP TO 2500. THAT IS THE LIMIT OF THE STATUTE. IT CAN BE AN UP TO NUMBER. IT CAN BE BETWEEN OR IT CAN BE A SET FINE THAT THIS IS WHAT IT >> I'M TRYING NOT TO LET MY PERSONAL FEELINGS GET INVOLVED IN THIS. BUT I DO HAVE AN OLDER SISTER THAT HAS MS AND IS REQUIRED TO HAVE HANDICAP PARKING. AND SHE REQUIRES WHEELCHAIRS FROM TIME TO TIME. BUT SHE'S VERY DISABLED. AND SO I'M TRYING NOT TO LET MY PERSONAL FEELINGS GET INVOLVED WITH THIS. BUT YEAH-- GO AHEAD. >> WHAT HAPPENS. LET'S SAY WE RAISE IT TO 150. FOR THE FIRST TIME OFFENSE. YOU KNOW-- THEN. >> WE HAVE CURRENTLY $50 FOR THE FIRST VIOLATION AND SUM OF $125 FOR EACH SUBSEQUENT VIOLATION. SO THERE IS AN ESCALATION THERE. BUT SO THE MAX WOULD HAVE TO BE 250. SO 150 FOR THE FIRST TIME. >> I BELIEVE SO. I'D HAVE TO CHECK. THAT IS DEFINITELY 250 FOR THE FIRST TIME. SO YOU COULD HAVE IT AT 250. >> I THINK I'M MORE COMFORTABLE WITH LIKE THE FIRST, FIRST TIME. [00:40:02] HITTING THEM WITH 150 OR 250 AND THEN SECOND AND REPEAT OFFENDERS. YEAH. SOMETHING LIKE THAT. >> SERGEANT HASTY DO YOU HAVE ANY OPINION OR IN ANY OF YOUR RESEARCH HAVE YOU SPECIFICALLY LOOKED AT HANDICAPPED PARKING? >> YEAH SO WHEN I WAS LOOKING AT THE COMPARABLE CITIES. THE HANDICAP. I MEAN WE WERE-- ON THE EMBARRASSING LOW END OF IT. AT $50. LIKE I SAID THEY WERE ANYWHERE FROM-- I THINK THE SECOND LOWEST I SAW WAS 150 ALL THE WAY UP TO 500. SOME WERE MUST APPEARS. AND SOME WERE SUBJECT TO IMPOUNDMENT AS WELL ON THE FIRST OFFENSE. SO IT WAS KIND OF ALL ACROSS THE BOARD. I DEFINITELY AGREE THAT ANYWHERE BETWEEN 150 AND 500 WERE THE MAJORITY THAT I SAW WITH A COUPLE THAT WERE MUST APPEAR VIOLATIONS AS WELL. SO YEAH CURRENTLY FOR THE-- ANY OF THESE VIOLATIONS, THERE'S NO ABILITY TO TO W.? THERE IS? >> YEAH, I BELIEVE THERE IS. A CLAUSE IN THERE THAT GIVES THE ABILITY TO TOW FOR A PARKING VIOLATION LOCAL ORDINANCE. THERE'S SOME SUB-SECTIONS IN THERE. I'D HAVE TO GO BACK AND DOUBLECHECK THE VERBIAGE ON THAT. >> IS THAT THE SAME AS IMPOUND? >> THE ABILITY TO TOW. IS THAT THE SAME AS IMPOUND. AND LEGAL TERMS? >> EAS FAR AS THE POLICE DEPARTMENT IS CONCERNED YES. SO THEY WOULD HAVE TO DO THE WHOLE TOW RELEASE PROCESS THROUGH THE DEPARTMENT. >> SO CURRENTLY NOW FOR-- VIOLATING A HANDICAP SPOT AND JUST REMAINS THERE. WE DO HAVE THE ABILITY TO IMPOUND CURRENTLY? ZBLIBL SO, YES. >> SO COUNCILLOR YOU MENTIONED A REQUIRED TO APPEAR. SHALL APPEAR. Ô> I THINK THAT'D BE LESS CONFUSING. MAYBE LESS CONFUSING FOR EVERYBODY. I WAS THINKING ESCALATING. AND I'M HESITANT ON THE TOWING. BECAUSE YOU NEVER KNOW. IS IT A MISTAKE OR SOMEBODY WHO IS HANDICAP. OR WHO DOESN'T HAVE THE THING WITH THEM. >> YOU JUST NEVER KNOW. >> ISN'T IT THOUGH THAT THE PERMITS FOR HANDICAP PARKING THAT ARE ATTACHED TO YOUR REGISTRATION, ARE THEY NOT? >> SOMETIMES. I HAVE SEEN SOME THAT ARE. AND THAT IS USUALLY ON PERMANENTLY HANDICAP FOLKS. IF LET'S SAY YOU BREAK YOUR FOOT AND YOU DON'T HAVE IT WIT. SO WE'VE SEEN IT BOTH WAYED. SOME WILL SATE FELL BETWEEN THE CRACK OF THEIR CAR BUT THE WAY IT'S WRITTEN SIT MUST BE DISPLAYED. YES AND NO TO YOUR ANSWER. >> I DON'T HAVE AN ISSUE WITH-- I THINK YOU'RE RIGHT. KEEPING IT CLEAN. BECAUSE I WAS THINKING ES COLLATING AS WELL. FIRST OFFENSE. SECOND OFFENSE. >> ALWAYS SYMPATHETIC TO THE JUDGE. I DON'T WANT TO OVERBURDENEN THIS COURT BUT IT PROBABLY DOESN'T HAPPEN VERY OFTEN ANYWAYS. >> AND THEY HAVE TO BE CAUGHT TOO. >> SO IS THE CONSENSUS WE'RE DISCUSSING INCREASE THE FINE TO 150 AND FURTHER VIOLATIONS SHALL APPEAR? OR IT'S ALWAYS SHALL APPEAR WITH A MINIMUM VIOLATION OF 150? SHALL APPEAR WITH A MINIMUM VIOLATION OF 150. OKAY YOU STARTED A MOTION. BUT THERE WASN'T A SECOND. >> SO THANK YOU MR. CHAIR. I WOULD LIKE TO AMEND TO INCORPORATE THE INITIAL FINE FOR HANDICAP VIOLATIONS ALSO TO APPEAR. $150 FINE AND A NOTICE TO APPEAR. >> SO WE HAVE A MOTION TO AMEND THE CURRENT ORDINANCE AS PRESENTED. >> SECOND. >> WE HAVE A SECOND. ALL THOSE IN FAVOUR? MOTION IS AMENDED. IS THERE ANOTHER MOTION? TECHNICALLY MOTION TO SEND TO T THE. >> I MOVE TO SEND THIS TO CITY COUNCIL WITH A POSITIVE RECOMMENDATION. >> WE HAVE A MOTION TO SECOND TO SEND THIS AMENDED ORDINANCE TO THE FULL CITY COUNCIL WITH A POSITIVE RECOMMENDATION. [00:45:03] PLEASE VOTE. PASSAGE UNANIMOUSLY. >> I JUST WANT TO CLARIFY THAT THIS IS PROBABLY GOING TO RESULT IN MULTIPLE SECTIONS OF JUST BEING UPDATED TO PULL THAT OUT OF THE OBB'S JURISDICTION. SO I WILL MAKE THE NECESSARY CHANGES PURSUANT TO THE REQUEST TO APPROVE IT AT A LATER POINT. >> GREAT. IF YOU WOULDN'T MIND DISTRIBUTING THAT TO THE COMMITTEE. AND WE'LL MAKE SURE THE FULL COUNCIL RECEIVES IT. THANK YOU SERGEANT HASTY. I APPRECIATE YOUR WORK ON THIS. AGAIN THE GOAL IS THE CHANGED BEHAVIOUR. SUPPORT OUR SMALL BUSINESSES AND PROPERTY OWNERS AND OUR CORE FOR THESE PEOPLE WHO LIKE TO CAMP IN THESE SPOTS. I'M EXCITED FOR TH MORE E EFFICIENT PROCESS. ESPECIALLY FOR THESE RESIDENTIAL PERMIT HOLDERS. A LOT OF THEM DON'T KNOW HOW TO APPLY. NEVER REALLY STRUGGLE WITH THE PROCESS BEEN VERY HELPFUL. THANK YOU FOR ALL YOUR WORK ON THIS SERGEANT. YES, SIR. NEXT-- ITEM IN OUR-- ITEMS IN [Items b & e - h] OUR AGENDA. ITEM B. D--. AND E THROUGH H ARE ALL RELATED TO THE BOND REFUNDING. ITEMS RELATED TO THE REPAIR AND MAINTENANCE CREATION OF THE FUND. AND ORDINANCE WE RECEIVED AN E-MAIL JUST MOMENTS AGO WITH SOME RECOMMENDED VERBIAGE. SO-- FROM ANOTHER COUNCILLOR. SO WE'LL HOLD THAT OVER IN THE THE FINANCE COMMITTEE ON JUNE 1ST AT 4:30 OKAY ZACH? >> PERFECT. THE FLOOR IS YOURS. MR. JACKSON. >> ALL RIGHT. THANK YOU MR. CHAIRMAN. AND MEMBERS OF THE FINANCE COMMITTEE. I'M ZACH JACKSON CFO AND COMP TROLLER OF THE CITY OF CARMEL. I'VE GOT BRAD BINGHAM HERE WITH ME. AND THEN HEIDI OMSBA AND JOSH JANICKE-- CLOSE. AS I MENTIONED TO CITY COUNCIL. SO AS I MENTIONED TO CITY COUNCIL ON MONDAY NIGHT DURING FIRST READING. WE HAVE AN OPPORTUNITY TO REFINANCE OUR 2016 BONDS. TAKE ADVANTAGE OF LOWER MARKET RATES THAT WE'RE SEEING TODAY. THE ANTICIPATED SAVINGS WERE REALLY DEPEND UPON THE ACTUAL MARKET RATES. WHENEVER WE CLOSE. BUT WE'RE ESTIMATING IN THE 9 TO $12 MILLION RANGE. 12.3 BEING THE HIGH END THAT I SEE. AND 9 BEING THE LOW END. SEEING THE DOLLARS REFUNDING. BUT WE'VE PRIORITIZED MOST OF THE SAVINGS TO HIT IN FISCAL YEARS 27 AND 28. AND INCREASING PERSONAL SERVICE COSTS AND INFLATIONARY COSTS. THE SAIVINGS WON'T BE THE SITUATION. HERE IS AN EXTRA HAD MILLION TO ALLOCATE IN THE NEXT BUDGET. THAT WE WILL RECOMMEND IN THE NEXT FEW MONTHS. THIS WILL EFFECTIVELY HELP SOME EXPENSIONS TO THE FUN OF ABOUT $4 MILLION IN EACH OF THE NEXT TWO YEARS. ALSO IMPACTED HERE AND OVERALL IN THE STORM WATER FUND. WE HAVE SAVINGS OF APPROXIMATELY HALF A MILLION A YEAR. AGAIN THAT'S PROBABLY HIGH END. ANOTHER WAY TO LOOK AT THAT IS $6.80 WE CHARGED FOR THE STORM WATER FEE. THIS REFINANCING FREES UP ABOUT 70 CENTS OF EVERY 6 F$.80. WITH THAT OVERVIEW I'M GOING TO TURN IT OVER TO BRAD TO TALK ABOUT THE HISTORY OF THESE BONDS FIRST. >> THANKS ZACH. BRAD BINGHAM BARNES AND THORNBERG SERVING AS COUNSEL ON THE REFUNDING. SO I THINK IT HELPS TO UNDERSTAND A LITTLE BIT ABOUT THE BACKGROUND. KIND OF WHY IT IS THAT THE BONDS WERE STRUCTURED THAT WAY. AND KIND OF SOME OF THE [00:50:02] HISTORY. SO BACK IN 2016 THE CITY WANTED TO EMBARK ON A NUMBER OF VARIOUS CAPITAL PROJECTS. STORM WATER PROJECT S. AND WITH THAT IN MIND I'D ALSO DECIDE HOW TO PAY FOR IT. HOW TO FINANCE. THE BONDS ARE TO BE ISSUED. WHETHER IT WAS FROM DIRECT TAX LEVY. WHETHER IT'S FROM TIFF OR LOCAL INCOME TAXES. AS IT WAS CALLED THEN OR STORM WATER REVENUES. AND WHAT RESULTED FROM THAT WAS BASED UPON THE WALL AT THE TIME THAT WAS ALSO TAKEN INTO CONSIDERATION. WE ENDED UP WITH 17 BOND ISSUES. A MULTIPLE SERIES OF JUST STRAIGHT OBLIGATION BONDS OF THE CITY. THERE WERE THREE SEPARATE SERIES OF BONDS OF THE REDEVELOPMENT AUTHORITY. THE WORD STRUCTURES THE LEASE FINANCING. AND THERE WERE A SERIES OF STORM WATER REVENUE. STORMWATER BONDS SECURED. SO AT THE END OF THE DAY ALL THE VARIOUS BONDS WERE EITHER PAYABLE DIRECTLY. OR WITH A BACK-UP. CREDIT ENHANCEMENT. WE CALL IT AN SPT. SPECIAL TAX WHICH REALLY IS JUST ANOTHER TERM FOR PROPERTY TAX BACK-UP. BECAUSE ALL 17 OF THOSE BONDS WOULD EITHER BUY A DIRECT LEVY OR A BACK-UP. THEY HAD THAT COMMONALTY. WHICH IS AT THE END OF THE DAY AN INVESTOR WOULD SAY-- YOU KNOW I'M BUYING THOSE ON THE BASIS OF THE CITY'S PROPERTY TAXING AUTHORITY. ALSO AT THE SAME TIME IN 2016 CARMEL BECAME A SECOND CLASS CITY. AND BECAUSE OF THAT, INDIANA LAW ALLOWS FOR THE CREATION OF A LOCAL PUBLIC IMPROVEMENT BOND BANK. AND BOND BANKS REALLY SERVE TWO FUNCTIONS. ONE IS MECHANISM CITY CAN PUT THEIR MORAL OBLIGATION ON BONDS. THE OTHER IS TO POOL TOGETHER MULTIPLE OBLIGATIONS. TO ROLL THEM UP INTO ONE SERIES OF BONDS THEN OFFER TO THE MARKET. SO RATHER THAN DOING 17 SEPARATE BOND CLOSINGS, WHICH IN PUBLIC OFFERINGS WHICH WOULD HAVE BEEN ENORMOUS AMOUNT OF WORK. THE INCLUSION IS TO ROLL IT ALL INTO A BONDING OFFERING. WHICH IS THEN SOLD INTO THE MARKET. ASK THAT'S THE BULK OF WHAT ZACH MENTIONED IS UP FOR REFUNDING AT THIS POINT IN TIME. AND THE ADD ON TO THAT. AND THOSE ARE ALL AVAILABLE FOR REFUND. SENSITIVE TO THROW THAT IN THERE. IT'S A BROAD OVERVIEW. AT THIS POINT. QUESTIONS FOR ZACH? >> IF I COULD JUST MAKE ONE POINT. WE ARE NOT EXTENDING THE MATURITIES OF THIS DEBT. AND THEN WHEN WE DO DO THE INDIVIDUAL REVIEW OF EACH OF THE REFUNDING. IT WOULD BE GREAT IF WE COULD SHOW THOSE ON THE VIDEO FOR PUBLIC RECORD IF YOU DON'T MIND. OH DID I STEAL-- OH YOU GOT IT. THANK YOU. WHILE SHE'S GETTING PREPARED HERE. THERE'S A LOT OF CONFUSION I THINK TO SOME IN THE COMMUNITY RELATED TO SPT. BECAUSE IN THE PAST, WE ISSUED CITY-BACKED TIFF FUNDS WHICH WERE BACKED BY SPT. SO THERE'S SOME MEMBERS OF OUR COMMUNITIES THAT ARE CONCERNED ABOUT THE USE OF SPT. COULD YOU EXPLAIN THE DIFFERENCE BETWEEN THAT USE OF SPT AND HOW YOU KNOW-- THE CITY OF CARMEL ON SOME OF THOSE EARLY TIFF BONDS WERE ON THE HOOK FOR THE REPAYMENT OF THIS. AND HOW THIS DIFFERS HERE. EXPAND UPON WHAT YOU SAID EARLIER. THAT REALLY ABOUT THE CREDIT ENHANCEMENT FEATURE OF THIS. >> YEAH, SO-- AGAIN AS I SAID EARLIER. BECAUSE I THINK IT'S HELPFUL FOR FOLKS TO UNDERSTAND. AN SBT WHICH STANDS FOR SPECIAL BENEFITS TAX, IT REALLY IS THE SAME THING AS AN PROPERTY TAX. LET'S JUST CALL IT WHAT IT IS. BUT THE STATUTE USES THE TERM OF SPECIAL BENEFIT TAX. AND BECAUSE OF THAT, THAT IS FROM A CREDIT STANDPOINT GOLD STANDARD. IF THAT IS SECURING AN OBLIGATION, YOU'RE GOING TO-- IF IT'S A RATED OBLIGATION. PROBABLY THE HIGHEST RATING YOU CAN GET. AND THEREFORE THE LOWER INTEREST COSTS ON THE FINANCING. BUT YOU ALWAYS WANT TO MAKE SURE AND YOU HAVE TO HAVE REASONABLE EXPECTATIONS TO USE SOME OTHER SOURCE OF FUNDS TO REPAY THE DEBT. IF YOU'RE GOING TO PUT IT WITH A BACK-UP. IF YOU DON'T HAVE THOSE [00:55:01] REASONABLE EXPECTATIONS THERE'S A WHOLE OTHER CONSIDERED CONTROL PROJECT AND YOU HAVE TO GO THROUGH SEPARATE PROCESS. SO ANY TIME THAT SPT IS PUT ON A DEAL AS A BACK-UP, WE LOOK AT WHAT DO YOU REASONABLY EXPECT TO USE TO REPAY THE BONDS. AGAIN YOU'RE SAYING YOU'RE NOT GOING TO LEVITY SPT. IT'S THERE AS A BACKSTOP JUST IN CASE. AND SO IN 2016 COMING BACK TO THIS DEAL. ONE SERIES OF THE BONDS THE EXPECTATION WAS TO USE COIT. THAT WAS THE EXPECTED SOURCE AND HAS BEEN SOURCE REPAYMENT FOR THAT SERIES OF BONDS. THERE WAS ANOTHER SERIES OF BONDS. THESE ARE THE 2016BS. ISSUED BY THE REDEVELOPMENT AUTHORITY. THOSE ARE EXPECTED TO BE PAID FROM TIFF FROM A VARIETY OF DIFFERENT AREAS IN THE CITY. AGAIN WE LOOKED AT MAYBE ENOUGH COVERAGE. ENOUGH REVENUE THERE TO ENSURE REPAYMENT OF THOSE OBLIGATIONS. AND AGAIN, THAT'S THE WAY IT'S WORKED. WE'VE NEVER HAD TO LEVITY SBT TO PAY THAT. AND THEN THERE WAS ANOTHER SERIES OF BONDS 2016C WHICH ACTUALLY WAS A REFUNDING OF SOME 2010 BONDS THAT WERE ISSUED TO FINANCE A COMPONENT. AGAIN TIFF WAS THE EXPECTED SOURCE. SO IT'S FAIR QUESTION. AND IT'S ONE OF THOSE. YOU PUT YOUR TAXING AUTHORITY ON THE LINE. BUT YOU STRUCTURE THE DEALS TO REALLY MIKE SURE THAT YOU DON'T HAVE TO USE IT BUT FROM A CREDIT STANDPOINT. THAT'S WHAT-- THEY LOOK TO. IS THEY SAY WORST CASE SCENARIO. IF YOU HAD TO, COULD YOU? AND YOU'D SAY YES. AND THAT GIVES YOU A VERY STRONG CREDIT RATING. >> THANK YOU THAT SETS ME UP FOR A QUESTION. WITH THE CHANGE IT LOOKS LIKE WE'RE GOING TOWARDS GLOBAL INCOME TAX. THEY DON'T HAVE PROPERTY TAX. HOW DOES THAT WORK? SO I'D LOVE AN EXPLANATION. >> SO IT LEADS A LITTLE BIT MORE. SO THE LAW IS CHANGED AS WELL. TO 2016 TO 2026. AND ONE OF THE MOST IMPORTANT THINGS THAT I WOULD FLAG IS ROAD AND STREET. SYSTEM PROJECTS CAN NOW CATEGORICALLY EXEMPT FROM CONTROL PROJECTS. SO REGARDLESS OF WHETHER THAT'S A MILLION DOLLAR ROAD PROJECT OR $100 MILLION. THE LAW SAYS. IT'S NOT A PROJECT SO WITH THAT IN MIND WHEN YOU PUT AN SBT BACK-UP ON A DEAL THAT'S A STREET PROJECT, YOU CAN STILL DO IT. AND SAY I EXPECT TO USE SOME OTHER SOURCES THAT THIS IS JUST A BACKSTOP. YOU DON'T HAVE TO LEGALLY ESTABLISH A REASONABLE EXPECTATION. BECAUSE YOU'VE ALREADY MET CATEGORICALLY EXEMPT BECAUSE WE'RE OUT IN THE STREET. BUT THAT BEING SAID, LOCAL INCOME TAX STILL CONTINUES UNDER SCA1 LAST YEAR AND THIS YEAR. NOW THROUGH JULY OF '28. AT WHICH TIME THAT EXISTING STRUCTURE WILL GO AWAY. AND THE CITY WILL HAVE TO DECIDE ITS FATE FOR THE FUTURE GOING FORWARD. SO I THINK THE PLAN IS THAT THAT IS GOING TO BE UNTIL 2028, THAT IS STILL THE EXPECTED SOURCE REPAYMENT FOR THAT PARTICULAR SERIES OF BONDS. AND THEN WHATEVER THE COUNCIL CHOOSES TO DO,ER FROM SOME REVENUE SOURCE, IS WHAT YOU WOULD THEN USE TO REPAY THOSE BONDS. AGAIN, I THINK THE INTENT HERE IS YOU'RE NOT GOING TO LEVY THE SBT TO REPAY THAT SERIES OF BONDS. >> SO WE'LL BE BACK TO HAVE TO-- WE'LL HAVE TO REWRITE ALL OF THESE BONDS I'M ASSUMING? OR THE LANGUAGE HAS TO CHANGE? I'M NOT SURE I UNDERSTAND THAT PART. >> SO THESE BONDS WILL BE OFFERED AND IN THE OFFERING BACK IT WILL BE VERY CLEAR THAT WHAT THESE BONDHOLDERS WILL GET IS A PLEDGE OF LIT UNTIL THAT LAW EXPIRES. AND AT THAT POINT IN TIME THE DISCLOSER WILL SAY THE COUNCIL MAY, BUT IS NOT OBLIGATED TO CONSIDER MUNICIPAL LIT. IF IT CHOOSES. SO IT WOULD BE VERY CLEAR BECAUSE THOSE BONDS AREN'T RATED BASED UPON THE CREDIT OF A LIT PLEDGE. IT'S BASED UPON THE SBT BACK-UP. WHENEVER THERE'S A DOUBLE BARREL PLEDGE THEY LOOK TO THE STRONGER OF THE TWO WHICH IN THIS CASE WOULD BE THE SBT. >> DOES IT CHANGE THE RATING? >> NO. >> YOU KNOW GIVEN THAT-- AMBIGUITY. >> NO. I THINK OLOT OF TIMES PEOPLE THINK IF I'M PLEDGING TWO THINGS. DO I GET A BETTER RATEING? THE ANSWER IS NO. SMP WOULD SAY WHEN THEY HAVE A DOUBLE BARRELER PLEDGE WHICH THEY CALL THAT THEY LOOK AT THE STRONGER OF THE TWO CREDITS AND THEY RATE IT BASED ON THE STRONGER. SO IN THAT CASE IT'S THE SBT. >> NO, IT'S OKAY. I HAVE A LOT OF QUESTIONS. SO THE SUMMARY THAT YOU HAVE IN FRONT OF YOU, I'LL JUST WALK THROUGH AGAIN OVERALL BRAD JUST EXPLAINED IT. BUT THE FIRST ONE-- THE QE1 THROUGH 13 ARE THE ORIGINAL 2016 BONDS. THOSE ALL ARE PAYABLE FROM THE PROPERTY TAX BONDS. [01:00:01] AS YOU CAN-- GO OVER TO THE RIGHT-HAND COLUMNS, YOU CAN SEE THE NET PRESENT VALUE SAVINGS. THE TOTAL FOR ALL 13 BONDS. PAYABLE FROM PROPERTY TAXES. IS THE 88 $0,000. THOSE WILL CONTINUE TO BE PAID FOR WITH A PROPERTY TAX LEVY. AND THEN-- YOU HAVE THE FINAL MATURITY DATE COLUMN THERE. I HAVE THAT INCLUDED IN THERE. JUST TO REMIND YOU ALL THAT THE MATURITY DATES FOR EACH ONE OF THESE IS NOT CHANGING. AND IT IS STAYING THE SAME. SO WE ARE NOT EXTENDING THE TERM OF ANY OF THESE BONDS. THEY ARE STAYING AT THE NORMAL ORIGINAL MATERNITY DATE FOR ALL THESE PIECES. SO WANTED TO INCLUDE THAT THERE. THE NEXT SECTION AS BRAD MENTIONED WITH THE BONDS WITH PROPERTY TAX BACK-UP ON THEM. 2016A BONDS PUBLIC INFRASTRUCTURE FUNDED BONDS BACK IN THE DAY. NET PRESENT VALUE SAVINGS TOTAL IS A LITTLE OVER $9.4 MILLION AND AGAIN THE MATERNITY DATE WILL STAY JANUARY 13TH 2036. AND THEN THE NEXT TWO PIECES ARE TIFF WITH THE PROPERTY TAX BACK-UP. AGAIN THEY ARE SPECIAL BENEFITS TAX BONDS WITH THE ANTICIPATION OF PAYING THEM WITH TIF FMENT REVENUES WITH HOW THE SECURITY IS OUT IN THE WORLD. AND SO YOU CAN SEE THE SAVINGS ON THOSE TWO COMBINED IS ABOUT $682,000 AND SOME CHANGE. AND THEN THE TWO LAST PIECES THAT MAKE UP THE 17TH AND THE 18TH PIECE ARE THE TWO STORM WATER BONDS. THE 2016 AND THE 2020. THE TOTAL COMBINED SAVINGS FOR THAT PIECE IS $1.3 MILLION TO GET YOU THE TOTAL OVERALL OF THE 18 BONDS OF THE HIGH END BEING $12.3 MILLION AND THESE NUMBERS ARE BASED OFF OF THE END OF APRIL. THE MARKET AS YOU KNOW IS CHANGING. AND SO OUR GOAL AS ZACH MENTIONED IS TO BE IN THE 8 TO $12 MILLION SAVINGS RANGE. SO THAT IS THE TOTAL SAVINGS. AND AGAIN YOU CAN SEE THE FINAL MATURITY DATES ON EACH ONE OF THOSE. THE TOTAL SAVINGS ON AN ANNUAL BASIS IF YOU FLIP TO THE SECOND PAGE OF THE HANDOUT. SEVEN MORE DETAILED OUT IF YOU WANT TO TAKE A LOOK AT IT ON THAT VIEW ON A SEMI-ANNUAL BASIS. YOU CAN SEE ALL OF THE OUTSTANDING PRINCIPLE AND INTEREST PAYMENTS ON THE LEFT-HAND SIDE. ALL OF THOSE BONDS COMPARED TO THE PROPOSED REFUNDING TOTAL BONDS. TO GET YOU TO THE SEMI-ANNUAL SAVINGS OF $18.3 MILLION. WE HAVE TO NET OUT OF THE 18.3. THE PRIOR BOND FUNDS THAT WE WILL BE RELEASING. AND ALLOWING YOU TO PAY DOWN THESE BONDS. INTO THE NET PRESENT VALUE SAVINGS OF THE 12.3. WHICH IS 7.8% SAVINGS. NET PRESENT VALUE SAVINGS. OUR MINIMUM THRESHOLD FOR OUR CLIENTS TO DO A REFUNDING BOND ISSUE IS LIKE 3. %. SO YOU'RE WELL ABOVE THE 3% RANGE WHICH IS OUR MINIMUM CATEGORY. AND AS WE GO THROUGH THE NEXT SCHEDULES. THE PORTIONER. YOU CAN SEE THE ANNUAL SAVINGS FOR THE PROPERTY TAX BONDS. ARE ABOUT $135,000 EACH YEAR. ABOUT 180,000 AS I MENTIONED BEFORE. RELATED TO THE LIST SUPPORTED BONDS. AND EARLIER. YOU CAN SEE MAJORITY OF THE SAVINGS FOR THESE PIECES IN 2027 AND 2028 FOR BUDGET SAVINGS PURPOSES. AND THEN YOU CAN SEE ABOUT $430,000 EACH YEAR AFTER THAT. PROPERTY TAX REVENUES. NUMBERS. AND THEN. SUPPORTED BONDS. YOU CAN SEE THIS ONE IS. OUTSTANDING. JUST BECOMES A HEADACHE. SO THERE WAS STILL SOME SAVINGS. ACTUALLY DECIDED BECAUSE OF THE TERM BEING SO SHORT. AND THEN THE NEXT SCHEDULE SUPPORTED BONDS OF 26 TEAM CS. ABOUT 95,000. $672,000. THE STORM WATER REVENUES. AND YOU CAN SEE ON AN ANNUAL BASIS. THAT'S ABOUT $640,000 OF SAVINGS EACH YEAR. ONE OF THE BOND ISSUES ROLLS [01:05:02] OFF. THE VALUE. SAVINGS ABOUT. I KNOW ONE OF THE QUESTIONS THAT WAS RAISED. AT THE MEETING ON MONDAY WAS JUST WOULD YOU LOSE OUT ON SOMETHING FOR DOING THIS BOND ISSUE NOW. SO WANTED TO ADDRESS THAT. WITH THIS BOND ISSUE OBVIOUSLY IT'S A TENURE BOND ISSUE. YOU WILL NOT VOPGSAL REDEMPTION. WHERE THEY OPTION TO REFUND THESE BONDS AGAIN. BECAUSE A TENURE TERM IS PRETTY SHORT. SO YOU DO GET RID OF THE OPPORTUNITY TO REFUND AT A CERTAIN POINT IN TIME. BUT WITH THAT WHAT I WOULD SAY IS THAT RIGHT NOW WHAT WE KNOW BASED ON THE FUTURE FUNDS RATE AND THE SCALE IS THAT INTERSTATES-- ARE ANTICIPATED TO GUP BY THE END OF THE YEAR AND STAY UP IN 2027 AND JOSH CAN ADD MORE COLOUR TO THAT AS FAR AS THE MARKET IMPACTS AND ECONOMICS. BUT REALLY WE'RE KIND OF IN A SWEET SPOT IN A WINDOW RIGHT NOW IF THE PLAN IS TO GET THESE ISSUED BY THE END OF JUNE BY JULY 16TH. SO ONCE THEY PRICE THEM BY THE END OF JUNE IF WE'RE IN THE MARKET WE SHOULD BE IN REALLY GOOD SHAPE TO STAY WITHIN THE 8 TO $12 MILLION SAVINGS RANGE. SO JUST WANTED TO BE SURE TO ADDRESS THAT. >> YES COUNCIL SELLER MINNAAR. >> THANK YOU MR. CHAIR. DO YOU KNOW WHAT THE YIELD WILL BE? ANY IDEA OR RANGE OF THE YIELD? >> THE TRUE INTEREST COSTSER TO TICK IS 3.19%. AS OF THE END OF APRIL. WE DO KNOW THE MARKET HAS SHIFTED SINCE APRIL ALREADY. AS YOU CAN IMAGINE IT CHANGES ON A DAILY BASIS. I WISH WE ALL HAD A CRYSTAL BALL TO KNOW WHAT'S GOING TO HAPPEN IN IRAN WITH FEDERAL POLITICS. BUT YEAH. WE HAVE AT LEAST OUR PRICING DESK HAS HEARD. THAT FOMC DOES PLAN TO RAISE RATES IN DECEMBER. >> ALL RIGHT BEFORE YOU GET INTO THE-- SORRY. WANT TO TRY TO SIMPLIFY THINGS. Select to skip to this part of the video"> WANT TO TRY TO SIMPLIFY THINGS. SO-- YOU KNOW-- YEAH. IT MAKES MORE SENSE KIND OF GOING THROUGH IT OBVIOUSLY TONIGHT. AND YOU KNOW KIND OF THE QUICK THING THAT WE DID AT THE COUNCIL MEETING. YOU SLIPPED MATURITY DAYS. PAYMENTS FOR THE SHORT TERM GAIN BECAUSE WE ARE GOING THROUGH CRUNCH TIME IN THE NEXT COUPLE YEARS. BUT THAT'S NOT THE CASE. THAT'S NOT WHAT WE'RE DOING. SO COULD YOU KIND OF EXPLAIN THE DIFFERENCE IN THE TERMINOLOGY. BECAUSE IT IS REFUNDING. SO-- WE'RE JUST-- TAKING THESE BONDS AND REISSUING THEM AS NEW BONDS. >> NOT TO MENTION THE PRIOR BOND FUND. >> YEAH. SO-- JUST THE TERMINOLOGY WISE. IN MY VIEW,ER CALL IT A REFUNDING IS SORT OF IN THE BOND TERMINOLOGY. WHAT WE USE. WE CALL THEM REFUNDING BONDS. STATUTES. BUT IT REALLY IS A REFINANCING. SO WHEN THE ORIGINAL BONDS WERE ISSUED IN 2016 THEY WERE 20 YEAR BONDS. AND AS HEIDI MENTIONED THE NORM IN THE MARKET IS WHEN YOU SELL THOSE FOR THE FIRST TEN YEARS MEANING THEY CAN'T PREPAY THE BOND. YOUR KIND OF STUFF. YOU'RE NOW AT THAT TEN YEAR MARK WHERE YOU HAVE THAT OPTIONALTY. AND WHAT YOU'RE DOING IS ISSUING NEW BONDS FOR THE REMAINING TEN YEARS. SO YOU ARE REISSUING BONDS. BUT YOU'RE KIND OF REPLACING THE OLD ONES. AND I THINK WHAT JOSH WAS SAYING EARLIER AT THE OTHER MEETING TODAY IS YOU'RE KIND OF MOVING DOWN THE YIELD CURVE. SO TEN YEARS AGO YOU'RE ISSUING 20 YEAR BONDS. SO THAT'S HOW YOU'RE ABLE TO TAKE ADVANTAGE AND SAVINGS. YOU JUST THINK INTEREST RATES SEEM FAIRLY HIGH. COMPARED TO I DON'T KNOW WHAT THEY WERE TEN YEARS AGO. YOU KNOW, WE'RE GETTING A LORE RATE ANYWAYS. BECAUSE WE'RE ONLY GOING FOR ANOTHER TEN YEARS VERSUS THE [01:10:05] SAME. MAKE A 20-YEAR MORTGAGE CONSISTENCY. FROM A 20-YEAR TO TEN-YEAR MORTGAGE. >> AND THAT'S REALLY-- THERE IS NO EXTENSION OF MATURITIES. OFTENTIMES IT'S CALLED SCOOP AND TOSS LIKE IN OTHER STATES WHERE THEY BASICALLY TAKE IT. WHAT YOU'RE SAYING MORTGAGE WORLD ANOTHER-- NO THIS IS JUST YOU'RE TAKING THE FINAL TEN YEARS. PLACING THEM WITH NEW BONDS. WITH EFFECTIVELY LORE YIELDS ON THOSE BONDS. >> YEAH AND A CUPOM THINGS I FORGOT TO MENTION. THAT ARE REALLY IMPORTANT IS THATTEN BOTH OF THE STORM WATER BOND ISSUES THERE ARE DEBT SERVICE RESERVE FUNDS IN PLACE. AND ONE OF THEM IS ABOUT $2.98 MILLION AND THE OTHER ONE IS A LITTLE OVER $700,000. BOTH OF THOSE ARE GOING TO BE RELEASEED. SO THOSE ARE ALLOWING YOU TO ALSO PAY DOWN A PORTION OF THE BONDS. AS WELL AND THEN TWO. ASSURETIES IN PLACE. THOSE DON'T HAVE CASH SITTING IN A FUND ANYMORE. THOSE WERE AN INSURANCE POLICY. YOU PAID A PREMIUM AT CLOSING AND THEN YOU HAVE IT. WE ARE ALSO GOING TO RELEASE THOSE AS WELL. WE HAD TALKED WITH-- TO MAKE SURE THAT IT IS NOT GOING TO AFFECT THE CITY'S BOND RATE. AND THAT PORTION WAS GOING TO AFFECT THE CITY'S BOND RATING. AND THEY SAID NO. BECAUSE THE CONSISTENT REVENUE STREAMS THAT WE HAVE NOW, HISTORICAL REVENUE STREAMS ON ALL OF THE REVENUE STREAMS. ARE STRONG ENOUGH NOW TO SHOW THAT YOU DON'T NEED THE DEBT SERVICE RESERVE FUND. SO THAT IS ANOTHER BIG PORTION OF THIS. SO. >> I'M SO GLAD YOU BROUGHT THAT UP. SO I APPRECIATE YOU TOUCHING ON THAT. THIS IS GOING TO SEEM LIKE A REALLY STRANGE QUESTION. BUT I'M GLAD YOU SIMPLIFIED IT TOO. WHEN THIS WHOLE PROCESS STARTED I WAS THINKING OH MY GOSH THIS IS LIKE A MORTGAGE. WHEN I THINK OF FINANCING AND BUDGETS I THINK OF MY OWN FINANCES AND BUDGETS. AND SO WATCHING ALL OF THIS AND LEARNING ABOUT IT ALL WAS VERY HELPFUL. SO THANK YOU FOR THE CLARIFICATIONS. WE DON'T HAVE ANY PREPAYMENT PENALTIES. >> YEAH WE ARE AT THE CALL DATE. >> SO THAT'S WHAT DEFINES IT. NO MORE PMI AS I LIKE TO CALL IT IN MY OWN PERSONAL WORLD. >> NO PREMIUM. >> I THINK SOMEONE ASKED THE QUESTION AND THE REDEVELOPMENT AUTHORITY ABOUT ENSURING THE BOND ISSUANCE ON THIS AS WELL. AND YOU SAID NO. >> WE WILL NOT BE GETTING BOND INSURANCE ON EITHER ONE OF THESE NOR A NEW SURETY POLICY AT ALL. >> AND MAYBE JUST EXPLAIN WHY. MAYBE SOMEBODY WILL WATCH THIS VIDEO AND LEARN FROM IT TOO. >> YEAH SO REALLY BOND INSURANCE I WOULD SAY IS BASED OFF OF THE CITY'S CREDIT RATING. AND THE CITY'S CREDIT RATING IS THE AA IF IT REMAINS THAT WAY. AND REALLY BOND PURCHASERS ARE NOT GOING TO NEED BOND INSURANCE. BECAUSE THEY ARE MORE OFTEN SEEN ON DEALSER THAT MAYBE AN A RATED CLIENT. AND SO THE PURCHASER OF THE BOND WOULD BY INSURANCE BASICALLY GET THE RATES AT THE AA LEVEL WHICH IS WHY THEY BUY BOND INSURANCE. USED TO BE A BIGGER THING BACK IN THE DAY. BUT AS CREDIT RATINGS HAVE BEEN PRETTY STABLE. REALLY YOU SEE IT ON LIKE A-- BASICALLY AA AND BELOW. >> ANY OTHER QUESTIONS? . >> WE'LL JUST GET BACK TO OUR OVERALL BOND RATING. >> ALREADY EXISTING. IT DOES HAVE TO GO THROUGH THE PROCESS. YES. SO WE ARE SENDING EVERYTHING TO SMP ON FRIDAY. AND WE WILL HAVE THE RATING CALL PROBABLY IN TWO WEEKS ON IT. AND WE'LL GET ITERATED. SO THAT IS WHY. >> DO WE HAVE AN ANTICIPATION HOW IT IMPACTS OVERALL. >> THIS BOND ISSUE SHOULD NOT IMPACT IT IT'S ABEXISTING BOND AND YOU'RE LOWERING THE PAYMENTS. SO WE'RE NOT CHANGING THE SECURITY. WE'RE NOT SCOOP AND TOSSING. PRETTY STRAIGHT UP REFUNDING. SO IT SHOULD NOT AFFECT IT. >> THANKS AGAIN MR. CHAIR. ZACH YOU AND I TALKED AND I THINK IT'S IMPORTANT FOR PEOPLE TO UNDERSTAND THE WHY. WHY ARE WE DOING THIS NOW. WHAT ARE WE GOING TO USE THIS SAV SAVINGS. WHAT HOLES ARE WE PLUGGING. IS IT GOING TO BE USED FOR SOMETHING ELSE? ANYTHING OUT THERE THAT'S FLOATING IN THE WIND THAT WE AS A COUNCIL SHOULD KNOW ABOUT OR OUR CONSTITUENCY? THANK YOU? >> AND ZACH TO EXPAND ON THAT. ASSUMING OUR PROPERTY OVERALL PROPERTY TAX RATES STAYS FLAT, WE ARE DECREASING OUR DEBT SERVICE LEVY FREES UP CASH FLOW RIGHT? AND MOST IMPORTANTLY FOR 27 AND 28 SO ASSUMING A FLAT TAX RATE TO EXPAND ON-- THE QUESTION. THOSE POSITIVE IMPACTS TO THE [01:15:03] BUDGET. >> YEAH-- SO-- THANK YOU MR. MAREMAN. IF WE WERE TO MAINTAIN OUR SAME TAX RATE. WE ARE ESSENTIALLY ABLE TO MAINTAIN THE SAME TAX RATE AND THAT BRINGS US IN MORE REVENUE EVERY YEAR AS ASSESSED VALUES GO UP. WITH THE NEW DEDUCTIONS THAT THE STATE HAS PHASED IN. YOU KNOW THERE'S SOME NUMBER OUT THERE WHERE WE HAVE TO GROW ASSESSED VALUE WOULD NEED TO GROW BY 10% A YEAR. JUST TO KIND OF TREAD WATER WITH THE SAME TAX RATE. >> THAT'S GROSS NOT ASSESSED VALUE GROWTH? >> CORRECT. WHAT WE'RE DOING HERE BY FREEING UP WHETHER IT'S 3 OR $4 MILLION A YEAR. AS A REMINDER, I THINK THE BUDGET THAT COUNCIL PASSED THIS YEAR, IT WAS ESSENTIALLY $144 MILLION OF APPROPRIATIONS TIED TO THE $144 MILLION OF REVENUE. WE'RE CERTAINLY NOT SEEING REVENUE GROW OVER THE NEXT COUPLE YEARS. WITH THESE NEW DEDUCTIONS. AND SO WHAT THIS DOES IS ALLOWS US TO DECREASE OUR OPERATING EXPENSES. PART OF OUR GENERAL FUND BUDGET. MAYBE OPERATING IN THE RIGHT WAY TO PHRASE IT. BUT ESSENTIALLY WHAT WE HAVE TO APPROPRIATE DOLLARS FOR IN THE NEXT BUDGET. ARE THESE DEBT SERVICE PAYMENTS. AND SO THIS LOWERS THAT OBLIGATION FOR THE NEXT TWO YEARS BY 3 TO $4 MILLION A YEAR. GIVEN THAT INSURANCE COSTS GO UP. GIVEN THAT HEALTH INSURANCE COSTS GO UP EVERY YEAR. GIVEN THAT WE-- POLICE AND FIRE ON A MATRIX WHERE THEY WILL HAVE INCREASES. WE HAVE A FEW EMPLOYEE-- CIVILIAN EMPLOYEES THAT HAVE NOT MET-- THEY ARE STILL MOVING UP IN THE STEPS. THEY ARE NOT ALREADY AT THAT LAST STEP. EVEN BEFORE WE START THINKING ABOUT COLA FOR NEXT YEAR, PERSONAL SERVICES COSTS ARE GOING TO GO UP. YOU START TO LAYER IN GAS PRICES GOING UP. UTILITIES COSTS GOING UP. WE NEED MORE MONEY IN NEXT YEAR'S BUDGET. TO MAKE THE NUMBERS WORK. CAN'T DO THAT MUCH ON INCREASING REVENUE. BUT THIS DOES BUY DOWN OUR EXPENSES FOR THE NEXT TWO Y YEARS. >> SO BASICALLY SAME TAX RATE. LESS OF A TAX RATE IS GOING TO DEBT SERVICE WHICH MORE OF KIT GO TO OPERATIONS. ON-- AND I WANTED TO MAKE SURE THIS IS A COMPETITOR NEGOTIATED ISSUANCE. >> DON'T NEED TO NEGOTIATE AN ISSUANCE. WHEN YOU HAVE A MINUTE THOUGH I WOULD LIKE TO GO BACK TO ONE QUESTION ABOUT THE VARIANCE. IF YOU WANT ME TO COVER THAT NOW I CAN. >> YES. MY NAME'S JOSH-- WITH ROBERT W.-- WE'VE BEEN ENGAGED TO SERVE AS UNDERWRITER. DO YOU WANT KNOW PUT IT ON THE SCREEN OR JUST HAND YOU A PIECE OF PAPEER? >> IT WOULD BE GREAT IF IT WAS SHOWN ON THE SCREEN. SO THE PUBLIC CAN SEE WHAT YOU PRESENT. AROUND THE MICROPHONE TURN ON. AND YEAH. THANK YOU. MAINLY IT'S JUST WHAT LOOKED LIKE THE LAST COUPLE YEARS. I WANT TO MAKE IT CLEAR THAT HAD IT BEEN A VOLATILE MARKET. ESPECIALLY LAST COUPLE YEARS. AND ESPECIALLY RECENTLY. I'M SURE WHEN YOU GO TO THE GAS STATION, I'M SURE YOU'VE SEEN THAT THE SPENDING 40% MORE TO FILL UP YOUR CAR. WHICH IS KIND OF CAUSED INFLATION THROUGHOUT THE ENTIRE ECONOMY. BECAUSE THE OILS AND INPUT TAPS EVERYTHING. PARTICULARLY WHEN BUT TO A WAR WITH ANOTHER COUNTRY, I WOULD THINK THAT RATES WOULDN'T COME DOWN. BUT IN THE CASE OF OIL, THAT'S NOT WHAT IS HAPPENED. SO SINCE KIND OF FEBRUARY, WE KIND OF HIT LIKE A BOTTOM BAR WHICH YOU CAN SEE. THAT DOT OVER THERE. THE START OF THE IRAN CONFLICT. WE WERE AT THE LOW POINT OVER THE LAST SEVERAL YEARS. RATES HAVE KIND OF COME UP A BIT. THERE WAS SOME EXPECTATIONS THAT THE WAR WAS OVER AND THERE WAS GOING TO BE A PEACE DEAL. RATES HAVE COME DOWN. NOW PEOPLE ARE A LITTLE UNSURE OF WHERE THINGS HAVE BEEN. SO I DO HAVE A MARK THERE OF WHERE THE NEVERS RUN HEIDI REFERENCED AT THE END OF APRIL. RIGHTS HAVE COME UP A LITTLE [01:20:06] BIT. BUT WHAT'S BEEN TALKED ABOUT IS TO EXPECT SOME VARIANCE. THE OVERNIGHT WE GET A REPORT THAT THE WAR IS OVER AND THE STRAIT OF HORMUZ IS BACK OPEN. THEN I THINK WE CAN EXPECT RATES TO MAYBE EASE. BUT I DON'T THINK THAT'S REALLY THE EXPECTATION AT THIS POINT. IS THIS COULD DRAG ON. AND GETTING OIL BACK TO THE SYSTEM IS PROBABLY GOING TO TAKE SEVERAL MONTHS FOR THE REST OF THE YEAR. I DO WANT TO STRESS ONE THING OVER THE LAST FIVE YEARS THAT PEOPLE WILL ACT QUICKLY ON REFUNDINGS. TYPICALLY WON. SO I THINK YOU KNOW GOING QUICKLY ON SOME OF THESE MATTERS JUST TO MAKE SURE YOU TAKE ADVANTAGE OF AN OPPORTUNITY THAT'S HERE IS TYPICALLY BEEN A GOOD THING. AND WE'RE AROUND THE 11 TO $12 MILLION PRESENT VALUE SAVINGS MARK RIGHT NOW. BUT STILL 35 TO 40 BASIS POINTS AWAY MARKET MOVEMENT TO $8 MILLION. SO THAT'S KIND OF THE LORE THRESHOLD THAN WE STILL HAVE A DECENT RUN WIN. OUR JOB IS TO UPDATE YOU AND THE ADMINISTRATION ON WHEN THAT HAPPENS. AND MAKE SURE THAT YOU'RE COMFORTABLE WITH WHERE SAVINGS IS AT. >> FMOC INTENDS AS SIGNAL AND POSSIBLE FUTURE RATE DECREASES. BUT THAT DOESN'T NECESSARILY TRACK TO BOND RATES. COULD YOU TOUCH ON THAT A LITTLE BIT. WHEN THE FED LOWERS RATES AND WHY THAT DOESN'T NECESSARILY DIRECTLY CORRELATE TO BOND RATES. >> YEAH, SO YOU KNOW SIX MONTHS AGO, I THINK EVERYBODY KIND OF THOUGHT THAT RATES WERE GOING TO BE KIND OF A RATE CUT. SO RATES WERE GOING TO BE COMING DOWN. AND THEY'VE DONE THAT RECENTLY. THEY HAVE CUT RATES AND SO TOWARDS THE END OF LAST YEAR THEY KIND OF HELD STEADY. THAT'S WHY WE SAW THAT TROUGH THERE IN FEBRUARY. THE EXPECTATION WAS THE JOB MARKET WAS SLOWING DOWN. AND INFLATION WAS RETURNING BACK TO THE FEDS 2% TARGET. WHICH IS THE GOAL AND IF JOBS ARE COMING DOWN AND INFLATION. THEN YOU LORE RATES TO STIMULATE THE ECONOMY. NOW THE OPPOSITE'S HAPPENED WHERE INFLATION HAS PICKED UP AGAIN DUE TO THIS OIL PROBLEM. AND UNITED STATES ECONOMY SEEMS TO BE MAYBE A LITTLE MORE RESILIENT THAN PEOPLE HAVE EXPECTED. SO THERE'S ACTUALLY ABOUT A 50/50 CHANCE THAT THE FED COULD HIKE BY THE END OF THE YEAR. THAT IS ASSUMING A LOT OF DIFFERENT VARIABLES THOUGH AND ONE OF THEM BEING THAT THE WAR LASTS A REALLY-- A FEW MORE MONTHS. SO IT'S JUST ALL VERY UNCERTAIN. WHEN YOU THINK THAT-- WAR IS GOING TO CONTINUE ON. BEEN REPORTS THIS MORNING AND LAST NIGHT THAT PRESIDENT TRUMP IS GOING TO ATTACK AGAIN LAST COUPLE DAYS. AND THEN LEADERS IN THE MIDDLE EAST WHO CALLED THEM OFF SAID NO I'D NEGOTIATE NOW. IT'S UP IN THE AIR. WE COULD SEE RATES COME DOWN HERE. DUE TO EVERYTHING OPENING BACK UP. AND GOING BACK TO NORMAL. OR THIS CONFLICT COULD CONTINUE. AND RATES INFLATION WILL CAUSE RATES TO CONTINUE TO RISE. >> THE MARKET CHATTER IS THA FOMC IS GOING TO RAISE RATES IN DECEMBER AND IT DOES DIRECTLY AFFECT THE MARKET. SO WE'LL HIT IT AT A SWEET SPOT. >> THAT DOES DIRECTLY CORRELATE. >> IT DOES. ESPECIALLY ON THE SHORT-TERM RATES WHEN YOU ARE BARRING FOR A TEN YEAR TERM THE SHORT TERM RATES ARE VERY IMPORTANT. >> AND THEN I THINK IT'S IMPORTANT FOR THE PUBLIC THAT THESE SAVINGS. AND NET PRESENT VALUE SAVINGS. THEY ARE SHOWN AFTER THE IMPACT OF ISSUANCE COST OF THE NEW DEBT CORRECT? >> THAT'S CORRECT YEAH AFTER NET PRESENT VALUE SAVINGS. AND CONSIDERATION THE VALUE OF TIME. OVER THE TEN YEARS IT TAKES THEM. . THE VALUE TO TIME. . THE TIME FACTOR THAT DECREASES THAT AMOUNT AS WELL. >> THERE WERE SOME CONCERN IN THE COMMUNITY WHO HAVE SPOKE WITH. 2001B AND C LEASE BONDS THAT WERE TIFF AND SUPPORTED BY TIFF AND SBT. THAT THE TIFF REVENUES MAYBE WOULD NOT MATERIALIZE AND THERE [01:25:05] WAS SIGNIFICANT RISK IN THEIR MIND OF TRIGGERING SBT. IT WOULD BE IMPORTANT I THINK FOR US TO TOUCH ON A LITTLE BIT ABOUT HOW-- AND ALSO IN LIGHT OF REMOVING THE BOND INSURANCE FOR THESE PARTICULAR BONDS. BOND INSURANCE WOULDN'T KEEP SBT FROM TRIGGERING. THAT'S JUST IN THE FULL EVENT OF DEFAULT. STHAR CORRECT? >> CORRECT. >> THANK YOU. TWO-- LET'S TOUCH ON A LITTLE BIT HOW DECREASING-- CREATING SAVINGS OR BY EFFECT INCREASING THE DEBT SERVICE PAYMENTS OF THESE BONDS. HELPS EVEN ENSURE EVEN FURTHER THAT SBT WOULD NEVER BE TRIGGERED ON THESE TWO BONDS. >> THAT IS CORRECT. >> THE SCHEDULE AGAIN. THOSE ARE FOR THE SECOND TIFF B BONDS. YOU CAN SEE THE ANNUAL SAVINGS OF $95,000 A YEAR. SO YEAH WE ARE IN FACT DECREASING THE ANNUAL PAYMENT ON THESE BONDS. AND I DO HAVE THE TIFF COVERED SCHEDULE IF THAT'S SOMETHING YOU WOULD LIKE TO TAKE A LOOK AT. >> I'D LIKE TO LOOK AT IT JUST BECAUSE I'M A NERD. BUT I ALSO THINK IT'S IMPORTANT. AND THEN IT FREES UP THAT INCREMENT REVENUE TO BE USED FOR OTHER THINGS. >> $95,000 A YEAR WILL BE ACCESSED NOW. REVENUES THAT THEY CAN USE ON DIFFERENT PROJECTS. SO THE SCHEDULE HAS LOTS OF MOVING PARTS ON IT. BUT OVER ON THE LEFT-HAND SIDE ARE THE CRC REVENUES THAT HAVE BEEN COMING IN. AND GROWING OVER TIME. YOU SEE THEM DROP OFF AT DIFFERENT PERIODS OF TIME BECAUSE OF TIFF AREAS ENDING. SO THAT IS IN HERE AND ALSO SOME VACANCY ASSUMPTIONS. SO THE TOTAL REVENUES COLUMN HERE IS THE COLUMN THAT YOU SHOULD BE LOOKING AT. COMPARED TO THE TOTAL OBLIGATIONS COLUMN OVER HERE. THAT MY CURSER IS BY. AND SO YOU CAN SEE THE ANNUAL SURPLUS OR DEFICIT IN A COUPLE OF YEARS DOWN HERE. WHICH I CAN EXPLAIN IN THE ANNUAL COVERAGE FACTOR ALONG THOSE LINES HERE. SO THIS MEETS REASONABLE EXPECTATIONS THAT WE WILL NOT HAVE TO LEVY PROPERTY TAX BOND ON THIS ISSUE. >> AND THIS IS PERFECT. AND THIS IS WHY I LOVE YOU GUYS. BECAUSE THAT IS BIG TIFF WHICH INCLUDES REVIEW CORRIDOR. WHICH WE HAVE SEEN ASSESSED VALUES OF THAT AREA DECLINE. AND I LOVE THAT YOU'VE INCLUDED SOME OF THAT-- 31 QUARTER VACANCY RATE. THAT IS AWESOME. THAT PROVIDES THAT HEDGES EVEN MORE. AND THEN ALSO LET'S TALK ABOUT-- SO THE ANNUAL SURPLUS AND DEFICIT. THESE ARE THE BONDS THAT ARE TIDE TO THE DEBT INTEREST RESERVE ACCOUNT. >> AND FE SCROLL OVER ON THE SCHEDULE. OVER TO THE RIGHT-HAND SIDE. THIS TALKS ABOUT THE SPECIAL RESERVE. SO ESSENTIALLY THERE ARE TWO YEARS IN WHICH YOU SEE A SHORTFALL THAT YOU CAN SEE HERE HIGHLIGHTED. AND THAT'S IN 2036/2037. SO DUE TO THE SHORTLE THE FALLS. DUE TO STRUCTURING. OF PRIOR BONDS WHICH IS CAUSING THAT SHORTFALL. THERE WAS A SPECIAL RESERVE. AND A CONTRACT AND A REDEVELOPMENT TO ESSENTIALLY SET ASIDE EXCESS TIFF FUNDS ON AN ANNUAL BASIS TO RECOVER THE SHORTFALL PAYMENTS. AND SO THIS $1.5 MILLION TO 1.3 OR 1.6 SPECIAL RESERVE CONTRIBUTION IS EXCESS TIFF THAT'S BEING SET ASIDE. AND THESE AMOUNTS ACCUMULATING TO A SPECIAL RESERVE. SO THIS CUMULATIVE SPECIAL RESERVE KOL SYSTEM REVENUE THAT IS ACCUMULATING HELD BY THE REDEVELOPMENT COMMISSION THAT YOU CAN SEE IS GOING TO BE MORE THAN ENOUGH TO COVER THE SHORTFALLS IN THESE TWO YEARS. SO THE NET ANNUAL CRC REVENUES AFTER THE PAYMENT OF THOSE RESERVE CONTRIBUTIONS IS HERE OUT IN THE FAR RIGHT-HAND COLUMN. >> PLUS NOW WE'RE CREATING ADDITIONAL ANNUAL SAVINGS BY THE REFUNDING. >> CORRECT. WHICH IS IMPLEMENTED. >> THANK YOU PIP WANT TO MAKE SURE WE TOUCHED ON THAT. >> AND THE SCHEDULE I JUST SHOWED YOU WAS A PART OF THE OFFICIAL STATEMENT THAT WILL BE GOING OUT TO THE MARKET. ACCOUNTING REPORT PORTION OF [01:30:02] THE PRELIMINARY OFFICIAL STATEMENT. >> SO IN THE FACT AT THE END-- AT THE LAST TWO PAYMENTS OF THESE BONDS WILL BE ABOUT $6 MILLION OUTSTANDING. BUT CURRENTLY IN THE BANK WE HAVE ABOUT $8.8 MILLION IN THE SPECIAL RESERVE TO COVER THOSE. MORE THAN ENOUGH TO COVER THOSE. >> YES. >> THANK YOU. QUESTIONS FROM TONY OR COUNCILLOR MINNAAR OR COUNCILLOR GREEN? ANY FURTHER DISCUSSION? IF NOT DOES COMMITTEE MEMBER HAVE A MOTION? >> GO AHEAD. ACTUALLY SO WE TALKED ABOUT-- B, E THROUGH H. >> REAL QUICK. SO ITEM E. THIS IS THE RESOLUTION CC05182601. THIS IS THE RESOLUTION THAT WE APPROVED THE AMENDMENT TO THE LEASE AND THE 2026A REFUNDING BONDS. THOSE ARE THE BONDS AS YOU RECALL THAT WERE SECURED BY A PLEDGE OF BOTH LIT AND THE SPT. SO DOUBLE BARRELER PLEDGE. AS I MENTIONED TO ZACH AND COUNCILLOR TAYLOR MENTIONED TO YOU AS WELL. THERE'S ONE SENTENCE IN THAT RESOLUTION THAT WE WOULD LIKE TO STRIKE. IT'S THE VERY LAST SENTENCE OF SECTION 1. >> DO YOU MIND, I DON'T HAVE MY I.T. AS MY COMPUTERER TODAY. DO YOU MIND. SHOWING THAT? FOR THE RECORD? >> ORIGINALLY WE DRAFTED THAT TO SAY UPON THE ISSUANCE OF THESE REFUNDING BONDS. THE PLEDGE OF LIT TO THAT LEASE WOULD TERMINATE. HOWEVER AFTER GIVING MORE CONSIDERATION, WE DECIDED THAT IT'S BETTOR ACTUALLY LEAVE THAT LIT PLEDGE IN PLACE. BECAUSE UNDER EXISTING LIT LAW THE TAX RATE AND THE ALLOCATION TO THE CITY CAN'T BE REDUCED TO PROVIDE LESS THAN 125% COVERAGE. AND SO THAT WAS REALLY THE REASON WHY IT WAS DONE IN 2016. WAS TO PROTECT THE CITY'S BACK THEN COIT DISTRIBUTION. SO REALLY WASN'T A VALUE FOR THE PLEDGE ITSELF. IT WAS TO ESSENTIALLY PROTECT THE CITY. SO THERE COULDN'T BE SOME CHANGE BY THE LOCAL INCOME TAX TO REDUCE CERTIFIED SHARES. >> SO IN EFFECT ANOTHER COMMUNITY IN HAMILTON COUNTY CAN HIRE VERY EFFECTIVE LOBBYISTS AND WAS NOT RANKED NUMBER ONE IN THE NATION. IN THIS MONEY MAGAZINE REPORT RECENTLY, DECIDED TO TRY TO CHANGE ARTIFICIALLY GO THROUGH THE GENERAL TO CHANGE THE LIT FORMULA. THIS WOULD ENSURE THAT THIS-- LEAVING THAT-- RESTRIKING THAT SENTENCE WOULD ENSURE THAT WE'RE STILL ABLE TO CAPTURE LIT TO REPAY THIS DEBT. >> YES. AND UNTIL THE EXISTING LIT STATUTE. CHANGES. IN 28. CORRECT. >> SO FOR MY COMMITTEE MEMBERS. FOR A SUGGESTION ON A MOTION WOULD BE TO INCLUDE ITEMS B F G AND H. WITH ALSO E. BUT THE FIRST MOTION WILL HAVE TO BE TO AMEND ITEM E. >> ARE YOU GOOD WITH THAT BENJAMIN? ALL RIGHT, SO I'LL MOTION TO AMEND RESOLUTIONS CC-05-18-26-01 BY STRIKING THE LAST SENTENCE IN SECTION ONE. >> WE HAVE A MOTION FOR THE SECOND. PLEASE VOTE. MOTION AMENDMENTS CARRIED. >> I'LL MOTION TO APPROVE-- OR SEND BACK WITH A POSITIVE RECOMMENDATION TO THE FULL COUNCIL. ON MEETING AGENDA FOR WEDNESDAY MAY 20TH 2026. ITEM B, E, F, G AND H. >> I WILL SECOND THAT. [01:35:06] >> WE HAVE A MOTION SECOND TO SEND BACK THESE ITEMS BEFG AND H TO THE FULL COUNCIL WITH A POSITIVE RECOMMENDATION. THE MOTION CARRIED. WE WILL ADDRESS ITEMS C, I AND D AT OUR FINANCE COMMITTEE MEETING ON JUNE 1ST AT 4:30. NO OTHER ITEMS ON THE AGENDA. IS THERE A MOTION TO ADJOURN? THANK YOU. WE WILL ADJOURN AT * This transcript was compiled from uncorrected Closed Captioning.