1 00:00:06,799 --> 00:00:08,879 this 2 00:00:10,599 --> 00:00:16,160 is oh yeah I'm I'm using my like one not 3 00:00:16,480 --> 00:00:19,880 not you don't have 4 00:00:22,560 --> 00:00:25,760 we I can 5 00:00:28,439 --> 00:00:33,800 still sure we are we ready 6 00:00:35,160 --> 00:00:44,320 recording all right I'm GNA call budget meeting for February 13 2025 to order 7 00:00:42,440 --> 00:00:51,920 guess it's special meeting 2:30 uh roll call and council member LA 8 00:00:48,640 --> 00:00:57,039 and I are both here uh that we don't have oh we do have some people online 9 00:00:54,000 --> 00:01:03,079 we've got Eric CH you want to do this sure uh we have David Bullock and John 10 00:01:00,600 --> 00:01:03,079 Waller 11 00:01:03,519 --> 00:01:11,960 from okay and we have uh Ethan city manager 12 00:01:09,479 --> 00:01:16,000 and James poke Works manager director what are you director director Finance 13 00:01:14,360 --> 00:01:23,840 director manager final 14 00:01:18,920 --> 00:01:31,159 officer I need name tags uh okay so we did that any public 15 00:01:25,799 --> 00:01:35,320 comment it's get out there so no public comment uh so we'll go to approve the 16 00:01:33,560 --> 00:01:40,720 minutes for the budget meeting from January 28 17 00:01:37,799 --> 00:01:46,880 25 motion to approve minutes for the special budget meeting okay second all 18 00:01:43,200 --> 00:01:46,880 those in favor 19 00:01:47,520 --> 00:01:54,640 I okay we'll move on to the presentation of the audited comprehensive financial 20 00:01:52,960 --> 00:02:01,479 report and measure K fund report for fiscal year of June 30th 2024 okay a 21 00:01:58,399 --> 00:02:05,680 Brie presentation as I so uh David and John I'm sure we share their thoughts 22 00:02:14,760 --> 00:02:20,360 of I'm sorry did I cut out or oh 23 00:02:22,080 --> 00:02:26,160 okay screenshot 24 00:02:28,640 --> 00:02:31,840 y okay 25 00:02:32,800 --> 00:02:39,200 this morning this afternoon we're going to go over the the annual comprehensive 26 00:02:36,480 --> 00:02:44,480 financial report the ACT we include the Met report it's Incorporated within the 27 00:02:41,879 --> 00:02:50,920 general fund we'll see as we'll talk about for FAL year June 30 28 00:02:47,800 --> 00:02:57,040 2024 and we also have the the management letter or uh comments from from the 29 00:02:53,440 --> 00:02:57,040 Auditors to 30 00:03:01,640 --> 00:03:09,560 at a very high level it's it's the ACT has broken up into five sections which 31 00:03:07,680 --> 00:03:14,920 is is from the transmittal letter introduction to thep AUD report there is 32 00:03:12,879 --> 00:03:19,920 a nice summary of what has happened over the course of last management discussion 33 00:03:17,200 --> 00:03:23,920 and Analysis and then includes the basic Financial section which has the B basic 34 00:03:22,360 --> 00:03:28,480 financial statements which includes the government wide as well as the F level 35 00:03:26,480 --> 00:03:32,280 information as well as required of disclosure uh we also provide we 36 00:03:31,080 --> 00:03:36,840 required to provide supplemental information as you saw most of that is 37 00:03:34,080 --> 00:03:40,879 related to pension um it also has a budget actual fund information and then 38 00:03:38,760 --> 00:03:44,040 last but not least I know that David will say this but the statistical 39 00:03:42,480 --> 00:03:48,080 information is not audited but it is provided gives 10 years of history and 40 00:03:46,519 --> 00:03:54,000 certain things when it comes to fun information or population uh lot of good 41 00:03:51,680 --> 00:03:58,840 information in the in the statistical section but not it 42 00:04:00,120 --> 00:04:06,159 again uh the partner and John's here from CS uh they provide an opinion of 43 00:04:04,879 --> 00:04:10,720 the financial statements it's the highest level assurance that we are 44 00:04:07,799 --> 00:04:15,519 presenting the finances fairly uh they have a we have a clean opinion which we 45 00:04:12,879 --> 00:04:21,040 are that means we are I'll let David and John at the end talk about their opinion 46 00:04:17,720 --> 00:04:21,040 and their management comments at the 47 00:04:21,919 --> 00:04:29,720 end as I kind of mentioned earlier we look at the entity wide that basically 48 00:04:26,600 --> 00:04:34,320 includes the city uh the governmental funds the Enterprise funds includes the 49 00:04:31,880 --> 00:04:38,320 fund things like pension um incorporates that to the net position and the 50 00:04:35,919 --> 00:04:44,199 statement of activities just taking a look at the 51 00:04:41,280 --> 00:04:48,400 statement of net position which is Cal assets overall about 142 Million last 52 00:04:46,440 --> 00:04:53,680 year about 144 million in the current year change is about an increase of 53 00:04:50,440 --> 00:04:58,880 about $2 million in cash deferred outflow of resources what that really is 54 00:04:56,800 --> 00:05:03,360 um is that are the future costs that we have to pay to covers basically at some 55 00:05:01,560 --> 00:05:07,120 point it's based on their actual report it's 56 00:05:04,600 --> 00:05:12,039 copulated total liabilities about 84 million to 8 almost the same 83.8 57 00:05:09,960 --> 00:05:15,479 million in the current fiscal year the number that's always highlighted which 58 00:05:13,560 --> 00:05:21,080 is the main increase is net pension liability went from about 52 million to 59 00:05:17,880 --> 00:05:24,680 $5 55.6 million as I've kind of mentioned in previous 60 00:05:22,520 --> 00:05:30,360 presentations that's really factored in by How cow Pur does so for example in 61 00:05:27,960 --> 00:05:34,360 2023 uh their discount rate or their their 62 00:05:32,000 --> 00:05:39,240 rate of return is 5.8% um if we were go back to 2022 it 63 00:05:37,240 --> 00:05:44,039 was a negative 6% U and their target I know it's 64 00:05:42,800 --> 00:05:48,759 different from an actual evaluation report to put in the financial 65 00:05:45,440 --> 00:05:52,800 statements by 10% but their target 6.8 so every year they're trying to hit 6.8% 66 00:05:50,880 --> 00:05:57,240 anytime they don't that means the liability grows in time uh they in exess 67 00:05:55,400 --> 00:06:01,800 of that the liability decreases so for example if we were to put this schol 68 00:05:58,720 --> 00:06:08,520 year 2022 into the slide you would see that net pension liability at about $29 69 00:06:04,960 --> 00:06:13,160 million why in a year prior to that cers had an over 20% rate of return so that 70 00:06:11,680 --> 00:06:18,160 just me the liability drastically decreased but again that's why we see 71 00:06:15,080 --> 00:06:21,639 these large swings when it comes to uh the overall statement when especially 72 00:06:19,720 --> 00:06:26,720 when it comes to Ping the city really doesn't have a lot of control on what 73 00:06:23,639 --> 00:06:33,120 happen there long-term debt that really is the the bonds for private place bonds 74 00:06:30,000 --> 00:06:38,120 for the library it's down we PID principle from 18 half to 75 00:06:35,479 --> 00:06:46,919 16.4 um other liabilities it's really like house payable 13.6 11.8 and then 76 00:06:42,240 --> 00:06:51,680 deferred inflow resources 5.1 to 2.9 2.9 what that really is is those are future 77 00:06:48,960 --> 00:06:56,879 U interests that we will get from cpers again if we were to put the 2022 78 00:06:54,759 --> 00:07:02,520 uh call me here you would see that number about 20 million that's what 79 00:07:00,400 --> 00:07:06,280 do to the city so we've already in essence because of the C bad years we 80 00:07:04,680 --> 00:07:10,879 burn that up already overall net 81 00:07:14,280 --> 00:07:19,209 position [Music] 82 00:07:21,759 --> 00:07:31,520 here 75.7 million um up to 79.5 million and we'll show why on the next slide 83 00:07:31,960 --> 00:07:37,639 increase all right I'm just going to talk touch on I show expenses and 84 00:07:36,240 --> 00:07:44,400 revenue so the statement effectivities basically income statement um expenses 85 00:07:40,759 --> 00:07:48,280 went from 33.7 million to 40.8 million again what happened over a $7 million 86 00:07:46,680 --> 00:07:53,240 increase and if you're looking at the the different functions General 87 00:07:50,199 --> 00:07:58,400 government went from 5.3 to 10.9 that's a big increase Public Safety went from 88 00:07:55,520 --> 00:08:01,400 11.2 to 15.8 million that's a large that's that's the reason for the 89 00:07:59,680 --> 00:08:05,599 increases I'm just going to jump to the next slide just for a second just to to 90 00:08:02,919 --> 00:08:09,560 show you why this is in your financial statements it's on page 22 in the 91 00:08:07,199 --> 00:08:13,520 current Acer it's on page 23 the prior Acer so one the one of the things that 92 00:08:12,000 --> 00:08:19,360 we need to do is make sure when we get to UI we have to show the the how do we 93 00:08:16,800 --> 00:08:23,280 get track those expenses from the fund level to entity wide level in the last 94 00:08:21,720 --> 00:08:27,479 year's financials because of those good years that or the Cali day we get to get 95 00:08:26,039 --> 00:08:32,680 to account for that last year well that meant it was 2.3 million to the good 96 00:08:30,520 --> 00:08:38,399 uh unfortunately now we're going into the bad years so we went from 2.3 97 00:08:35,479 --> 00:08:44,159 positive to a negative 7.9 million expenditure swing of about $10 million 98 00:08:41,560 --> 00:08:48,720 what that means is we need to now prate that expense to to the different uh to 99 00:08:46,560 --> 00:08:51,680 the different functions and the different functions really is people 100 00:08:50,040 --> 00:08:55,160 driven so the majority of the people are obviously in public safety which is the 101 00:08:53,240 --> 00:08:59,000 place department and then General government which is pretty much everyone 102 00:08:56,680 --> 00:09:02,880 else except for transportation which is some of um the Public Works people so 103 00:09:01,680 --> 00:09:07,880 that's really why you're seeing that large increases because we need to we 104 00:09:05,240 --> 00:09:13,519 need to prate that pension expense at at enwi 105 00:09:10,160 --> 00:09:19,680 level taking a look at overall revenues uh program revenues about 10.9 down to 106 00:09:16,000 --> 00:09:24,760 8.4 million um just in general what that is is is we were getting some large 107 00:09:21,600 --> 00:09:30,079 revenue for 85 CL project some of the housing project over off 108 00:09:27,760 --> 00:09:35,160 of obviously those projects are near complete so those T services aren't 109 00:09:32,279 --> 00:09:38,800 coming in um any more since they done and we don't have for the most part C 110 00:09:37,360 --> 00:09:43,360 Pleasant Hill is fully buil out so there's not a whole lot of new large uh 111 00:09:41,440 --> 00:09:48,240 new development projects in Pleasant Hill property tax is up about half a 112 00:09:45,839 --> 00:09:51,079 million from 9.4 to 9.9 million basically all it's all those 113 00:09:49,920 --> 00:09:54,959 supplemental payments that we really don't know we're going to get until when 114 00:09:52,600 --> 00:09:57,240 people sell their homes you might recall when you bought your home that there 115 00:09:56,000 --> 00:10:01,200 might been a supplemental payment that you had to make well part of that comes 116 00:09:59,079 --> 00:10:06,880 to the city of pleas Hill so when you get that's really the difference that 117 00:10:02,760 --> 00:10:11,399 you're seeing here sales tax 11 million in the prior down to 10.6 million as I 118 00:10:09,640 --> 00:10:15,120 kind of said and we actually had earli meeting this morning with our with our 119 00:10:12,880 --> 00:10:20,000 sales tax Consultants we're just retail is just down I mean it doesn't help city 120 00:10:17,959 --> 00:10:23,959 of BU Hill that we have some vacancies um in the downtown but just in general 121 00:10:21,720 --> 00:10:29,399 Statewide as well as City buen Hill we're just seeing a decline in in retail 122 00:10:27,079 --> 00:10:34,279 P that includes the county pool right right allocation how much was that down 123 00:10:31,760 --> 00:10:38,240 is that down more than City or is that down about the same the 124 00:10:36,399 --> 00:10:42,480 county it's a little interesting with County Pool in general the county it's 125 00:10:40,519 --> 00:10:49,320 down because of the county overall what the county received can I um charges for 126 00:10:46,680 --> 00:10:54,839 services again so it's it looks like 1.8 million revenue is less than from uh 127 00:10:52,720 --> 00:10:58,560 2022 can you explain what the charges for services are again I may have missed 128 00:10:56,279 --> 00:11:05,279 that so permitting licensing anytime we do um um a new development project all 129 00:11:01,360 --> 00:11:09,200 that week when we fill that out for when building receive those revenues it's 130 00:11:07,680 --> 00:11:13,399 that coming back so when you do do a remodel on your home certain building 131 00:11:11,279 --> 00:11:18,240 permits but with permit fees when those large projects start coming down less 132 00:11:15,519 --> 00:11:23,200 Char for so are you seeing that there's less projects that are happening is that 133 00:11:20,120 --> 00:11:28,279 why from 2023 to 20248 it's the big project so like 134 00:11:26,200 --> 00:11:33,800 development it's it's the I mean we're still seeing know doing home remodels 135 00:11:30,959 --> 00:11:37,279 but we don't have a lot of uh we don't have a lot of new home development or 136 00:11:35,519 --> 00:11:40,959 major apartment complex development that's really what that's really What's 137 00:11:41,920 --> 00:11:51,760 happen measure k for the most part it's rounding it actually was down a little 138 00:11:46,920 --> 00:11:56,040 bit from 5.5 to 5 like four6 billion um again we don't see as much of a 139 00:11:53,560 --> 00:12:01,800 fluctuation when it comes to measure K as as we do with retail a lot of that 140 00:11:58,279 --> 00:12:08,079 has to do with Auto Sales um so if you buy a car in in W Creek they might you 141 00:12:06,480 --> 00:12:11,160 might notice that they say oh where do you actually live well you say you live 142 00:12:10,200 --> 00:12:18,120 in Pleasant Hill um what happens normally is that 1% 143 00:12:14,720 --> 00:12:21,680 sales tax will go to City of wall creek but they ask they ask you for your home 144 00:12:20,279 --> 00:12:25,040 address because it's based on sidus address so if you live in Pleasant Hill 145 00:12:23,240 --> 00:12:28,880 and there's an add-on sales tax well that add-on sales tax gets applied to 146 00:12:27,040 --> 00:12:31,279 the purchase of your vehicle so we get that 147 00:12:29,680 --> 00:12:34,000 whereas just normal sales tax obviously if you bought that car W Creek Nothing 148 00:12:32,720 --> 00:12:37,600 comes to Pleasant Hill because you live to Pleasant Hill it's that add that 149 00:12:35,440 --> 00:12:44,000 helps us as well as online sales that continues to to still relatively be 150 00:12:41,399 --> 00:12:47,880 strong I a quick point I want I want to make sure we don't miss this um so while 151 00:12:46,560 --> 00:12:51,760 we may have just going back to the charges and Services I I would hate for 152 00:12:50,320 --> 00:12:55,199 the conclusion to be that we don't have anything going on in the city and 153 00:12:53,800 --> 00:12:58,279 development is crashing it but that's not the case I would actually offer 154 00:12:56,680 --> 00:13:02,519 account to say we just gen we just adopted in general plan last may we 155 00:13:00,880 --> 00:13:04,959 changed some zoning designations we're in the process of upgrading our zoning 156 00:13:03,920 --> 00:13:08,800 it may actually create more opportunities for other kinds of 157 00:13:06,560 --> 00:13:12,800 projects certainly we are responsive to hcd we reone specific sites for larger 158 00:13:11,320 --> 00:13:17,120 higher density projects that's not to say we don't we may not have any at 159 00:13:14,839 --> 00:13:20,160 present but uh and the difference is as those projects W down as Eric explained 160 00:13:18,800 --> 00:13:23,760 but that's not to say we don't have the possibility for other projects in future 161 00:13:22,240 --> 00:13:27,800 just want to make sure that's you can't look at it as a 162 00:13:25,600 --> 00:13:33,800 longterm Tri corre right correct that's that's the key it's just a year by 163 00:13:30,480 --> 00:13:37,279 year and then the other piece I'll touch on this is again you'll see that 164 00:13:35,560 --> 00:13:45,519 investment earnings went from about $800,000 last year to about $2 million 165 00:13:41,440 --> 00:13:48,920 this year $1.2 million increase overall um part of that and we'll talk about a 166 00:13:47,079 --> 00:13:53,320 little bit more on the general fund side um it's because of rising interest rates 167 00:13:50,720 --> 00:13:56,639 is is the main reason it's also because as as David and John are aware you know 168 00:13:55,360 --> 00:14:00,120 from the accounting perspective we have to mark Investments at a point in time 169 00:13:58,440 --> 00:14:04,240 on June 30 and those have been um we had 170 00:14:04,360 --> 00:14:12,360 some uh paper losses a couple years ago and and that's being offset as as 171 00:14:09,959 --> 00:14:15,519 interest rates continue to rise again as long as we don't that basically means is 172 00:14:14,240 --> 00:14:19,839 what we have to do for an accounting standpoint is we Mark Investments as of 173 00:14:17,880 --> 00:14:25,320 June 30 as of that date if we had to sell everything today simplify it um and 174 00:14:23,759 --> 00:14:29,120 then based on what that is you have to actually then book it whether it's a 175 00:14:27,240 --> 00:14:33,600 gain or loss but I'm going to be honest reverse it the next day but we at least 176 00:14:30,959 --> 00:14:38,240 have to reflect that at a point in time so again the overall the net 177 00:14:35,880 --> 00:14:43,160 increase it was about 3.8 million so we went from 75.7 to$ 795 178 00:14:44,920 --> 00:14:53,920 million that again general fund includes measur 179 00:14:50,199 --> 00:14:53,920 pay again 180 00:14:54,839 --> 00:15:01,800 they as well measure K was was passed as a general sales tax 181 00:14:59,759 --> 00:15:05,480 we track measure Cas separately in separate funds from a a financial 182 00:15:03,880 --> 00:15:09,680 statement I sorry from a general lger perspective but for financial statements 183 00:15:07,600 --> 00:15:14,519 is considered a general sales tax so for financial statement presentation measure 184 00:15:11,199 --> 00:15:14,519 K is comined with a general 185 00:15:15,160 --> 00:15:25,399 fund just overall revenues of about $37 million expenditures of 31 million 186 00:15:21,920 --> 00:15:32,040 transfers of net caners out of about 4.8 so general fund overall increased about 187 00:15:27,800 --> 00:15:36,480 1.1 million from 18.2 to 19.3 million the main reason for transfers 188 00:15:34,199 --> 00:15:40,120 out is for example since measure T is including in the general fund a little 189 00:15:38,399 --> 00:15:45,319 over three million of those transfers are transfers to for projects for 190 00:15:42,360 --> 00:15:53,000 streets and Roads or bik P for storage TR um the other over million dollars of 191 00:15:49,000 --> 00:15:56,519 it is for it meetings so we have a um a police it fund and we also have a city 192 00:15:55,079 --> 00:16:00,319 it fund so that's really what those transfers out are for 193 00:16:02,040 --> 00:16:07,000 again some of this kind of mirrors with what you saw at the statement of 194 00:16:04,880 --> 00:16:13,880 activities since most of for example property tax um from 8.7 to 9.1 million 195 00:16:11,000 --> 00:16:17,800 really it's that supplemental sales tax that decrease from 10.9 down from 10.9 196 00:16:16,519 --> 00:16:23,560 down to 10.6 uh I'll touch on Transit oy tax I 197 00:16:22,240 --> 00:16:30,000 know I've said this in the past if few Tak now that's the one area that still 198 00:16:26,240 --> 00:16:35,079 isn't quite to U isn't at a prco level uh 199 00:16:31,240 --> 00:16:38,800 2019 this number was about 2.5 million and that was it with the opening of a 200 00:16:36,519 --> 00:16:43,720 brand new hotel for only once say half a year the Hope was that this number will 201 00:16:40,759 --> 00:16:49,319 be close to $3 million today then Co happened and we've been we've been about 202 00:16:45,680 --> 00:16:49,319 2.2 for the last couple 203 00:16:50,800 --> 00:16:56,519 years oh sorry and then I already talk about so the use of money in property 204 00:16:54,440 --> 00:17:00,759 from about half million doll to 1.4 million as time to mention interest 205 00:16:58,560 --> 00:17:03,720 rates started Rising which I kind about about half of that increases was due to 206 00:17:02,360 --> 00:17:06,120 interest rates and the other half is what I talked about that market 207 00:17:04,880 --> 00:17:11,079 adjustment that we have to make every year at June 30 was the other half a 208 00:17:08,280 --> 00:17:15,559 million again that just means said oh our if we had to sell all of our assets 209 00:17:12,839 --> 00:17:19,079 as of June 30 2024 was a half million better than it was a year 210 00:17:22,079 --> 00:17:27,559 before now we take a look at General fin manes now you don't see the swings so 211 00:17:26,199 --> 00:17:32,919 the statement of activities which you saw earlier you saw B General government 212 00:17:29,760 --> 00:17:36,440 was at five the year before and $10 million it's because you have to count 213 00:17:34,880 --> 00:17:40,679 for those pension when you look at it at a fund level you don't quite see the 214 00:17:37,840 --> 00:17:46,640 swings that you saw at the stivity level overall 34 million that year last 215 00:17:43,720 --> 00:17:50,039 year $31 million in the current year the main reason for the variance of that $3 216 00:17:48,120 --> 00:17:55,039 million that Capital outlay that's the library so in 2023 we was still were 217 00:17:53,120 --> 00:17:57,400 still heavy in construction in the library I mean it was close to being 218 00:17:56,240 --> 00:18:03,000 done but there were still about $3 million of expense 219 00:17:59,640 --> 00:18:06,919 we still have a little bit left to go as go the measure pay report but for the 220 00:18:04,520 --> 00:18:11,760 most part people are join the library library um it's pretty much built out 221 00:18:09,600 --> 00:18:14,159 still a few much l items but you can see what that did to expense from last year 222 00:18:13,159 --> 00:18:19,520 to this year General government down about 223 00:18:17,280 --> 00:18:24,720 $300,000 again that's really just due to a transition in staff so for example C 224 00:18:22,640 --> 00:18:28,480 manager Ethan was the assistant city manager at one point uh we didn't have a 225 00:18:26,960 --> 00:18:32,240 city manager a full-time City Manager for certain period of time as we're 226 00:18:29,840 --> 00:18:36,080 going through that recruitment uh same thing for city court for six months we 227 00:18:34,080 --> 00:18:43,200 had an acting or interim City Court until I own F that position uh so there 228 00:18:39,039 --> 00:18:46,480 were several POS key vac uh open positions over over last year that have 229 00:18:44,880 --> 00:18:51,360 been built and some of them haven't been back bu uh Public Safety again it's up 230 00:18:49,480 --> 00:18:57,000 about $600,000 but we're look at the budget number I think was over 13 231 00:18:54,280 --> 00:19:02,000 million we in the past historically somewhere between um some you know five 232 00:18:59,360 --> 00:19:08,360 to 10 police officer vaces a year it just it just it just happens the goal 233 00:19:04,400 --> 00:19:13,799 has always been to try to other than a couple of Frozen positions to fill all 234 00:19:11,080 --> 00:19:17,799 those PD slots it's never easy to do I think we've only had maybe one year 235 00:19:15,640 --> 00:19:21,960 since I Council that we've been fully staffed I actually spoke with I spoke 236 00:19:20,200 --> 00:19:27,440 with the chief about this and he's wor for 25 years and he said he can remember 237 00:19:25,080 --> 00:19:32,280 like one maybe two times for a limited portion was I just remember one year 238 00:19:30,280 --> 00:19:37,360 where we were finally full that was a year we could finally do an 239 00:19:33,960 --> 00:19:41,360 SRO was that year so it sounds like from about almost five to 10 vacancies but 240 00:19:39,520 --> 00:19:44,480 that's also included in the budget though right you're assuming that all 241 00:19:42,520 --> 00:19:49,679 those positions are filled or I am assuming they're all except for sorry 242 00:19:46,679 --> 00:19:54,159 except for except for so that's accounted 243 00:19:50,840 --> 00:19:58,080 for well it always it makes the budget look very conservative because it will 244 00:19:55,720 --> 00:20:01,120 always be better than the budget right because the because those position 245 00:19:59,679 --> 00:20:07,600 because those positions are assumed to be full not do we know what that number 246 00:20:04,600 --> 00:20:07,600 is off the 247 00:20:08,640 --> 00:20:14,559 top the difference in five police officers 248 00:20:14,880 --> 00:20:22,679 what I mean you're basically talking fully loaded for a police officer 150 249 00:20:20,240 --> 00:20:22,679 Grand a 250 00:20:24,159 --> 00:20:31,880 piece 750,000 750 change 251 00:20:29,640 --> 00:20:35,240 you know some of that will change again speak pension some of that will change 252 00:20:33,320 --> 00:20:39,240 depending on if it's a brand new officer out of the academy because they are in 253 00:20:36,919 --> 00:20:42,000 the pepper plan or if it's AAL so someone if we were able to get a police 254 00:20:40,520 --> 00:20:47,000 officer from a different department that would change the all cost yeah and 255 00:20:43,799 --> 00:20:52,520 generally budget do assume unless you as Council direct 256 00:20:50,000 --> 00:20:58,640 staff otherwise just like we dis likee staff freeze position again and we ref 257 00:20:55,679 --> 00:21:03,159 freeze it otherwise we do assume now I've 258 00:20:59,440 --> 00:21:08,880 shared with the Council of the past and the LTA is in the old days servative 259 00:21:06,240 --> 00:21:14,679 budgeting meant you assume um when you assume positions you assume TOP Step 260 00:21:11,600 --> 00:21:18,919 fully loaded family plan and that was considered Serv buding we don't do that 261 00:21:17,000 --> 00:21:22,640 anymore today we kind of find some mixture so I find some mixture in 262 00:21:20,400 --> 00:21:26,080 between like okay maybe if we have three vac for police officers for example I 263 00:21:24,320 --> 00:21:30,679 will assume one's going to be a family one will be plus one one will be single 264 00:21:29,039 --> 00:21:34,880 um and I've never assumed TOP Step anymore I assume midep for example but 265 00:21:32,960 --> 00:21:39,880 based on that information so there is technically kind of salary savings about 266 00:21:37,720 --> 00:21:46,000 750,000 per year that we're looking at because those positions seem to be 267 00:21:41,960 --> 00:21:51,720 historically BAC in at least 5 there can be yeah and the reason I say that is 268 00:21:48,240 --> 00:21:59,400 just because HR is always looking and HR PD is always looking for good 269 00:21:54,600 --> 00:21:59,400 officers for a while is pretty much 270 00:22:00,279 --> 00:22:04,039 last several years it's been a lot harder 271 00:22:05,799 --> 00:22:12,520 than and then the last slide I the last part of the slide is really the transer 272 00:22:10,799 --> 00:22:17,400 out as I kind of mentioned earlier the bulk of the transfer out is really for 273 00:22:14,679 --> 00:22:23,320 measure K to the gas tax fund for projects or to technology funds for 274 00:22:20,200 --> 00:22:27,880 either for the city or VAR um again there is a a full note that actually 275 00:22:25,679 --> 00:22:31,760 describes all not only is it presented it in the summer level um and the note 276 00:22:30,080 --> 00:22:34,200 disclosure actually shows where all that money is 277 00:22:36,720 --> 00:22:45,600 going and then just overall U the general fund about $24 million in total 278 00:22:41,960 --> 00:22:50,679 assets uh deferred inflow and liabilities about 279 00:22:47,520 --> 00:22:56,320 4.4 um and then it's about 19.3 total fund 280 00:22:51,600 --> 00:22:56,320 balance restricted to about 281 00:23:02,440 --> 00:23:05,039 do a 282 00:23:05,200 --> 00:23:09,760 non caption and I do 283 00:23:16,279 --> 00:23:20,559 the this way no okay 284 00:23:20,880 --> 00:23:29,679 yeah so restricted and not the B of what restricted is is U the uh the section 285 00:23:27,919 --> 00:23:34,760 150 so all of those funds are there is 286 00:23:33,039 --> 00:23:40,120 basically we can only use that for a specific purpose for be pension expense 287 00:23:37,520 --> 00:23:45,520 a sign of about 13.4 million a lot of that is is uh is related to measure k u 288 00:23:42,919 --> 00:23:49,720 even though the council has discretion there's always been emphasis of what 289 00:23:46,960 --> 00:23:55,919 measure pay has been used for and then the unassigned council could uh direct 290 00:23:52,840 --> 00:23:59,760 staff to to do anything with those funds for government services about $4.2 291 00:23:58,000 --> 00:24:03,960 million again we're going to talk about this a little bit more in the next it 292 00:24:01,600 --> 00:24:09,640 assigned also includes our Reserve policy numers not just the measure K but 293 00:24:06,200 --> 00:24:15,679 also also the 9 million 5 million for 14 Capital 4 million for Budget 294 00:24:12,120 --> 00:24:21,120 stabilization plus the measure K that's assigned can I ask a question about the 295 00:24:18,240 --> 00:24:26,679 uh transfers again so when we're going back to the transfers this on page 44 of 296 00:24:23,720 --> 00:24:33,360 the agenda packet itself um there was total amount unspent as of June 30th 297 00:24:29,840 --> 00:24:40,039 2024 it showed 5.3 million and then the current amount was 3.4 million was 298 00:24:35,960 --> 00:24:47,440 transferred is that due to carry forward funds it's under note four page 14 oh 299 00:24:45,000 --> 00:24:53,799 one so that's the measure K report so what we do on the measure K report 300 00:24:50,120 --> 00:24:59,640 is we provide to you and the council as well as the measure committee is so we 301 00:24:57,200 --> 00:25:05,720 there has always been an transfers to for measure k for projects for p p bike 302 00:25:03,880 --> 00:25:10,559 stre of Roads P bike and S um which is that 3.4 million that 303 00:25:08,440 --> 00:25:13,720 you're saying but we also report out there are previous years as as you're 304 00:25:12,080 --> 00:25:17,679 saying we also done transfers in previous years as fall for those 305 00:25:14,960 --> 00:25:22,919 projects so what we want to disclose to to you as bu committee members as to the 306 00:25:20,000 --> 00:25:26,919 measure committee members 5.3 of those transfers has not been spent yet so that 307 00:25:24,960 --> 00:25:31,320 you know that within for example in the gas tax fund um if you add up those 308 00:25:29,600 --> 00:25:36,559 numbers that's sitting in the gas act right now that is for future streets and 309 00:25:33,559 --> 00:25:41,840 Roads projects or biking pet projects um so that's that car board so we yes we 310 00:25:38,440 --> 00:25:46,320 disclose thats year thank so I may be asking a lot the 311 00:25:44,559 --> 00:25:52,240 questions because I'm looking at the annual report as city council but also 312 00:25:48,320 --> 00:25:57,720 I'm diving in to all little details so please mindful that I might be asking a 313 00:25:54,600 --> 00:26:00,240 lot of questions okay yeah and again I've been through it 314 00:26:00,600 --> 00:26:07,080 again this is the presentation before you is more a summer level so if you 315 00:26:04,799 --> 00:26:11,679 have more detailed questions feel free to ask because we don't part of this 316 00:26:09,679 --> 00:26:18,200 presentation I don't get into all 20 I want to say 21 special Revenue funds and 317 00:26:14,559 --> 00:26:18,200 seven coule project 318 00:26:18,279 --> 00:26:26,720 funds and really uh this is the the last 319 00:26:24,240 --> 00:26:31,880 slide yeah I noticed that so this is more of the high level overview the 164 320 00:26:30,240 --> 00:26:38,120 pages that the public Y and then I do this every year I 321 00:26:35,880 --> 00:26:42,480 got to I I got to thank Ross sta who's no longer here she's part of another 322 00:26:39,640 --> 00:26:48,039 agency now um Billy who retired a few years ago but thanks thankfully she 323 00:26:44,279 --> 00:26:51,120 comes back when I ask to help me out um Maria and Wendy and and really all City 324 00:26:49,760 --> 00:26:55,840 staff to help with the together including Ethan and we're here 325 00:26:53,720 --> 00:27:02,080 today uh I'm going to hand this off to John and David in one second 326 00:26:59,480 --> 00:27:07,600 and then or you also ask question the one thing I keep forgetting I feels like 327 00:27:04,880 --> 00:27:12,679 a lifetime ago but it really wasn't was we went through a system implementation 328 00:27:09,640 --> 00:27:20,360 in 20 U for the last couple years but we turned it on in October of 329 00:27:16,520 --> 00:27:25,520 2023 and the amount of work and time involved was extensive by all staff and 330 00:27:23,399 --> 00:27:29,279 some of that to get it to help get it into the financials that you see today 331 00:27:27,360 --> 00:27:33,279 it is took a lot of I just want to just again thank my team for doing that I 332 00:27:31,120 --> 00:27:36,520 know that moo had some we had to work with moo this year with that conversion 333 00:27:34,799 --> 00:27:40,080 as well to make the financials happen so I just want to thank them as well you're 334 00:27:38,880 --> 00:27:43,279 more than welcome to ask questions I don't know if you want to hear the 335 00:27:40,919 --> 00:27:47,120 Auditors before you yeah I do have a couple questions thank you again for all 336 00:27:44,919 --> 00:27:52,240 the hard work that you put into putting together the report um again going back 337 00:27:49,840 --> 00:27:57,440 to just the agenda packet itself on page 118 there's a ratio of outstanding debt 338 00:27:55,039 --> 00:28:03,720 of 18.5 that's related to the Bank of Montreal for Library project and then I 339 00:27:59,799 --> 00:28:10,720 saw a difference in page 145 which is 19.9 million um trying to understand I 340 00:28:07,120 --> 00:28:15,120 guess the question is what is the 1.4 difference yeah so I wanted to clarify 341 00:28:13,200 --> 00:28:20,919 that to make sure that that was what I was seeing as well because it wasn't 342 00:28:16,679 --> 00:28:26,679 stated in um 145 and then what I found was really interesting was actually the 343 00:28:22,840 --> 00:28:32,399 top 25 business sales tax producers 12 of them is actually in district 344 00:28:29,399 --> 00:28:39,679 one um and another question that I had was so 345 00:28:36,480 --> 00:28:47,039 that's about 50% almost 50% of the sales tax is coming from district one um and 346 00:28:44,600 --> 00:28:47,039 Page 347 00:28:48,320 --> 00:28:57,120 125 building permits so if we look at the building permit 348 00:28:54,000 --> 00:29:06,440 from the last 10 fisal years we saw there was a jump into 2022 and 349 00:29:00,679 --> 00:29:11,919 2023 right from 120 it was 123. 7 million and then we're going down in 350 00:29:08,559 --> 00:29:15,600 2024 almost 55 million again is that attributed to the development of Le 351 00:29:14,279 --> 00:29:22,440 component that you were talking about earlier 401 Taylor and5 Cleveland 352 00:29:22,760 --> 00:29:31,440 Marland and then lastly I think we are going to talk about the pars Trust 353 00:29:29,039 --> 00:29:34,320 and so about the unassigned funds and where we are with 354 00:29:35,399 --> 00:29:43,080 that David I'm gonna stop sharing David and John it's your your 355 00:29:40,279 --> 00:29:51,640 show okay great uh mayor Noak nice to see you again 356 00:29:47,039 --> 00:29:56,360 mayor La welcome nice to meet you Council you gave me mayor I 357 00:29:54,320 --> 00:29:59,960 appreciate that thank you I say mayor as well my apologies 358 00:30:01,240 --> 00:30:07,960 UMC council member law nice to meet you um David bulock I'm the partner on the 359 00:30:06,120 --> 00:30:12,720 engagement and John Waller is here joining me and more than happy to answer 360 00:30:10,080 --> 00:30:18,120 any questions that you have on the audit uh thanks Eric for that presentation it 361 00:30:14,559 --> 00:30:22,440 was a nice walk down memory lane um the audit and recalling all the activities I 362 00:30:21,039 --> 00:30:27,679 would say that you know from the auditor's perspective it was a pretty 363 00:30:24,799 --> 00:30:32,440 consistent year um for 24 not a lot of change other than the system 364 00:30:28,960 --> 00:30:37,840 implementation was a big impact um but in terms of activities pretty pretty 365 00:30:35,039 --> 00:30:42,120 routine in terms of uh you know not a lot of significant changes you know 366 00:30:39,960 --> 00:30:46,640 going through the library project the bond issues associated with that it's 367 00:30:44,159 --> 00:30:50,919 just been a lot of capital activity in the past few years and so this is kind 368 00:30:48,760 --> 00:30:57,440 of seems like it's kind of normalizing back to a normal year um so we have 369 00:30:55,000 --> 00:31:00,639 issued a couple of deliverables already we've issued the transport 370 00:30:58,960 --> 00:31:06,240 Transportation development act that's your uh sidewalk and 371 00:31:03,120 --> 00:31:09,519 pedestrian Pathways um that has a December 31 deadline so we had to issue 372 00:31:08,240 --> 00:31:13,720 that back in December and then we've issued the State Controllers report or 373 00:31:12,080 --> 00:31:17,799 help helped get that filed so those are two things that have been done today 374 00:31:15,720 --> 00:31:23,039 we're focusing on the acur the financial statements and the measure K report and 375 00:31:20,679 --> 00:31:26,960 what we have left is the single audit which is the federal grants and the Gan 376 00:31:25,279 --> 00:31:31,600 limit and those will be issued next month 377 00:31:28,639 --> 00:31:35,720 in terms of the actur um you know Eric walked through the numbers with you you 378 00:31:33,360 --> 00:31:39,320 know our responsibilities really relate to uh expressing an opinion as to 379 00:31:38,279 --> 00:31:43,240 whether or not those financial statements are fairly presented in 380 00:31:41,639 --> 00:31:46,840 accordance with generally accepted accounting principles and gby is 381 00:31:45,039 --> 00:31:52,639 responsible for setting those principles so we call that Gap and and gby 382 00:31:50,760 --> 00:31:56,159 establishes that we did the audit or we conducted the audit in accordance with 383 00:31:54,279 --> 00:32:02,320 our audit standards and there's really two sets of standards the aicpa's audit 384 00:31:59,799 --> 00:32:07,080 standards and then the government auditing standards and the government 385 00:32:03,880 --> 00:32:12,240 auditing standards really adds on an internal control focus and a compliance 386 00:32:09,480 --> 00:32:16,360 Focus to our audit and so we're happy to report that we've issued unmodified 387 00:32:14,360 --> 00:32:22,799 opinions on the financial statements for both the Citywide Acer and the measure K 388 00:32:20,440 --> 00:32:27,279 uh we did not have any internal control deficiencies that we felt rise to the 389 00:32:25,080 --> 00:32:32,639 level of a reportable matter so it's our responsibility ities to 390 00:32:29,000 --> 00:32:36,360 communicate um control deficiencies that we believe are significant deficiencies 391 00:32:34,399 --> 00:32:41,080 or material weaknesses and we didn't see anything to that nature um as it related 392 00:32:39,240 --> 00:32:45,760 to the financial statements and then the same thing with compliance we did not 393 00:32:42,720 --> 00:32:50,600 see any uh non-compliance that were required to report to you um the 394 00:32:48,120 --> 00:32:56,679 financial statements this year um and this is probably the most quiet year 395 00:32:52,880 --> 00:33:00,240 since uh covid began because gby put a a pause 396 00:32:58,200 --> 00:33:02,840 on new implementations but there really wasn't anything that changed the 397 00:33:01,320 --> 00:33:07,559 financial statements this year but you do looking down the road have some 398 00:33:05,120 --> 00:33:12,279 significant gas bees to consider one will be for this fiscal year coming up 399 00:33:09,240 --> 00:33:16,399 20 uh 2025 that's on compensated absences um and that could change the 400 00:33:14,440 --> 00:33:22,679 way the city accounts for that liability um and then also the 401 00:33:20,080 --> 00:33:27,240 reexamination of the reporting model produce some changes which you'll see in 402 00:33:25,159 --> 00:33:30,039 how the budgetary comparison schedules are presented 403 00:33:28,600 --> 00:33:35,159 you may see some other changes that impact your mdna and your proprietary 404 00:33:32,799 --> 00:33:39,200 fund financial statements but those those changes will be down the road they 405 00:33:36,639 --> 00:33:42,720 don't apply to this fiscal year um so this fiscal Year's report is very 406 00:33:40,720 --> 00:33:47,440 consistent with how you've presented the financial information in past year so 407 00:33:45,240 --> 00:33:52,320 not a lot of changes to to discuss um the uh so you know Eric went 408 00:33:51,320 --> 00:33:56,440 through the uh the details of the financial 409 00:33:55,000 --> 00:34:00,360 statements but we're more than happy to answer any questions you might have on 410 00:33:57,840 --> 00:34:00,360 the audit 411 00:34:01,840 --> 00:34:08,520 itself just glad to hear it was unmodified thank 412 00:34:06,720 --> 00:34:13,520 you that go that goes to the good work of Eric 413 00:34:10,919 --> 00:34:17,399 and his team yes I know that I appreciate that I I I should mention 414 00:34:15,839 --> 00:34:22,119 that in addition to the financial statements uh we we issue a separate 415 00:34:19,520 --> 00:34:26,399 report to your attention as the city council um it's it's labeled report to 416 00:34:24,879 --> 00:34:30,200 those charged with governance and that's really uh the audit standards requiring 417 00:34:28,679 --> 00:34:35,679 us to communicate the results of the audit to you and it's it's more um a 418 00:34:34,359 --> 00:34:40,639 context it gives you a little more context of the audit it's just more 419 00:34:38,119 --> 00:34:45,040 information um just to help you understand uh what transpired during the 420 00:34:43,000 --> 00:34:48,839 audit and we communicate or we're required to communicate things that 421 00:34:46,560 --> 00:34:52,000 might be negative things like uh we have if we had a 422 00:34:50,000 --> 00:34:58,040 disagreement uh with management um if if there were some you 423 00:34:54,760 --> 00:35:01,960 know material uh audit adjustments to the financial statements uh things of 424 00:35:00,440 --> 00:35:06,119 that nature so I'm happy to report there there were no instances that came up 425 00:35:04,000 --> 00:35:08,560 during the audit that were required to report to 426 00:35:09,040 --> 00:35:12,480 you no 427 00:35:15,200 --> 00:35:23,800 that and again I think our I brought up Tyler for a reason our 428 00:35:20,320 --> 00:35:29,800 our future goal is to do this is to have this done soon yeah uh then the new 429 00:35:28,079 --> 00:35:35,960 system Brew in some hurs and some wrinkles um especially when we we did a 430 00:35:33,040 --> 00:35:37,920 basically a brand new general Leisure um that just took a little more time this 431 00:35:37,119 --> 00:35:44,359 year again our most of my other agency have 432 00:35:40,880 --> 00:35:47,880 worked for we were done at the latest whatever so this is unusual for me we're 433 00:35:46,560 --> 00:35:51,839 trying to push that back to where it should be uh and now that we've gone 434 00:35:49,880 --> 00:35:56,440 through this for the first time it should be easier the next time around 435 00:35:54,359 --> 00:36:02,880 and hopefully that's our goal this year yeah 436 00:35:59,440 --> 00:36:07,160 great anything else thank you both work and I guess that help with the 437 00:36:05,680 --> 00:36:13,599 new Financial system oh yes well I got you both on the 438 00:36:10,920 --> 00:36:16,839 screen by any chance David or John do you know if you're available on March 439 00:36:14,800 --> 00:36:21,640 4th for measure T I know it's a little bit off topic but like measure T 440 00:36:19,680 --> 00:36:26,079 committee meeting 5 5:30 and you have to respond on the on email me I just want 441 00:36:23,440 --> 00:36:33,240 to make sure I don't want to forget to ask I don't see conflict 442 00:36:30,079 --> 00:36:38,200 Eric thank you all right thank you very much have a 443 00:36:35,200 --> 00:36:45,680 great day thank you U do you have any other questions 444 00:36:42,920 --> 00:36:48,040 on oh I did I did have one question about 445 00:36:52,400 --> 00:37:00,400 intergovernmental intergovermental Revenue what does that comprise 446 00:36:57,800 --> 00:37:05,359 um sorry I know I'm going back to Pages because that's what I was looking at 447 00:37:01,560 --> 00:37:11,800 with the agenda so um it's page 113 so what I saw was in FY 24 revenues was 1.2 448 00:37:09,160 --> 00:37:16,640 million less than FY 23 and the main driver was due to intergovernmental 449 00:37:14,760 --> 00:37:23,480 revenue and so I kind of wanted to understand what that category comis up 450 00:37:20,040 --> 00:37:28,119 it it's really for example um watch Are You The Chair of 451 00:37:24,720 --> 00:37:35,800 CCTA or chair MTC chair sorry I know you sit on CCT yeah 452 00:37:30,400 --> 00:37:41,760 I so for example um CCTA sorry measure J is is a fund is a is a Hass sales tax 453 00:37:38,880 --> 00:37:47,280 that we receive a sales tax for and that's one of the larger for projects 454 00:37:44,800 --> 00:37:50,599 normally uh through CCT that we get and that's the bigger share of 455 00:37:48,560 --> 00:37:55,200 intergovernmental Revenue some of that could also be the the AR funds depending 456 00:37:53,119 --> 00:37:58,440 on what expenditures happened last year compared to this year some of the larger 457 00:37:57,000 --> 00:38:03,839 projects I think happened um last year any but our book 458 00:38:02,440 --> 00:38:07,720 lines would be consider intermental revenues as well okay it just it just 459 00:38:06,280 --> 00:38:13,760 means that we have revenue from other agency other government agencies and so 460 00:38:10,359 --> 00:38:18,160 that was reduced because measure J's amount is a percentage of the total 461 00:38:16,319 --> 00:38:23,560 revenue but the revenue is driven by sales tax so the S to extend sales tax 462 00:38:21,200 --> 00:38:28,520 dollar changes the percent account return Source CH kind of like our 463 00:38:25,880 --> 00:38:34,520 measure K so there's measure is also well yeah measure J is meant to be a a 464 00:38:31,160 --> 00:38:38,079 transportation um related measure that was done back in 465 00:38:40,480 --> 00:38:49,119 20 I think it's because it's 234 and so um that is a half cent sales 466 00:38:47,200 --> 00:38:55,000 tax goes primarily Transportation but there was a certain percentage I think 467 00:38:50,839 --> 00:38:58,480 it's 18% that's returned to source so to the extent that Pleasant Hill generated 468 00:38:56,920 --> 00:39:04,400 a certain amount that sales tax that went to CCTA 18% of that came back to us 469 00:39:02,160 --> 00:39:11,880 and so that we usually goes to their own projects 470 00:39:08,920 --> 00:39:16,359 Paving and then the other thing that so that was less this year though so I 471 00:39:13,800 --> 00:39:22,680 meant that they didn't generate enough so or there there's other things like AR 472 00:39:19,920 --> 00:39:28,280 funds well no no I'll do it this way the structure you 473 00:39:25,400 --> 00:39:34,359 see at CCT CCTA today is it's the structure was and the reason I say that 474 00:39:31,319 --> 00:39:38,079 is mainly because you have to um so the mayor's right there's 18% return 475 00:39:35,920 --> 00:39:42,720 resource money there's also another 2% of return resource money that goes to 476 00:39:40,160 --> 00:39:47,040 certain parts of the county there's also um eligible projects that you can that 477 00:39:45,160 --> 00:39:52,280 each City can apply for funds for and the reason I bring that up is because we 478 00:39:49,319 --> 00:39:56,200 as city of Pleasant Hill apply for funds I'm pretty sure with L not this the 479 00:39:55,040 --> 00:40:00,040 current that you're looking at the year before or some of the three projects 480 00:39:58,640 --> 00:40:06,440 that we would have got measure J funding for that need to apply towards for 481 00:40:01,599 --> 00:40:09,920 example CCB CCB has 4.6 million so some of those funds we've already received 482 00:40:07,640 --> 00:40:16,160 from cc to apply towards those projects which doesn't occur every 483 00:40:12,240 --> 00:40:20,800 year lot of the CCB measure a lot of the other work that was done along contest 484 00:40:18,160 --> 00:40:26,400 was also measure we've been very fortunate to probably received more than 485 00:40:23,440 --> 00:40:31,000 our Fair sh grants don't say that out low yeah 486 00:40:28,240 --> 00:40:34,560 are you trying to jinx me that's true but it's been the case for you know 487 00:40:33,000 --> 00:40:39,680 entire time I've been on Council we've been very fortunate to be you know be 488 00:40:38,000 --> 00:40:45,079 ready with projects so that when there's a call for projects we're ready to go 489 00:40:42,640 --> 00:40:51,040 and result have been able to get it work you know good amount of 490 00:40:48,440 --> 00:40:55,119 dollars I do have a few more questions that's okay yeah there was also an 491 00:40:52,760 --> 00:41:01,839 increase in like 1.1 million in use of money in property interest that's okay 492 00:40:58,200 --> 00:41:05,520 that's interest so that's where it's half of it because of interest 493 00:41:04,000 --> 00:41:09,599 rates Rising the other half is that market adjustment we have to make on 494 00:41:07,720 --> 00:41:15,040 every June 30 based on we still L Investments but what we 495 00:41:11,319 --> 00:41:20,440 get and then um another question is that in expenses for Capital outlay it was 496 00:41:17,480 --> 00:41:25,560 5.1 million less and so that kind of resulted in our 4.1 million of our 497 00:41:22,480 --> 00:41:30,920 operating margin is that correct is that this the bulk of it the library libr 498 00:41:28,720 --> 00:41:35,680 when you when you don't you don't have and that's again because of how it 499 00:41:34,359 --> 00:41:40,760 was funded it was part of the in the general fund that's why you saw that a 500 00:41:37,400 --> 00:41:40,760 large drop from last year to this 501 00:41:41,800 --> 00:41:45,440 year all right I 502 00:41:45,480 --> 00:41:55,480 think questions thank you great we need to approve this to go 503 00:41:51,800 --> 00:42:00,720 to council a motion to approve the presentation of the oh not the 504 00:41:56,920 --> 00:42:05,680 presentation I guess the audited the act act for and measure K fund report for 505 00:42:02,960 --> 00:42:11,760 the fiscal year ended in June 30 20 I'll second you've made those changes 506 00:42:08,400 --> 00:42:15,760 that I I'm gonna for those onto the a uh sorry yesterday was a holiday so I want 507 00:42:13,920 --> 00:42:20,800 afford those changes to the Auditors I mentioned it to them prior to this 508 00:42:17,160 --> 00:42:27,200 meeting I had a bunch of couple pieces that were uh inconsistent some numbers 509 00:42:25,000 --> 00:42:30,920 there were it was principle wasn't that service and there was a couple other oh 510 00:42:29,200 --> 00:42:36,520 like when I saw the library and I didn't see the no no it's in it's in the 511 00:42:34,440 --> 00:42:44,160 wording oh it's in the wording sections that were um some wording pieces that 512 00:42:40,359 --> 00:42:50,160 were off so um I can show you where they are but anyway I can show that to you 513 00:42:47,240 --> 00:42:56,119 later but ER Eric got them all I went through them yesterday with him so um so 514 00:42:53,480 --> 00:43:01,319 we'll yeah I'll forward that to the aors I gave my heads up yesterday that that 515 00:42:58,480 --> 00:43:10,720 we have some edits yeah we com oh yeah did not just just no 516 00:43:08,240 --> 00:43:10,720 comment 517 00:43:10,760 --> 00:43:16,440 Y the only thing is you may not see those edit by the time it goes 518 00:43:16,800 --> 00:43:25,920 tost okay by the time it gets published on the you see okay just as long as I'm 519 00:43:23,359 --> 00:43:31,520 sure that they're going through that's okay okay so second that just that those 520 00:43:31,920 --> 00:43:44,680 AMS favor that right motion passes we will 521 00:43:38,240 --> 00:43:44,680 now go on to the fars section 115 trust 522 00:43:44,960 --> 00:43:48,960 discussion sh 523 00:44:06,839 --> 00:44:20,000 by gol yes only place you can get Yeah well yeah da City too close for 524 00:44:15,760 --> 00:44:27,559 me dangerous dangerous I always get of July parade my contribution every 525 00:44:24,240 --> 00:44:32,319 year okay that's part of our policy the Council budget comme adopt a couple 526 00:44:30,160 --> 00:44:35,760 years ago was based on the annual audit we would come back and see if there's 527 00:44:33,960 --> 00:44:42,400 any additional funds that we can put into the uh section 115 trust again the 528 00:44:39,680 --> 00:44:47,640 section 115 trust can only be used uh in regards to pension related expenses it 529 00:44:44,640 --> 00:44:52,559 allows it's a tool that allows the Investments to extend beyond what the 530 00:44:49,640 --> 00:44:58,880 city can do normally so the the easiest example is R uh as a city we can only go 531 00:44:56,000 --> 00:45:03,160 out five years on sure we can only invest out five years so for example 532 00:45:01,480 --> 00:45:07,160 there we can't invest for example in the US Treasury a 10year note that's not 533 00:45:05,440 --> 00:45:11,359 that's not allowable expens fory we can only go up five vehicles like the 534 00:45:09,440 --> 00:45:14,079 section 115 trust allows you to go beyond the five 535 00:45:18,119 --> 00:45:23,440 years and one of the things that well it really did come from the budget Comm one 536 00:45:22,240 --> 00:45:27,000 of the things the budget committee really wanted um a couple years ago was 537 00:45:25,559 --> 00:45:30,599 they wanted to make sure that there was specific language in there that would if 538 00:45:28,559 --> 00:45:36,240 we did have a good year that we would that we would put um funds into the sect 539 00:45:33,079 --> 00:45:42,680 115 trust so the minimum amount that we that would be recommended to be put in 540 00:45:38,440 --> 00:45:48,640 was 10% or $50,000 of the unassigned fs of General FS again that's not including 541 00:45:45,160 --> 00:45:48,640 measure K just the general fund 542 00:45:50,440 --> 00:45:57,880 itself just to show you compare to the act the act for if you were to look at 543 00:45:54,880 --> 00:45:57,880 the 544 00:45:58,960 --> 00:46:06,760 Escape go if you were to look at the the app for um on page 22 you would see the 545 00:46:04,680 --> 00:46:11,920 ending fund balance is about 19.4 million to break it into the components 546 00:46:09,040 --> 00:46:18,400 it's about 15.7 in general fund only and about 3.7 million in metri 547 00:46:14,839 --> 00:46:18,400 K based on that 548 00:46:23,800 --> 00:46:30,280 activity just looking at the components for a minute and talk a little bit about 549 00:46:27,800 --> 00:46:36,480 the 19.4 million 60,000 nonspendable what that is just um 550 00:46:32,760 --> 00:46:42,520 um it's a loan to for planning for the general plan some 551 00:46:40,440 --> 00:46:47,440 work that we need to do we sure there be enough money the general plan fund so 552 00:46:44,599 --> 00:46:51,559 the general fund is long $60,000 there restricted as I kind of mentioned 553 00:46:48,599 --> 00:46:56,280 earlier the bulk of that is almost all of that is really the U section 150 554 00:46:53,559 --> 00:47:00,960 money that's already there assigned as we kind of talked about 9 million is the 555 00:46:58,520 --> 00:47:04,640 city council policy and the other uh 4 million give or take is is really meure 556 00:47:02,720 --> 00:47:09,440 take ons and then we're looking at the unassign component of 4.2 million which 557 00:47:06,760 --> 00:47:09,440 is all General 558 00:47:13,880 --> 00:47:26,200 month I go back to this slide see see okay just for example a year ago the 559 00:47:22,839 --> 00:47:31,440 unassigned fund balance was about um went from 1 .4 million up to almost $3 560 00:47:28,280 --> 00:47:37,160 million and increase of almost 1.6 million the required contribution based 561 00:47:34,040 --> 00:47:42,839 on the city cons policy was we would put $157,000 into the section 115 trust 562 00:47:39,760 --> 00:47:42,839 because the 10% was higher than 563 00:47:43,400 --> 00:47:49,319 $50,000 with budget committee's recommendation and Council move forward 564 00:47:47,280 --> 00:47:53,480 with budget commit recommendation based on the final numbers they they 565 00:47:50,559 --> 00:47:59,119 contribute the $300,000 into the section 115 trust a year ago so 566 00:47:55,520 --> 00:48:03,680 $143,000 in of what was the mimal requirement move fast forward a year to 567 00:48:01,839 --> 00:48:06,640 this year again in November we meet with budget totee we give you some 568 00:48:04,800 --> 00:48:11,559 preliminary information that's un audited based on what what happened a 569 00:48:09,520 --> 00:48:15,319 year ago we did want to give the budg an option to because they they wanted to 570 00:48:13,440 --> 00:48:21,160 already put some money ahead into 61 that trust so start earning interest so 571 00:48:18,520 --> 00:48:25,880 we we did the same thing the prior year up at preliminary numbers rather than 572 00:48:23,160 --> 00:48:32,240 waiting for the final to get additional interest earnings yep so again this year 573 00:48:29,480 --> 00:48:35,480 uh again U we already put the city council with that project M 574 00:48:33,440 --> 00:48:42,160 recommendation already put in $300,000 into the section with 15 trust again 575 00:48:38,280 --> 00:48:46,880 it's a 172,000 more than see policy requir can you can the city council can 576 00:48:44,119 --> 00:48:53,640 always put in more money that was they the policy itself was 577 00:48:48,240 --> 00:48:58,720 design what what mayor Noak and and and mayor FL what mayor they wanted 578 00:48:57,400 --> 00:49:02,040 to make sure that there there was no requirement to put money in now the 579 00:49:00,559 --> 00:49:06,359 dollar level could obviously change but they wanted a floor um and so this so 580 00:49:04,960 --> 00:49:12,160 the last couple years we have put in $300,000 a a year which is already more 581 00:49:08,839 --> 00:49:12,160 than what the the floor 582 00:49:13,119 --> 00:49:21,760 was so quick can I ask a question so did we look at this in the quarterly report 583 00:49:19,440 --> 00:49:26,559 is that how you came up with this was a preliminary year end report so we 584 00:49:24,440 --> 00:49:31,119 because remember this ended June 30th of last last year okay so we had 585 00:49:28,319 --> 00:49:36,160 preliminary numbers in November as to and so when you saw the we saw what the 586 00:49:33,839 --> 00:49:39,520 what the logical numbers we Eric wasn't that bad in accounting that we were 587 00:49:37,839 --> 00:49:44,280 going to be off by a significant amount when it came to the audit yeah and so we 588 00:49:41,960 --> 00:49:48,480 decided at that time we would prefer to get the 300,000 in and earning money 589 00:49:46,640 --> 00:49:52,960 rather than waiting till the full audit came out so that was the decision that 590 00:49:50,559 --> 00:49:57,000 the at the budget committee and then the council approved it so would we December 591 00:49:55,640 --> 00:50:02,079 with that being said would we see preliminary numbers again in November 592 00:49:59,799 --> 00:50:06,880 then um you want see year end preliminary numbers in November you're 593 00:50:03,799 --> 00:50:12,319 going to see some preliminary numbers U either March or April for the where we 594 00:50:08,599 --> 00:50:18,040 are where we're going okay um this for example the one the one thing U for for 595 00:50:16,480 --> 00:50:23,119 like for example sales tax is an easy example yeah it's like we met today with 596 00:50:20,839 --> 00:50:28,920 our our sales tax consultant um but sales tax is always about 3 to six 597 00:50:25,000 --> 00:50:34,559 months Life Time so even though for it's always in their rears because for 598 00:50:30,720 --> 00:50:37,760 example the the I'll just use October November December what the way that the 599 00:50:36,400 --> 00:50:41,839 state works is they Advance you money during the course of that period of time 600 00:50:39,400 --> 00:50:45,400 of what they think you're going to get but you don't actually get a true true 601 00:50:43,760 --> 00:50:49,400 up for example we don't get a true true up until about late February early March 602 00:50:47,559 --> 00:50:52,000 for the October to December time FR that's why there's always a lag actually 603 00:50:50,839 --> 00:50:56,119 knowing what their numbers are going to be same thing for sales tax so even 604 00:50:54,319 --> 00:50:59,839 though we're already at order of the way to the current thisal year Well we only 605 00:50:58,200 --> 00:51:03,319 we're only getting the data the real data for the last quarter of the 606 00:51:02,079 --> 00:51:09,799 previous fiscal year so the reason why I'm bringing that 607 00:51:06,480 --> 00:51:13,559 up is because if we do get those numbers kind of preliminary we can possibly do 608 00:51:11,839 --> 00:51:18,240 the same thing again where we would invest the what we already kind of have 609 00:51:15,760 --> 00:51:22,200 in a sense of what we're going to end the year with but we'll probably take a 610 00:51:19,839 --> 00:51:27,480 look at again in November when the next annual preliminary numbers come out okay 611 00:51:24,799 --> 00:51:32,280 to see whether we want to do that then the question today is really do we want 612 00:51:29,680 --> 00:51:36,440 to do anything more than the 300,000 we did in 613 00:51:34,160 --> 00:51:42,400 December because we still have a you know we still have an unassigned fund 614 00:51:38,200 --> 00:51:49,319 balance of four 4.2 million and 10% of that would be uh 4 24,000 yeah so so the 615 00:51:47,599 --> 00:51:55,000 question is do we want it well it doesn't really matter what 10% is but do 616 00:51:51,280 --> 00:52:00,160 we want to because the balance is 4.2 million do we want to take a little bit 617 00:51:57,119 --> 00:52:03,559 more of that and put that in here and do you happen to have the slides on that on 618 00:52:02,040 --> 00:52:08,559 that expected unfunded pension liabilities 619 00:52:06,200 --> 00:52:14,119 where it peaks in 2032 no I don't that's today sorry do we 620 00:52:11,960 --> 00:52:19,880 also have like a trend analysis of how much we are getting in the increase of a 621 00:52:17,720 --> 00:52:24,240 tress like for the past five years for two years only had it for two 622 00:52:22,319 --> 00:52:31,000 years oh for two okay so you wouldn't have go information we have it for than 623 00:52:26,680 --> 00:52:37,559 two years yeah my head I want say about any but sorry just on the section 624 00:52:35,160 --> 00:52:41,680 15 trust itself we do have uh we have pars come back every year so again 625 00:52:39,319 --> 00:52:47,079 somewhere in the next couple months pars will come back and do an annual update 626 00:52:43,359 --> 00:52:53,240 for this committee as well um as well as U Chandler who it handles our 627 00:52:50,520 --> 00:52:57,480 investments for the city um outside the section 115 trust we have about $7 628 00:52:54,920 --> 00:53:01,839 million of invested um in stocks and bonds um Chandler will 629 00:53:00,280 --> 00:53:05,000 come back as well to update the investment policy as well as provide you 630 00:53:03,400 --> 00:53:10,559 an update on how those invests are doing as 631 00:53:05,880 --> 00:53:16,680 well that's help so one of the one of um the things that you and I discussed in 632 00:53:12,720 --> 00:53:22,480 the past is do you prepay versus putting it in the trust and maybe you can go 633 00:53:19,119 --> 00:53:26,960 through pluses and minuses of prepaying calers versus putting it in the 115 634 00:53:25,079 --> 00:53:34,559 trusts that's an important piece I know CCTA we just 635 00:53:29,839 --> 00:53:41,640 prepaid 2.5 million of there so that they're fully funded um and so maybe you 636 00:53:37,480 --> 00:53:46,720 can walk through that for B's uh clarification so for example even for 637 00:53:44,400 --> 00:53:51,319 city of Pleasant Hill or a lot of they went through the logic of do you fund do 638 00:53:48,520 --> 00:53:57,079 you go ahead and just write H to cers um or do you set up a section 115 trust and 639 00:53:54,640 --> 00:54:01,680 it really comes down to what the what city council felt comfortable with and 640 00:53:59,359 --> 00:54:05,640 every entity is a little bit different for example when you write a check to K 641 00:54:03,480 --> 00:54:09,960 pers for $100 um you you're taking all of their 642 00:54:08,040 --> 00:54:13,200 assumptions as well which could be great because they're assuming 6.8% and 643 00:54:11,760 --> 00:54:16,240 they're going to factor your $100 contribution as such that it's going to 644 00:54:14,920 --> 00:54:21,240 earn 6.8% the good or the bad is now that 645 00:54:19,079 --> 00:54:27,839 year that had 20% you're doing really great those years that it was negative 6 646 00:54:24,000 --> 00:54:33,520 point uh over 6% or 5.8% where doesn't hit the 6.8 well that just created a 647 00:54:31,160 --> 00:54:38,040 liability and again it's not neither good nor bad just matter your preference 648 00:54:35,839 --> 00:54:42,960 so for example UC mentioned now they also pre funded 649 00:54:41,440 --> 00:54:47,319 they also Lo a check I think a few years PRI of that to get them to 100% well 650 00:54:45,559 --> 00:54:53,079 they went through the up and down cycle so now they're running another two2 651 00:54:48,799 --> 00:54:58,720 million check to get back to to the 100 100% um so if you could guarantee me is 652 00:54:56,799 --> 00:55:02,559 going to get 6.8 I would I would automatically tell you right today right 653 00:55:00,440 --> 00:55:08,200 now right the check to cpers yeah yeah well I was looking at it for cers they 654 00:55:05,160 --> 00:55:13,920 were attive I think 6.1% or something like that in previous years um but 655 00:55:11,720 --> 00:55:21,319 historically I think their 30-year return or about almost 80 8% sorry not 656 00:55:17,040 --> 00:55:27,200 80 for all you 8% um just a 30-year return but in looking at part it seems 657 00:55:23,480 --> 00:55:32,280 more volatile to be in cers um versus being the pars trust which is consistent 658 00:55:29,599 --> 00:55:37,440 with around what what's the percent so again there's so pars the other reason 659 00:55:35,520 --> 00:55:40,400 is once you write the check to cers you have you don't have any control anymore 660 00:55:39,119 --> 00:55:44,160 you you've written them the check they get to do what they want with that money 661 00:55:42,400 --> 00:55:47,680 I mean the goal is obvious pay for retiring pensions but they control that 662 00:55:46,319 --> 00:55:52,799 money once you write that the check what it's invested in how it's 663 00:55:50,160 --> 00:55:57,680 invested and they do change their mind on what they're willing to invest in 664 00:55:54,880 --> 00:56:01,160 when I listen them speak two years ago they were talk talking about getting 665 00:55:59,200 --> 00:56:05,400 into Private Hedge Investments and I thought good God you're lowering the 666 00:56:03,599 --> 00:56:09,680 discount rate to Tak in higher risk Investments yeah which is 667 00:56:07,039 --> 00:56:13,720 counterintuitive to anybody and yet they're selling this is a way to get 668 00:56:11,079 --> 00:56:18,920 higher returns but there's greater risk and greater risk of of you know losses 669 00:56:16,160 --> 00:56:25,400 there too so you have to sort of factor in the volatility of cpers versus the 670 00:56:22,319 --> 00:56:30,680 Vol volatility of what the the pars trust will invest in so you'll see the 671 00:56:28,160 --> 00:56:35,720 pars trust sit around you know single digit returns but pretty consistent more 672 00:56:33,880 --> 00:56:40,839 conservative right versus going from a 21% gain to a 60% loss a huge swing yeah 673 00:56:39,160 --> 00:56:45,599 and depending on when you put the money in it could just you know vaporate sort 674 00:56:42,960 --> 00:56:52,119 of and so that so those are sort of the thought process and our thought process 675 00:56:47,839 --> 00:56:58,440 when we originally did this is sort of our our future Cowper's unfunded 676 00:56:54,920 --> 00:57:02,920 liability peaks in what 2032 2032 and then starts heading down because of the 677 00:56:59,920 --> 00:57:07,680 classic employees and so our thought was to put try to put away a little bit of 678 00:57:05,000 --> 00:57:12,200 money all the time into this pars trust because you can use it for regular 679 00:57:09,280 --> 00:57:20,559 pension payments and unfunded that we could use that money in those Peak years 680 00:57:15,079 --> 00:57:26,400 2029 2030 203 30 through 32 to reduce that amount so it's not so much of a 681 00:57:22,240 --> 00:57:33,880 strain on the city's budget and then be able to reduce it over time yeah CCTA 682 00:57:29,880 --> 00:57:37,920 does it differently because CCTA they're if they're their bond Runs Out in 2034 683 00:57:35,839 --> 00:57:43,200 they could disappear and so they don't want to have a big unfunded liability 684 00:57:40,160 --> 00:57:49,240 they can't fund when they're when they tax half cent sales tax goes away so 685 00:57:45,680 --> 00:57:55,480 they have a different mentality on on how why they prefunds why they prepay it 686 00:57:53,000 --> 00:58:00,039 versus setting up this we have a we can have a much longer Outlook we can have 687 00:57:57,640 --> 00:58:05,720 an Outlook of paying for this over 30 years while CCTA only has like six years 688 00:58:03,000 --> 00:58:11,440 to go so there's there's also different perspectives on on why you want to yeah 689 00:58:08,640 --> 00:58:19,359 do that type of thing so that was the idea behind why we set up the trust to 690 00:58:16,920 --> 00:58:19,359 address 691 00:58:19,480 --> 00:58:28,599 that the trust is importantance one it's one uh tool that we have but even now 692 00:58:26,200 --> 00:58:34,200 even with 300 I'll say we about 1 point I'll say 7 million take 693 00:58:31,839 --> 00:58:38,599 unfortunately or fortunately know that 1.7 million when we get out to 2032 694 00:58:37,079 --> 00:58:42,359 that's only good for we would almost have to take all of that just to make up 695 00:58:40,280 --> 00:58:46,799 for the increase for we out to those High years 696 00:58:43,799 --> 00:58:53,520 yeah and that's the hard part is that dab of how do we even you saw me U I 697 00:58:50,160 --> 00:58:56,640 know it was a very small PR um um and one of the supplemental supplemental 698 00:58:54,839 --> 00:59:00,079 information of what you see is The Purge contributions now it's just not that fun 699 00:58:58,200 --> 00:59:06,640 it's total Pur but it went from about 1.5 million U and I'm trying remember it 700 00:59:03,799 --> 00:59:09,920 goes up to I'll say 7 million there there's a huge increase over 10e period 701 00:59:08,319 --> 00:59:16,319 of for Pur cost um and and we're still trying to 702 00:59:13,440 --> 00:59:19,359 pay for the or all the well the three of us sitting here classic employees we're 703 00:59:17,880 --> 00:59:25,480 still trying to pay that off especially for some of those those down here sorry 704 00:59:22,640 --> 00:59:28,039 now now I won't blame all foret that much 705 00:59:28,200 --> 00:59:36,720 now what I always say what I always say is one of the 706 00:59:32,160 --> 00:59:43,000 things that they did and in back in 2000 early 2000s was they increased pension 707 00:59:40,640 --> 00:59:46,559 um benefits which wasn't necessarily the wrong idea Governor Davis was doing it 708 00:59:45,039 --> 00:59:50,119 because he had to get a deal with CP officers which is Happ to get passed 709 00:59:48,400 --> 00:59:52,920 down and and they were mostly overfunded at that point in time as well the 710 00:59:51,359 --> 00:59:57,480 pensions were overfunded and so they felt that they could so when you're 711 00:59:55,359 --> 01:00:01,160 talking about the a % so back then yes you could put money basically in the 712 00:59:58,720 --> 01:00:05,000 savings account and easily get 6% without even 713 01:00:02,039 --> 01:00:08,400 trying um the problem that they really created which they didn't p no one 714 01:00:06,920 --> 01:00:12,319 really push back was they went retroactive they said hey not only we're 715 01:00:10,200 --> 01:00:15,799 going to give you this better benefit we're going to give it to you like you 716 01:00:13,400 --> 01:00:18,520 got from day one that you were hired that was really the problem with with 717 01:00:17,319 --> 01:00:21,799 what what they it wasn't the fact that they gave necessarily a better benefit 718 01:00:20,079 --> 01:00:24,880 was the fact that they just said hey we'll just go we're so overfunded we're 719 01:00:23,440 --> 01:00:29,640 going to give it back to you we're going to pretend that you had it from one and 720 01:00:27,559 --> 01:00:33,760 that was where they get the problem got really really bad especially as we went 721 01:00:31,119 --> 01:00:37,920 through the Doom bubble and the Great Recession those are the issues that 722 01:00:35,720 --> 01:00:42,000 we're we're still dealing with today and there was quite a bit of spiking going 723 01:00:39,520 --> 01:00:46,599 on before Peppa too so there was a bunch of sort of abuses to the system people 724 01:00:44,720 --> 01:00:54,160 spiking their salaries up so that their pensions were much higher and so Peppa 725 01:00:51,039 --> 01:01:02,000 we actually have three levels we did one Classics up to 2 11 then we have 2011 726 01:00:58,119 --> 01:01:08,280 till pea kicked in as a second tier and then the third tier is Peppa to now and 727 01:01:06,440 --> 01:01:13,319 there's the unfunded liability associated with those two groups is oh 728 01:01:10,920 --> 01:01:13,319 he's getting 729 01:01:14,680 --> 01:01:23,240 hungry is most of the liability sitting with a 730 01:01:20,799 --> 01:01:26,480 classic employees and just to give you an example so CCTA is World check for 731 01:01:25,200 --> 01:01:29,760 about 2 and a half million write that similar check for city of 732 01:01:28,200 --> 01:01:33,680 Pleasant Hill it would be about 50 million assing we had it yeah in the 733 01:01:31,880 --> 01:01:38,079 general fund which we don't that that's what the that would be the equival the 734 01:01:35,160 --> 01:01:44,119 check that CCTA just wrote yeah they only have 25 employees so that's little 735 01:01:40,520 --> 01:01:51,440 different so that helps and no Public Safety and no Public Safety which 736 01:01:46,680 --> 01:01:57,839 is so anyway anyway so that's a a lot more background in on the slides but it 737 01:01:53,960 --> 01:01:57,839 was that's good to share 738 01:01:58,440 --> 01:02:06,039 um this is just information because you've already um in the past we I me we 739 01:02:04,760 --> 01:02:11,319 did a little bit more but you've already did that last November so this point I 740 01:02:09,200 --> 01:02:15,279 will hand it back to you yeah well it's you know I mean we have the option of 741 01:02:12,599 --> 01:02:21,240 doing a little bit more if we choose to um and and that's really up to us um or 742 01:02:19,119 --> 01:02:26,839 we can hold off and make a bigger decision in November when this year is 743 01:02:23,880 --> 01:02:31,319 done um depending on everybody's outlook on what the economy is and what's gonna 744 01:02:29,319 --> 01:02:37,000 it we're we're almost halfway through or we're almost 745 01:02:34,359 --> 01:02:42,240 three quarters of the way through our and we still are you know we're still 746 01:02:38,880 --> 01:02:47,640 under staff so it's going to be our numbers we might be down on sales tax 747 01:02:44,760 --> 01:02:52,119 but we will be ahead on expenses likely right I know you hate to say agree with 748 01:02:50,480 --> 01:02:58,240 me on those things when I make those statements but it's true right yeah that 749 01:02:56,000 --> 01:02:58,240 yes 750 01:02:59,000 --> 01:03:06,440 I he doesn't want to commit anything's closer and closer yeah but 751 01:03:04,440 --> 01:03:13,720 with with so with three qus of the Year almost done and still short on Staffing 752 01:03:10,680 --> 01:03:21,319 not only at police but also here because you haven't stapped up not 100% no not 753 01:03:17,960 --> 01:03:26,319 100% either and so we are uh we're going to be below on expenses on Staffing both 754 01:03:23,920 --> 01:03:32,240 at PD and and here and then our revenues from last year 755 01:03:29,119 --> 01:03:39,000 right is already 44 million right so that's only like 1.3 from L from 2023 so 756 01:03:37,319 --> 01:03:44,279 I don't feel that we would our trajectory would go less than 44.5 and 757 01:03:42,359 --> 01:03:48,559 looking at what our unassigned amount right now is well you could get impacted 758 01:03:46,039 --> 01:03:52,680 on sales tax revenues especially if tariffs start going into place and 759 01:03:50,319 --> 01:03:58,319 Things become more expensive and people are not purchasing things so there is is 760 01:03:55,960 --> 01:04:03,839 a little bit of that but our expenses are still going to be lower because we 761 01:04:00,000 --> 01:04:08,799 have vacancies we're already almost what half yeah three qu away so with 4.2 762 01:04:07,599 --> 01:04:13,799 million this is why I always I'm hesitant to always say yes Eric hates to 763 01:04:11,799 --> 01:04:18,119 to agree with these things well I will say that probably be less but just I 764 01:04:16,359 --> 01:04:24,319 know you weren't pay p a number at the time um the previous Council has we do 765 01:04:21,799 --> 01:04:28,119 have newus that have do have escalators in them for each of the each of the 766 01:04:26,440 --> 01:04:31,720 fiscal years so I want to say TOA going to be less than last year because it's 767 01:04:29,160 --> 01:04:37,680 not a flat line yeah we do have colus built into each of Theus for each of the 768 01:04:34,559 --> 01:04:43,359 parking groups that we have in the city so is that is that the Assumption this 769 01:04:40,880 --> 01:04:48,119 year three and a half three and a half and three and 770 01:04:44,799 --> 01:04:51,079 half was approved I thought it was 3.25 3.25 771 01:04:51,240 --> 01:04:58,640 and5 yes 3.25 3.25 and the third year so it's a little 772 01:04:57,000 --> 01:05:04,359 bit more than the 3% that were originally factored into the long-term 773 01:05:00,279 --> 01:05:07,559 financing plan but um all I'm saying is you might see expenses just like you 774 01:05:06,039 --> 01:05:11,319 this year you might see expenses go up it might be less in budget is I'm saying 775 01:05:09,839 --> 01:05:18,359 but I mean if we're just looking at the unassign amount right now which is the 776 01:05:13,520 --> 01:05:22,960 4.2 million and in that policy or that component was the policy that was 777 01:05:19,960 --> 01:05:26,240 designed right it says that well the 10% is the 10% difference in the year not in 778 01:05:25,400 --> 01:05:30,839 the balance sheet number it's 10% on the 779 01:05:28,880 --> 01:05:38,079 amount that changed during the year which was one point so so yes it's the 780 01:05:32,880 --> 01:05:43,839 Delta the Delta only 1.27 that was the temp oh okay yeah it's not the that's 781 01:05:41,359 --> 01:05:47,720 not the entire amount but if you know if you go year after year that unassigned 782 01:05:45,680 --> 01:05:53,240 balance continues to accumulate and that's why the discussion always is if 783 01:05:51,200 --> 01:06:00,000 that continues to grow should we put more into the P's Trust then they just 784 01:05:57,000 --> 01:06:03,720 increase because you know we put 300,000 in and it grew again this year so now 785 01:06:02,279 --> 01:06:10,839 we're sitting at 4.24 uh you know on on a signed uh with 786 01:06:07,640 --> 01:06:16,480 300,000 going toward it and so you don't want it have it grow so much without 787 01:06:14,400 --> 01:06:24,000 using it or something and and 788 01:06:20,000 --> 01:06:29,119 just I mean I'm just thinking of May right now 789 01:06:26,119 --> 01:06:35,359 this is point power point there might be former former for I just always say that 790 01:06:33,640 --> 01:06:40,240 there might be other needs that we not think you have today and again and what 791 01:06:37,480 --> 01:06:46,559 would what would some of those so if we if we had a sinkhole in the or something 792 01:06:43,880 --> 01:06:50,559 something signif we also have reserves don't we and restricted not that we want 793 01:06:48,160 --> 01:06:55,319 to tap into those but I'm seeing that if there's opportunity for us to put money 794 01:06:53,400 --> 01:07:00,920 in cars right now to get some interest so that when we did have that rainy day 795 01:06:57,640 --> 01:07:06,440 or warm off those are you can't so in a let's say we put more into the first 796 01:07:03,680 --> 01:07:10,520 trust it can't be used for other things it can only be used for pension but it 797 01:07:08,400 --> 01:07:16,319 could be used for just even our regular pension costs so you can put more in and 798 01:07:13,680 --> 01:07:20,200 pull it out but to the extent let's say a big SLE that cost you 10 million you 799 01:07:18,000 --> 01:07:26,680 can only sort of give yourself the you know say the 4 million that you uh have 800 01:07:24,000 --> 01:07:32,880 for the pension you couldn't you couldn't take more out than that right 801 01:07:28,559 --> 01:07:37,480 right so it's the question is and of the of the current Reserve policy with 5 802 01:07:34,960 --> 01:07:42,240 million which is the working capital fluctuations of working capital during 803 01:07:39,359 --> 01:07:45,799 the year so that we never have to borrow or do anything we always have enough 804 01:07:43,960 --> 01:07:50,720 money sitting around to take care of our expenses because our income is 805 01:07:48,240 --> 01:07:56,039 fluctuating and then the other four million is sort of for a downturn 806 01:07:54,160 --> 01:08:00,559 economic downturn um we were very fortunate we never had 807 01:07:58,119 --> 01:08:04,400 to touch that during the pandemic because sales tax dollars everybody kept 808 01:08:02,400 --> 01:08:09,680 buying on Amazon sit we in good shape but U that's what that's for and so I 809 01:08:07,760 --> 01:08:15,559 think there is a little bit more risk in the next couple years depending on all 810 01:08:12,359 --> 01:08:23,239 these tariff issues and potential more inflation po potential uh sales tax 811 01:08:20,159 --> 01:08:27,480 decreases sorry just a side note did I say this really we will have AG the plan 812 01:08:25,799 --> 01:08:33,040 is is hopefully have HD at the next meeting to talk about sales tax they do 813 01:08:30,239 --> 01:08:37,440 our sales tax forecast for us um so anyway that's that's 814 01:08:34,560 --> 01:08:42,560 the you know that's or there could be other you know 815 01:08:39,880 --> 01:08:47,040 other significant projects luckily you know we're in good shape on measure C on 816 01:08:44,319 --> 01:08:53,319 the library our roads are in good shape thanks in so you know we're in pretty 817 01:08:49,839 --> 01:08:57,279 good shape but you know like Mar almost had to file a bankruptcy because of the 818 01:08:54,679 --> 01:09:01,640 sing remember that and you know that was 819 01:08:59,319 --> 01:09:05,920 pretty bad and it took them two years to replace it because they didn't have the 820 01:09:02,799 --> 01:09:11,000 money to do that so we don't want to get rid of all of that but I don't think 821 01:09:08,719 --> 01:09:17,440 anybody wants to sit see us sit around with 4.2 million as well not using it 822 01:09:14,159 --> 01:09:22,120 for something and so that's well so that's why that's the balancing well 823 01:09:19,440 --> 01:09:27,040 when I was reading this my assumption is the unassigned amount of the 4.2 million 824 01:09:24,600 --> 01:09:31,880 was at 10% % of that could be allocated to pars yeah it's it's not it's just the 825 01:09:29,839 --> 01:09:36,759 10% was on the Delta that's what the policy was set for to make sure we did 826 01:09:34,040 --> 01:09:41,960 something yeah um but we could certainly you know say okay we'll put another 827 01:09:38,319 --> 01:09:46,040 100,000 in to bring it up to 400,000 you know we can certainly do that and take 828 01:09:44,159 --> 01:09:53,080 it to council and see if they approve that um so that's that's a decision for 829 01:09:49,640 --> 01:09:59,159 us and for Council to make up um what we want to do put that on a side want to 830 01:09:55,719 --> 01:10:04,199 put more toward in to the to the pars trust or whether we want to leave it in 831 01:10:01,640 --> 01:10:12,679 unassigned any what you think about for the future yeah I I would proceed with 832 01:10:09,120 --> 01:10:21,440 moving into par another 100,000 yeah okay I'm fine with 833 01:10:15,400 --> 01:10:25,080 that so um we will um I think it's it's good to be able to at least get some 834 01:10:23,320 --> 01:10:29,719 interest on that and also it's not well there is cons yeah we do get interest on 835 01:10:27,400 --> 01:10:34,120 this this money you know it's just it's a slightly higher interest part trust 836 01:10:32,400 --> 01:10:37,719 than what we get with our own Investments so I don't want to say that 837 01:10:36,280 --> 01:10:42,400 we're not getting interest on this money because we are it's just not as much as 838 01:10:39,719 --> 01:10:49,800 we can get in the pars so just for information um the bulk of the city's 839 01:10:45,760 --> 01:10:53,520 day-to-day operational money sits in U BL it's called local agency investment 840 01:10:52,159 --> 01:10:56,880 which is the state pool basically it's the State savings account for all 841 01:10:54,800 --> 01:11:01,199 municipalities um so a lot of our money sits there and 842 01:10:59,920 --> 01:11:05,679 obviously the interest rat less than what you if you could invest it yourself 843 01:11:03,080 --> 01:11:09,360 but it is a lot the more is bested somewhere else other than just in a 844 01:11:07,280 --> 01:11:17,480 checking account okay so um I guess we make a 845 01:11:13,000 --> 01:11:25,560 motion to put additional 100,000 in and put that forward to um city council yes 846 01:11:20,800 --> 01:11:30,520 I okay so with that com see my public out there it's been there 847 01:11:27,600 --> 01:11:38,719 all day yeah public um thank you for reminding me 848 01:11:34,960 --> 01:11:44,159 um okay so could I make one comment you absolutely uh so there was um a question 849 01:11:42,639 --> 01:11:48,400 asked about what was remaining at the library that needed to be completed and 850 01:11:46,840 --> 01:11:51,520 so I know you know I've been I always get it wrong what do we call it I call 851 01:11:49,600 --> 01:11:58,159 them the second chance signs but that's not what they're called the day two day 852 01:11:54,360 --> 01:12:02,639 two was it's a whole um bunch of dat they call day two signs that are 853 01:11:59,800 --> 01:12:06,280 happening at the library so it's I don't know why they're called day two I always 854 01:12:04,239 --> 01:12:10,400 the day one is like the grand opening the big and then day two is like okay 855 01:12:07,880 --> 01:12:14,400 now we're back fix all the stuff okay second day all the dust settles what we 856 01:12:12,520 --> 01:12:19,719 doing and so there was a question asked we have one po that's still open at the 857 01:12:16,679 --> 01:12:26,480 library to pay for any outstanding day2 items so I've been working with now now 858 01:12:26,719 --> 01:12:34,000 engineer all I'm like what's your name again now they are making the day two 859 01:12:31,600 --> 01:12:39,639 signs as we speak right now so we probably have about $30,000 left and the 860 01:12:36,960 --> 01:12:44,400 Art Exhibit piece too is that included there all of that's included no art 861 01:12:41,920 --> 01:12:52,280 though right like so there's there's also in on the wall in the NN portion of 862 01:12:48,880 --> 01:12:56,960 the library will be an art display that we're going to get local artists I talk 863 01:12:54,000 --> 01:13:00,719 I again back to me he because I need something to 864 01:12:58,000 --> 01:13:06,960 do I said great I'm going to talk to you about this so um anyway we're going to 865 01:13:03,440 --> 01:13:12,679 try to get local artists um to have their things on great in the Neil snook 866 01:13:10,320 --> 01:13:17,120 and so that whole structure an has been working on to get that finished so that 867 01:13:14,840 --> 01:13:23,440 along with these is that going to be rotating for local artists or is that 868 01:13:19,159 --> 01:13:27,440 just gonna be kind of St okay there's a lot of people in the public that have 869 01:13:25,199 --> 01:13:32,639 come forth and said they need space for art and so we're gonna have a little 870 01:13:30,199 --> 01:13:35,239 committee because it's got to be you know there are a lot of young kids in 871 01:13:33,800 --> 01:13:38,960 there too so we got to make sure it's appropriate art we have to warn 872 01:13:37,400 --> 01:13:45,320 everybody that because there are a lot of young kids in this what could happen 873 01:13:41,440 --> 01:13:50,560 to their art um Alan Vincent is a you know our former council member is a 874 01:13:47,120 --> 01:13:55,520 wonderful photographer and so I sort of roped him in saying could you run this 875 01:13:52,960 --> 01:14:01,639 thing run a little group with local artists to be a committee to review art 876 01:13:59,400 --> 01:14:05,400 exhibits and takes charge of that because the library staff does not want 877 01:14:03,400 --> 01:14:09,600 anything to do with that they don't want to do it so um that that's been our 878 01:14:07,679 --> 01:14:14,280 thought process to do that but that installation piece is is part of this 879 01:14:12,960 --> 01:14:17,520 yes whenever you hear Eric make a little jab at me that and still spending money 880 01:14:15,840 --> 01:14:22,840 at the library there still an OP I I came into that project at the 881 01:14:20,080 --> 01:14:27,560 very end so I was never actually sure what the day two artwork was going to be 882 01:14:25,120 --> 01:14:32,639 cost to make and install and it's only been recently that we met with now yeah 883 01:14:30,080 --> 01:14:38,360 it got lost in the confusion when on left and and and stepped into that role 884 01:14:35,440 --> 01:14:43,880 so so we but I just paid the so Thomas Swan is the designer that did the signs 885 01:14:40,520 --> 01:14:47,920 for day one he's we just sent him the first installment so he's moving forward 886 01:14:45,600 --> 01:14:52,159 with production on the signs okay so I don't I don't imagine that we have more 887 01:14:49,320 --> 01:14:56,000 than $30,000 every fees left and is are the friends going to handle additional 888 01:14:54,000 --> 01:15:00,080 signs on the don't wall or is that going to be us you mean the donor wall in the 889 01:14:58,440 --> 01:15:03,960 center of the lbr right when you walk I thought that was the friends okay those 890 01:15:01,600 --> 01:15:10,199 are the friends I think it's it's like almost well it starts so the friends 891 01:15:07,719 --> 01:15:17,239 well we can go to this later but um maybe not this is the meeting yeah the 892 01:15:15,120 --> 01:15:21,760 next meeting oh yeah let's set the next meeting oh yes uh when when do you need 893 01:15:20,040 --> 01:15:25,520 another meeting so it would be the week of March 24th 894 01:15:27,159 --> 01:15:31,600 and the 24th is 895 01:15:32,600 --> 01:15:36,320 24 no March 896 01:15:41,760 --> 01:15:52,719 17 I know you have some other duties as FTC chair 897 01:15:48,679 --> 01:15:57,800 yeah let me see I got Monday morning is good for me for the 24th let me just see 898 01:15:55,639 --> 01:16:00,600 they sent me a bunch of dates today for MTC 899 01:16:05,719 --> 01:16:16,760 that okay so the 26th uh is so I I'm all right that week 900 01:16:12,400 --> 01:16:22,800 um can't do that Wednesday morning do Monday do Mondays 901 01:16:21,120 --> 01:16:30,719 are Mondays my two Tuesdays are are like 902 01:16:27,480 --> 01:16:34,400 impossible yeah we'll just have to so can we can we do first thing in the 903 01:16:32,080 --> 01:16:39,719 morning yeah okay because we used to do 8:30 and Eric RS Donuts so s it to a FX 904 01:16:38,400 --> 01:16:43,800 R for me so is it like having is it like 905 01:16:42,120 --> 01:16:46,840 having a burrito yeah because dinner tonight will be late because at the 906 01:16:44,960 --> 01:16:50,400 mayor's conference so I'm I'm holding myself off to the end of the meeting to 907 01:16:48,280 --> 01:16:56,040 have one it's kind of carry me over till dinner at the time yeah okay so um 8:30 908 01:16:54,120 --> 01:17:01,719 on the on the 909 01:16:57,120 --> 01:17:01,719 24th of March thank 910 01:17:03,080 --> 01:17:09,960 you oh just so I know ahead of time I'm just I have I might have 911 01:17:08,840 --> 01:17:14,400 something I just want to know if the 27th is an 912 01:17:12,120 --> 01:17:18,320 option hold up you mess me up 913 01:17:18,360 --> 01:17:27,239 sorry I mean the hor forth might be fine I just I'm just I I might have something 914 01:17:23,600 --> 01:17:27,239 that day that I still 915 01:17:28,159 --> 01:17:35,480 5050 oh God MTC call me back about one Creek 916 01:17:36,880 --> 01:17:46,920 issues okay U the the 27th yeah yeah that should be all right just the 26th 917 01:17:44,120 --> 01:17:53,639 is bad for me that week JC's got me all day on that day can we do morning on 918 01:17:50,520 --> 01:17:56,840 yeah and I might not have to sitting on or might have to sit on that 919 01:17:58,239 --> 01:18:07,480 okay so we're locking in the 27th then will you have when just send out a 920 01:18:04,320 --> 01:18:12,679 calendar and attend it for Thursday yeah is there a preference among the two 921 01:18:09,719 --> 01:18:17,639 of you for I think Monday is Monday prer or 922 01:18:13,760 --> 01:18:21,800 Thursday either way morning offer if you have a possibility rather just think 923 01:18:19,520 --> 01:18:27,760 about it just lock let's just do the 27 since you 924 01:18:25,560 --> 01:18:27,760 not 925 01:18:32,679 --> 01:18:38,600 sure now can thank you okay