[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:12] I'm good to go. Call
[0:17] to order this curvil city council budget workshop or June 18th. Are there any visitors signed up? No, sir.
[0:29] As we begin the process to set a budget for next year. Remind our newest member that this is critical because it's not in the budget. It's not going to get that. And I also want to state clearly that
[0:48] We live in civil inflationary times and so being cautious, especially with the
[1:00] Admiral on tax rate, is going to be something I'm going to focus on in the next.
[1:07] So with that, who is first?
[1:11] Mayor, I'm going to kick it off.
[1:14] Mayor, Council, welcome to Budget Workshop.
[1:17] So obviously this is my first budget workshop as well, so there's a lot of things that we're
[1:20] kind of keep the status quo from what the team has done previously. We added a few things
[1:25] kind of in there just to one, I want to see how things are done as well. We've kind
[1:30] of charged them with a lot of different visions and goals. We have incorporated some of
[1:36] the high-level discussions that Joel did on Friday at the strategic planning. Fortunately
[1:42] for us a lot of the stuff we had already kind of factored in in anticipation of those
[1:46] of those goals. If I had to sum up this entire kind of budget workshop or this budget this year,
[1:54] it's really focusing on sustainability and capacity. To that point, well, what is capacity? Does
[1:59] capacity mean we add more or does capacity mean do we stay the same? You know, and get some things off
[2:04] of our finish line, get some things across the finish line, and continue to kind of move forward,
[2:10] and build some capacity through time. And so as once Julie kind of comes back in, she's
[2:15] We've written off a couple of the slideshow.
[2:17] Oh, she's right there, sorry.
[2:20] You know, we're going to kind of go through this.
[2:21] And we really want this opportunity not
[2:23] to just be one-sided.
[2:24] One way, we want this to be a two-way conversation,
[2:27] of course, and get some feedback.
[2:29] But I am confident that there's a lot of things
[2:31] that we've put in here that does factor in a lot of y'all's
[2:35] visions and goals and things that we've talked about.
[2:38] Again, folks in around sustainability, folks in around
[2:41] some of the inflationary challenges that we have.
[2:43] And really looking at the theme of Beyond Tomorrow and what does that look like so
[2:49] Julie
[2:49] Hey, James bringing you copies I got we got you had up in his expense report
[2:54] This is something new that we've never provided to you before so we can talk about that or remind you so then some questions for later
[3:01] You have a different date. Just know this is going to be nice. So
[3:08] Actually
[3:09] So
[3:17] So, just kind of go over what our agenda was today, really just looking at our timeline
[3:22] and our process, what our top priorities were, and a lot of those.
[3:26] We kind of keyed up some things, either from prior years, or we're also from some things
[3:31] you guys really brought to the table on Friday.
[3:34] We're getting the budget theme and our approach to this year, review of things that we've done
[3:38] and how we got here, and then just going through the general fund, taking a quick look at
[3:43] streets, death service, asset replacement, and then talking about the facility
[3:48] that we've brought a few times to you and then summing everything up today.
[3:53] I think we gave ourselves plenty of time. I think in years past at least for me
[3:56] I've had a little bit rushed. I don't know that we will need the entire time today, but I
[4:00] want to make sure we have plenty of time for you guys to stop ask questions, get
[4:03] feedback because this is definitely what we want to do that. We do have staff here as
[4:08] well, if there's any specific questions, I don't know that we'll be that deep today,
[4:12] But if they're definitely here to answer any questions, you can need them.
[4:17] So look at the timeline back in October of 23.
[4:21] We started meeting with our asset team again.
[4:24] You know, we've been working on that for a couple of years now.
[4:26] I think we continue to make progress.
[4:28] And in my opinion, really close to having at least a full five-year plan.
[4:33] We've really been looking at this year, next year, in the following year,
[4:36] as far as what purchases need to be.
[4:39] But we're really looking at how we're going to fund that over time.
[4:44] that had a personal request or new item requests, those were due to Kim or to finance at
[4:52] that time so that we could start looking at that if it was a new position completely or
[4:56] just added personnel to existing staff.
[5:00] And then department started submitting their operational budget request through our software
[5:05] which is very user friendly, and so it really allows departments to do their own work as far as entering the request within the software, so it's not.
[5:17] They're actually the very integral part, actually, of the public process in general, so.
[5:22] It's kind of walks you through there, and we've talked about this before.
[5:24] What we do, we get our preliminary role in April, and start kind of looking at how that look for a property tax standpoint, where evaluations look, and what kind of things.
[5:32] I'm sorry, I have some budget workshops and then we're certified property tax
[5:37] for Canada in line to get that to us as July 25th. It's super tight between the
[5:42] 25th and the 31st. So a lot going on there during that week our calendar is
[5:49] already blocked. And so then
[5:59] we worked at that process and then we had
[6:01] outlined right now on 13th. Actually presenting the budget and the proposed tax
[6:06] to you for consideration, and then both public hearing and the second reading will be in September.
[6:12] So that's all we have out on the panel. Any questions on any of that?
[6:16] It's a lot of information on them. I'm going to read it all, but you'll be pretty familiar with that.
[6:21] So real quick on that, especially for new council members and just reiterating.
[6:27] Some of the stuff is dictated by not just our charter, but also the state.
[6:30] And so while we say we've got to present a proposed budget, you know, to the clerk
[6:35] work that doesn't mean that budget set in stone. It's just a proposed budget. It's an administrative
[6:39] checkblock that we have to do both for our charter and our state. So there is some, obviously
[6:45] by that point, a lot of it's pretty much locked down, but just be aware that that is an administrative
[6:50] process.
[6:55] So we'll move on and just kind of talk through a little bit of our process this year. We always
[7:01] have a budget committee, but in the past it's been, you know, a few people, just because
[7:08] It's always been for saying it in a different way.
[7:11] This year we kind of wanted to really start with our asset team that we created years ago.
[7:15] Give everybody an organizational wide look at what happens.
[7:19] Just look at your own department and know how you fit into that.
[7:23] But really do you know how you fit into that?
[7:25] So given them some opportunity for feedback to answer questions
[7:30] and to look at departments, especially the large ones,
[7:33] and multiple divisions in a different way so that they can see what really different
[7:38] departments contribute.
[7:40] So, this was our budget committee and basically what happened was after departments put
[7:44] their budget requests in, finance work with them to work through the first initial stab at
[7:50] it and once we got down to something that was we felt reasonable to the group and they came
[7:55] in and presented their budget kind of a summary level to this budget committee talking through
[8:03] what their apartment does, major goals that they have, what their process was and coming
[8:07] up with their budget requests, and then things that they might need now are in the future
[8:12] and kind of what they have in the play, basically.
[8:16] Once we have the U.S. haven't even put it all on that budget committee, like what you thought
[8:20] that worked or didn't work, or.
[8:22] I'm a big fan of the budget committees, like Jillian said, to reiterate it again.
[8:26] It gives insight into not just their departments, but kind of citywide, and just some of the
[8:30] challenges that are faced using multiple funds, enterprise, loss leaders, et cetera.
[8:36] It just, again, it's not necessarily sometimes the decision-making side, but it brings awareness
[8:41] to the entire city budget.
[8:43] Real quick, as we kind of move on on this, one of the things that we did add, I'd say simplistically,
[8:50] We always talk about and tip most budgets, and again, this is my first budget here, so
[8:54] I'm getting feedback from our team, is we kind of bring a conservative budget ideally
[8:59] to y'all from the Gica.
[9:00] We prepare it, we present it, and you know, get feedback from y'all.
[9:04] What we are going to show is the asks.
[9:06] What was asked at the very beginning, you know, the crazy asks, you know, sometimes are like
[9:10] the front end, you know, front load.
[9:11] We actually want to talk about those with y'all.
[9:13] One, it gives y'all kind of an inside of what the requests are coming through the departments
[9:18] and a lot of what they're seeing on the operational
[9:20] and administrative level,
[9:22] but it also brings awareness to counsel
[9:24] in the community that, hey, we are really looking
[9:27] and doing our due diligence on this process,
[9:29] we are taking a look at the priorities
[9:31] and what's happening and really being conservative from it,
[9:35] so it's kind of a two-pong approach on that.
[9:39] So some of our takeaways from our retreat on Friday,
[9:43] you took just the top bullets that came away
[9:48] from Friday just to kind of make sure that you guys can see what we're working on
[9:52] and how that aligns with those particular things and we didn't get too deep into
[9:55] this because it was just Friday but my goal would be to link what we're doing
[10:01] within the budget array to these things and how they were prioritized on Friday
[10:05] but then also looking futuristicly there's something we're not addressing
[10:09] or maybe we're not addressing to the level that they were prioritized that we
[10:13] look at that going forward as we talked about you know finishing at least the
[10:16] to your work plan and how that looks. So again, these were just a high five that got the
[10:22] most prioritization on Friday. So that's what those are in to the mayor's. When I talk
[10:28] with Mayor Harry the other day as well, and this included not just, you know, a stuff that
[10:33] had council priorities in it, but also included, you know, some of the large ones that are included
[10:38] as well. So there was the headdogs. Okay. Yep. So this included kind of the high
[10:46] level ones of all and again this was we know this is new you'll have an
[10:49] officially adopted the plan from Friday but we just wanted to again start showing
[10:54] where our plan over the past eight months and with Julie Wanderer on how do we
[10:59] do cost-based budgeting and priority based budgeting going into the future
[11:03] budgets.
[11:07] Okay so I wanted to give you a little bit of what led up to our theme and
[11:11] just so you know whatever we start talking about being really are looking at
[11:16] What's our approach? What's our overview? What's our focus? And then we get input from staff and say, all right, this is really what we want to focus on.
[11:23] We need some theme topics. And so this theme actually came from one of our staff. So we loved it and we were like, hey, what do you all think about this?
[11:32] And so that's what we decided to go with as far as what we thought it meant to us from a sustainability standpoint.
[11:37] So if you were here in 2022, you know, we used moving forward and I think we were all feeling like, okay, this year we're going to recover from COVID and we didn't try.
[11:46] But I think that lingered a little bit longer than we thought.
[11:49] In 2023, we used building momentum and really we focused on the impact inflation that we started to see, you know, overcoming, you know, recruitment retention issues that we really saw.
[12:02] really post-coded and that's kind of a nationwide problem. If you look at what if you
[12:09] could hire anybody, what you're paying people now compared to what you were paying people
[12:13] pre-coded, that really did have a big impact in the inflation, of course, on top of that.
[12:18] And then focused on really regaining momentum related to completing some capital projects,
[12:23] looking at what our needs were and getting back on track with maintenance components.
[12:27] And then last year of course looking up was pretty obvious, but not just because the
[12:31] clips, really because things were kind of starting to, I'm going to gently stay level,
[12:36] you know, we had kind of learned to cope with the inflationary pressures that we were
[12:41] feeling. I think that we did a pretty good job of presenting mostly a flat or just slightly
[12:46] increased budget outside of things we couldn't control last year, and that's kind of what we've
[12:50] looked for for 25. And so this year, really, we want to focus on sustainability. We talked about
[12:56] that a lot over the last few years, but getting some of those pieces put into place, specifically
[13:01] long-term facility and asset plans and this year we focus on leveling operational
[13:06] budgets just you know what does baseline mean and what do we have to have versus what we
[13:11] really need to have and and that's something we're going to continue to look at going forward
[13:15] from a capacity issue because you know as we talk about private capacity doesn't necessarily
[13:20] just need people but sometimes capacity means you know funding and many do the things that you need to do
[13:26] so you can have the people you don't have the funding like having to shovel with no use it or
[13:30] or vice versa, and so what does that really look like?
[13:34] So we talked a little bit about that,
[13:38] and then of course we always want to preserve
[13:40] the impact to taxpayers, that's kind of a slippery slope there
[13:45] when one of the services that are really expected
[13:47] and how does that look, and what does it take
[13:50] to get those services provided, whether their needs are
[13:52] once, just depends on what citizens really really want
[13:55] to do, looking at utilizing other revenue streams from grants,
[13:59] So I think the departments have been great job with that over the past few years and we plan on the two of that even more and then looking at some special
[14:05] funds and things like that from a revenue standpoint where we can come and build the app if we need to.
[14:09] So also as we talked about Friday, we're really focused on completion of current projects, whether it's CIP or internal.
[14:15] So a lot of times there can be projects going on that aren't necessarily on the CIP list.
[14:19] There are things that are going on internally with departments that have been on the project list and the business player, those kind of things.
[14:25] that we just need to wrap up and kind of get our European underground and look at the
[14:29] board.
[14:30] So our takeaways from this approach, departments, they're very lean, and operationally,
[14:35] they're lean.
[14:36] They didn't ask for a lot of brand new stuff, things that they asked for, even some of those
[14:42] things got reduced as we were trying to bring to you guys pretty much an operationally flat
[14:45] budget.
[14:47] And those things can be limiting, you know, either because of staff shortages or because of
[14:50] funding.
[14:51] So those are things that I think this is going to give us a year to really look at.
[14:54] What does that mean? Big picture? And then just looking deeper into these, whether it's
[15:00] We can change our span services, the system's more underneath, and then as we talk a little bit about Friday, we're outsourcing opportunities to help us fill some of those gaps.
[15:08] And then on to that, you know, when we talk about capacity, you know, there's a couple
[15:11] ways we can look at capacity very simplistically.
[15:14] One, we can either increase resources, increase personnel to accommodate that capacity, or
[15:19] we kind of level out and say, okay, let's get some things across the finish line.
[15:22] And that was kind of the approach with, you know, with kind of the tight constraints on
[15:26] budget, with us having a lot on the plate, you know, kind of see what some of the asks were.
[15:31] The asks were pretty substantial that we just didn't feel comfortable that we were going to
[15:35] to be able to operationally sustain it conservatively.
[15:37] And so instead of taking the approach of increasing the capacity
[15:40] by adding more people, we took kind of more
[15:42] of a leveling approach to get things across the finish line
[15:45] and build capacity through accomplishing and completion.
[15:48] So
[15:51] just to kind of support what we were just talking about
[15:53] as far as inflationary trends, you can see what we were doing
[15:56] with, you know, mid-year, 22.
[15:59] I think we got in the high, like, 90, 40% inflation,
[16:03] which was really huge, especially on the water gun,
[16:05] a few of those kind of things, and I know the Fed is kind of set up to have around two
[16:11] and a half percent again.
[16:12] We're about to bring out, so, you know, they held one, so I'm not sure what's going to
[16:17] happen in the next few months, and they can be in the election year.
[16:19] You just don't know.
[16:21] But, you know, we anticipate them starting to drop at some point, and I guess we'll be up
[16:25] for the first of the year, but I really can't predict that.
[16:31] So, work for shortages, and we'll talk about this, and what we've done to deal with that
[16:35] over the past few years and I think that has to be focus of this Council and also the
[16:40] private Council was just to focus on retaining and recruiting quality staff.
[16:47] So right now we have 26 vacancies and I could be a little bit different that was a couple
[16:50] of days ago.
[16:51] A lot of those in police fire parks, you know, your heavy lifting departments, but you can see
[16:59] there kind of the history of what we did as far as budgeting, merit, and co-las.
[17:03] If you two made your goal is that we had the formal compensation
[17:06] to say to Kim and her team did and we did some strategic
[17:09] market adjustments there just to kind of bring our staffing to
[17:14] the current to the pay that was averaged for their position
[17:17] if that was required and then what we've done over the years.
[17:20] So we feel like this has been a really heavy focus of ours,
[17:25] but I'll say the problem's all the way but I think that we've
[17:28] at least gotten to a point where we feel like we're at least
[17:30] competitive in case they'll know. So a lot of work to do still, but it would be a little bit
[17:36] creative with there. So this is looking at new requests. So positions at the top, you can
[17:42] see this is what was asked for, as I said, they were supposed to do their position requests
[17:47] in February. So this is what came in request for 12 new full-time positions, one part-time
[17:53] position, and then those total position requests total about 1.5 million just to the general
[18:00] and then items or upgrades, keep in mind this does not include the items that were already scheduled to be replaced or that was just by natural order of things that we were going to replace. This would be brand new or upgraded equipment or software those
[18:12] I think so. Totally requests 1.6 million that was 25
[18:21] so the initial proposed budget after all operating requests were submitted by
[18:26] apartments was 41 and a half million expenses after we've adjusted that down to everyone's assistance and
[18:35] willingness to help me out with that. We're now at 39.7 right now currently with expenses. There's some unknowns and they're still
[18:44] So with the exception of personnel requests, most categories were flat or less than 23, and
[18:48] you'll see that when we go through this.
[18:50] So that was really kind of our charge to them was, you know, let's keep it as flat as
[18:54] we can, increase the volume that we have to, and really take a look at the things that are
[18:59] optional, you know, these versus ones.
[19:02] So as of the 13th, the general fund was out of balance by about $625,000, we're still
[19:10] working on that. But there's a lot of things still that can happen between now and even next week.
[19:15] So we'll continue to monitor and update the property tax values because we can't not even
[19:20] work close to being able to talk about a rate because we don't know what still ARB is going to do
[19:25] those things. Monkering larger revenue sources, you know, sales tax is very volatile and we talked about
[19:31] that being healthy but really being important to be conservative there because you just don't know
[19:36] We've seen what can happen you know COVID year we're seeing 20 plus percent increases and that's just not real
[19:42] There's some things that you know we were lucky and that moved us out a lot when we needed to help us out
[19:48] But we're we're back on track with that
[19:51] Finalizing group insurance. There's a heavy impact to the general fund for that. Right now
[19:55] I think he said he came back at 15% on the 15% but we're still negotiating at this point.
[20:03] So that could reduce as we continue to work through that process.
[20:08] What was his last year?
[20:10] Kim?
[20:11] I think we ended up at 13 and started at like 30, so yeah, it was high.
[20:17] And so as they work through that, that's one of the things that takes a little bit longer
[20:20] to work through and so we budget for what we anticipated and we hope that they're saving.
[20:24] So, yeah, we'll present that the second meeting in July.
[20:28] And there's a lot that still has to happen.
[20:30] We'll keep looking at proposed expenses and based some of those,
[20:34] so still some things considering this again is still just in draft form.
[20:38] And again, you know, with that, you know, kind of the bottom line up front stuff,
[20:41] as we go through this, sustainability was a big piece in there.
[20:44] So, if we would pull kind of the sustainability or an end maintenance,
[20:48] you know, fixed asset replacement, we would cover those costs.
[20:51] So when we built in some of those cash reserves into sustainability, that's what's kind
[20:56] of created some of the depths that that we're working through so we can start preparing
[20:59] for the future.
[21:00] That'll kind of come to light as we go through this.
[21:05] So this is just your categories.
[21:07] You guys see these on a regular basis that these are just our revenues versus in the general
[21:12] budget.
[21:13] We'll talk about those a little bit in more detail.
[21:15] Let's make it through.
[21:16] But I just wanted to point those out.
[21:20] Okay.
[21:20] So proposed revenues by category.
[21:23] Again, this is as of last Friday, so proposing
[21:30] today 39.1 million compared to 37.6 million
[21:35] last year.
[21:37] Remember that the golf course is going to be closed for renovation for six months.
[21:40] There's a little bit of an expensive fact there, but we've worked through most of that.
[21:43] We've been able to reduce quite a few expenses either through personnel assignments or just various creative things
[21:52] that we've done there to kind of offset to make sure there wasn't a big impact.
[21:56] The pool will be closed.
[21:58] They'll still both do have maintenance components that, you know, there's still expenses
[22:01] related to those, but again, we've done our best to try to offset those as much as we can
[22:06] so that we don't have an impact.
[22:08] Services here includes EMS, EMS and Solid Waste of that room, and that's just the landfill
[22:12] portion of Solid Waste that does not include your curbside, because that's a pass through
[22:16] expense so the city only retains a small portion, like 5% of our total, just for administering
[22:22] programs. There are a lot of revenues there. Intergovernmental is one of your categories
[22:27] that's going to be for county contractual events and your KLSD contract or school resource
[22:32] officers. And so those change just a little bit of your old year and on the people factor.
[22:38] So this basically just gives you, last year, I think, sales tax was budgeted at 28%, I'm
[22:44] sure it's 26. But everything else really was very in line with what we've always seen
[22:49] as far as distribution of revenues there.
[22:53] So you're expecting to increase in sales tax from the last year.
[22:58] I'm hoping that we're going to be flat.
[23:00] And I have a couple of slides on that.
[23:02] I'm hoping for flat.
[23:04] But yeah, we'll see what the next couple of months bring.
[23:07] Well, that is one that we literally update to the day
[23:10] almost we follow at the budget, because until property tax comes in,
[23:14] and we see, remember to lie, we're a two-month lack.
[23:18] So we have the sales text July the 10th, it's from May, May, yeah.
[23:25] So we're, here it's a lag there that we're just, a lot of it is just going to see if
[23:29] the, does it keep going up, down, down, or do we start to see some weathering, you know,
[23:33] yeah, we've got to make a decision about how comfortable we are.
[23:36] So we really watch that slow and have a really balanced, a lot.
[23:39] Um, I gave you these truth and textations, and for you to have as questions on this, I'm
[23:44] I'm happy to answer this, I don't know if you guys need a dissertation on the truth and taxation again.
[23:51] But the main thing to point out is remember that everything we hinges on in other revenue rates.
[23:55] So, no new revenue rate is taking exact same properties this year compared to those exact same properties last year
[24:01] and saying we would make a dollar more using that calculation right there.
[24:05] That's the basics of no new revenue rate. That everything hinges on that.
[24:08] So, remember, we're limited by the state.
[24:11] Our tax rate cannot be more than 3.5% over that number of the tax.
[24:15] So, unless it goes to the bars.
[24:17] Unless it goes to the bars.
[24:18] So, there's a lot of caveats there.
[24:22] So, when they calculate that, they include a change in the valuation.
[24:28] Yes, sir.
[24:28] Thank you.
[24:29] Yes, sir.
[24:29] But, again, it'll bring in, it's a huge, like, 18-page calculation, and it's in the budget
[24:37] book if you more walk through that's not complicated it's just a lot but it brings in all your values
[24:42] but it still looks at if these properties are valued at ten thousand dollars this year but last
[24:47] year they were valued at nine thousand dollars you have to send the rate to where that ten thousand
[24:51] dollars doesn't generate any more revenue so your rate is going to go down as your as your values go
[24:55] at the rates you may not have to last year that yeah it's happened every year since 2019 when the
[25:01] with the law change on, except for 2022 or three when we had to change the rate to accommodate
[25:08] for the bond.
[25:09] Right now that's on the debt side so your immunoside is what's affected by, but the
[25:14] rate did change because the rate did change on the debt side because of the bonds, yes,
[25:18] yes, but our immunoside still went down, so that's, that's absolutely going to happen.
[25:23] Because of the increased property.
[25:24] And of course, whether it's additional property or just increase in valuations on current
[25:30] property.
[25:31] And remember that new value added to the role.
[25:33] So anytime someone builds a brand new house, it's not part of the new revenue rate because
[25:37] it wasn't their last year.
[25:38] So that's a completely separate component.
[25:40] So, and I'll show you in a minute what that comes into life, pretty sure.
[25:47] So again, this is just outlining the property tax rate process and how that happens.
[25:52] and we don't go through all of that,
[25:54] but we still want to go through that last year.
[25:57] But anybody is not sure or not real comfortable
[26:00] how that works, just let me know or let
[26:01] all to know, you know, one of us can sit down
[26:03] and talk you through that process.
[26:05] It's complicated, but it's not complicated.
[26:07] It's pretty simple if you can just break it down
[26:09] into terms you can understand.
[26:11] I think that's real important just to know
[26:13] that we only have so much control over that for reason,
[26:17] But so you were just talking about for your money without you.
[26:23] So this is kind of, this is something Jacob put together a few years ago,
[26:26] that we really like to show.
[26:27] It's just really distribution of property taxes.
[26:29] So if you pay your property taxes, whether you're, if you're a city resident,
[26:34] this is how your property tax goal is distributed, um, tax savings.
[26:40] So this is what we're doing to the little P.S.
[26:44] Last year, my crew, how we reported,
[26:52] what was Fiasco remind me?
[26:56] Tax rate was nisposted.
[27:00] Oh, yeah.
[27:01] About a penny or something.
[27:04] Yeah.
[27:05] Two years ago.
[27:05] Was that two years ago?
[27:07] No.
[27:10] No.
[27:12] Sorry, bring it up, Julie.
[27:14] Yeah.
[27:14] Appreciate that.
[27:17] So, hoping at property taxable, we're just talking about on the new value so you can see
[27:22] on the bottom here.
[27:23] Now keep in mind, this is based on a current tax rate.
[27:27] We have about $36 million in taxable, $37 million in taxable new revenue, so the market value
[27:35] is like $46,000 or something, taxable is $37 million, so on new value alone at our current
[27:41] rates about $200,000 additional revenue to the general fund.
[27:45] So again, that does not count towards the revenue rate
[27:48] on the first year.
[27:49] Second year becomes part of the revenue rate
[27:51] because it was part of the rule.
[27:52] So this just kind of gives you a little bit of history
[27:54] as far as the blue on this chart is that taxable value.
[28:00] The yellow is blue, and that green on the top is frozen.
[28:04] So we're about 31% of frozen taxes right now.
[28:07] We're about $1 billion in revenue.
[28:08] this, I mean a billion dollars in taxable value that is frozen whichever point time that
[28:15] they, that value is chosen.
[28:17] So about 3.95 billion still under ARB review, so that's why it's really hard to make
[28:24] you have calculation and what a rate might be at this point.
[28:31] Okay, so here's some assumptions on property tax for this year.
[28:35] So we're estimating about 12.2 million.
[28:39] This will include a current year, taxes so it's not even
[28:42] that people owe for prior years or anything like that.
[28:45] The 4% increase over last year on revenue, on the right,
[28:48] just revenue about 470,000 remember, we're assuming 200,000 of that.
[28:53] It's probably going to be a new value, but again,
[28:56] there's some things to work through on that.
[28:59] This will be your 24.
[29:01] We had $540,000 budgeted more than this one,
[29:06] So, I mean, you can see that right now, we're looking at that increase deal a little
[29:11] smaller, but again, a lot's going to depend on how you actually look at that.
[29:18] So, again, this is assuming that property tax rate remains the same or is lower than this
[29:22] where you're 24.
[29:24] And we'll keep you updated as we get preliminary results and like that, the changes we give on this one.
[29:31] 470,000 or 4% increase in property tax revenues, and then the next line, 544,000 or 4,000,
[29:41] so that includes both increased valuations and in properties are not correct.
[29:49] That's the total dollars, so that would be the total dollars on current taxes, too, so
[29:56] So anything that will be built out in this area.
[30:00] And then on a very first page of the budget book, we always have to put that really detailed description of where things come from and we identify the new value right there as well. So you can see the true impact to the tax here.
[30:15] And then I'm confused, and so Joe asked about this line once says 470 and once it's like
[30:20] 40.
[30:21] First off that meant it was prior year, it is, so we're, well, we're fiscal year 24,
[30:29] the year that we're in, we budgeted $540,000 over 23, and that included new revenue as well.
[30:36] This year we're proposing $470,000 over last year.
[30:39] I just want to start by that.
[30:42] I just want to start by that.
[30:43] Over this area.
[30:46] Correct.
[30:46] The M24, the year that we're in,
[30:50] was just trying to give you a little bit of history there.
[30:53] Okay, the 220's condition is there.
[30:56] No, sir. It's included in that.
[30:57] Yes, sir.
[31:01] That's assuming that our revenues in current property taxes are 4% higher than what we budgeted in 2014.
[31:08] For the year that we're in,
[31:09] we have 11.7 million budgeted
[31:11] and proposing or preliminarily as to make it 12.4, but 1, 2, 1,
[31:26] 4, 3, 2, 1, 4, 3, 2,
[31:30] OK, this is about cell sex, so this chart, we narrowed down to just four years, we have
[31:37] this chart looking at about 20 years, and it gets really interesting because the trend lines
[31:41] really stay the same.
[31:42] Not as some of the few anomalies here and there, you know, someone who paid earlier, you pay
[31:47] on time, or things like that that cascue it, which we know when that happens, they stay the
[31:52] The question mark is always, how's it going to move?
[31:56] Is it going to move flat?
[31:57] Is it going to move up?
[31:57] Is it going to move down?
[31:59] But month over month, the trend lines come to say the same as far as percent of the total
[32:04] that we collect are regular.
[32:06] So, I just gave you that trend line, so you can kind of see that over years and then the
[32:11] historical revenue that we've collected.
[32:13] And you can see that right now, 23st budget, 24st budget figure that we're in,
[32:19] We're really flat with 23 and we're kind of predicting the same thing to happen in 25.
[32:24] But again, we're watching that.
[32:26] We had a 5.5 percent increase this past month that you haven't seen that one yet.
[32:32] A lot of that's going to be related to eclipse, you know, how much we can say is really eclipse
[32:36] versus something else if we won't know and we really won't know until we get July to
[32:39] see is it going to be up or down.
[32:41] So constantly monitoring that and Jacob digs in to the level of which taxpayers are paying
[32:48] regularly, do we have any that are missing, do we have the big ones that came online,
[32:53] that aren't paying those kind of things. So we really monitor that to a pretty granular level
[32:58] to see if we can rule out anything that's kind of what hops that we wouldn't want to budget.
[33:04] So every half percent increase or decrease of about $50,000 change in revenue,
[33:08] so that's kind of what we look at it as, what's it take to get to that and what's happening on a trend.
[33:14] And so it's super volatile, as you know, and you've seen over years how it can change quickly.
[33:20] We continue to be about flat or just slightly above this way here, 23, which is good.
[33:27] But the good news is when you go back and really look historically, and we had those big
[33:31] years, but if you just take this year and go back to pre-COVID, we're almost 40% higher
[33:36] in sales tax, and we're pre-COVID, so yes, there's some inflationary factors there, but
[33:41] not 40% and we've seen that growth growth in development and growth in industries that
[33:47] are creating sales tax. So that's what we would want. So it's healthy and we should be
[33:52] careful with it. Yeah, the one thing we don't know, you know, on the inflationary side is the
[33:56] buying power is obviously less. So our people not spinning as much or doing what they were typically
[34:00] doing. So are we seeing that? So we're figuring just level it off, kind of see where we're going.
[34:05] when no growth has been consistently about 0.9% a year,
[34:10] just across the population-wise, across the city.
[34:13] So we just took a more conservative approach
[34:14] on the sales tax this year.
[34:17] And again, we monitor that and it just isn't needed.
[34:21] But before we get into expenses,
[34:22] anybody have questions or comments or feedback
[34:24] on revenues at all of the A&E of our revenue sources?
[34:29] We have so many variables to out.
[34:31] A lot of unknowns.
[34:32] The biggest variable is going to be the preliminary values.
[34:36] We can get pretty close to it just through projections and forecasting, but we really
[34:42] won't know what we are pretty confident in is the fact that even at 3.5% or what we'll
[34:48] call the voter approval rate, which is the highest tax rate that you can go to before
[34:52] triggers an election, is still going to be either at or below the current factor, ain't it?
[34:57] That's just naturally going to happen because of that because of that because of
[35:02] evaluation increase and because of new growth. So in cities where where build
[35:06] out is already occurred and you're just kind of in cruise control, you'll see
[35:09] that fluctuate each year where that could change. But in the city where even
[35:13] just, you know, again, we're 0.9% a year, we're still going to see that kind of
[35:18] increase. And so we just have to factor that in because when it does hit that
[35:20] tipping point, we just have to be prepared for it.
[35:27] And let's talk about the point stuff.
[35:29] So the one here is this.
[35:31] The first slide is something you all
[35:33] used to see, and I try to keep everything
[35:35] as normal as possible.
[35:37] So it's recognizable how I do with presenting this.
[35:40] So these are the categories that you see when
[35:42] you define in a bunch of books.
[35:43] The handout that you've got is probably more than you want.
[35:47] But if you look at it, this big one, you
[35:50] can see expenses by department and expenses by line.
[35:54] So you can really see where folks have
[35:56] shapes and stuff, and then where your increases are and why those are elements.
[36:03] So looking at this by category, 39.7 million at this point, keep in mind health care, group
[36:09] insurance is still a big one.
[36:10] It's out there that is included in the personnel categories, so that's going to include all
[36:15] your salaries, all your benefits, and all your travel and training, you know, to do a little
[36:18] bit more on that.
[36:19] And again, there's more on that.
[36:20] And here, what was the percentage last year?
[36:22] We increased the personnel just asking go to the next line
[36:28] Next line
[36:31] Those are dollars. Yeah. Oh, I'll get it. I think it was like
[36:35] Right at six percent. I'm just as straight. It'll be over 24 budget but for that reason
[36:40] But anyway, that that's what's encompassed in that personnel cost there
[36:44] But again, you can see that in this in the detail
[36:46] We had a decrease in supplies and there's there's a couple things to point out so things like all supplies came down a little bit
[36:54] there's some reasons.
[36:55] There are chemical supplies, cost of the soil,
[36:57] that's gonna be related to the off-course,
[37:01] pro-shopping, we're gonna assume Dale.
[37:04] And then tools and equipment have a little bit of an increase,
[37:08] but we also this year moved all of the events
[37:12] that part humanly budgets for within either
[37:14] the recreation or community events departments
[37:16] or divisions into the other category
[37:20] into their own section.
[37:21] So now if you wanna know what we spent on,
[37:27] It has its own line out of so we can look at it specifically.
[37:30] So before it was a supply, it went to a supply line and it was for the parade.
[37:35] If it was food, then it went to the, and so it was really hard to track.
[37:39] And so they went back and categorized everything, pulled all their events, expenses together for
[37:43] the past few years, gave those to us, and we wind them all out.
[37:46] So for this year, you're going to see them budgeted individually, unless they're just really
[37:49] small events.
[37:50] It's a little bit easier for us when we ask questions to be able to do that.
[37:54] So, I'm almost going to answer your question to the general and
[37:57] personnel
[38:01] last year, about 6.7%.
[38:06] 50% increase in group health was the biggest driver there.
[38:10] That's what we're waiting on again, so maintenance increased there, but we did have a
[38:19] $100,000 streak maintenance increase as we've done, you know, the past several years just
[38:24] in line with our a streak maintenance plan and then services down a little bit but
[38:29] again, you know, moving those events out there into their own category, all said that.
[38:33] We also went through and decreased some phone services related to built-in tablet services.
[38:43] I'm not sure what all of you did, even the weeks on that, but we saw some decreases in some
[38:48] technology expenses where we're better humanizing Wi-Fi and some things that we already have in
[38:53] that saved money. So there's some savings in services for sure. Your workers compensation
[39:01] decreases that because you've got a better rate because of lack of claims.
[39:06] TMLRP did an
[39:07] overall 10% decrease for all cities and counties that are not city and the county's
[39:12] wet cities. So we were happy to see that. What is that current rate?
[39:20] percentage-wise for a worker's compensation.
[39:28] Friend is winning with the tough questions.
[39:31] Oh, that's good.
[39:32] Oh, that's good.
[39:34] Oh, that's good.
[39:39] I'm sorry.
[39:40] It doesn't say on my report from the board meeting, but what it does say is there's a six
[39:47] It's based on class codes for the SIC codes.
[39:51] And it's a $13 million decrease overall.
[39:58] Well, rent at $19,000 just for General Federal and that piece.
[40:02] And we also have some liability components
[40:04] that push those people up.
[40:06] But we'll take you to the next piece.
[40:08] Right.
[40:08] Right.
[40:09] That's something that is very tough questions.
[40:12] The rent of the...
[40:13] I was going to ask you that quick.
[40:14] The rent of the two.
[40:15] Did you want to have two?
[40:21] I'm not asking any more questions now or you won, I mean, you will too, it's all I can say and I'm not going to talk to you.
[40:29] So we did have some savings there, an increase in other but again that's how we move the events and so there's some changes there.
[40:38] We had some dues and subscriptions that we moved categorically just because they made sense they were in a software category
[40:44] really didn't need to be there. So thank you to Gaspi. We had to make some changes
[40:49] as far as to where we spent some things. So, um, transfers out. One thing that's
[40:54] important on this one is giving these budgets, I'm comparing to a minted budget.
[41:00] And so, you know, we did the cost of living in Greece in April. And so, it's better to
[41:05] do what's current. And so, because we did that transfer out to asset replacement
[41:10] that mid year two, that's comparing to this,
[41:12] but really what you're looking at is
[41:14] unless you're our asset placement transfer of 650,000,
[41:17] and as you're, and we bumped into 750,000.
[41:20] So that's on our five-year forecast
[41:23] and something we've talked about several times.
[41:25] And then we didn't have an increase to development services.
[41:27] I'm just roughly, you can remember
[41:29] building services.
[41:30] As part of the general fund,
[41:30] we just show it separately for accounting reasons.
[41:33] So when they have a shortfall in revenue and expenses,
[41:36] then we, the general fund gap rules that,
[41:38] but it will be no different than if they were part of the general fund, just the way we
[41:41] account for it, so that you can clearly see what we're moving.
[41:45] Any specific questions on that as it relates to this year or we're going to make sure that
[41:49] you guys might have?
[41:55] A little bit different look at personal instances, we talked about what all was included in
[41:59] there.
[42:01] So we're assuming a standard 3% very increased for general government employees, that's based
[42:06] on evaluation, and then a 3% step for all eligible public safety employees not only commission
[42:12] folks over there. And then it does include a 15% increase in room health. So that comes back better than a lot of some savings there.
[42:19] We just want to do the worst case because we just don't know where I'm starting to get it. It's a good pressure to get it to 5.
[42:25] That's what Kim's goal is 5. Someone has a good state for her to fund that.
[42:30] A little bit of an increase in TMRS rates, but again, you're going to see that sometimes when investment rates are up.
[42:35] So there's some different calculations they go under. That's what they want.
[42:38] and then Kim will present to you guys a little bit later
[42:41] when she talks about employee interest, right?
[42:44] Not today, but Kim can nerd out on that stuff,
[42:46] but basically the long story less long on it is,
[42:49] we have a 2 to 1 match, 7% employees, 14% from the city.
[42:54] Based off of a lot of different factors
[42:57] that she can nerd out on later,
[42:59] we are under that 14% on our contribution
[43:01] to the 2 to the 2 to the about 11.69 or something like that.
[43:04] 11.39?
[43:05] Close.
[43:07] So, that's a good thing.
[43:09] And we're heavily funded, what can I mean?
[43:12] 93%.
[43:12] That's a greater than your sample of unreported.
[43:14] Yeah, so we're doing really well in that regard.
[43:18] So remember, this personnel expenses here include,
[43:21] your salaries are going to get your travel training.
[43:23] So, you can see how that breaks out there.
[43:28] Then new positions that are included in this right now.
[43:31] It's up to say that this is, look at this is draft.
[43:33] These kind of align with the priorities that are outlined on Friday, somehow that just
[43:39] work to sell out.
[43:40] Assistant Director for Information Technology, so one of the things, that things, the
[43:45] third year in the road that this has been a request, you'll know what the technology department
[43:51] does, but now she's also taken on innovation, and so there's some new things that are going
[43:58] to be pushed away as far as all this innovation going away and that being merged with technology.
[44:06] So the lead innovation in technology is that you're trying to do that.
[44:08] Yeah, the Department of Innovation Technology.
[44:10] Really, the innovation piece is really kind of an offshoot of what it was initially intended to be.
[44:16] Focusing more on how to utilize technology to be more efficient, cutting costs in some areas from that.
[44:21] City University, Citizens Academy, revamping some of that.
[44:25] So that's really kind of the focus on that working with departments on helping you know efficiency from a very simplistic level.
[44:36] The other thing that has happened is that the garage is now in the direction of how it works.
[44:41] So Stuart and his dean are already supervising the garage.
[44:46] It was under innovation, well, it garages its own fund,
[44:49] the reverse was not part of the general fund,
[44:51] it's funded by the General Fund and Water Fund.
[44:53] But before that, it was under the Office of Innovation
[44:55] as far as supervision.
[44:57] So now it's going to be under the works.
[45:00] So when we went through that reorganization process, we brought purchasing back into the finance department, which is really where it should be. And so you'll see an increase there from the shift from the broad fund, but the decrease on expenses because we're not transferring that money out to the broad fund. So it's really just a alignment there. But that's going to allow us to have a dedicated purchasing compliance person on staff, which is really needed. And they won't just be doing purchasing, but be learning a lot of gas be accounting.
[45:28] they have been aligned with capital leases and those kind of things and then also contract
[45:34] compliance and things like that. So we have to begin that they won't see an impact
[45:41] other than an increase in the loan and increase in another. Re-defining some life equipment
[45:45] operators in the street department, basically they're all doing the same job but paid for
[45:49] at different levels and so that's just kind of a staffing alignment situation. And then we
[45:54] We still have a consideration for EMS personnel, and there's some others that I wouldn't say are necessarily off the table.
[46:00] We just at the point where we were with the resources we have, that's still a process to work with.
[46:06] So, yeah, not really on this budget, but as over the next six to eight months, you know, as we kind of work through some things,
[46:12] you know, we are working with each director on, you know, some of the challenges that entry level positions coming in.
[46:17] You know, as a former paramedic, you know, there are some challenges in retaining paramedics, especially with the private sector.
[46:22] So we're going to be working with our teams on what that looks like, how we can, you know,
[46:26] try to align some of their business models and figure out how to get creative on retention
[46:30] and recruitment.
[46:30] So some of those things are going to be coming over the next, you know, six to eight months.
[46:35] Just Julie, does this include the budget for 26 vacancies that we have as high-weighted
[46:43] on?
[46:43] Yeah.
[46:43] They're budgeted within there.
[46:45] So we budget for every position that is here.
[46:48] The only thing that we do is put some salary savings in a general operations line for the overall fund.
[46:56] So that way we're not seeing crazy fluctuations in salary.
[47:01] So we budget for every position that is approved.
[47:03] And then if we have vacancies, then we keep that in a separate line and that gets offset in the year.
[47:11] Because we know there's no vacancies.
[47:12] But we don't want a budget in that department level because then you might live in a department short
[47:16] because you assume that we're going to have an X-ray consistency
[47:19] that we didn't, meanwhile, another apartment had over just,
[47:21] because being in the name of the General Funds of General Funds,
[47:23] so you'll see that on this guy right here,
[47:26] actually, on the last page, it's at 0198,
[47:28] that's in our general operations.
[47:29] You'll see in salaries, and you'll see in salaries savings there.
[47:32] That's why they'll look at an expense line.
[47:34] There's a credit for $150,000.
[47:35] It's not actually the very last page.
[47:37] That's very popular.
[47:39] And so you'll see that.
[47:40] Flip one back.
[47:40] I see at the very very top of the last setting right there.
[47:47] Of course, the salaries of wages, that credit right there,
[47:50] that's an assumption of salary savings,
[47:52] which that's a low assumption.
[47:54] But you don't have to be crazy on that.
[47:55] I think it's just a little bit of a way to offset some of the vacancies
[48:00] without being in that department, whether it's for somebody in mind.
[48:03] Thank you, ma'am.
[48:04] We'll cut here two parks maintenance personnel,
[48:06] Now, yes, to allow dedicated staff for public safety facility,
[48:11] it says it's a partially year.
[48:13] So are we assuming that complex is going
[48:17] to be up and running by tomorrow?
[48:20] And then you're going to need dedicated staff for that.
[48:24] And then next year, we'll be budgeting full time.
[48:28] I'm going to stress with it.
[48:28] OK.
[48:29] And that's an assumption right now that the dedicated staff
[48:32] is going to take care of that.
[48:34] So there's a lot of still.
[48:35] but that's the assumption right now.
[48:38] Construction will be done by June.
[48:40] We'll start by in front of June,
[48:41] but you know how it has to be, it mediates June, right?
[48:45] So, I'll have to be in there working on it.
[48:48] I think we budgeted in July with the understanding
[48:50] that if we need to give them a third of June,
[48:53] but we want to in there and within the budget
[48:57] and approve so that we can add those.
[48:59] Yeah, and this kind of, you know, completes the,
[49:01] you know, objective of the Public Safety Center facility
[49:04] and you know Council's objectives last year on public safety so this just kind of
[49:08] fills that on that personal request. Some of the things we'll still talk about
[49:12] and it's a constant conversation with our directors on many different things
[49:15] as whether we outsource or whether we bring in house because we already have our
[49:18] kind of maintenance and in general staff in house we said hey why not try to you
[49:23] know create those full-time positions but we may bring something a different
[49:26] option later but as of now we recommended bringing them in house.
[49:32] Do you have any other questions on for sale?
[49:35] No.
[49:36] I can do a lot.
[49:37] I mean, you know, without them, we can't do the work.
[49:41] Oh, no, no.
[49:43] I'm just going to ask.
[49:45] I just don't know.
[49:46] I'm out of that.
[49:46] I've both had a big talk.
[49:48] Yeah.
[49:51] Okay.
[49:53] This is just another slide on personnel.
[49:54] I think I showed you this last year.
[49:57] You know, I would say you can use to be our top priority.
[50:00] And that's a curvil.
[50:00] 2015 tells us to do that's what our budget continues to show, so just want to do it at
[50:06] when we get personnel, the interesting thing to point out is when we look at the total
[50:11] public safety preliminary budget and this is all things inclusive from $20.1 million and
[50:17] our property taxes give or take 12, so just to point out, I think it's important to know
[50:22] that we do use other revenue streams to provide services that we provide.
[50:27] Okay,
[50:32] quick look at the street maintenance.
[50:34] So I stated to kind of put together his kind of layout
[50:38] of what was going to be happening in 25.
[50:40] Keep in mind, this is preliminary,
[50:42] but he can certainly answer any questions
[50:44] that you'll might have on streets.
[50:45] But right now, this is what's been identified
[50:47] as the maintenance list for the coming year.
[50:51] And then again, you know, we had that $100,000 increase
[50:54] in the street maintenance one item.
[50:56] But what I have to do is, and I was surprised,
[50:59] I think is when we talked about Friday that Streets didn't float to the top of everything
[51:03] like it has in the past several years and I think that just speaks to what's been done by
[51:08] this council by the past, you know, two or three councils to address that issue.
[51:13] I think David and this is a great job of getting us back in place.
[51:16] And I think we've increased the budget this year on, rather than by, I think about 100,000.
[51:21] 100,000.
[51:21] What's the difference between lowest street north one and lowest street north two?
[51:25] is it just two separate timelines really saying street or it's two different
[51:34] street sections. Okay. You know, it broke down a little so it has two.
[51:43] Anything else on
[51:44] street? Questions or comments on that?
[51:48] It is pretty quickly. So what about expenses
[51:50] in New York? I know we talked a little bit about this stuff on Friday but anything
[51:57] specific that you guys don't know or we like to see more detail on as far as to
[52:03] business related to the journal. I don't know where this falls in funding but I've
[52:10] got a couple of inquiries about the entrance to our city and our city of
[52:17] curvil sign and maintenance on that or repainting of it or something just some
[52:25] some TLC from 10 other? Yes. So we maintain the sign. Okay. Years ago we were told to
[52:37] maintain all of it all four corners of it but we don't have an agreement with
[52:42] textite. It's a really hilly, dangerous kind of hearing to know that textite
[52:48] normally takes care of. And so we'd like to push that back onto them except that
[52:53] That piece of the sign is ours, so we'll continue to maintain that, but you were getting
[52:58] calls about sign itself, I'll put some shine to it, we can look at that without it being
[53:07] costly.
[53:09] Yes, ma'am.
[53:11] Give me some paint, I'll go do it.
[53:14] I'll go do it.
[53:15] I'll help you.
[53:15] We'll go do it.
[53:16] I'll help you.
[53:17] Yes.
[53:17] We'll have a council pay today.
[53:19] There you go.
[53:19] Yeah.
[53:19] I don't know, that would be awesome.
[53:21] You can't blame what you say.
[53:23] Make that happen next week.
[53:25] Just do it on board.
[53:27] Don't let Cam or...
[53:30] Okay, get away from her.
[53:33] Are you still a city attorney?
[53:36] I was thinking of...
[53:37] Oh, you really don't even know that.
[53:40] I've heard about that part of time.
[53:41] I'm not sure.
[53:43] That part on him.
[53:45] He did it.
[53:45] What is that?
[53:48] So do you compare year-to-year about efficiencies in the departments, or like, internally,
[53:59] like, some kind of a measurement that kind of gets like, you know, we're doing better
[54:06] here than we do because it's best by population or it's fine.
[54:10] Whatever, I mean, is it hard to have different measures better?
[54:13] You're tracking some out and say, well, we're getting it.
[54:17] We're getting more efficient every investment.
[54:19] Right. So every department has their own set of performance measures.
[54:23] When we talked about different ways of measures on Friday,
[54:27] depending on what their jobs are.
[54:29] And so they all measure center-owned models based on their own performance
[54:32] and then measure that year and year.
[54:35] And I guess the specific question is specific to our,
[54:37] and they can speak to that.
[54:38] but basically everybody has their own kind of set.
[54:40] Yeah, very fresh work.
[54:42] Expense yes.
[54:43] Yes, so to answer your question, yes.
[54:46] They do have it.
[54:47] One of the things that we,
[54:49] and to that point of the data,
[54:51] metrics that we kind of showed convoluted a bit,
[54:54] we were having some issues with expenses of collecting that data
[54:56] and how to manipulate that data.
[54:58] So the directors have it.
[55:00] You know, we get it.
[55:01] We are working on,
[55:02] and that's kind of what the Office of Innovation
[55:03] is really going to focus on.
[55:04] How do we efficiently now get that information from it
[55:07] so we can better track and better measure that
[55:10] for cost-based budgeting and priority-based budgeting.
[55:13] So we aren't getting better at trying to actually
[55:16] get that data and track it.
[55:17] They are collecting it, we just gotta get it.
[55:19] They've got their monthly expense reports
[55:22] and those kind of things and they have access
[55:24] as we talked about this putting in their own budgets
[55:26] within the software, they have access to that ledger
[55:28] at all times and so they can look at,
[55:30] I'll move back to 2050, I think, in the ledger.
[55:33] Well, you know, something that's simple is that as you compare to a population size or whatever,
[55:41] I mean, it's not.
[55:42] I mean, I already get down to the weeds, and it can be really difficult, but I mean, it's
[55:48] just like an overall perspective.
[55:49] And secondarily, I do not, as other cities have their budgets through, can we not compare how
[55:57] we are, you know, like by population size, I know everybody's got a different size park
[56:07] system or whatever, but it's still and give you some, you know, where are we spending
[56:13] more money than other cities, relatively.
[56:17] Yeah, so that was a tough one and the reason why is I'm going to use my value as an example.
[56:23] Predominantly industry, they're putting in a billion dollars of industry a year, their tax
[56:26] rates low, that's relatively comparable, but the residential rate is a
[56:31] move point. Or my old city, town of 5,000, bedroom community, all residential
[56:36] 96% of the revenue was from rooftops. Where we're just talking about the
[56:41] general fund here and so because we have that diversity of sales tax and
[56:45] everything, we try to find comparable cities that we can kind of, you know, I'm
[56:48] not going to say mirror, but hey, what are best practices? That's why we go to the
[56:51] conferences and look. But sometimes the apples to apples, this is very tough.
[56:56] There was no national organization in the United States.
[57:03] Not really a GFOA, a GFOA, is the government finance officer association.
[57:10] They do a lot of the best practices when it comes to the financing piece, Texas City
[57:15] Managers Association, and each kind of individual association for department-specific public
[57:20] works.
[57:21] We go to there, we get best practices, what are they doing right, what are they not doing
[57:25] right you know kind of what Alicia said R&D rip off and duplicate but as far as
[57:29] metrics you'll get at articles every now and then that'll kind of talk about
[57:33] things but it's we try it on the water fund it's a little bit easier because
[57:40] you're looking at more of a very rate specific situation but like in the
[57:44] general fund our general fund might be made about different departments
[57:48] in the visions and someone else in general and so like for example we've said
[57:51] parts of these parts. Our parts of our man also includes building the
[57:55] ceiling maintenance. So, someone else might have that in a different. So, if you
[57:59] took it as a total, you're not comparing apples to allies. So, a great example would
[58:03] be to Julie's point. Water fund, you could probably find from an enterprise or a
[58:08] business perspective, you can't do some good comparative analysis against other cities,
[58:13] but like a pool for example. It all really kind of depends on what the community
[58:16] wants. Does the community want to have an omitted or like events? Does the public
[58:21] What I want to have in a minute is that people can go to, you know, at no cost or a low-cost,
[58:26] or is that an enterprise fund that's trying to make money?
[58:29] Our pool is in the general fund, so it's kind of subsidized by the general fund, and we're
[58:33] okay with that.
[58:35] So, no thing you're going to find in another city that's, I think, and all in the bank business,
[58:43] we have data on my industry co-tape.
[58:46] We have, you know, banks all across the country were into an organization to me.
[58:54] And so, our customer, whatever you see is doing, while we can compare the average.
[59:03] And obviously, there's lots of outliers within the average, but the average is still telling
[59:10] us.
[59:10] Yes.
[59:11] And so, if you wouldn't be much help, really to try to
[59:19] just apply in two or three cities,
[59:21] you'd thought the were short of the same, I think it'd be a lot more help than if somebody
[59:24] was putting together all the cities.
[59:28] And maybe with strength, I'm by size a little bit, and then you can say, well, yeah, we're
[59:38] different here because of this or that, but at least you are looking at some, you know,
[59:43] the year in the ballpark, or you're not in the ballpark, and why might that be?
[59:47] Yeah.
[59:48] Yeah.
[59:48] The enterprise funds, water, wastewater, sewer, garbage, electric, all of those are pretty
[59:53] much common industry standards.
[59:55] When you look at the general fund or city hall, it's kind of a holding company for a-
[1:00:00] So, there are a lot of different outliers, some are loss leaders, some are profit or enterprise. All the enterprise stuff, you can pretty much get benchmark. A lot of the loss leaders you can kind of get benchmark, but it really depends on each individual community. I would say the big differences for us in other cities that have diversity of revenue, sales tax, property tax, commercial, is we have a frozen tax rate. So, everybody has different levels of frozen tax rates, some have home state exemptions. So, when you're looking at just the general fund, it becomes really challenging.
[1:00:29] just because it's very specific you also have it to where we have to be
[1:00:35] structurally balanced within our general fund so it's got to be you know zero zero at the bottom
[1:00:39] where other cities don't have to be structurally balanced they could be mathematically balanced
[1:00:43] across the entire city and so because we have to be structurally balanced within our general fund
[1:00:47] for the charter a cruise and all that really don't exist so it's kind of a hybrid zero based
[1:00:52] budgeting from the get go but yes the industry stuff we do get benchmarks we we can look at the
[1:00:58] industry, we do bring consultants in that do a lot of our long-range planning, master planning,
[1:01:03] that do bring in a lot of the industry standards into, you know, rates, storm water, water,
[1:01:09] waste water. So there is that, it's just a little bit more difficult when it comes to the general
[1:01:13] fund. You mentioned that, probably, speaking to your point, I think the five of us,
[1:01:19] wanted to assure people that we are efficiently using tax money. And can't experience that his
[1:01:26] industry shows where there's a benchmark and we should be roughly in this range and either
[1:01:32] we have not lower high or low.
[1:01:34] Well, there's a lot of reasons why we won't be like the ones that are in there, but the
[1:01:39] average is still telling stories.
[1:01:42] And so I think, you know, it'd be good for us to know that story, even, and sure we can
[1:01:48] say, well, on average, we're different, you know, from these other cities because whatever,
[1:01:55] That's fine, but it would pop out some things and say, well, you know, we should be different here because this is a kind of city we are.
[1:02:05] Yeah, and so, but I don't, but you've got to have some decent data.
[1:02:11] Yeah, and you know, thinking about the general fun and kind of diving into this rabbit hole just a little bit, you know.
[1:02:16] So let's say we pick three cities and we say, all right.
[1:02:19] Let's go to the number number.
[1:02:20] No, no.
[1:02:21] Big number.
[1:02:22] Big number series.
[1:02:23] Not trying to find somebody like you, but find a big set.
[1:02:27] Well, and if they see what the averages are.
[1:02:29] Yeah.
[1:02:30] One so and so.
[1:02:31] OK, so taking the big averages.
[1:02:33] So where the complexity comes in is all right,
[1:02:35] look at the average of tax rate across the board.
[1:02:38] Well, then you factor in what's the diversity of that
[1:02:40] tax rate.
[1:02:41] So OK, you could probably find that.
[1:02:43] So then you go, OK, what's their water rate?
[1:02:46] What's their sales tax rate?
[1:02:48] Do they have an EDC and EIC?
[1:02:49] Do they have additional stuff?
[1:02:51] And so we can ask around to see if there's consultants that do that
[1:02:55] or what that would look like, but it does get very complicated.
[1:02:58] I don't think we need to be spending a ton of money for consultants.
[1:03:01] The question is, really, is there data that we can't let's out there
[1:03:05] that would normally be put together by some industry group?
[1:03:09] And it would, you know, for the use of their members
[1:03:13] because it's beneficial for them all to know whether they're being
[1:03:16] or not and what kind of things are doing right and wrong and it ends up in the numbers.
[1:03:21] That's all, maybe.
[1:03:22] Yeah, we'll take a look.
[1:03:24] Yeah, most of the interval, we'll take a look.
[1:03:27] Yeah, and is all kinds of excuses about, well, we're different than that.
[1:03:30] But if you have the largest, not large enough sample, the differences get kind of smoothed out.
[1:03:37] I can look on people.
[1:03:38] I haven't seen it either, but we'll see, we'll explore it and see.
[1:03:43] just because there is so many variables in a journal.
[1:03:46] And on that theme on Friday, we also talked about new technology which may improve productivity
[1:03:51] and say torque, Mr. Burrero, both talking about power.
[1:03:58] There are some tools available that we make it implemented that would help make us more
[1:04:02] productive.
[1:04:03] So, yeah, as far as efficiency goes, I mean, should be nice, maybe there is, there's something
[1:04:11] need to work on every day and so what kind of program that there is is you know
[1:04:19] everything when the bottom up the people that are doing the job they know you
[1:04:27] know what's a pain to get done and what's not a pain to get done and how can
[1:04:32] we do it better and it's amazing how much difference you can make if you really
[1:04:36] just you know it starts the bottom and say you know how can we make your
[1:04:42] We're doing it just because we've always done this way, and they're not a better way.
[1:04:49] And somebody really ever gone through that process, and it's really like, I'm going
[1:04:54] it all the time.
[1:04:56] And because efficiency,
[1:05:00] you know, permanent, you know, we've got, including having two
[1:05:04] digit codes instead of three or four, or whatever, because everything, every little keystroke
[1:05:11] that you say, so you have to really, you know, you're gonna pick it up and, you know,
[1:05:17] one little thing seems small, but it gets applied across a lot of different areas.
[1:05:22] So anyway, just, you know, because I know everywhere, not just in the city, but ever business,
[1:05:31] everywhere, you know, efficiency.
[1:05:35] We are constantly looking at the efficiency.
[1:05:37] So we'll see what, again, what information do you find?
[1:05:40] Any other questions?
[1:05:44] Before I move on.
[1:05:45] The comments are still
[1:05:51] having to ask our placement.
[1:05:53] So now we've brought you some information on this.
[1:05:56] I believe back in May and come.
[1:05:57] What a budget team we had done to work through this process over the past few years.
[1:06:02] I feel like we have a really good solid knowledge of what we own now.
[1:06:06] And look at when that needs to be replaced.
[1:06:09] And some of our larger departments have internal replacement plans
[1:06:13] that they put in place that really helped us with that because, you know, as
[1:06:16] can said, the guys that are using it are the ones that don't. And so we really
[1:06:19] brought them kind of to the conversation so that we know just because this
[1:06:23] says on paper this should be what we should be doing is that really what we
[1:06:26] should be doing and kind of updating the condition, I guess, for a lack of a
[1:06:31] better word. And we do have a software that's doing a really good job of tracking
[1:06:34] that now and then working with the city garage to make sure we do that. So the
[1:06:40] The big chart on the left there basically gives you where we are and then what's proposed.
[1:06:46] So at the top you'll see the 2024 Incomer Funds, those are things that are already
[1:06:51] incomer that we're going to be spending this year, they haven't stayed yet and they will
[1:06:57] leave.
[1:06:57] And then so it gives you the proposed transfer in there that we talked about, estimated asset
[1:07:04] disposal.
[1:07:05] So anything that we sell that is an asset, the money from that goes right back into the
[1:07:09] We'll talk about that just a little bit more in a minute.
[1:07:13] So you can see total revenues there.
[1:07:14] Before we can start, talk about anything we want to add.
[1:07:17] We've talked about what's already committed.
[1:07:18] So we have existing leases.
[1:07:20] So those are lease agreements that we already have in place.
[1:07:23] See why we did a joint fund.
[1:07:26] We have that liability already.
[1:07:27] And then moving on down to the proposed purchases.
[1:07:30] This is a list by the department that you can see what we're proposing as of today.
[1:07:35] If that could change, you know, revenues from disposal go up before the end of the year
[1:07:39] or, you know, something happens, but, you know, of course, that will come back to you.
[1:07:44] Also keep in mind that any purchase that we make that's over $50,000 has to come to you
[1:07:47] for approval.
[1:07:48] And so, you know, you think that whether it's allocated in the budget or not, you would see
[1:07:53] that purchase on a council agenda.
[1:07:56] So, you read down the miscellaneous charges.
[1:07:58] Yes.
[1:07:59] So, that's another gas need thing.
[1:08:01] So typically, in the past, when we would incur a lease expense, it went into a lease expense.
[1:08:06] So there was a delivery charge, and there was a registration charge.
[1:08:09] If there was anything like that, it would get looked in there.
[1:08:11] Well, the way Gasey makes us record those gamma leases now, we can't capitalize things like delivery fees.
[1:08:17] So we had to bring that out.
[1:08:18] So we're just going at this lane.
[1:08:20] So we actually had to refine it.
[1:08:21] It's on the calendar, so that's another Gasey thing that we have to do.
[1:08:26] So, that's things like that, delivery fees or registrations or things from the one we receive
[1:08:34] those new vehicles for equipment.
[1:08:36] So everything on here that you're seeing is replacement, I'm not even going to try to
[1:08:40] speak to the technology pieces there, but Sharpie's here if we want her to speak to any of
[1:08:46] that.
[1:08:47] But all of these are replacements with the exception in the very bottom where you see the
[1:08:53] that jump your tractor with both area mower and parks is here to speak to that.
[1:08:59] But what Shane and his team did this year is really kind of a right sizing exercise in their department
[1:09:03] and they went through it said, okay, do we need the heavy trucks that we have?
[1:09:07] No.
[1:09:07] So let's get rid of some of those and visit lighter trucks.
[1:09:09] Do we need the lighter trucks?
[1:09:10] Well, maybe we need more gators than we need trucks.
[1:09:12] And so looking at, you know, when we come, we can use the vehicle.
[1:09:16] We're using insurance.
[1:09:17] We're using replacement costs.
[1:09:18] and so they really sold quite a bit of stuff.
[1:09:22] I don't know, what's it all about?
[1:09:24] 61.
[1:09:25] So the 61,000 that they have sold from things
[1:09:29] that they just said, we just don't need this stuff.
[1:09:31] We need different stuff in our network.
[1:09:34] So I cannot believe a stretcher costs 34,000.
[1:09:37] We should see what it costs today.
[1:09:39] That was, would you, what is it coming in?
[1:09:41] Well, the project laundry was once came out.
[1:09:43] We're at 55,000.
[1:09:45] 55,000?
[1:09:47] So there's a stretcher, it's a stretcher, it's a stretcher, it's a stretcher, it's a live
[1:09:56] people, it's power load, it touches into the end months and loads, and then it is just
[1:10:01] a stretcher or a gurney, I don't know what it is, what they are, so they have the technology
[1:10:08] on them now.
[1:10:20] So anyway, that's the list by the department as of right now of what's being proposed
[1:10:24] for a gentleman as well, and then I put to the right there what was actually scheduled
[1:10:31] compared to what we were proposing, and this is when we work through with different departments
[1:10:35] and say, okay, this is what we show in replacement schedule.
[1:10:39] What do you feel about, what's on replacement schedule?
[1:10:42] What's the biggest need and what order of priority,
[1:10:45] those kind of things.
[1:10:45] So we go through an entire exercise of each department
[1:10:47] to make sure that we're getting them the tools
[1:10:50] they need to do what they need to do.
[1:10:52] And then we've really been making an effort
[1:10:54] to do some reicising this year.
[1:10:56] That's been one of our biggest, biggest pushes.
[1:10:58] And I see that over the next couple years.
[1:11:01] Things that we really need to consider,
[1:11:02] we talked about this when we brought that as replacement
[1:11:05] the presentation to you is what does that never really look like and so you know from
[1:11:09] realistic standpoint I mean you can see right there you know a little over a million dollars
[1:11:14] that's not leaving us a big fund balance there something where it happened keeping in mind
[1:11:18] that we have moved excess funds to this fund over the years we just haven't done a real good job
[1:11:22] of feeding it over here but we talk about things like protecting the tax rate and reducing expenses
[1:11:28] so to what degree you know what could we do that seven or twenty five thousand state of
[1:11:32] general funds. What things do we ask the
[1:11:34] harvest to reduce? Maybe they could
[1:11:35] do it operationally. So the big
[1:11:38] question is where has come from? You
[1:11:39] know, I think they've worked so many
[1:11:40] come from and how we get there. But
[1:11:43] I just wanted to kind of see a future
[1:11:44] look. So ambulance right now, today,
[1:11:47] 335,000 give or take, dump trucks,
[1:11:50] 160, 170, patrol vehicles,
[1:11:53] 100,000, easy,
[1:11:54] purple, empty vehicle,
[1:11:56] patrol vehicle,
[1:11:58] tractors and equipment,
[1:11:59] I mean, they vary, but I mean, they can get expensive real quick, we know we just replace the streets, we've heard that was, you know, 300, or 425,000, the rainbow was 425, but in a way, they're super expensive.
[1:12:11] And then, you know, we also have a need to add your police fleet.
[1:12:15] You know, we need a new special operation vehicle that needs to be replaced.
[1:12:20] So, and then our, you know, fire for the place of place.
[1:12:22] So just as we're thinking about asset replacement, you can't just look at it year over year.
[1:12:26] You know, just to kind of put things in perspective, back in 2020, I believe, as part of my tour where I got to look at the inside of the brand-new ambulance that had just been delivered to the Fire Department and it cost, I believe, $168,000 in 2020.
[1:12:46] so it's more than doubled in four years the cost for that ambulance and they
[1:12:54] do replace them the box and the chassis separate so we use the box for yeah correct so
[1:13:01] so that might have been just list of that price may have been now for the call
[1:13:11] So we do the entire ambulance every year, every seven years, we'll come back, we'll
[1:13:18] come back with a replacement program, so we'll replace, we'll repurpose the module and
[1:13:23] put on a new chassis, then 14 years, or 16 years, the entire unit goes away, right now
[1:13:31] we're in that rotation.
[1:13:32] Okay.
[1:13:33] So this is for an entire unit.
[1:13:37] Correct.
[1:13:37] There are two currently sitting in there that we've already.
[1:13:40] They're on order right now.
[1:13:42] And there are two brand new AMOXs and two of our older ones are going away.
[1:13:46] Some of those, the modules are 14, 15 years old.
[1:13:51] It's a process, but yes.
[1:13:53] If you look at assets in general, I can tell you that police vehicles in 2020,
[1:13:57] where we can get the whole thing out, fitted and ready on the street,
[1:14:00] or what's the $60,000?
[1:14:02] 60,000. Yeah, so the IT equipment, it's closing 1, 11, a piece free out of the 1,
[1:14:15] 147. Yeah, we were talking about maybe pulling that $36,000 one out. We just didn't
[1:14:20] pull it out. That's, that's not a state. We were looking at trying to get a fun
[1:14:23] balance over 400,000 and how would you get there. So last night we touched base with
[1:14:28] Charlene said you had to write or type these which would be and that's the one that she said so we were trying to keep that that
[1:14:33] Fund balance or in a thousand just in case we have
[1:14:36] Regency or something that happens where we have to use that so yeah
[1:14:40] Mr. K.
[1:14:41] That's just in the second right now
[1:14:42] All right. Yep
[1:14:43] Any
[1:14:46] questions on this or the next
[1:14:53] slide is really just a history of kind of what's happened
[1:14:56] We'll ask our placement fund and we've talked to you about this in the last couple years
[1:15:00] This is budgeted transfers, compared to actual transfers. And so it's very typical for us if we have
[1:15:05] assistance, you know, to request that we roll those there, just because we, but you can see for
[1:15:13] a while we rely pretty heavily on the actual, I mean, the excess funds instead of budgeted.
[1:15:20] So several years there, there was nothing budgeted. And so what happens if you don't have
[1:15:24] assistance and then, you know, we've got to a situation to where we have to replace this.
[1:15:28] We don't have to replace this and so we have things on the road that really shouldn't be on the road and really you get to the point where they cost you more maintain
[1:15:36] To replace
[1:15:44] So we brought interest revenue into
[1:15:47] Because it is a big deal this year and last year I just have COVID interest revenue. We've been earning pretty good on it
[1:15:53] So this chart in front of you it shows comparison to original budget and to actual fact it happened over the last picture
[1:16:01] So we never really budgeted an excess for interest revenue because we don't depend on it.
[1:16:09] It's very volatile market all the time, it depends on our cash flow,
[1:16:13] what projects you have going on, if you know, it's just 2-1-0.
[1:16:18] So the chart here just shows you how in 2019, we issued some bonds for a street centering niche,
[1:16:27] and the interest rates are pretty decent,
[1:16:29] 2.5% are below, that's great on the consumer side
[1:16:32] or paying a low interest rate, but on the investment side,
[1:16:35] you're just riding away, you're not earning a whole lot,
[1:16:38] just a little bit of time.
[1:16:41] Then COVID started to take in and rates dropped even more,
[1:16:44] so which was great for us, because we were able to refund
[1:16:46] some bonds, some old bonds that we had,
[1:16:49] and get a lower interest rate.
[1:16:51] And then 2021, it just dropped.
[1:16:54] We were earning, not it.
[1:16:56] So it's flipped now, obviously with inflation, all the times, interest rates have come up.
[1:17:02] We've been earning pretty heavily.
[1:17:04] Majority of it is the go-bons that we received.
[1:17:07] This, which you're looking at, is Fund 70, the capital improvement fund.
[1:17:10] And we've been earning quite heavily, actually, in 23 and 24, we have estimated it in there.
[1:17:16] So we do work closely with our investment advisors that give us all the trends in the market,
[1:17:22] how the market is going in, help us keep our portfolio balance, just telling us where
[1:17:27] they think we should get in, how long we should hold on some things.
[1:17:32] We try to diversify our portfolios as much as we can.
[1:17:35] We have commercial pay for, those are the shorter investments.
[1:17:39] We have some intermediate investments like our treasuries and just government-backed agencies,
[1:17:45] and our policy doesn't allow us to go longer than three years on investments, so we really
[1:17:50] I don't have much in there as long term, but right now the yield curve is invert anyway.
[1:17:55] So the longer stuff is not the rates aren't as well as the short term right now.
[1:17:59] Okay, so question for 23 and 24, that ending balance there, is that primarily because
[1:18:08] of the public safety facility bonds, you are correct.
[1:18:12] And what are you doing with that money, where does that money go?
[1:18:15] So we will, right now it's, we're investing it.
[1:18:19] We are heavily investing it.
[1:18:20] We actually, our debt covenants, we spoke with our advisors.
[1:18:24] They didn't want, we don't want to put out more than half
[1:18:26] of what we were holding onto, you know, the project is moving.
[1:18:29] We're going to start, we start seeing expenditures go, we'll need
[1:18:32] that cash to pay the contractors.
[1:18:35] So we started out about half of it, half of the proceeds,
[1:18:38] 25 million in the markets, great.
[1:18:41] So we're earning the money on it.
[1:18:42] and as they mature, we'll analyze, make sure we have enough to cover expenditures as they're happening and we'll start reducing how much we're investing, you know, just slowly dwindling it down.
[1:18:53] But that's what's already you two points, which is what we're doing right now.
[1:18:57] It just stays in the journal for right now.
[1:19:00] And that's kind of where council has some of the ability, you know, a made a note on here.
[1:19:04] As we're looking at all of this and while it's currently in the deficit stage as we work through the details
[1:19:10] We have a fund balance and that fund balance is about 25% of the general fund
[1:19:14] And we we currently have it funded at about 28% and so all that just stays into the general fund into that fund balance that
[1:19:22] Council should they need it or should they want to use it can tap into that rainy day fund or use those to fund
[1:19:27] CIP projects fix that's their replacement one-off projects or any number of things
[1:19:32] Okay, because I know that there were some things that were taken out of the of the
[1:19:40] plans for that KPD complex because it would have put us over budget based on, you know,
[1:19:48] inflation and all of that. So can that that ending balance there on this interest revenue
[1:19:56] can't it go into funding some of the stuff that got kicked out?
[1:20:02] No.
[1:20:03] So that 600,000 that council approved, what?
[1:20:07] Five.
[1:20:08] Five.
[1:20:09] That came from some of the interest revenue.
[1:20:13] Okay.
[1:20:13] So you can use it where you potentially could.
[1:20:16] The question kind of really comes to council is,
[1:20:19] is that where we want to put all of those eggs?
[1:20:21] You know, with fixed asset replacement and sustainability
[1:20:24] ability a big component and trying to fund some of those different funds, you know, for
[1:20:27] like capital improvement projects, or we could bring a plan and kind of go from there.
[1:20:33] But yes, there are some options that we can use.
[1:20:36] We just have to kind of discuss those further.
[1:20:38] We also have the facility condition assessment come to you soon.
[1:20:41] And so I think objective to remember is, I think, I mean, I just go to a little bit yesterday
[1:20:45] at the ESC.
[1:20:46] I mean, we have to take care of what we have.
[1:20:48] And so the more stuff we add, the more liability we add.
[1:20:50] and so we're ready, we're ready to facility, we're going to have money to take care of it and so my buys will be, yeah.
[1:20:55] So that's where I was going with that was because right now, the way the plan is set up,
[1:21:02] you've taken out, I think, the covered parking. Is that correct?
[1:21:06] Yes ma'am.
[1:21:07] And if we have a possible, if there's enough interest revenue left, I'd like to put that covered parking back in
[1:21:15] so that it protects all the $100,000 vehicles that we're confused with.
[1:21:22] So, what we're doing now is we're doing some big projects.
[1:21:26] And so, it's a contractor by out meetings that we're having.
[1:21:30] We asked you all to kind of supplement that budget with that $1.5 million.
[1:21:35] And in the hopes that we'd be able to just turn it right back around and say,
[1:21:40] know we've got the building covered there are three or four alternates that were about a million
[1:21:46] in total and so as we work through those bounts we'll see where we end up and you know I think
[1:21:53] we talked about it as our hope is we bring that half million dollars back to you but it might not
[1:21:59] and right we might need that for for that building that accessory building the next two on that list
[1:22:06] or the cover parking and we're looking at all the options because you know
[1:22:10] sometimes you get the plans from the architects and the designers and they want to give you
[1:22:15] all the stuff. I'm like, no, no, we need to cover an assets.
[1:22:19] I don't need to look like it's behind a fence,
[1:22:23] it's behind a building. No one's going to see it except for the staff.
[1:22:26] So it needs to be functional and we all agree to that.
[1:22:29] So we're still working through that process.
[1:22:33] One thing we are having to make sure we consider is our recharge liability.
[1:22:38] So when you are earning really great on your bond proceeds, we are a tax-exempt organization.
[1:22:44] So we end up earning more than we are paying on our bonds.
[1:22:47] We are subject to a rebate liability.
[1:22:49] The calculation is very extensive and I think it's a five-year term that they're evaluating
[1:22:54] us before the IRS determines how much we would owe.
[1:22:56] So we had our initial calculation for fiscal year 23.
[1:23:02] It's close to half million dollars of what we've earned already that we would have to pay that.
[1:23:06] But it dwindles out as project expenses go out the door and the calculation falls out into play.
[1:23:13] But so that is something we have to consider so that we can set aside to make sure we cover it.
[1:23:18] We would like to retain some of the interest earnings for that penalty if there was one of them.
[1:23:23] So there's many factors determining how much we would want to pull from the earnings.
[1:23:29] And we also have, we started, you know, this past year we budgeted $100,000 transfer to reserve fund for facility maintenance.
[1:23:37] We just said, we're going to start somewhere, that city and CIP are reserve fund.
[1:23:41] We've actually created a fund all by itself now so that we can move money, like when we sold the property and
[1:23:47] are going to be in there too. We're going to call a facility fund wherever it's in a
[1:23:51] big name. We can name it whatever. But for now it's called a facility fund and we can
[1:23:56] you know address that before but you know part of the recommendation would be to move some money into that
[1:24:01] fund for the sustainability piece because we have a lot of stuff that we're you know
[1:24:05] continue to say where it should get because we make it so we're you know doing this that or we need to
[1:24:09] what if we wanted to go and buy this property or whatever.
[1:24:14] You're going to have to cash to decide to do that and right now we don't.
[1:24:16] I mean, we have fun balance in the general fund,
[1:24:19] but we've never really set up a designated maintenance fund
[1:24:22] outside of the regular operations.
[1:24:24] If something big happens, it has to come out of contingency.
[1:24:26] Yeah, something really big happens where we should get.
[1:24:29] And so I think kind of the idea behind the facility fund
[1:24:34] and work on when we bring up a facility assessment to you
[1:24:37] and you get to hear from that vendor
[1:24:39] what their findings were.
[1:24:41] We have some pretty big needs out there as far as the maintenance.
[1:24:43] And so I think if we don't start really looking out
[1:24:46] what that's going to look like down the line.
[1:24:47] And the way I look at this interest revenue is,
[1:24:50] I'm going to call it down with money,
[1:24:52] because it's not something we need to tax on for.
[1:24:54] It's not something.
[1:24:55] And it's not going to last forever.
[1:24:56] We can't count on this, and we know the rates are going to stay
[1:24:58] this, and we know the cash is going to stay at the level
[1:25:00] we have it now.
[1:25:01] As we spend those project dollars down
[1:25:03] and that cash goes away, the rate of revenue
[1:25:05] is going to be less and less.
[1:25:06] And so we just have to look at the here and now,
[1:25:09] and what can we do to make it last as long as we can for us,
[1:25:13] and do its best work, I think.
[1:25:15] Yeah, the two kind of biggest things simplistically, the facilities assessment is kind of our current state of city facilities, one needs to be repaired, maintained, and then the second one, you know, we do a great job at kind of tracking our CIP, our capital improvement projects, we have a lot of master plans that kind of talk about what those projects and priorities are, but we really don't have those on a three, five or ten year plan of how we're going to fund them through cash, through bonds, through whatever, and what that kind of looks like.
[1:25:44] And so over the next kind of eight months to a year, those are some of the things this
[1:25:47] next year.
[1:25:48] We really want to have a good grasp on so we can figure out, you know, do we take some
[1:25:52] of this extra found money and fund some of these projects or fund some of these funds for
[1:25:58] the long term.
[1:25:59] So those are some of the things that we are trying to build into and work on.
[1:26:02] a lot more come on that. We just want to bring it to table, especially talking about asset replacement and kind of, you know, the general
[1:26:09] funds are the best they can. I think to plan that, but you can see we're running the fund, and then get to the extent that we need to replace what's on the
[1:26:16] schedule to replace this. So, which one make sure we have to assume they're going? Any questions on asset replacement or anything else?
[1:26:27] So, kind of the last thing on our list, I don't know what it is, it's an expert on this.
[1:26:34] It's just kind of a quick review of debt.
[1:26:36] It was a little bit complicated, but one of the things we didn't tell that clearly was,
[1:26:42] I know this is just general condescending, that's important.
[1:26:47] So, strictly dinner fun debt, it is paid by property tax,
[1:26:55] And as you can see, we are, if you look at that bottom chart there, that our debt cannot
[1:27:04] cause the INS portion of the tax rate to, you can't be more than 25% of the overall tax
[1:27:10] rate, the INS portion.
[1:27:11] So if you look at that bottom chart there, that's just the little 10-year history of the INS
[1:27:16] rate versus the M&O rate to give you the overall tax rate.
[1:27:19] and you can see that we are kind of maxed out there at the 25% right now.
[1:27:24] Geo-bonds obviously caused that, so we are at our cap for the moment.
[1:27:29] And once we get these new properties in online on the tax roll,
[1:27:33] you know, revenues will increase and things will adjust naturally.
[1:27:36] But for the moment, we are just kind of there.
[1:27:40] The debt schedule for this year, we are up 335,000.
[1:27:44] That's primarily due to tax notes for the fire trucks that we,
[1:27:47] the issue earlier this year.
[1:27:51] So pretty much that's all we have on the FedEx.
[1:27:55] It's just a big thing here is that this is the only component
[1:27:59] of our debt that's paid for by the FedEx.
[1:28:01] We'll go back to that and it seems like in every public
[1:28:03] conversation we have is what is paid for by what.
[1:28:07] And so I do want to note that of that $5 million EIC
[1:28:11] does do have debt in here.
[1:28:13] It's backed by the city's credit rating.
[1:28:16] but the sports complex is River Troll in here yes so they transfer in their
[1:28:23] portion of their bills to the general fund to help pay for this but it all goes
[1:28:27] within to our tax calculation they're because it's back yes but they do pay
[1:28:33] their portion right in the way yes any dead questions yeah
[1:28:50] so you'll have your
[1:28:51] questions on, I don't know how to do that, but a few things to do with this, the information
[1:28:56] we've just saved at the workshop, feedback for staff.
[1:29:11] As always, this variance has no fun.
[1:29:15] Do you have a question?
[1:29:16] Ask her.
[1:29:17] She, uh, has been a good tutor for me to study for.
[1:29:23] We didn't give you this, and this is a sheet where we gave you the detail instances in the detail of the revenues.
[1:29:29] These are some of you who are more detailed.
[1:29:32] Do keep in mind golf revenues that are usually pretty substantial.
[1:29:38] They are significantly reduced, so they'll be concerned when you see that.
[1:29:43] It's just because of the law project.
[1:29:44] So we've done some pretty intensive deep dive calculations on that,
[1:29:49] and we feel presentable with our musicians.
[1:29:51] This is over there, and we impact it.
[1:29:53] It's having some general fun, which is pretty
[1:29:55] happy to walk this point.
[1:29:57] Mr. Harrison, questions?
[1:30:00] I'll write an outskirt. I'm going to, you know, replace me with an outskirt replacement.
[1:30:08] Three, three, about a million and a half, three years. And it would be ideal.
[1:30:15] It's a little rough. It's been a matter of this year, first of all.
[1:30:24] We always try to keep, so our goal has been, you know, between $4,500 to keep as an emergency.
[1:30:31] That way, something does come up.
[1:30:33] It has to be replaced for whatever reason.
[1:30:36] We have so many to do that without having to touch the general fund fund balance.
[1:30:41] We're trying to protect that and build that where we can.
[1:30:43] So that's what you're taking me in one bus to 400 and get
[1:30:47] frasals to make me invite or just go for a minute.
[1:30:54] Well, yeah, the total expenditures for this coming up year right at
[1:30:57] 1.1, that's what's being proposed right now.
[1:31:00] I mean, that would leave us $370,000 and that's that 36,000 we were
[1:31:04] talking about, that was, yeah, I did the narrative, but the
[1:31:07] chart was already done, so we were talking about maybe taking
[1:31:10] that 36,000 dollars expenditure out there to get us back
[1:31:16] And every year, it's about what it is on the replacement schedule.
[1:31:20] In each year going forward, we're going to start forecasting some of the stuff out over the next year.
[1:31:26] How do we make sure we slowly increase it?
[1:31:27] Just like road, we increase it 100,000.
[1:31:30] Same thing with these funds.
[1:31:31] How do we slowly start incrementally increasing these things to start funding the full 1.5?
[1:31:36] Yeah, and
[1:31:41] that's been built out in the forecast for less
[1:31:42] half a year since we started building out that increase
[1:31:45] year over year.
[1:31:48] Questions to this weekend?
[1:31:50] Do you know?
[1:31:51] Anything you'd like to see different or in more detail
[1:31:53] would like to see both?
[1:31:55] Any questions or issues?
[1:31:58] I think
[1:32:01] this has been a good presentation.
[1:32:03] Thank you.
[1:32:04] I know it's a conversation that we'll be having for the next
[1:32:06] few months.
[1:32:08] I do wish that the charter proposition
[1:32:15] that would have allowed you a more time had passed.
[1:32:17] I know you all.
[1:32:19] We'll get it done.
[1:32:20] We always have to.
[1:32:22] We'll get it done.
[1:32:24] We'll get it done.
[1:32:25] Yeah.
[1:32:25] The comments, Mr. Price.
[1:32:27] I'm there.
[1:32:28] I think we're good.
[1:32:30] You've got a few more procession fees that
[1:32:36] amount is decreased by 2000.
[1:32:39] Are we expecting less processions?
[1:32:41] They're just based on historical.
[1:32:44] Those are not hard to predict, so we base them on historical averages.
[1:32:48] We'll want to, I don't know, restamate something like that, but I've been made fun of
[1:32:53] re-budgeting the taxing fees in there, I'm not going to turn my head on $75, and so am I going to open it?
[1:32:59] I know we're going to get it, so it's just based on historical averages.
[1:33:04] Some of that, there's really nothing we can tie it to, just based on historical.
[1:33:11] Yeah, that's what I'm hoping for.
[1:33:14] I think more people are dying.
[1:33:17] Maybe it's not an infrastructure issue.
[1:33:21] Could be some traditional stuff changing too.
[1:33:23] Things to change.
[1:33:27] Yeah.
[1:33:27] Yeah.
[1:33:28] Yeah.
[1:33:28] Yeah.
[1:33:28] People do services on the change.
[1:33:30] So that can be far back.
[1:33:32] So but yeah.
[1:33:32] Give me questions on any of that detail.
[1:33:34] I know that's something we haven't really presented to you before.
[1:33:37] It's just a little bit different look because it's a lot of information to get into these slides.
[1:33:42] We're looking at, you know, hundreds of departments and
[1:33:46] it's a lot of information I have to try to
[1:33:51] digest and meet over every day.
[1:33:54] Do we all come to it?
[1:33:56] Where do we add on or how to support it?
[1:33:58] First and foremost.
[1:34:00] Now, I'll probably type support into it.
[1:34:02] So, should we?
[1:34:02] I don't have any legional funds, I don't have a lot of funds in the enterprise, it has
[1:34:09] to be less than 35% of our overall expenditures, and it's less than that.
[1:34:17] I haven't got there yet, but I'm going to say probably about 29.
[1:34:21] You know, without the last ones that we issued, we
[1:34:30] were...
[1:34:38] We were 27% of your own.
[1:34:40] Is it a 10% rate?
[1:34:42] Yes.
[1:34:44] The move is now decreasing.
[1:34:48] We're still sitting down.
[1:34:49] We're still sitting down.
[1:34:49] It's not less than that.
[1:34:50] But in the enterprise, let's revenue base.
[1:34:54] We're looking at what you see on this.
[1:34:56] It gets to rate here.
[1:34:56] We'll do water and CIP.
[1:35:01] We're going to have another workshop about enterprise funds in July as they have a full-blown
[1:35:09] executive summary after the certified tax rolls of their hands is great.
[1:35:16] Anything else, council?
[1:35:17] And then of course, our doors are open for any course.
[1:35:20] Anything else from staff?
[1:35:21] But you're not going to turn the meeting at 1138.
[1:35:29] No, I think so.