[0:06] this

[0:10] is oh yeah I'm I'm using my like one not

[0:16] not you don't have

[0:22] we I can

[0:28] still sure we are we ready

[0:35] recording all right I'm GNA call budget meeting for February 13 2025 to order

[0:42] guess it's special meeting 2:30 uh roll call and council member LA

[0:48] and I are both here uh that we don't have oh we do have some people online

[0:54] we've got Eric CH you want to do this sure uh we have David Bullock and John

[1:00] Waller

[1:03] from okay and we have uh Ethan city manager

[1:09] and James poke Works manager director what are you director director Finance

[1:14] director manager final

[1:18] officer I need name tags uh okay so we did that any public

[1:25] comment it's get out there so no public comment uh so we'll go to approve the

[1:33] minutes for the budget meeting from January 28

[1:37] 25 motion to approve minutes for the special budget meeting okay second all

[1:43] those in favor

[1:47] I okay we'll move on to the presentation of the audited comprehensive financial

[1:52] report and measure K fund report for fiscal year of June 30th 2024 okay a

[1:58] Brie presentation as I so uh David and John I'm sure we share their thoughts

[2:14] of I'm sorry did I cut out or oh

[2:22] okay screenshot

[2:28] y okay

[2:32] this morning this afternoon we're going to go over the the annual comprehensive

[2:36] financial report the ACT we include the Met report it's Incorporated within the

[2:41] general fund we'll see as we'll talk about for FAL year June 30

[2:47] 2024 and we also have the the management letter or uh comments from from the

[2:53] Auditors to

[3:01] at a very high level it's it's the ACT has broken up into five sections which

[3:07] is is from the transmittal letter introduction to thep AUD report there is

[3:12] a nice summary of what has happened over the course of last management discussion

[3:17] and Analysis and then includes the basic Financial section which has the B basic

[3:22] financial statements which includes the government wide as well as the F level

[3:26] information as well as required of disclosure uh we also provide we

[3:31] required to provide supplemental information as you saw most of that is

[3:34] related to pension um it also has a budget actual fund information and then

[3:38] last but not least I know that David will say this but the statistical

[3:42] information is not audited but it is provided gives 10 years of history and

[3:46] certain things when it comes to fun information or population uh lot of good

[3:51] information in the in the statistical section but not it

[4:00] again uh the partner and John's here from CS uh they provide an opinion of

[4:04] the financial statements it's the highest level assurance that we are

[4:07] presenting the finances fairly uh they have a we have a clean opinion which we

[4:12] are that means we are I'll let David and John at the end talk about their opinion

[4:17] and their management comments at the

[4:21] end as I kind of mentioned earlier we look at the entity wide that basically

[4:26] includes the city uh the governmental funds the Enterprise funds includes the

[4:31] fund things like pension um incorporates that to the net position and the

[4:35] statement of activities just taking a look at the

[4:41] statement of net position which is Cal assets overall about 142 Million last

[4:46] year about 144 million in the current year change is about an increase of

[4:50] about $2 million in cash deferred outflow of resources what that really is

[4:56] um is that are the future costs that we have to pay to covers basically at some

[5:01] point it's based on their actual report it's

[5:04] copulated total liabilities about 84 million to 8 almost the same 83.8

[5:09] million in the current fiscal year the number that's always highlighted which

[5:13] is the main increase is net pension liability went from about 52 million to

[5:17] $5 55.6 million as I've kind of mentioned in previous

[5:22] presentations that's really factored in by How cow Pur does so for example in

[5:27] 2023 uh their discount rate or their their

[5:32] rate of return is 5.8% um if we were go back to 2022 it

[5:37] was a negative 6% U and their target I know it's

[5:42] different from an actual evaluation report to put in the financial

[5:45] statements by 10% but their target 6.8 so every year they're trying to hit 6.8%

[5:50] anytime they don't that means the liability grows in time uh they in exess

[5:55] of that the liability decreases so for example if we were to put this schol

[5:58] year 2022 into the slide you would see that net pension liability at about $29

[6:04] million why in a year prior to that cers had an over 20% rate of return so that

[6:11] just me the liability drastically decreased but again that's why we see

[6:15] these large swings when it comes to uh the overall statement when especially

[6:19] when it comes to Ping the city really doesn't have a lot of control on what

[6:23] happen there long-term debt that really is the the bonds for private place bonds

[6:30] for the library it's down we PID principle from 18 half to

[6:35] 16.4 um other liabilities it's really like house payable 13.6 11.8 and then

[6:42] deferred inflow resources 5.1 to 2.9 2.9 what that really is is those are future

[6:48] U interests that we will get from cpers again if we were to put the 2022

[6:54] uh call me here you would see that number about 20 million that's what

[7:00] do to the city so we've already in essence because of the C bad years we

[7:04] burn that up already overall net

[7:14] position [Music]

[7:21] here 75.7 million um up to 79.5 million and we'll show why on the next slide

[7:31] increase all right I'm just going to talk touch on I show expenses and

[7:36] revenue so the statement effectivities basically income statement um expenses

[7:40] went from 33.7 million to 40.8 million again what happened over a $7 million

[7:46] increase and if you're looking at the the different functions General

[7:50] government went from 5.3 to 10.9 that's a big increase Public Safety went from

[7:55] 11.2 to 15.8 million that's a large that's that's the reason for the

[7:59] increases I'm just going to jump to the next slide just for a second just to to

[8:02] show you why this is in your financial statements it's on page 22 in the

[8:07] current Acer it's on page 23 the prior Acer so one the one of the things that

[8:12] we need to do is make sure when we get to UI we have to show the the how do we

[8:16] get track those expenses from the fund level to entity wide level in the last

[8:21] year's financials because of those good years that or the Cali day we get to get

[8:26] to account for that last year well that meant it was 2.3 million to the good

[8:30] uh unfortunately now we're going into the bad years so we went from 2.3

[8:35] positive to a negative 7.9 million expenditure swing of about $10 million

[8:41] what that means is we need to now prate that expense to to the different uh to

[8:46] the different functions and the different functions really is people

[8:50] driven so the majority of the people are obviously in public safety which is the

[8:53] place department and then General government which is pretty much everyone

[8:56] else except for transportation which is some of um the Public Works people so

[9:01] that's really why you're seeing that large increases because we need to we

[9:05] need to prate that pension expense at at enwi

[9:10] level taking a look at overall revenues uh program revenues about 10.9 down to

[9:16] 8.4 million um just in general what that is is is we were getting some large

[9:21] revenue for 85 CL project some of the housing project over off

[9:27] of obviously those projects are near complete so those T services aren't

[9:32] coming in um any more since they done and we don't have for the most part C

[9:37] Pleasant Hill is fully buil out so there's not a whole lot of new large uh

[9:41] new development projects in Pleasant Hill property tax is up about half a

[9:45] million from 9.4 to 9.9 million basically all it's all those

[9:49] supplemental payments that we really don't know we're going to get until when

[9:52] people sell their homes you might recall when you bought your home that there

[9:56] might been a supplemental payment that you had to make well part of that comes

[9:59] to the city of pleas Hill so when you get that's really the difference that

[10:02] you're seeing here sales tax 11 million in the prior down to 10.6 million as I

[10:09] kind of said and we actually had earli meeting this morning with our with our

[10:12] sales tax Consultants we're just retail is just down I mean it doesn't help city

[10:17] of BU Hill that we have some vacancies um in the downtown but just in general

[10:21] Statewide as well as City buen Hill we're just seeing a decline in in retail

[10:27] P that includes the county pool right right allocation how much was that down

[10:31] is that down more than City or is that down about the same the

[10:36] county it's a little interesting with County Pool in general the county it's

[10:40] down because of the county overall what the county received can I um charges for

[10:46] services again so it's it looks like 1.8 million revenue is less than from uh

[10:52] 2022 can you explain what the charges for services are again I may have missed

[10:56] that so permitting licensing anytime we do um um a new development project all

[11:01] that week when we fill that out for when building receive those revenues it's

[11:07] that coming back so when you do do a remodel on your home certain building

[11:11] permits but with permit fees when those large projects start coming down less

[11:15] Char for so are you seeing that there's less projects that are happening is that

[11:20] why from 2023 to 20248 it's the big project so like

[11:26] development it's it's the I mean we're still seeing know doing home remodels

[11:30] but we don't have a lot of uh we don't have a lot of new home development or

[11:35] major apartment complex development that's really what that's really What's

[11:41] happen measure k for the most part it's rounding it actually was down a little

[11:46] bit from 5.5 to 5 like four6 billion um again we don't see as much of a

[11:53] fluctuation when it comes to measure K as as we do with retail a lot of that

[11:58] has to do with Auto Sales um so if you buy a car in in W Creek they might you

[12:06] might notice that they say oh where do you actually live well you say you live

[12:10] in Pleasant Hill um what happens normally is that 1%

[12:14] sales tax will go to City of wall creek but they ask they ask you for your home

[12:20] address because it's based on sidus address so if you live in Pleasant Hill

[12:23] and there's an add-on sales tax well that add-on sales tax gets applied to

[12:27] the purchase of your vehicle so we get that

[12:29] whereas just normal sales tax obviously if you bought that car W Creek Nothing

[12:32] comes to Pleasant Hill because you live to Pleasant Hill it's that add that

[12:35] helps us as well as online sales that continues to to still relatively be

[12:41] strong I a quick point I want I want to make sure we don't miss this um so while

[12:46] we may have just going back to the charges and Services I I would hate for

[12:50] the conclusion to be that we don't have anything going on in the city and

[12:53] development is crashing it but that's not the case I would actually offer

[12:56] account to say we just gen we just adopted in general plan last may we

[13:00] changed some zoning designations we're in the process of upgrading our zoning

[13:03] it may actually create more opportunities for other kinds of

[13:06] projects certainly we are responsive to hcd we reone specific sites for larger

[13:11] higher density projects that's not to say we don't we may not have any at

[13:14] present but uh and the difference is as those projects W down as Eric explained

[13:18] but that's not to say we don't have the possibility for other projects in future

[13:22] just want to make sure that's you can't look at it as a

[13:25] longterm Tri corre right correct that's that's the key it's just a year by

[13:30] year and then the other piece I'll touch on this is again you'll see that

[13:35] investment earnings went from about $800,000 last year to about $2 million

[13:41] this year $1.2 million increase overall um part of that and we'll talk about a

[13:47] little bit more on the general fund side um it's because of rising interest rates

[13:50] is is the main reason it's also because as as David and John are aware you know

[13:55] from the accounting perspective we have to mark Investments at a point in time

[13:58] on June 30 and those have been um we had

[14:04] some uh paper losses a couple years ago and and that's being offset as as

[14:09] interest rates continue to rise again as long as we don't that basically means is

[14:14] what we have to do for an accounting standpoint is we Mark Investments as of

[14:17] June 30 as of that date if we had to sell everything today simplify it um and

[14:23] then based on what that is you have to actually then book it whether it's a

[14:27] gain or loss but I'm going to be honest reverse it the next day but we at least

[14:30] have to reflect that at a point in time so again the overall the net

[14:35] increase it was about 3.8 million so we went from 75.7 to$ 795

[14:44] million that again general fund includes measur

[14:50] pay again

[14:54] they as well measure K was was passed as a general sales tax

[14:59] we track measure Cas separately in separate funds from a a financial

[15:03] statement I sorry from a general lger perspective but for financial statements

[15:07] is considered a general sales tax so for financial statement presentation measure

[15:11] K is comined with a general

[15:15] fund just overall revenues of about $37 million expenditures of 31 million

[15:21] transfers of net caners out of about 4.8 so general fund overall increased about

[15:27] 1.1 million from 18.2 to 19.3 million the main reason for transfers

[15:34] out is for example since measure T is including in the general fund a little

[15:38] over three million of those transfers are transfers to for projects for

[15:42] streets and Roads or bik P for storage TR um the other over million dollars of

[15:49] it is for it meetings so we have a um a police it fund and we also have a city

[15:55] it fund so that's really what those transfers out are for

[16:02] again some of this kind of mirrors with what you saw at the statement of

[16:04] activities since most of for example property tax um from 8.7 to 9.1 million

[16:11] really it's that supplemental sales tax that decrease from 10.9 down from 10.9

[16:16] down to 10.6 uh I'll touch on Transit oy tax I

[16:22] know I've said this in the past if few Tak now that's the one area that still

[16:26] isn't quite to U isn't at a prco level uh

[16:31] 2019 this number was about 2.5 million and that was it with the opening of a

[16:36] brand new hotel for only once say half a year the Hope was that this number will

[16:40] be close to $3 million today then Co happened and we've been we've been about

[16:45] 2.2 for the last couple

[16:50] years oh sorry and then I already talk about so the use of money in property

[16:54] from about half million doll to 1.4 million as time to mention interest

[16:58] rates started Rising which I kind about about half of that increases was due to

[17:02] interest rates and the other half is what I talked about that market

[17:04] adjustment that we have to make every year at June 30 was the other half a

[17:08] million again that just means said oh our if we had to sell all of our assets

[17:12] as of June 30 2024 was a half million better than it was a year

[17:22] before now we take a look at General fin manes now you don't see the swings so

[17:26] the statement of activities which you saw earlier you saw B General government

[17:29] was at five the year before and $10 million it's because you have to count

[17:34] for those pension when you look at it at a fund level you don't quite see the

[17:37] swings that you saw at the stivity level overall 34 million that year last

[17:43] year $31 million in the current year the main reason for the variance of that $3

[17:48] million that Capital outlay that's the library so in 2023 we was still were

[17:53] still heavy in construction in the library I mean it was close to being

[17:56] done but there were still about $3 million of expense

[17:59] we still have a little bit left to go as go the measure pay report but for the

[18:04] most part people are join the library library um it's pretty much built out

[18:09] still a few much l items but you can see what that did to expense from last year

[18:13] to this year General government down about

[18:17] $300,000 again that's really just due to a transition in staff so for example C

[18:22] manager Ethan was the assistant city manager at one point uh we didn't have a

[18:26] city manager a full-time City Manager for certain period of time as we're

[18:29] going through that recruitment uh same thing for city court for six months we

[18:34] had an acting or interim City Court until I own F that position uh so there

[18:39] were several POS key vac uh open positions over over last year that have

[18:44] been built and some of them haven't been back bu uh Public Safety again it's up

[18:49] about $600,000 but we're look at the budget number I think was over 13

[18:54] million we in the past historically somewhere between um some you know five

[18:59] to 10 police officer vaces a year it just it just it just happens the goal

[19:04] has always been to try to other than a couple of Frozen positions to fill all

[19:11] those PD slots it's never easy to do I think we've only had maybe one year

[19:15] since I Council that we've been fully staffed I actually spoke with I spoke

[19:20] with the chief about this and he's wor for 25 years and he said he can remember

[19:25] like one maybe two times for a limited portion was I just remember one year

[19:30] where we were finally full that was a year we could finally do an

[19:33] SRO was that year so it sounds like from about almost five to 10 vacancies but

[19:39] that's also included in the budget though right you're assuming that all

[19:42] those positions are filled or I am assuming they're all except for sorry

[19:46] except for except for so that's accounted

[19:50] for well it always it makes the budget look very conservative because it will

[19:55] always be better than the budget right because the because those position

[19:59] because those positions are assumed to be full not do we know what that number

[20:04] is off the

[20:08] top the difference in five police officers

[20:14] what I mean you're basically talking fully loaded for a police officer 150

[20:20] Grand a

[20:24] piece 750,000 750 change

[20:29] you know some of that will change again speak pension some of that will change

[20:33] depending on if it's a brand new officer out of the academy because they are in

[20:36] the pepper plan or if it's AAL so someone if we were able to get a police

[20:40] officer from a different department that would change the all cost yeah and

[20:43] generally budget do assume unless you as Council direct

[20:50] staff otherwise just like we dis likee staff freeze position again and we ref

[20:55] freeze it otherwise we do assume now I've

[20:59] shared with the Council of the past and the LTA is in the old days servative

[21:06] budgeting meant you assume um when you assume positions you assume TOP Step

[21:11] fully loaded family plan and that was considered Serv buding we don't do that

[21:17] anymore today we kind of find some mixture so I find some mixture in

[21:20] between like okay maybe if we have three vac for police officers for example I

[21:24] will assume one's going to be a family one will be plus one one will be single

[21:29] um and I've never assumed TOP Step anymore I assume midep for example but

[21:32] based on that information so there is technically kind of salary savings about

[21:37] 750,000 per year that we're looking at because those positions seem to be

[21:41] historically BAC in at least 5 there can be yeah and the reason I say that is

[21:48] just because HR is always looking and HR PD is always looking for good

[21:54] officers for a while is pretty much

[22:00] last several years it's been a lot harder

[22:05] than and then the last slide I the last part of the slide is really the transer

[22:10] out as I kind of mentioned earlier the bulk of the transfer out is really for

[22:14] measure K to the gas tax fund for projects or to technology funds for

[22:20] either for the city or VAR um again there is a a full note that actually

[22:25] describes all not only is it presented it in the summer level um and the note

[22:30] disclosure actually shows where all that money is

[22:36] going and then just overall U the general fund about $24 million in total

[22:41] assets uh deferred inflow and liabilities about

[22:47] 4.4 um and then it's about 19.3 total fund

[22:51] balance restricted to about

[23:02] do a

[23:05] non caption and I do

[23:16] the this way no okay

[23:20] yeah so restricted and not the B of what restricted is is U the uh the section

[23:27] 150 so all of those funds are there is

[23:33] basically we can only use that for a specific purpose for be pension expense

[23:37] a sign of about 13.4 million a lot of that is is uh is related to measure k u

[23:42] even though the council has discretion there's always been emphasis of what

[23:46] measure pay has been used for and then the unassigned council could uh direct

[23:52] staff to to do anything with those funds for government services about $4.2

[23:58] million again we're going to talk about this a little bit more in the next it

[24:01] assigned also includes our Reserve policy numers not just the measure K but

[24:06] also also the 9 million 5 million for 14 Capital 4 million for Budget

[24:12] stabilization plus the measure K that's assigned can I ask a question about the

[24:18] uh transfers again so when we're going back to the transfers this on page 44 of

[24:23] the agenda packet itself um there was total amount unspent as of June 30th

[24:29] 2024 it showed 5.3 million and then the current amount was 3.4 million was

[24:35] transferred is that due to carry forward funds it's under note four page 14 oh

[24:45] one so that's the measure K report so what we do on the measure K report

[24:50] is we provide to you and the council as well as the measure committee is so we

[24:57] there has always been an transfers to for measure k for projects for p p bike

[25:03] stre of Roads P bike and S um which is that 3.4 million that

[25:08] you're saying but we also report out there are previous years as as you're

[25:12] saying we also done transfers in previous years as fall for those

[25:14] projects so what we want to disclose to to you as bu committee members as to the

[25:20] measure committee members 5.3 of those transfers has not been spent yet so that

[25:24] you know that within for example in the gas tax fund um if you add up those

[25:29] numbers that's sitting in the gas act right now that is for future streets and

[25:33] Roads projects or biking pet projects um so that's that car board so we yes we

[25:38] disclose thats year thank so I may be asking a lot the

[25:44] questions because I'm looking at the annual report as city council but also

[25:48] I'm diving in to all little details so please mindful that I might be asking a

[25:54] lot of questions okay yeah and again I've been through it

[26:00] again this is the presentation before you is more a summer level so if you

[26:04] have more detailed questions feel free to ask because we don't part of this

[26:09] presentation I don't get into all 20 I want to say 21 special Revenue funds and

[26:14] seven coule project

[26:18] funds and really uh this is the the last

[26:24] slide yeah I noticed that so this is more of the high level overview the 164

[26:30] pages that the public Y and then I do this every year I

[26:35] got to I I got to thank Ross sta who's no longer here she's part of another

[26:39] agency now um Billy who retired a few years ago but thanks thankfully she

[26:44] comes back when I ask to help me out um Maria and Wendy and and really all City

[26:49] staff to help with the together including Ethan and we're here

[26:53] today uh I'm going to hand this off to John and David in one second

[26:59] and then or you also ask question the one thing I keep forgetting I feels like

[27:04] a lifetime ago but it really wasn't was we went through a system implementation

[27:09] in 20 U for the last couple years but we turned it on in October of

[27:16] 2023 and the amount of work and time involved was extensive by all staff and

[27:23] some of that to get it to help get it into the financials that you see today

[27:27] it is took a lot of I just want to just again thank my team for doing that I

[27:31] know that moo had some we had to work with moo this year with that conversion

[27:34] as well to make the financials happen so I just want to thank them as well you're

[27:38] more than welcome to ask questions I don't know if you want to hear the

[27:40] Auditors before you yeah I do have a couple questions thank you again for all

[27:44] the hard work that you put into putting together the report um again going back

[27:49] to just the agenda packet itself on page 118 there's a ratio of outstanding debt

[27:55] of 18.5 that's related to the Bank of Montreal for Library project and then I

[27:59] saw a difference in page 145 which is 19.9 million um trying to understand I

[28:07] guess the question is what is the 1.4 difference yeah so I wanted to clarify

[28:13] that to make sure that that was what I was seeing as well because it wasn't

[28:16] stated in um 145 and then what I found was really interesting was actually the

[28:22] top 25 business sales tax producers 12 of them is actually in district

[28:29] one um and another question that I had was so

[28:36] that's about 50% almost 50% of the sales tax is coming from district one um and

[28:44] Page

[28:48] 125 building permits so if we look at the building permit

[28:54] from the last 10 fisal years we saw there was a jump into 2022 and

[29:00] 2023 right from 120 it was 123. 7 million and then we're going down in

[29:08] 2024 almost 55 million again is that attributed to the development of Le

[29:14] component that you were talking about earlier 401 Taylor and5 Cleveland

[29:22] Marland and then lastly I think we are going to talk about the pars Trust

[29:29] and so about the unassigned funds and where we are with

[29:35] that David I'm gonna stop sharing David and John it's your your

[29:40] show okay great uh mayor Noak nice to see you again

[29:47] mayor La welcome nice to meet you Council you gave me mayor I

[29:54] appreciate that thank you I say mayor as well my apologies

[30:01] UMC council member law nice to meet you um David bulock I'm the partner on the

[30:06] engagement and John Waller is here joining me and more than happy to answer

[30:10] any questions that you have on the audit uh thanks Eric for that presentation it

[30:14] was a nice walk down memory lane um the audit and recalling all the activities I

[30:21] would say that you know from the auditor's perspective it was a pretty

[30:24] consistent year um for 24 not a lot of change other than the system

[30:28] implementation was a big impact um but in terms of activities pretty pretty

[30:35] routine in terms of uh you know not a lot of significant changes you know

[30:39] going through the library project the bond issues associated with that it's

[30:44] just been a lot of capital activity in the past few years and so this is kind

[30:48] of seems like it's kind of normalizing back to a normal year um so we have

[30:55] issued a couple of deliverables already we've issued the transport

[30:58] Transportation development act that's your uh sidewalk and

[31:03] pedestrian Pathways um that has a December 31 deadline so we had to issue

[31:08] that back in December and then we've issued the State Controllers report or

[31:12] help helped get that filed so those are two things that have been done today

[31:15] we're focusing on the acur the financial statements and the measure K report and

[31:20] what we have left is the single audit which is the federal grants and the Gan

[31:25] limit and those will be issued next month

[31:28] in terms of the actur um you know Eric walked through the numbers with you you

[31:33] know our responsibilities really relate to uh expressing an opinion as to

[31:38] whether or not those financial statements are fairly presented in

[31:41] accordance with generally accepted accounting principles and gby is

[31:45] responsible for setting those principles so we call that Gap and and gby

[31:50] establishes that we did the audit or we conducted the audit in accordance with

[31:54] our audit standards and there's really two sets of standards the aicpa's audit

[31:59] standards and then the government auditing standards and the government

[32:03] auditing standards really adds on an internal control focus and a compliance

[32:09] Focus to our audit and so we're happy to report that we've issued unmodified

[32:14] opinions on the financial statements for both the Citywide Acer and the measure K

[32:20] uh we did not have any internal control deficiencies that we felt rise to the

[32:25] level of a reportable matter so it's our responsibility ities to

[32:29] communicate um control deficiencies that we believe are significant deficiencies

[32:34] or material weaknesses and we didn't see anything to that nature um as it related

[32:39] to the financial statements and then the same thing with compliance we did not

[32:42] see any uh non-compliance that were required to report to you um the

[32:48] financial statements this year um and this is probably the most quiet year

[32:52] since uh covid began because gby put a a pause

[32:58] on new implementations but there really wasn't anything that changed the

[33:01] financial statements this year but you do looking down the road have some

[33:05] significant gas bees to consider one will be for this fiscal year coming up

[33:09] 20 uh 2025 that's on compensated absences um and that could change the

[33:14] way the city accounts for that liability um and then also the

[33:20] reexamination of the reporting model produce some changes which you'll see in

[33:25] how the budgetary comparison schedules are presented

[33:28] you may see some other changes that impact your mdna and your proprietary

[33:32] fund financial statements but those those changes will be down the road they

[33:36] don't apply to this fiscal year um so this fiscal Year's report is very

[33:40] consistent with how you've presented the financial information in past year so

[33:45] not a lot of changes to to discuss um the uh so you know Eric went

[33:51] through the uh the details of the financial

[33:55] statements but we're more than happy to answer any questions you might have on

[33:57] the audit

[34:01] itself just glad to hear it was unmodified thank

[34:06] you that go that goes to the good work of Eric

[34:10] and his team yes I know that I appreciate that I I I should mention

[34:15] that in addition to the financial statements uh we we issue a separate

[34:19] report to your attention as the city council um it's it's labeled report to

[34:24] those charged with governance and that's really uh the audit standards requiring

[34:28] us to communicate the results of the audit to you and it's it's more um a

[34:34] context it gives you a little more context of the audit it's just more

[34:38] information um just to help you understand uh what transpired during the

[34:43] audit and we communicate or we're required to communicate things that

[34:46] might be negative things like uh we have if we had a

[34:50] disagreement uh with management um if if there were some you

[34:54] know material uh audit adjustments to the financial statements uh things of

[35:00] that nature so I'm happy to report there there were no instances that came up

[35:04] during the audit that were required to report to

[35:09] you no

[35:15] that and again I think our I brought up Tyler for a reason our

[35:20] our future goal is to do this is to have this done soon yeah uh then the new

[35:28] system Brew in some hurs and some wrinkles um especially when we we did a

[35:33] basically a brand new general Leisure um that just took a little more time this

[35:37] year again our most of my other agency have

[35:40] worked for we were done at the latest whatever so this is unusual for me we're

[35:46] trying to push that back to where it should be uh and now that we've gone

[35:49] through this for the first time it should be easier the next time around

[35:54] and hopefully that's our goal this year yeah

[35:59] great anything else thank you both work and I guess that help with the

[36:05] new Financial system oh yes well I got you both on the

[36:10] screen by any chance David or John do you know if you're available on March

[36:14] 4th for measure T I know it's a little bit off topic but like measure T

[36:19] committee meeting 5 5:30 and you have to respond on the on email me I just want

[36:23] to make sure I don't want to forget to ask I don't see conflict

[36:30] Eric thank you all right thank you very much have a

[36:35] great day thank you U do you have any other questions

[36:42] on oh I did I did have one question about

[36:52] intergovernmental intergovermental Revenue what does that comprise

[36:57] um sorry I know I'm going back to Pages because that's what I was looking at

[37:01] with the agenda so um it's page 113 so what I saw was in FY 24 revenues was 1.2

[37:09] million less than FY 23 and the main driver was due to intergovernmental

[37:14] revenue and so I kind of wanted to understand what that category comis up

[37:20] it it's really for example um watch Are You The Chair of

[37:24] CCTA or chair MTC chair sorry I know you sit on CCT yeah

[37:30] I so for example um CCTA sorry measure J is is a fund is a is a Hass sales tax

[37:38] that we receive a sales tax for and that's one of the larger for projects

[37:44] normally uh through CCT that we get and that's the bigger share of

[37:48] intergovernmental Revenue some of that could also be the the AR funds depending

[37:53] on what expenditures happened last year compared to this year some of the larger

[37:57] projects I think happened um last year any but our book

[38:02] lines would be consider intermental revenues as well okay it just it just

[38:06] means that we have revenue from other agency other government agencies and so

[38:10] that was reduced because measure J's amount is a percentage of the total

[38:16] revenue but the revenue is driven by sales tax so the S to extend sales tax

[38:21] dollar changes the percent account return Source CH kind of like our

[38:25] measure K so there's measure is also well yeah measure J is meant to be a a

[38:31] transportation um related measure that was done back in

[38:40] 20 I think it's because it's 234 and so um that is a half cent sales

[38:47] tax goes primarily Transportation but there was a certain percentage I think

[38:50] it's 18% that's returned to source so to the extent that Pleasant Hill generated

[38:56] a certain amount that sales tax that went to CCTA 18% of that came back to us

[39:02] and so that we usually goes to their own projects

[39:08] Paving and then the other thing that so that was less this year though so I

[39:13] meant that they didn't generate enough so or there there's other things like AR

[39:19] funds well no no I'll do it this way the structure you

[39:25] see at CCT CCTA today is it's the structure was and the reason I say that

[39:31] is mainly because you have to um so the mayor's right there's 18% return

[39:35] resource money there's also another 2% of return resource money that goes to

[39:40] certain parts of the county there's also um eligible projects that you can that

[39:45] each City can apply for funds for and the reason I bring that up is because we

[39:49] as city of Pleasant Hill apply for funds I'm pretty sure with L not this the

[39:55] current that you're looking at the year before or some of the three projects

[39:58] that we would have got measure J funding for that need to apply towards for

[40:01] example CCB CCB has 4.6 million so some of those funds we've already received

[40:07] from cc to apply towards those projects which doesn't occur every

[40:12] year lot of the CCB measure a lot of the other work that was done along contest

[40:18] was also measure we've been very fortunate to probably received more than

[40:23] our Fair sh grants don't say that out low yeah

[40:28] are you trying to jinx me that's true but it's been the case for you know

[40:33] entire time I've been on Council we've been very fortunate to be you know be

[40:38] ready with projects so that when there's a call for projects we're ready to go

[40:42] and result have been able to get it work you know good amount of

[40:48] dollars I do have a few more questions that's okay yeah there was also an

[40:52] increase in like 1.1 million in use of money in property interest that's okay

[40:58] that's interest so that's where it's half of it because of interest

[41:04] rates Rising the other half is that market adjustment we have to make on

[41:07] every June 30 based on we still L Investments but what we

[41:11] get and then um another question is that in expenses for Capital outlay it was

[41:17] 5.1 million less and so that kind of resulted in our 4.1 million of our

[41:22] operating margin is that correct is that this the bulk of it the library libr

[41:28] when you when you don't you don't have and that's again because of how it

[41:34] was funded it was part of the in the general fund that's why you saw that a

[41:37] large drop from last year to this

[41:41] year all right I

[41:45] think questions thank you great we need to approve this to go

[41:51] to council a motion to approve the presentation of the oh not the

[41:56] presentation I guess the audited the act act for and measure K fund report for

[42:02] the fiscal year ended in June 30 20 I'll second you've made those changes

[42:08] that I I'm gonna for those onto the a uh sorry yesterday was a holiday so I want

[42:13] afford those changes to the Auditors I mentioned it to them prior to this

[42:17] meeting I had a bunch of couple pieces that were uh inconsistent some numbers

[42:25] there were it was principle wasn't that service and there was a couple other oh

[42:29] like when I saw the library and I didn't see the no no it's in it's in the

[42:34] wording oh it's in the wording sections that were um some wording pieces that

[42:40] were off so um I can show you where they are but anyway I can show that to you

[42:47] later but ER Eric got them all I went through them yesterday with him so um so

[42:53] we'll yeah I'll forward that to the aors I gave my heads up yesterday that that

[42:58] we have some edits yeah we com oh yeah did not just just no

[43:08] comment

[43:10] Y the only thing is you may not see those edit by the time it goes

[43:16] tost okay by the time it gets published on the you see okay just as long as I'm

[43:23] sure that they're going through that's okay okay so second that just that those

[43:31] AMS favor that right motion passes we will

[43:38] now go on to the fars section 115 trust

[43:44] discussion sh

[44:06] by gol yes only place you can get Yeah well yeah da City too close for

[44:15] me dangerous dangerous I always get of July parade my contribution every

[44:24] year okay that's part of our policy the Council budget comme adopt a couple

[44:30] years ago was based on the annual audit we would come back and see if there's

[44:33] any additional funds that we can put into the uh section 115 trust again the

[44:39] section 115 trust can only be used uh in regards to pension related expenses it

[44:44] allows it's a tool that allows the Investments to extend beyond what the

[44:49] city can do normally so the the easiest example is R uh as a city we can only go

[44:56] out five years on sure we can only invest out five years so for example

[45:01] there we can't invest for example in the US Treasury a 10year note that's not

[45:05] that's not allowable expens fory we can only go up five vehicles like the

[45:09] section 115 trust allows you to go beyond the five

[45:18] years and one of the things that well it really did come from the budget Comm one

[45:22] of the things the budget committee really wanted um a couple years ago was

[45:25] they wanted to make sure that there was specific language in there that would if

[45:28] we did have a good year that we would that we would put um funds into the sect

[45:33] 115 trust so the minimum amount that we that would be recommended to be put in

[45:38] was 10% or $50,000 of the unassigned fs of General FS again that's not including

[45:45] measure K just the general fund

[45:50] itself just to show you compare to the act the act for if you were to look at

[45:54] the

[45:58] Escape go if you were to look at the the app for um on page 22 you would see the

[46:04] ending fund balance is about 19.4 million to break it into the components

[46:09] it's about 15.7 in general fund only and about 3.7 million in metri

[46:14] K based on that

[46:23] activity just looking at the components for a minute and talk a little bit about

[46:27] the 19.4 million 60,000 nonspendable what that is just um

[46:32] um it's a loan to for planning for the general plan some

[46:40] work that we need to do we sure there be enough money the general plan fund so

[46:44] the general fund is long $60,000 there restricted as I kind of mentioned

[46:48] earlier the bulk of that is almost all of that is really the U section 150

[46:53] money that's already there assigned as we kind of talked about 9 million is the

[46:58] city council policy and the other uh 4 million give or take is is really meure

[47:02] take ons and then we're looking at the unassign component of 4.2 million which

[47:06] is all General

[47:13] month I go back to this slide see see okay just for example a year ago the

[47:22] unassigned fund balance was about um went from 1 .4 million up to almost $3

[47:28] million and increase of almost 1.6 million the required contribution based

[47:34] on the city cons policy was we would put $157,000 into the section 115 trust

[47:39] because the 10% was higher than

[47:43] $50,000 with budget committee's recommendation and Council move forward

[47:47] with budget commit recommendation based on the final numbers they they

[47:50] contribute the $300,000 into the section 115 trust a year ago so

[47:55] $143,000 in of what was the mimal requirement move fast forward a year to

[48:01] this year again in November we meet with budget totee we give you some

[48:04] preliminary information that's un audited based on what what happened a

[48:09] year ago we did want to give the budg an option to because they they wanted to

[48:13] already put some money ahead into 61 that trust so start earning interest so

[48:18] we we did the same thing the prior year up at preliminary numbers rather than

[48:23] waiting for the final to get additional interest earnings yep so again this year

[48:29] uh again U we already put the city council with that project M

[48:33] recommendation already put in $300,000 into the section with 15 trust again

[48:38] it's a 172,000 more than see policy requir can you can the city council can

[48:44] always put in more money that was they the policy itself was

[48:48] design what what mayor Noak and and and mayor FL what mayor they wanted

[48:57] to make sure that there there was no requirement to put money in now the

[49:00] dollar level could obviously change but they wanted a floor um and so this so

[49:04] the last couple years we have put in $300,000 a a year which is already more

[49:08] than what the the floor

[49:13] was so quick can I ask a question so did we look at this in the quarterly report

[49:19] is that how you came up with this was a preliminary year end report so we

[49:24] because remember this ended June 30th of last last year okay so we had

[49:28] preliminary numbers in November as to and so when you saw the we saw what the

[49:33] what the logical numbers we Eric wasn't that bad in accounting that we were

[49:37] going to be off by a significant amount when it came to the audit yeah and so we

[49:41] decided at that time we would prefer to get the 300,000 in and earning money

[49:46] rather than waiting till the full audit came out so that was the decision that

[49:50] the at the budget committee and then the council approved it so would we December

[49:55] with that being said would we see preliminary numbers again in November

[49:59] then um you want see year end preliminary numbers in November you're

[50:03] going to see some preliminary numbers U either March or April for the where we

[50:08] are where we're going okay um this for example the one the one thing U for for

[50:16] like for example sales tax is an easy example yeah it's like we met today with

[50:20] our our sales tax consultant um but sales tax is always about 3 to six

[50:25] months Life Time so even though for it's always in their rears because for

[50:30] example the the I'll just use October November December what the way that the

[50:36] state works is they Advance you money during the course of that period of time

[50:39] of what they think you're going to get but you don't actually get a true true

[50:43] up for example we don't get a true true up until about late February early March

[50:47] for the October to December time FR that's why there's always a lag actually

[50:50] knowing what their numbers are going to be same thing for sales tax so even

[50:54] though we're already at order of the way to the current thisal year Well we only

[50:58] we're only getting the data the real data for the last quarter of the

[51:02] previous fiscal year so the reason why I'm bringing that

[51:06] up is because if we do get those numbers kind of preliminary we can possibly do

[51:11] the same thing again where we would invest the what we already kind of have

[51:15] in a sense of what we're going to end the year with but we'll probably take a

[51:19] look at again in November when the next annual preliminary numbers come out okay

[51:24] to see whether we want to do that then the question today is really do we want

[51:29] to do anything more than the 300,000 we did in

[51:34] December because we still have a you know we still have an unassigned fund

[51:38] balance of four 4.2 million and 10% of that would be uh 4 24,000 yeah so so the

[51:47] question is do we want it well it doesn't really matter what 10% is but do

[51:51] we want to because the balance is 4.2 million do we want to take a little bit

[51:57] more of that and put that in here and do you happen to have the slides on that on

[52:02] that expected unfunded pension liabilities

[52:06] where it peaks in 2032 no I don't that's today sorry do we

[52:11] also have like a trend analysis of how much we are getting in the increase of a

[52:17] tress like for the past five years for two years only had it for two

[52:22] years oh for two okay so you wouldn't have go information we have it for than

[52:26] two years yeah my head I want say about any but sorry just on the section

[52:35] 15 trust itself we do have uh we have pars come back every year so again

[52:39] somewhere in the next couple months pars will come back and do an annual update

[52:43] for this committee as well um as well as U Chandler who it handles our

[52:50] investments for the city um outside the section 115 trust we have about $7

[52:54] million of invested um in stocks and bonds um Chandler will

[53:00] come back as well to update the investment policy as well as provide you

[53:03] an update on how those invests are doing as

[53:05] well that's help so one of the one of um the things that you and I discussed in

[53:12] the past is do you prepay versus putting it in the trust and maybe you can go

[53:19] through pluses and minuses of prepaying calers versus putting it in the 115

[53:25] trusts that's an important piece I know CCTA we just

[53:29] prepaid 2.5 million of there so that they're fully funded um and so maybe you

[53:37] can walk through that for B's uh clarification so for example even for

[53:44] city of Pleasant Hill or a lot of they went through the logic of do you fund do

[53:48] you go ahead and just write H to cers um or do you set up a section 115 trust and

[53:54] it really comes down to what the what city council felt comfortable with and

[53:59] every entity is a little bit different for example when you write a check to K

[54:03] pers for $100 um you you're taking all of their

[54:08] assumptions as well which could be great because they're assuming 6.8% and

[54:11] they're going to factor your $100 contribution as such that it's going to

[54:14] earn 6.8% the good or the bad is now that

[54:19] year that had 20% you're doing really great those years that it was negative 6

[54:24] point uh over 6% or 5.8% where doesn't hit the 6.8 well that just created a

[54:31] liability and again it's not neither good nor bad just matter your preference

[54:35] so for example UC mentioned now they also pre funded

[54:41] they also Lo a check I think a few years PRI of that to get them to 100% well

[54:45] they went through the up and down cycle so now they're running another two2

[54:48] million check to get back to to the 100 100% um so if you could guarantee me is

[54:56] going to get 6.8 I would I would automatically tell you right today right

[55:00] now right the check to cpers yeah yeah well I was looking at it for cers they

[55:05] were attive I think 6.1% or something like that in previous years um but

[55:11] historically I think their 30-year return or about almost 80 8% sorry not

[55:17] 80 for all you 8% um just a 30-year return but in looking at part it seems

[55:23] more volatile to be in cers um versus being the pars trust which is consistent

[55:29] with around what what's the percent so again there's so pars the other reason

[55:35] is once you write the check to cers you have you don't have any control anymore

[55:39] you you've written them the check they get to do what they want with that money

[55:42] I mean the goal is obvious pay for retiring pensions but they control that

[55:46] money once you write that the check what it's invested in how it's

[55:50] invested and they do change their mind on what they're willing to invest in

[55:54] when I listen them speak two years ago they were talk talking about getting

[55:59] into Private Hedge Investments and I thought good God you're lowering the

[56:03] discount rate to Tak in higher risk Investments yeah which is

[56:07] counterintuitive to anybody and yet they're selling this is a way to get

[56:11] higher returns but there's greater risk and greater risk of of you know losses

[56:16] there too so you have to sort of factor in the volatility of cpers versus the

[56:22] Vol volatility of what the the pars trust will invest in so you'll see the

[56:28] pars trust sit around you know single digit returns but pretty consistent more

[56:33] conservative right versus going from a 21% gain to a 60% loss a huge swing yeah

[56:39] and depending on when you put the money in it could just you know vaporate sort

[56:42] of and so that so those are sort of the thought process and our thought process

[56:47] when we originally did this is sort of our our future Cowper's unfunded

[56:54] liability peaks in what 2032 2032 and then starts heading down because of the

[56:59] classic employees and so our thought was to put try to put away a little bit of

[57:05] money all the time into this pars trust because you can use it for regular

[57:09] pension payments and unfunded that we could use that money in those Peak years

[57:15] 2029 2030 203 30 through 32 to reduce that amount so it's not so much of a

[57:22] strain on the city's budget and then be able to reduce it over time yeah CCTA

[57:29] does it differently because CCTA they're if they're their bond Runs Out in 2034

[57:35] they could disappear and so they don't want to have a big unfunded liability

[57:40] they can't fund when they're when they tax half cent sales tax goes away so

[57:45] they have a different mentality on on how why they prefunds why they prepay it

[57:53] versus setting up this we have a we can have a much longer Outlook we can have

[57:57] an Outlook of paying for this over 30 years while CCTA only has like six years

[58:03] to go so there's there's also different perspectives on on why you want to yeah

[58:08] do that type of thing so that was the idea behind why we set up the trust to

[58:16] address

[58:19] that the trust is importantance one it's one uh tool that we have but even now

[58:26] even with 300 I'll say we about 1 point I'll say 7 million take

[58:31] unfortunately or fortunately know that 1.7 million when we get out to 2032

[58:37] that's only good for we would almost have to take all of that just to make up

[58:40] for the increase for we out to those High years

[58:43] yeah and that's the hard part is that dab of how do we even you saw me U I

[58:50] know it was a very small PR um um and one of the supplemental supplemental

[58:54] information of what you see is The Purge contributions now it's just not that fun

[58:58] it's total Pur but it went from about 1.5 million U and I'm trying remember it

[59:03] goes up to I'll say 7 million there there's a huge increase over 10e period

[59:08] of for Pur cost um and and we're still trying to

[59:13] pay for the or all the well the three of us sitting here classic employees we're

[59:17] still trying to pay that off especially for some of those those down here sorry

[59:22] now now I won't blame all foret that much

[59:28] now what I always say what I always say is one of the

[59:32] things that they did and in back in 2000 early 2000s was they increased pension

[59:40] um benefits which wasn't necessarily the wrong idea Governor Davis was doing it

[59:45] because he had to get a deal with CP officers which is Happ to get passed

[59:48] down and and they were mostly overfunded at that point in time as well the

[59:51] pensions were overfunded and so they felt that they could so when you're

[59:55] talking about the a % so back then yes you could put money basically in the

[59:58] savings account and easily get 6% without even

[1:00:02] trying um the problem that they really created which they didn't p no one

[1:00:06] really push back was they went retroactive they said hey not only we're

[1:00:10] going to give you this better benefit we're going to give it to you like you

[1:00:13] got from day one that you were hired that was really the problem with with

[1:00:17] what what they it wasn't the fact that they gave necessarily a better benefit

[1:00:20] was the fact that they just said hey we'll just go we're so overfunded we're

[1:00:23] going to give it back to you we're going to pretend that you had it from one and

[1:00:27] that was where they get the problem got really really bad especially as we went

[1:00:31] through the Doom bubble and the Great Recession those are the issues that

[1:00:35] we're we're still dealing with today and there was quite a bit of spiking going

[1:00:39] on before Peppa too so there was a bunch of sort of abuses to the system people

[1:00:44] spiking their salaries up so that their pensions were much higher and so Peppa

[1:00:51] we actually have three levels we did one Classics up to 2 11 then we have 2011

[1:00:58] till pea kicked in as a second tier and then the third tier is Peppa to now and

[1:01:06] there's the unfunded liability associated with those two groups is oh

[1:01:10] he's getting

[1:01:14] hungry is most of the liability sitting with a

[1:01:20] classic employees and just to give you an example so CCTA is World check for

[1:01:25] about 2 and a half million write that similar check for city of

[1:01:28] Pleasant Hill it would be about 50 million assing we had it yeah in the

[1:01:31] general fund which we don't that that's what the that would be the equival the

[1:01:35] check that CCTA just wrote yeah they only have 25 employees so that's little

[1:01:40] different so that helps and no Public Safety and no Public Safety which

[1:01:46] is so anyway anyway so that's a a lot more background in on the slides but it

[1:01:53] was that's good to share

[1:01:58] um this is just information because you've already um in the past we I me we

[1:02:04] did a little bit more but you've already did that last November so this point I

[1:02:09] will hand it back to you yeah well it's you know I mean we have the option of

[1:02:12] doing a little bit more if we choose to um and and that's really up to us um or

[1:02:19] we can hold off and make a bigger decision in November when this year is

[1:02:23] done um depending on everybody's outlook on what the economy is and what's gonna

[1:02:29] it we're we're almost halfway through or we're almost

[1:02:34] three quarters of the way through our and we still are you know we're still

[1:02:38] under staff so it's going to be our numbers we might be down on sales tax

[1:02:44] but we will be ahead on expenses likely right I know you hate to say agree with

[1:02:50] me on those things when I make those statements but it's true right yeah that

[1:02:56] yes

[1:02:59] I he doesn't want to commit anything's closer and closer yeah but

[1:03:04] with with so with three qus of the Year almost done and still short on Staffing

[1:03:10] not only at police but also here because you haven't stapped up not 100% no not

[1:03:17] 100% either and so we are uh we're going to be below on expenses on Staffing both

[1:03:23] at PD and and here and then our revenues from last year

[1:03:29] right is already 44 million right so that's only like 1.3 from L from 2023 so

[1:03:37] I don't feel that we would our trajectory would go less than 44.5 and

[1:03:42] looking at what our unassigned amount right now is well you could get impacted

[1:03:46] on sales tax revenues especially if tariffs start going into place and

[1:03:50] Things become more expensive and people are not purchasing things so there is is

[1:03:55] a little bit of that but our expenses are still going to be lower because we

[1:04:00] have vacancies we're already almost what half yeah three qu away so with 4.2

[1:04:07] million this is why I always I'm hesitant to always say yes Eric hates to

[1:04:11] to agree with these things well I will say that probably be less but just I

[1:04:16] know you weren't pay p a number at the time um the previous Council has we do

[1:04:21] have newus that have do have escalators in them for each of the each of the

[1:04:26] fiscal years so I want to say TOA going to be less than last year because it's

[1:04:29] not a flat line yeah we do have colus built into each of Theus for each of the

[1:04:34] parking groups that we have in the city so is that is that the Assumption this

[1:04:40] year three and a half three and a half and three and

[1:04:44] half was approved I thought it was 3.25 3.25

[1:04:51] and5 yes 3.25 3.25 and the third year so it's a little

[1:04:57] bit more than the 3% that were originally factored into the long-term

[1:05:00] financing plan but um all I'm saying is you might see expenses just like you

[1:05:06] this year you might see expenses go up it might be less in budget is I'm saying

[1:05:09] but I mean if we're just looking at the unassign amount right now which is the

[1:05:13] 4.2 million and in that policy or that component was the policy that was

[1:05:19] designed right it says that well the 10% is the 10% difference in the year not in

[1:05:25] the balance sheet number it's 10% on the

[1:05:28] amount that changed during the year which was one point so so yes it's the

[1:05:32] Delta the Delta only 1.27 that was the temp oh okay yeah it's not the that's

[1:05:41] not the entire amount but if you know if you go year after year that unassigned

[1:05:45] balance continues to accumulate and that's why the discussion always is if

[1:05:51] that continues to grow should we put more into the P's Trust then they just

[1:05:57] increase because you know we put 300,000 in and it grew again this year so now

[1:06:02] we're sitting at 4.24 uh you know on on a signed uh with

[1:06:07] 300,000 going toward it and so you don't want it have it grow so much without

[1:06:14] using it or something and and

[1:06:20] just I mean I'm just thinking of May right now

[1:06:26] this is point power point there might be former former for I just always say that

[1:06:33] there might be other needs that we not think you have today and again and what

[1:06:37] would what would some of those so if we if we had a sinkhole in the or something

[1:06:43] something signif we also have reserves don't we and restricted not that we want

[1:06:48] to tap into those but I'm seeing that if there's opportunity for us to put money

[1:06:53] in cars right now to get some interest so that when we did have that rainy day

[1:06:57] or warm off those are you can't so in a let's say we put more into the first

[1:07:03] trust it can't be used for other things it can only be used for pension but it

[1:07:08] could be used for just even our regular pension costs so you can put more in and

[1:07:13] pull it out but to the extent let's say a big SLE that cost you 10 million you

[1:07:18] can only sort of give yourself the you know say the 4 million that you uh have

[1:07:24] for the pension you couldn't you couldn't take more out than that right

[1:07:28] right so it's the question is and of the of the current Reserve policy with 5

[1:07:34] million which is the working capital fluctuations of working capital during

[1:07:39] the year so that we never have to borrow or do anything we always have enough

[1:07:43] money sitting around to take care of our expenses because our income is

[1:07:48] fluctuating and then the other four million is sort of for a downturn

[1:07:54] economic downturn um we were very fortunate we never had

[1:07:58] to touch that during the pandemic because sales tax dollars everybody kept

[1:08:02] buying on Amazon sit we in good shape but U that's what that's for and so I

[1:08:07] think there is a little bit more risk in the next couple years depending on all

[1:08:12] these tariff issues and potential more inflation po potential uh sales tax

[1:08:20] decreases sorry just a side note did I say this really we will have AG the plan

[1:08:25] is is hopefully have HD at the next meeting to talk about sales tax they do

[1:08:30] our sales tax forecast for us um so anyway that's that's

[1:08:34] the you know that's or there could be other you know

[1:08:39] other significant projects luckily you know we're in good shape on measure C on

[1:08:44] the library our roads are in good shape thanks in so you know we're in pretty

[1:08:49] good shape but you know like Mar almost had to file a bankruptcy because of the

[1:08:54] sing remember that and you know that was

[1:08:59] pretty bad and it took them two years to replace it because they didn't have the

[1:09:02] money to do that so we don't want to get rid of all of that but I don't think

[1:09:08] anybody wants to sit see us sit around with 4.2 million as well not using it

[1:09:14] for something and so that's well so that's why that's the balancing well

[1:09:19] when I was reading this my assumption is the unassigned amount of the 4.2 million

[1:09:24] was at 10% % of that could be allocated to pars yeah it's it's not it's just the

[1:09:29] 10% was on the Delta that's what the policy was set for to make sure we did

[1:09:34] something yeah um but we could certainly you know say okay we'll put another

[1:09:38] 100,000 in to bring it up to 400,000 you know we can certainly do that and take

[1:09:44] it to council and see if they approve that um so that's that's a decision for

[1:09:49] us and for Council to make up um what we want to do put that on a side want to

[1:09:55] put more toward in to the to the pars trust or whether we want to leave it in

[1:10:01] unassigned any what you think about for the future yeah I I would proceed with

[1:10:09] moving into par another 100,000 yeah okay I'm fine with

[1:10:15] that so um we will um I think it's it's good to be able to at least get some

[1:10:23] interest on that and also it's not well there is cons yeah we do get interest on

[1:10:27] this this money you know it's just it's a slightly higher interest part trust

[1:10:32] than what we get with our own Investments so I don't want to say that

[1:10:36] we're not getting interest on this money because we are it's just not as much as

[1:10:39] we can get in the pars so just for information um the bulk of the city's

[1:10:45] day-to-day operational money sits in U BL it's called local agency investment

[1:10:52] which is the state pool basically it's the State savings account for all

[1:10:54] municipalities um so a lot of our money sits there and

[1:10:59] obviously the interest rat less than what you if you could invest it yourself

[1:11:03] but it is a lot the more is bested somewhere else other than just in a

[1:11:07] checking account okay so um I guess we make a

[1:11:13] motion to put additional 100,000 in and put that forward to um city council yes

[1:11:20] I okay so with that com see my public out there it's been there

[1:11:27] all day yeah public um thank you for reminding me

[1:11:34] um okay so could I make one comment you absolutely uh so there was um a question

[1:11:42] asked about what was remaining at the library that needed to be completed and

[1:11:46] so I know you know I've been I always get it wrong what do we call it I call

[1:11:49] them the second chance signs but that's not what they're called the day two day

[1:11:54] two was it's a whole um bunch of dat they call day two signs that are

[1:11:59] happening at the library so it's I don't know why they're called day two I always

[1:12:04] the day one is like the grand opening the big and then day two is like okay

[1:12:07] now we're back fix all the stuff okay second day all the dust settles what we

[1:12:12] doing and so there was a question asked we have one po that's still open at the

[1:12:16] library to pay for any outstanding day2 items so I've been working with now now

[1:12:26] engineer all I'm like what's your name again now they are making the day two

[1:12:31] signs as we speak right now so we probably have about $30,000 left and the

[1:12:36] Art Exhibit piece too is that included there all of that's included no art

[1:12:41] though right like so there's there's also in on the wall in the NN portion of

[1:12:48] the library will be an art display that we're going to get local artists I talk

[1:12:54] I again back to me he because I need something to

[1:12:58] do I said great I'm going to talk to you about this so um anyway we're going to

[1:13:03] try to get local artists um to have their things on great in the Neil snook

[1:13:10] and so that whole structure an has been working on to get that finished so that

[1:13:14] along with these is that going to be rotating for local artists or is that

[1:13:19] just gonna be kind of St okay there's a lot of people in the public that have

[1:13:25] come forth and said they need space for art and so we're gonna have a little

[1:13:30] committee because it's got to be you know there are a lot of young kids in

[1:13:33] there too so we got to make sure it's appropriate art we have to warn

[1:13:37] everybody that because there are a lot of young kids in this what could happen

[1:13:41] to their art um Alan Vincent is a you know our former council member is a

[1:13:47] wonderful photographer and so I sort of roped him in saying could you run this

[1:13:52] thing run a little group with local artists to be a committee to review art

[1:13:59] exhibits and takes charge of that because the library staff does not want

[1:14:03] anything to do with that they don't want to do it so um that that's been our

[1:14:07] thought process to do that but that installation piece is is part of this

[1:14:12] yes whenever you hear Eric make a little jab at me that and still spending money

[1:14:15] at the library there still an OP I I came into that project at the

[1:14:20] very end so I was never actually sure what the day two artwork was going to be

[1:14:25] cost to make and install and it's only been recently that we met with now yeah

[1:14:30] it got lost in the confusion when on left and and and stepped into that role

[1:14:35] so so we but I just paid the so Thomas Swan is the designer that did the signs

[1:14:40] for day one he's we just sent him the first installment so he's moving forward

[1:14:45] with production on the signs okay so I don't I don't imagine that we have more

[1:14:49] than $30,000 every fees left and is are the friends going to handle additional

[1:14:54] signs on the don't wall or is that going to be us you mean the donor wall in the

[1:14:58] center of the lbr right when you walk I thought that was the friends okay those

[1:15:01] are the friends I think it's it's like almost well it starts so the friends

[1:15:07] well we can go to this later but um maybe not this is the meeting yeah the

[1:15:15] next meeting oh yeah let's set the next meeting oh yes uh when when do you need

[1:15:20] another meeting so it would be the week of March 24th

[1:15:27] and the 24th is

[1:15:32] 24 no March

[1:15:41] 17 I know you have some other duties as FTC chair

[1:15:48] yeah let me see I got Monday morning is good for me for the 24th let me just see

[1:15:55] they sent me a bunch of dates today for MTC

[1:16:05] that okay so the 26th uh is so I I'm all right that week

[1:16:12] um can't do that Wednesday morning do Monday do Mondays

[1:16:21] are Mondays my two Tuesdays are are like

[1:16:27] impossible yeah we'll just have to so can we can we do first thing in the

[1:16:32] morning yeah okay because we used to do 8:30 and Eric RS Donuts so s it to a FX

[1:16:38] R for me so is it like having is it like

[1:16:42] having a burrito yeah because dinner tonight will be late because at the

[1:16:44] mayor's conference so I'm I'm holding myself off to the end of the meeting to

[1:16:48] have one it's kind of carry me over till dinner at the time yeah okay so um 8:30

[1:16:54] on the on the

[1:16:57] 24th of March thank

[1:17:03] you oh just so I know ahead of time I'm just I have I might have

[1:17:08] something I just want to know if the 27th is an

[1:17:12] option hold up you mess me up

[1:17:18] sorry I mean the hor forth might be fine I just I'm just I I might have something

[1:17:23] that day that I still

[1:17:28] 5050 oh God MTC call me back about one Creek

[1:17:36] issues okay U the the 27th yeah yeah that should be all right just the 26th

[1:17:44] is bad for me that week JC's got me all day on that day can we do morning on

[1:17:50] yeah and I might not have to sitting on or might have to sit on that

[1:17:58] okay so we're locking in the 27th then will you have when just send out a

[1:18:04] calendar and attend it for Thursday yeah is there a preference among the two

[1:18:09] of you for I think Monday is Monday prer or

[1:18:13] Thursday either way morning offer if you have a possibility rather just think

[1:18:19] about it just lock let's just do the 27 since you

[1:18:25] not

[1:18:32] sure now can thank you okay

Economic Development Committee

Transcript