Testing. Testing.
Thank you. I'm calling this meeting of
the budget committee to order at
6:00 and we'd like to start with a roll
call, please.
Anderson.
Mayor Melinda Wel. Are you calling my
here? I'm sorry. I'm here. And then,
forgive me. Is it Rachel or Raquel?
Relle. Okay. Relle Baitman.
Tom Cook here. Angel Falconer here.
Galvin here. Don Gustoson here. Mallerie
Highfield.
Carla Kinsey
here. Michael
Marshall, Karen Martinez here, Brian
Shiml, and Mariana Valen here. Thank
you. Thank you very much. Um, has there
been any public comment received that
you're aware of, Jamie? I received no
public comment. And is there anybody on
Zoom who might be wanting to address us?
I do not see anybody on Zoom with their
hands raised. All right.
Yes.
Absolutely. I apologize
if I want to extend some gratitude to
the the budget committee last
year the proposal that the city council
adopted last night.
grateful for the time and thoughtfulness
and preparing that
proposal and allowing some extra time
for
that. You're still here.
Thank you for mentioning that, Brian.
Yes, the city council did need to have a
work session where they considered this
budget committee's recommendations for
counselor compensation and they found a
consensus though formal action of course
is not taken at a working session so
that will be in the near future no we it
was a resolution
work session session
so we reach consensus but no formal
action
yeah it's all right
um any other comment anyone like to make
before we move
on. All right, seeing none, consent
agenda has nothing on it. So rather than
spend time on the consent agenda, what
I'd like to do is just briefly go around
the room and make introductions as we
have several new members of our
committee. Um, and Tom, we'll start with
you if that's all right. My name is Tom
Cook. I've been on the committee now
six, seven years, something right of the
town for eight years.
Glad to hear you. Tom is a veteran.
Again, my name is Dave Anderson. Tom and
I have served about the same length of
time, I
think. I've lived in town for a little
over 10 years, and it's a pleasure to be
here, and I appreciate all of those
people who have joined us this
year. I'm Pauly, assistant city manager,
finance director, and I've been with the
city since January of
1994. City councelor, and this is my
fifth year.
Highfield first year on the budget
committee also on the parks committee
and
[Music]
thank you for joining
us since 2014.
2019 Angel was selected last November
and here for three
years had my foot in the community since
2010 when my husband told three start
program to be
Shiml, also a first time counselor and
president. This is my second year for
budget committee.
Good evening everyone. Jessie, I'm city
manager and August will mark my 10th
year of
my name is Carla Kinsey. I've been a
president of Forest Grove the last 12
years. Uh this is my first budget
committee um year. So thank
you Michelle B. I moved to the area
about 15 years ago but I've only been in
my forever home in
Scot. This is also my first year.
My name is Salis Certi and I'm the
assistant finance director for the city
and I've only been in the position for
six months but I've worked for the city
for 22 years. What did you do before? I
was the senior accountant for
wonderful experience. Thank you.
I am Jamie Bake. I'm executive assistant
to our city manager and to call
You really want to get something
done. That's why
[Laughter]
I like my power director.
with the city a little over 30 years.
[Music]
Director coming Sunday.
So if you want to get stuff done, you
see if you want to know something, you
ask. All right. Thank you all very much.
Um are there any additions or deletions
to our agenda tonight?
One
more project not discussed
tonight off the
list. Um All right. U then we'll launch
into our discussion items. Those will be
led by
Paul. Paul Jesse Jess wants to make some
opening. All right, Jesse. We'll turn
the time over to the floor.
Thank you, chair. And I'll I'll be
brief. Um so just to kind of give a I
know we have a lot of new budget
committee members. Thank you for serving
and to those who are already on the
committee, thank you for continuing to
serve. This is a very important
committee. Obviously the committee kind
of shapes and forms the budget. Budget
process for any municipality is a very
important
process
transparent. Um and and I kind of wanted
to give a brief overview about kind of
what to expect this evening but also
throughout. Forest Grove is a as many of
you know as a full service city and as a
full service city we have a lot of
services that other municipalities do
not. What that means from a budget
perspective is we have a lot more funds
than a lot of cities. Uh, and as a
result of that, there's a little bit
more complexity and there's a lot more
volume in our budget than you may see in
in other budgets. Paul knows the exact
number of funds, but
it's plus 34. So, okay. 34. So, in case
you're wondering, more funds doesn't
mean more money. It means more buckets
of money. That's exactly right. Yeah.
Um, we're kind of This year is our first
year in a banual budget. Council made it
a priority last year.
budget and in our planning amongst the
staff. It really does kind of change the
focus of how we've been approaching this
budget in this budget cycle. It really
does land a little bit longer term
approach. Before it was an annual
budget. you would look one year ahead,
but you might talk about subsequent
years from a capital process or from the
budgeting process
budgeting. So, it's a little bit
different this year and especially in
terms of how this kind of connects to
the levy, how this connects to state
shared revenue. State is on the same
banual that we're going to be on. Um,
it's it's just a little bit of a
different focus and a little bit of a
different kind of planning to it. As a
result of that, there's a little more
work to do this year. There typically is
theformational meeting tonight and then
there's two budget committee meetings
after that. Right now what we're
planning on is theformational meeting
tonight and then three budget meetings
after that. Um what you can kind of
expect tonight is kind of in the title
it's information. So Paul is gonna
deliver a lot of information. Um, and so
somewhat um, a little bit of kind of fun
way because there's a lot of information
that we want to present, but I'd like to
kind of just explain kind of two things
briefly because some of this is going to
cover what Paul's going to cover
tonight. Anytime we we are talking about
the budget, at least from kind of a big
picture standpoint, there's those funds
where the money is restricted to that
use. Okay? And that's generally like a
self- sustaining fund. In other words,
if a fee or a charge is charged for a
certain use, that money could only be
used for that particular service, you
can't take that money, back it out here,
and stick it into a different fund over
there. Okay? That's a self- sustaining,
self-generating fund. We're going to
have a lot of examples of
those. The other fund, and one that
you'll see that Paul will pay kind of
particular attention to tonight from
anformational basis, is the general
fund. The general fund has more
discretion. It has more discretion with
the budget committee and it has more
discretion with the city council about
how those monies are spent. They're not
tied to any particular service. They're
not tied to any particular rate or fee
where it cames from that has to go back
to the same thing. So that's what we
call our general fund. So when you hear
Paul kind of refer to the general fund,
that's generally what it means. That's
going to be our property tax revenues,
state shared revenues, those revenues
that go into kind of the common fund.
And that general fund funds parks,
library, police
and departments that fund. So if you
look at power for example, that's a
self-sustaining fund. That's a rate
based fund that doesn't have it's not
going to be in the general fund. That's
going to be their own fund. So anyways,
those are some kind of bigger pictures
um with that. Uh if you have any
questions at any time, sometimes this
can get complex. Sometimes there's some
background to it. Uh, and if there is,
please just ask Paul, ask myself, ask
anybody on staff. We try and do our best
to answer it. We do want to make sure
that this is as informative and
transparent and that you have the tools
to kind of help guide this process as we
go forward.
That's all I have. Thank you. I do have
a question. How will the budget impact
the budget in terms of the off years or
not? actually you're the first
presentation right into it. Great segue.
He's my setup. So
that's what I get the pizza for. Right.
That's right. Why you got pizza? Nobody
else got to eat. You got for setting up.
Okay. All right. Go ahead. One one more
note. This is this is what since we're
calling this anformational budget
committee. One thing we don't do or we
can't do is we can't discuss specifics
for the next two years. We have not
advertised this as our first official
budget committee meeting where we're
going to take testimony we're going to
present to the public. This is more this
is more of a set stage meeting for
tonight and a lot of setting stage for
the general as forward.
So that comments we should begin.
First thing we're going to talk about is
by budgeting the process discussion and
what we do.
Is it working?
I'll use my
remote voice. Maybe. There we go. Okay.
Leave that to you. All right. We'll find
out. Okay.
Preparing our first banial budget which
will be effective for July 1st through
June 30th,
2027. What that means is all anticipated
reven expenditures that we are aware of
need to be for the two-year period for
the total 2-year
period. Some we won't know all
expenditures. Some expenditures such as
changes from your labor contracts will
not be known until after twoear budget
commences.
funds are used when necessary to cover
labor cost changes contract changes.
We'll have to look at that budget. We're
currently negotiating the police
contract with that and next year we are
going to
negotiate the electrical workers
contract and also
for contracts.
don't know all of the contract
number this year. What we'll what we'll
be what we'll ask you to do is to
approve the bianual
budget, establish the appropriations for
the two-year period and set the property
tax rates for both years. So, you'll be
asked to approve total two years, not
each year individually and then a total,
you'll be asked to approve the total for
the two years.
and we'll set the legal appropriations
for the total two-year
period. Staff will monitor the expenses
as we
go. And uh to answer Dave's question,
next year budget process, what we'll do
is we'll conduct a review of the banual
budget, how it's going, and also adopt
any changes to the banial budget. Again,
not all reven expenses are known when
we're preparing and adopting this this
first two-year budget. So, changes will
be needed in the first year. For
example, one change might
be right now for the county is looking
at the Washington County Cooperative
Library
Services in
November. depending on how that vote
goes and depending on how the I think
they're also working on the funding for
that funding for change based on that
money then we'll know better for the
second year what the actual library
funding will be made assumption for the
second year preparing this budget but we
should know better next year what the
actual revenue for the second year will
be so that's kind of example where we
made we went past the budget make the
change second year.
Oh, while you're getting that to click,
I have a question for you.
During the year, as life happens and
things change, from what I understand,
um that you have some latitude to adjust
things in the general fund somewhat
without having to go through a formal
process, correct?
We can do in the general fund that for
examp we divide our fund balance into
two
things fund and an unappropriated fund
balance. The unappropriating fund
balance you cannot touch unless there's
certain emergencies in those conditions
are established by state statute. That
was the next question.
Contingency. The contingency contingency
funds are funds we have there in case we
said life happens and you have
unexpected events. Now staff can't
arbitrarily change to take money out of
contingency. Staff has to go back to the
city council and get a transfer and have
them appropriate a transfer out of
contingency into the expense areas where
we need those expenses covered. So staff
staff doesn't have I mean we staff can
manage between say line items like so I
can I can manage with my line items
material services but I've got an over
expenditure
here I'm going to need some money at
this line item instead of this line item
I will manage kind of the total
materials and services look at that but
as long as we're not changing the
overall appropriation I don't have to do
anything with council we're not going to
take money from the police to firefight
police vice versa. That kind of thing
within the
police
around
but the contingency funds are considered
appropriated, right? Not unable to
expand without city council. That is
correct.
That's a good thing to keep in mind as
we're going through this is appropriated
funds and reserve funds which are not
appropriated.
pass. We have a certain amount that
we're trying to maintain in those
reserve
funds.
Okay. And staff's going to monitor each
budget year separately. The revenues and
expenditures is they're not the same for
each year. For example, you can't spend
50% of your personnel expenses the first
year because your personal expenses will
be higher will be higher the second year
than they will the first year. budget
cost increases they can't spend half
your half your personel so I also spoke
with a nearby city pills they use the
same accounting software as we do their
financial staff and other departments
they monitor on a year-by-year basis as
well and that's they they like
monitoring it that way even though they
know it's a two total they like
monitoring on a yearly basis to see
how without having to say this is for
the this money's for the twoear period
How does that work? How's it looking?
They can take a quicker look at it.
Looking at this is our first year to do
the
first the first time we're doing. Yes.
What's the driving force? Driving force
is it takes some more time the first
year, but hopefully the second year it
saves some time and also like Tessa
said, it requires you to plan a little
better because you're working it over a
two-year period. So you look at this we
always looked ahead but this makes you
look ahead for that second year because
you're actually going to budget it
you're actually set budget and
appropriate the funds to spend whereas
in the normal process you just budget
one year you meet appropriate the funds
you meet the next year appropriate the
funds for that following year. This year
we're going to be a total appropriation
for two years. So you have to really
think about the second year as you're
moving forward.
to
better accounting purposes or planning
purposes. Planning purposes probably
better than accounting purposes. It's
and because the last point is we're
still required by the law to have an
annual financial audit even though we're
going to banual budget that does not
change the requirement to have an annual
financial audit. So what you'll see on
the first year of the first of the
two-year
biion ending year the fiscal year end
for June June 30th 2026 which will be
end of the first year
bianium first year two years in the
bienium when you look at the auto you
will see the total two-year budget
appropriation then you'll see the first
year expenditures and you you're going
to see a large variance on the
expenditure side because you've got the
second year's worth of expenditures to
spend still. So the
honors first your honor strange two
period but that's just how you have to
do it you have to report to the state on
your expenditures on an annual basis
we'll actually see an example Tom later
in one of the
presentations for example increasingly
our our retirement system is PERS and
when the PERS calculation comes out from
the state it's for a ban but it all
occurs on the first year of
And so if we're looking at it from a
year-to-year basis, it would be a large
increase in one year and then nothing
the following. So if you're looking at
staff, if you're looking at appropriate
expenses over that kind of two-year
period, they give you a broader window
in which to do that. And also from a
capital planning perspective, too,
whether it's replacements, additions,
etc., you also have some more room there
to say, you know what, I might be able
to defer that purchase for a year, but
this one over here broke down, so we
kind of need to move that one up. even
though you typically try to do that on a
five-y year basis, you're actually kind
of allocating money for two years. So,
it just it it really has kind of
facilitated some conversations
uh in in our planning meetings um that I
think it's intended to do, which is what
about the following year? How do we plan
for that? What does that look like? And
in doing so, is Chris more kind of
vision and and forecasting. Are
there is it in is it in sync the two
years with other
entities the same for in like contracts
you know what I'm saying the labor
contracts is that do you're in sync with
that or for this first one it's in sync
with our lab right I think that was like
kind of the goal I don't know we have
contracts are negotiated
different we do a couple contracts for
this organation So anyways, I think with
some yes, some no, but with this, and I
don't mean to overstep on staff, but
with this first fighting, it was really
to try to align it with the levy. The
levy is our operational budget.
And I think Paul
go pause. Well, Paul is paused for just
a second. Let me say to our newer
members, if you start hearing acronyms
or terms tossed around that you don't
know what they are, please just ask us
because it's frustrating to not know
what the heck people are talking about.
So, please don't hesitate to say what
what's an STC or whatever it is that
we're talking
about. All
right. Any questions on the ban?
I need to go to the city's website next.
Oh,
okay. Not for revenue
cost factors. Number two, I'm going to I
have to drive the bus. No problem. Let
me
get there.
I know my arm is scrunched.
She said it's cuz everybody's
watching. Sorry to change. Last year we
most people got an online had had got
the online budget book. If you want a
paper copy, we'll still make you a paper
copy. But if you but you know you don't
ask for one, we just send you the online
book. So what I was going to do is show
you how to navigate through the online
budget book.
budget.
You'll get a link that'll take you to
more more quickly than I am because this
is the in the finance department. Where
did you miss the first?
You'll have a link. We'll send you a
link in the email.
I'll start again here.
There's
government. Then you go to excuse me
department
and then you'll go to finance and you
click budgets.
And after you click budgets, you'll see
down here there's some budget
documents and there's the online version
of the 24 to 25 adopted budget. I'm
going to use this for the example
tonight because obviously we don't have
the 25 to 27 proposed budget document
prepared.
So click on that and then you'll click
on proceed to
site. This takes you to our budgeting
software
site and what this is the only page on
the city's website. This is the
essentially the table of contents for
the budget.
And there's various information on it.
There's the budget committee. There'll
be the org chart for the
city. There's the city boards and
commissions. And then you'll see fund
structures and descriptions. And that
just kind of talks about what Jesse
talked about earlier talked about what
the general fund is, what the enterprise
funds in. This these are our funds
basically charge rates. And it's
essentially the light, sewer, water, and
surface water management. Then there's
special revenue funds which we have to
do by contract or by state law require
some for example building permits is you
have the streets you need to have those
funds by state
law. Then we have some internal service
funds where we account for charges
between
funds and capital project funds. Most of
these are system development charges
funds. Um, TDT is the county
transportation development tax. That's
like that's one like for single family
residents. Next year you'll pay about
$12,800 in TDT tax if you build
one. Um, bikeways, pedway, pedestrian,
that's a 1% of the gas tax. parks SDC
funds, capital projects funds, and then
the capital improvement tax, which is
that $3 bill you see on the utility
funds. Capital projects we don't really
use right now. Although the police bond
passes, we will be using the capital
projects fund to account for the
construction of the new police facility.
And we have some debt service funds. We
currently aren't these aren't active
funds, but if the levy passes in May,
the general debt service fund will
become active again next
year. Pay the debt service. That's some
of the fund
descriptions. Budget, we talk about the
process, the budget message, the council
goals will be in there. Then there'll be
a revenue summary and expenditure
summary for all
funds. Example, the revenue summary will
show
It'll show the total revenues for by
fund
category. Then it will enterprise
funds, all the utility funds. You'll see
there's about $84 million there. General
funds about was about $36 million this
year, special revenue
funds, street funds, the big fund in
that one. and some of the internal
service funds and some of the capital
projects
budgets. The one in the budget summary
the one as I told the new members of
budget committee the budget
message is a good place to spend some
time on this is where we summarize a lot
of what's going to happen and then it'll
be the next two years next year. of the
budget message. We'll we'll start out
and we'll go overall budget discuss
staffing any staffing changes we're
going to
propose a little bit about the local
option levy when it expires wage
increases we know retirement overall
overall insurance and then we'll go fund
we'll start with the general fund and
we'll go department by department and if
the department has a significant change
proposed you'll see those changes
described in each of these departments
section. So, like I said, you want to
spend some good time on this when you're
looking at it. This is this is a good
budget message is a good thing to read.
We've put a lot of time into putting the
budget message out to try to make it
when we're writing it to make it as
formative as we can.
Message this year is not done yet,
right? Not even started. So that's
well it started in my mind in Jesse's
mind but we're actually actually when
we're when we're going through
departmental budget because we're making
notes make sure we include this in the
budget that says make sure we include
this in the budget. So we're we're
starting a list a list of what we want
to be putting in the budget message as
we're going through
them. And I'll just use I'm just going
to show a couple examples. I'm not going
to go through everything in here. For
example, there's a resource summary for
the general fund since there's several
different
areas. So, you'll see the general fund.
You'll see the various sections that we
have. Local taxes, intergovernmental
revenue. These are the sections that we
use for general fund
revenues. And if you want more detail,
you'll see there's like 14.4 $4 million
here adopted for local taxes, about $3.6
million for intergovernmental revenue.
Go down here, you'll see this little
view report in blue.
If you click on
that, that will expand it for
you and you can see it graphically,
which okay,
but or you can go down here. Then you'll
see you'll see the it'll show you the
section again that we did you just kind
of saw in the budget book. Then for
example, you know, of these local taxes,
how much is the regular, how much is our
permanent rate tax, how much is our
local
option. This little black arrow
here, if you click on it, it will expand
it. I'll expand and show you what that
$14.4 million consists of. It's about
$8.7 million, which is our permanent
rate tax. The local auction levy is
going to be about 4.4 4.4 4 million this
year. Prior property taxes, you're
always collecting some back taxes.
City's marijuana tax projecting about
190,000. Franchise taxes we charge.
That's like cable TV, waste management,
Northwest Natural Gas. That's 5%
franchise fees we charge on those.
That's about
803,000 in budgeted. And then uh the
transient room
tax
137,500. This is the money we get from
the county on that. So and you can do
that on any one of them. For example, in
the governmental revenue, you
click and you'll see it'll give you the
the c what the revenue line item detail
in those in there is.
So for example at WCCCLS we're expecting
about 97
$977,000 this year
rounded ro fire district will be about
835 state revenue
sharing about
386 alcohol beverages which is also
state shared revenue is about 585,000 so
you can you can go through these and you
can see the detail details by the
sections in here.
This is open to the public. Yeah. Hey,
this is this is right off the city's
website right now.
Yeah. And now I clicking go back the
correct way, I won't lose everybody. Are
these also showing our contingency
funds, unallocated funds? Yeah.
No, I'm just going to click that.
on the adopted budget. If I go back now,
I want to go
back. Let's say for
example, the general fund. I mean, we've
got several and we've got all the
departments under the general fund.
Legislative, executive, administrative
services, the court, library, aquatic
center, parks, recreation, and
police,
fire, planning, economic development,
engineering.
But the for the general fund we have
what we have the non-dep departmental
section and for example when you go to
the general fund if you go down
here that will
show this will show the revenues and the
fund balances that are available. But
you go down to a budget
expenditures out of budget expenditures
what you'll see is there's a little bit
of personnel services materials and
services this year. Here's the general
fund. We budgeted a million dollars for
contingency this year of and then the
remaining fund balance expected fund
balance was about $6.2 million. So
that's the unappropriating. Yeah, that's
the this is the unappropriating fun you
go to. Yeah, that's what we don't
the reserve. Yeah, that's the reserves
that we can't touch unless there's
something goes wrong.
And each fund each most of the operating
funds will have a contingency like
capital funds and I mean most some of
the other funds we don't we don't put
contingency in every fund because it
doesn't need it. But the operating funds
we typically will put contingencies in
because you may need to take out some
contingency
funds. So I'm going to use I'll use
police as the expenditure example.
If you click on
police talks about the mission
statement, department overview and the
departmental goals and budget resources.
It will show what resources are assigned
to the
police. Most of its grants and some of
its charges for services.
Intergovernmental revenue is
[Music]
one. I'm probably thinking about making
a change. I've been thinking about this
for a while.
You'll see intergovernmental
revenue. We assign there's two items for
intergovernmental re. The alcohol
beverages and there's the school
resource officer
reimbursement. The alcoholic beverages
are are actually unrestricted state
shared revenue, but the city's always
assigned them to the police department.
thinking about moving them back into the
non-EP
departmental revenue. So, it's not
assigned to the police department.
Because, for example, let's say these
state shared re the alcoholic beverages
got cut in half. Does that mean I'm
going to say that the police department
I want you to take $300,000 out of your
budget next year because this revenue
that you have no ability to affect is
going in half. It doesn't. So, I'm
probably going to move that back into
the unrest to the non-governmental,
which is where we put the unassigned
revenue. So, it makes it makes more
sense to me to put this in the
unassigned revenue than it does
specifically in the police budget.
Thank you. Um, so that was just one
company wanted to make on the one
revenue for the sh.
So, so
expenditures, police, we've got it just
shows the overall categories right here.
The personnel services, materials and
services, and capital outlay on the
summary sheet for the police budget.
Again, if you click on the view
report, you'll get the graph. And the
graph shows personnel services and
materials and services. And they have
just a little bit of capital outlay, but
too on the scheme of this graph, it's
going to be too small to show up.
So, so personnel services, if you want
to know what personnel services consist
of, again, you click on that little
black
arrow, it will show
you regular
employees, intermittent employees,
overtime, health, dental, retirement for
the defined benefit plan, PERS. Some
officers are on the find benefit plan.
Some of them are on PERS such as the
Medicare workers comp and other payroll
taxes. Then if you click on materials
and
services, it will take you down and show
you all their materials and services
line
items, operating supplies,
organizational business expenses, their
personnel uniforms, utilities, and so
forth. One of their major charges for
them is their is the Washington County
Consolidated Communications Agency or
WACA as we refer to it. That's about
$370,000 for dispatch fees for the
police.
Well, somebody might wonder why there is
more capital equipment since they drive
vehicles and things like that. I'm sure
you'll explain that. I can explain that.
And then you'll see their other large
expense for them. One of their large
expense is the equipment fund charge.
Now, this is just their charge for the
operation of their vehicles like
insurance, fuel, repairs, and all that.
That's about
$287,000 for the police vehicles.
titans. Um, we purchase those from the
equipment. The equipment fund purchases
the general fund vehicles and then quote
rents them out to the general to the
general fund departments based on the
replacement cost of that vehicle. For
example, Ford Explorer patrol vehicle we
keep five years. We buy a new patrol
vehicle. We have the cash saved up to
buy that vehicle and then we certain the
police pay the equivalent of of that
rental advertised over five years. So
when the next vehicle is due, we have
the money saved up. We all we do
equipment fund. We always have on a pay
as you go pay as you go basis. So, but
you won't see equipment fund rental in
here or the actual vehicles because it
comes out of the a different fund which
I'll explain during the budget process.
But the equipment fund buys all the
general fund
vehicles except for fire fun. They buy
their own vehicles. Information system
charges. This is the charges for their
mobile data the rental for their mobile
data terminals and they're prorated to
share their desktops and their pror
share of the city's uh network hardware
servers and everything else. So they're
also charged the rental for all the
information systeming funds. It's also
pay me.
So and these line items correspond to
line these each of these correspond to a
specific line item in our accounting
system. So we just don't put the account
numbers here. But this is each of these
is a specific account number in our
accounting
system. Capital outlay. Most general
funds don't have a lot of capital
outlay. Um materials they do major tools
work. They do $10,000 a year for them.
That's to replace that's to replace
weapons. Weapons wear out over time. And
so you've got to purchase new weapons,
new shotguns, new AR-15s.
handguns, such things of that nature
because they they do wear
out. They do use them. They do use them
a lot for
practice. So, that's how you can
navigate through the budget book. And
you can do that on any, like I said, you
can click on any of the pages in there.
Paul, do you have one of these for every
fund then? I'm assuming you're not going
to go through every fun. Oh, no, no, no.
This is just an example I was giving
tonight. No, I was just that that place
I spent more time on because that was
the example of how to maneuver through
this. Okay. Yes. Uh when do you
expect this to be given to the budget
committee? May 6th. And when's our first
May 13th May 13. We put it out a week
before the first budget committee.
So, there's no other questions on how to
navigate it, but this it it works well
if you and you can keep digging down and
um question. So, you're going to give it
out to us May 6. And if budget committee
members have
questions and the meetings on the 13th,
would you like when would you like
questions? I mean I I mean the answer
staff always likes to give us as soon as
possible of course but it's we get
questions say by Friday or even
sometimes on
day we'll try to put try to put answers
together.
Is that going to be enough time for you
depends how detailed the questions are.
Some of Dave's questions we struggle
with.
I'll give you much time as I can type
questions.
Always asking for weird stuff.
Well, and if one counselor and some one
committee member asks a question, we
give the answers to all of the committee
members. So, we don't just answer for
the one one committee member.
So, I shall turn this back over. Okay.
And you are going to have the city
council objectives. Yeah.
Next
transition kind of raise a process
question for for me. Since
uh deliberations would have to be in
public, would you prefer that individual
budget members directly direct questions
to you individually and then you can
prepare answers that you can email. You
can email them and then we we give the
answers
out their answer.
Right. So not exchange.
Yeah. So there's no
violation question each way. you send
your questions then answers.
Hey, I'm Jesse goals and objectives.
So, I'll just take a few minutes.
Thank you. Um, so for the council, this
is a
give you for the budget committee
members. Every year the city council
goes
through the goals and objectives
process. Um it's in the council
rules. Um and as part of that process um
they may or extended or retreat and
then work sessions and come up with
goals and objectives. The purpose of the
goals and objectives is to set the
strategic policy direction for the city
for the for the following year and in
some cases two and even three years.
Staff, this is really a blueprint for
us. What what we do is staff takes city
council's goals and objectives and we
work those into the budget. This has
a large influence on the budget. And so
you'll see connections between the goals
and objectives and what's in the budget.
And so for example, if we're looking at
updating an economic development
strategic plan, we want to do that
within a year and that requires the
hiring of a consultant. I don't think
this one does, but let's just assume it
does for
purp. We may put what we think the
estimated cost of that consultant would
be. In this case, we put it in the first
year of the budget and that would
address that total and objective or at
least have resources to be able to
address that goal of objective. Um, for
the purposes of this conversation today,
this is public. Um, I
um it's available on the website. If you
would like copies, we also have
copies of your budget books. When that's
handed out, they will be part of the
budget book. Um, I'm not going to go
over every objective. I do want to cover
however some of the broader goals
because there was some changes this year
that the council
made. Before doing that though, I also
want to make a comment. I think many of
you are probably pretty familiar with
the 2040 process that's going on right
now. We have a 2040 vision plan. It's
one of the if not the first time the
city's ever done it. It's got to be
pretty close because the last vision we
had was from 2009 and it was not near
the amount of community engagement that
we've had with this process. Under the
current 2040 process, the idea behind a
2040 plan is obviously to look out 15
years. It's really to kind of challenge
the community about what type of
community do you want to be in the next
15 years? What are your aspirations?
What are your goals? What are we doing
right? What do we need to do better? Um,
and the community engagement in this
project so far has been um very
thorough. Uh there's been farmers
markets electric survey and fire
consultants to make sure that we're
reaching those folks that historically
don't don't participate in these
processes. Uh they have any kind of
barriers to participation. We've gotten
a lot of feedback so far. All of that
feedback we're calling you know we're
just basically community engagement. Our
consultants have kind of amalgamated
that feedback into some broader themes.
Um, and right now, as you may have
heard, we're having vision labs. The
vision labs are essentially meetings
about what the themes are and a draft
vision statement. And so, we're getting
even more robust community engagement
right now through our vision labs. We've
had great
participation. All of this input, all of
our community input from all the
residents. All this is eventually going
to kind of get categorized. It's going
to get put into themes, objectives,
goals, vision. Eventually, it's going to
make its way to the city council. And
when the city council looks at it, of
course, they'll take all of this kind of
into consideration and promulgate what
this what the goals, objectives long
term are going to be for the city in the
2040 plan that will eventually kind of,
you
know, be consistent with these goals and
objectives. And so these will kind of
feed into that broader framework. Very
similar to a bannual budget being a
little longer term framework for
allocating resources. 2020 plan is going
to be an even longer term framework for
policy analysis, for budgeting, for
resourcing really to kind of make sure
that everything we're doing is
consistent. It has resources allocated
to it and going in a direction wants to
go to. So, so we're pretty excited about
that because you won't see it on this
document this year, but it's definitely
starting to be talked about how it's
connected to this, how this will feed
into
that. So, you you'll be hearing more
about that. Um, but let's just cover
goal one. Rule one, broadly speaking,
address long-term growth that support
housing. You'll see a number of
objectives under there. We will see some
budget things associated with that.
We're gonna have a budget um allocation
for the comprehens.
I'm sorry. That's okay. I'm not used to
the two screen um
the two screens. You didn't pop up your
card.
I'm playing solitire. Yeah.
So, if you if you could scroll down
maybe Jamie real quick, you will see
something. The comprehensive plan. The
comprehensive plan is a very broad-based
document that's got a number of planning
documents underneath it for the city.
It's something that we address on a
long-term basis. So, we'll have some
resources associated with that. Um, keep
going if you would. So, the second goal,
ensure an inclusive, accessible, and
sustainable community. This goal got
slightly changed this year. Um, if
you'll scroll down a little bit, that's
where you do see the 2040 vision and
action plan. I think you will see some
budget associated with that because
we're still working on it. You'll
probably see some things associated with
DEI, associated with urban renewal,
community academy. As I look down this
list, there's going to be something in
the budget for all of these things
virtually. Accessibility and
compensation that was talked about a
little bit earlier.
Um parks maintenance, we're doing that
evaluation right now. And then a parking
demand management plan. You'll see
something in the budget about that. Keep
scrolling down. Next goal is maintain
community safety and wellbeing. So
again, a lot of when we say we put this
into the budget, sometimes city staff
can do this. And if we just need some
resources associated with that, it's
probably not a very big budget item.
It's something that's really outside of
staff's expertise or we simply don't
have the bandwidth to do it. A lot of
times we'll need to hire a consultant,
somebody that's has expertise in that
area that knows how to do either the
planning or the design or construction
or the alternatives analysis. And so
that's when I say request I may refer to
that. If you keep scrolling down
um kind of read those
objectives let's go to the next
goal enhance recreation opportunities
for all. I think this is our last goal
and again you'll see budget items and
virtually all these whether it's Kyle
Park master plan many of these things
just broader kind of picture if there
are grant programs that are eligible for
some of these goals and objectives we
always try so if you're looking at Kyle
Park for course loop trail I think we've
received in talking with director Ann
lane she's been terrific about paying
grants and I think we've received over 5
$500,000 in grants for some of those
planning processes. Another example,
Keith has done a wonderful job getting
grants from Department of Energy for
mitigating wildfire and that urban rural
interface. And so we definitely tried to
do that first. Uh if there's a matching
component, so oftent times in a grant
you'll get $100,000, but the city has to
pony up 10%.
$10,000. You'll see the $100,000 in in
the budget because we have to account
for every all the money that comes in
but it will be 100 coming in 100 going
out and then you'll see matching
funds,000 numbers that we need to match.
So that'll be
so that that's that's all I have. Do we
only show grant monies once when it has
been awarded?
It's a great question. Yes, we if we
have applied for a grant and not
received an award, it's not in the
budget. We have received an award and we
expect to take receipt of money, then we
will put it. So, in today's environment,
we know that having been awarded the
funds, but not receiving the funds
leaves you still in a very iffy
proposition. It does. Yeah. But lately,
and I I kind of briefed the the council
on this a little bit last night in my
city manager comments, we're doing
everything we can and not only kind of
if we've been awarded, we're doing
everything we can to get a grant
agreement associated with it. Um, and to
obligate the funds and so we're we're
busy trying to advance those projects as
quick as we can and obligate those
funds. um if you can get a it's one
thing to have it be awarded, it's
another thing to have it obligated. It's
just kind of another level of assurance,
so to speak. And
so I updated last night that four
different grants that we have over the
past three weeks obligated where we were
reported, but now we've signed
agreements with other entities to
follow and that's
just doing our best on that.
That's all I have.
I guess any questions? Sorry.
I will send out the goals and objectives
document to the group after the meeting.
Is there a way to like maybe on the
website on that finance with the budget
like at the top to say these are the
four I mean is there four overarching
goals? Yeah. Like I think it would be I
mean it's probably just a teacher and me
but I think it would be really cool just
to show that linkage like these are our
goals and objectives and that so this
budget those goals drive the budget
right so that's the personal linkage but
I could I don't want I think that like
for
transparency public do
and also list our values we didn't cover
those council has routinely accepted to
be adopted some values that are
associated with that. Whether it's
inclusiveness, whether it's financial
sustainability, whether it's long-term
strategic planning, those values are
also associated and factored into all of
these deliberations that we have both at
the committee level and just to clarify,
are you requesting that the goals and
objectives and values be listed on in
the budget book within that section of
the web? Are the web page like
pages.
Yeah. Anyways, we can talk about that.
Okay. Are you asking for a I wanted an
easy interface.
There will
be when we do, we'll ask Stephanie to
put the proposed budget, but
yeah. Someone who's not doing the budget
should see if it's obvious. Yeah.
Sorry. Someone who has I want to clarify
one thing. I don't think you're asking
this, but let me check. Are you asking
that when the goals are listed if
there's some hyperlink from specific
goal to specific budget items?
Absolutely not.
[Music]
[Laughter]
That's why I was requesting the
clarification. I'm happy to do it if if
I can.
We'll get it figured out.
We're just going to go through
some stuff to kind of set the stage for
the 2527 budget.
Most of this is again general fund
related again purpose to help set the
stage and discuss some of the
assumptions that we're using when we
prepare 257 budget without getting the
specific expenditures amounts for those
expenditures. Property tax
revenue we're going to we're going to
use a 4.25% 25% increase that decreases
value for both both of the two fiscal
years of the next banial budget uh based
on the
last increase over the last four years
and continue development and what's left
for
development some potential industrial
development coming through that
increases reasonable for us you know we
don't get the industrial development
right we have some enterprise zones that
are starting to expire. So to assess
value off some prior industrial
development state shared revenues
projects a little bit in 2526 about
between all four of them probably about
$60,000 total and that that will start
to increase again fiscal year
2627. Um for the specific some some
specific examples for the
library we're projecting the Washington
County library system revenue to
increase 1% growth year already
mentioned this 25 26 and 26
27 we will know what the county is
planning to do for fiscal year 25 26 on
April 29th
2025 is going to release their budget 28
April next year and then for 2627 and
future fiscal years we won't know what
the projection for that revenue will be
again until after the results in the
November 2025 levy is known funding
formula is finalized
but didn't
doesn't prefer like option of funding
haven't they kind of released a funding
mechanism that they use like or I I mean
yeah for the library. So I guess yeah I
want to like just make this quicker. Uh
shouldn't we have a couple like
forecasted options based on what they're
recommending or at least what they're
recommending happen? So there's there's
a couple things that play into this and
and for for those that haven't kind of
mentioned the budget process. The reason
1% is significant in this
context and I don't know the exact
figure I'll correct me if I'm wrong but
I think approximately 55% of the library
funding actually comes from comes from
WCCLS. We've historically always
received a 3% increase on a per basis
which was attached to essentially the
assessed value in the general fund that
come from the county to the city.
they have lowered that percentage down.
They the county has lowered that
percentage to one to two% on a random
basis. And so even though it's an
increase, thus the amount of projected
revenue that we would otherwise have is
a little bit less. And and it's and so
it it just creates
um some challenges for the library and
some some challenges for the city. What
the county is looking at at this point
and what they've talked about openly at
the board of commission meetings is they
want to replace the existing library
levy and what they are looking at they
haven't voted on it yet but they're
looking at voting on it consensus at the
work session to increase it 15 cents
um calling in
22 so from 22 to 37 they did some they
did some polling
The polling at the time was
generally generally pretty good.
Libraries have pretty good um public
approval in Washington County. Um that
poll was done about two two months ago.
Are they planning on polling that again?
I don't know.
They're going to pull that yesterday
public. Yeah, that was that was one of
the the kind of constraints on the poll
is that it was not necessarily
juxtaposed to the public safety levy
which is also looking for
replacements. So the context of just
asking for the library changes a little
bit if you ask for it in the context of
replacing two liies. We're going to look
at doing some additional I guess my I'm
not speaking super clear right now. So
I'm going to clarify my question. I
remember that the recommendation by this
consultant was to fund li to find fund
all libraries at the same amount for
open hours or like however many hours.
So my question is we have a general idea
of what they're going to fund that
gives. So can't we I guess I'm just not
understanding why we can't have some
sort of educated guess about because you
don't know
theology. I mean you might know the
formula. Well you would either know the
le passing or the not passing and the
formulas. But basically what I'm saying
is that you have some information to to
have like a fall to have two different
one. I I would also caveat by saying
WCCCLS, excuse me, the consultants are
right now are literally kind of meeting
with the library directors um and and to
a certain extent the city managers and
trying to sharpen up on what that will
be like if the money doesn't pass, what
the revenue forecast would be, what the
funding formula would be. So, I'm not
sure when some of those changes will
take effect. I think there's a couple
assumptions we can assume. one is if it
does pass there's going to be a certain
amount of funding available and if it
doesn't pass there's going to be another
amount of funding available and I think
we can as information comes in during
the kind of consulting process we'll be
able to sharpen that estimate up because
there is going to be there's going to be
two different estimates for
sure we imagine that's material
Some of that's going to be consolidating
services the collection
change how we do business.
I don't think we know that yet
definitively because we don't have the
agreement yet on how
the this new proposal to do things
countywide is going to work. So, we
don't have a plan yet that says this is
what that's going to look like and as a
result of that plan, this is what's
going to happen.
That what's been talked about is
teachers. The specific function that
they've talked about is collections.
There's a lot of elements to
collections. Um there's selecting,
there's cataloging, there's sorting,
there's actually putting on the shelves,
there's delivering, there's so there's a
whole kind of and that conversation I
think is probably all to has not
started. It's virtually not even
started. It's just the overall concept
of collections has been kind of put out
there and there's been some I think kind
of general thought that yeah, we should
talk about it, but I don't think there's
any consensus on how it would look or
how much money it may or may not save.
No, I I just want to say I don't like to
work with estimates when it comes to
money. I learned from my grandma, you
cannot put it in your budget. until you
have it in your
hand. And you know that's something that
I just truly believe in. We can have an
idea and be happy
surprised when all this is over with.
But I think we should just stick with
the numbers of what we have.
That's why as I said earlier the library
budget might be
mightier hopefully have more information
by what's actually
happen income significantly increased
due to dramatic increase in rates
although those rates level up they've
actually started to lower slightly
recently however the other Reason we're
getting we're getting very good interest
rates right now is we're continually
replacing lower interest rate
investments with a higher
rate. The interest rate is down about
0.25 or half a percent buying two-year
treasuries and other stuff at point 2.5.
outline those
maturing will probably stay on for a
while before it starts to tail off tail
off in future years. So interest a
pretty significant component of our
income. I it it is I mean it didn't used
to be but general funds are fairly
significant but we also try to look at
what we're spending the interest
on how you want to get on interest
rates. Uh the fire rar district share of
fire operating rating expenditures will
increase from 12 to
12.4%. Their percentage is based on a
5year rolling average of calls. And so
there's been enough additional calls out
the district where we're changing that
12 to
12.4%. That may not sound like much, but
it's about 32
$33,000 general fund just on that 24%
change. So it's not that helps. And
cattle expenditures for the fire split
on a 50/50 basis. City pays half. Fire
district pays half.
apparatus
capital changes at the federal level
that we're currently looking at current
experience experiencing do not affect
the city's operating funds. Cities not
receive a lot of operating federal
operating
grants cops grants which appears to be
safe. We've gotten requested
reimbursements and received the first
year on that. So we are getting grant
funding still. We just have some very
very
small police department like DUI seat
belt grants. I think maybe about 10,000
small to not a lot of money. So um
capital grants could be most risk for
the city. That's why as Jess said we try
to obligate obligate current capital
grants as we trying to protect the ones
that we have like say school and
other federal money. We were going to
apply for what they call a brick grant
in our public works department that
was for the water program. We were going
to apply for
a about 30 $36 million storage
billion% naturally million. We had the
application filled out already sent in
and the whole program.
What's even worse I think people who had
Yeah, I should have mentioned that
202120 you received a prior
grant funds
going the federal government's going
back to 2020 to take that
so it's so that and that's a if we would
have got that grant would help a lot
because we have to build. So if we don't
grant program doesn't come back
for success, it's probably going to
cause us to have to borrow some money
for that tank. the water funds. You'll
see when we get to the budgets that we
we have a lot of cash
funds there's a lot of
private
future because it's not just
replacing the tank
essentially I mean it's 5 million gallon
tank Right now we currently
have build two tanks.
So tanks up there one. So half half of
the tank half of each tank will
be but you have to have the funds in the
SDC the SDC. We have some but we have
some good funds in the SDC but not that
not that much. So we always look at the
water projects as system development
charge. Let's say system development
charges can be used for growth can also
be used for reimbursement. For example,
if you have used capacity in
system charge
people development to pay for some of
that prior development you put in that's
currently not being utilized. For
example, at the water treatment plant,
the water commission plant 10 million
gallons of capacity, we use about six.
So, we've got about four million gallons
of capacity. We can
charge we can charge system development
charges to
recruit
cost SDC's are
botting for the federal we're fairly
comfortable on that
for budget. Do you know what system
development charges when they say
there's like the fees you like new like
builders pay or new construction they
just like infrastructure for water or
parks or water parks for local SDCs and
sometimes county a lot of so for for
there's two STC's that the city charges
directly is that yes city charges yeah
the city charges water is one and parks
is the other the other SDC's that you
will see as part of any new develment
This is not unique to course. This is
municipwide in the tri county area and
also in other parts other
municipalities. But as the mayor
mentioned in SDC's system development
charge, the intention of the charge is
that you are paying for the cost of that
development on public infrastructure. So
when you add a house, add 72. Add a
house transportation. So fee is charged
to try and renumerate the expense of
that addition. We do water and parks.
The county does what's called DDT. I
refer to it earlier. That's
transportation development tax. That's
one that I think is approximately
$12,000. Um and then there's a storm and
sewer SDC. I believe 80% of that is
clean water services. 20% is the city
for the sewer. The
city retains 20% test services. That's
going to be about seven or eight next
year% and then we collect sometimes
we'll collect a surface water management
system development charge city retains
all of that
city but that's only
$700 by the city or that's by the county
by the county and when you when you hear
about surface water when you see those
collection basins around town that have
plants where a lot of the runoff whether
it's a road or your gutters from your
house or whatever the city maintains all
of those. So the SDC when Paul says
storm that's referring to those areas
and there is a
maintenance of the cities.
You have a sewer and a storm
charge. Most of that is clean water
services. Approximately 80% of that is
clean. We keep 75% of the surface
surface storing sewer. The majority
majority%. So there's some conversations
currently about whether municipalities
are going to continue to build that
expense for clean water services or
whether clean water services should just
build that expense directly since they
are the ones that acrew most of the
funding and then bring it back to the
city. Right now the municipalities it's
done differently but most of the
municipalities build with clean water
services and then we give the money back
to clean water services. some smaller
cities like King City, Durham,
um they clean water services actually
bills for them and then sends them
money. So some other cities are looking
at that saying why don't you do that for
us. I mean that looks like a pretty good
deal. Certainly, but that's personally I
prefer billing for clean water services
because when you send just out a
sewer collectible rate goes up because
you have no you don't have a lot of
teeth to collect that
bill can't really sew you can't
go to stop the sewer services from so I
would
think that's just that's a good
public charge
Yeah, that doesn't mean we can't say the
other is there be an administrative
expense for the cities that do it
because right now we don't regular
Well, that that's I mean if you can
that's kind of brought
this just some examples of federal
grants that we've done. Talk about the
cost grant. That's a
$250,000 award partially fun two officer
positions. We received the money over
three years. Year one will get
125,000, year two will get 70,000. Year
three will get5,000. The city's match
increases the
years they set dollar amount. We just
have to make the
difference money for safety highway.
Yeah, I think that's one that's the one
850,000 Jesse got obligated. Pardon?
850,000 is one of the Yeah, we signed on
850,000. We signed an agreement with
ODOT that project got now that we've
signed the
agreement we agreed to the matching
funds and that's now in step that's
going to be calculated into our
statewide transportation program. So
yes, that would be considered poly and
it's cool because it got moved up got
moved up and so construction that's
going to go towards the Street
intersection which is one of our most
like high crash intersections in town by
71 in Dory. So it's going to start in
2026 right? Yeah. We got we got into the
2020
2025 to 2027. Yeah. That was a a great
example of a project that was not really
on ODOT's radar screen to be candid. And
when the city came to the table through
a lot of kind of efforts of lobbying
etc. We came to the table with federal
funding. We got we got it on the table.
We got it in the step and now it's
so that that
was work out really well. They knew they
needed project done.
And then he's $900,000 community solar
project which we installed with city
substations.
revenue from that will be used to the
city's low energy assistance program
that has not beenated that's been
awarded but not
sol that is a great project that kudos
to our light power team that's that one
may be more risk than some of the other
we have I will say that Jamie Keith and
have been working try and get
HUD program money. It's been
cut and that's just examples. There are
other grants like he's got the grant to
bury the overhead cable and
underground and
the areas prone to wild wild fire.
And we're starting that work, right?
That with our own money. First question.
We're doing joint projects with our own.
Yeah. Then we'll finish it up with still
waiting
on spender assumptions, wages, benefits
increase contract negotiation will be
budgeted.
We're also going to propose a coal for
nonrepresented staff.
CPI 2.6 2.7. We're trying to figure out
exactly what it was last year. We keep
getting different percentage numbers
slightly different percentage numbers
from people. But police association
contracts be negotiated. So actual
increases will not be known until the
negotiations are
complete. Waging known wage
increases ask me
2.62 CPI by contract. IBW is 3.5% by
contract. Fire association is 4% by
contract. Non-represented staff at this
model we're thinking about towards any
3% cost of living and that's partly
based on what surround surrounding juris
jurisdictions are doing for colas. One
of the things that we look at when we're
setting colas decreases
is we do we don't want to get too far
behind the market on these things.
people larger cost adjustments than
cities are we tend to get behind tend to
get kind every three years when we do
when we labor contract labor contracts
about
expire services does
a wage wage and benefit comparison for
the comparable comparable cities or
likew utilities around us some other
utilities
And for management, we'll we do a on our
staff. We do a study every three years,
which typically contract, but we'll do
it every three years. So, we're sort of
on the same
cycle and we use the same comparable
cities.
So if you get too far behind then you're
then you're below the market. The
council pay policy of setting
salaries plus or minus 5% of the market
median. We try to try to keep it close
to the market to the market median.
Again we try not too far out on the five
above the low get too far particularly
on the blow side have to do
stepping back up a little bit. You don't
staff tends to leave the
pasture hiring staff at some positions
not the easiest things
anymore and we have some requests for
additional staffing. We're reviewing
those to determine if the positions are
sustainable, the projected
revenues
and cost increases that we're for other
the opioid settlement money. Um the
count last year the council we council
set a resolution the opioid money just
sent to the cat in Washington County.
Yeah.
We saw I think money's actually been
slowing down. got we got 90,000 once or
twice and the last payment we got was
around $50,000. So
it's starting to taper
off kind of big picture was is a lot of
municipalities received wasn't enough
to anybody wasn't enough to kind of
implement their own program so to speak
and so there
was a lot of conversation about how to
get the community addiction treatments
that are going program county was
heading up. And
so could be mistaken, but virtually
every municipality said we pull all of
the opioid addiction recovery money that
will sustain the operations of the
center not operations of the center for
the first I don't remember however many
years until the county could look at
doing the budget for that.
So that's essentially where the money
program and I I know we did
it. I don't know about
those but that's
generally frame.
Um there was there was an estimated
table that was put
out that we could definitely represent
I don't remember I don't think we're
yeah I don't remember how
long I don't think we're getting as much
it was a structured settlement I think
it was 10
years princely
[Music]
because we can
get all
that medical and
dental police and fire.
police and fire associations are the
Northwest Firefighters Trust or
everybody else with
CIS police fire went off on it went off
the line previous contract and the
police went over over the last their
last contract with most firefighters
associated trust with minimum
dental their estimate of their increase
for July is about 8%
%
other Kaiser CIS Kaiser project 13%
9% dental delta dental which is cross is
7% Kaiser's 3% dental is 7%
CIS is the county insurance services
it's where we it's a pool arrangement
for uh there's one one side for city and
one counties. So we buy our property and
liability insurance from CI from city
county insurance services and for all
employees except for police and fire we
buy our dental vision all that insurance
from CIS as
well. Northwest firefighters firefighter
it's a better probably better program
than CIS but they're very particular
with the take. They tend to mostly take
police and
fire. That's from an experience basis.
Most of the police and fire employees
themselves tend to have better health
and better longevity, you know, better
health, but not as poor condition as
some other types
of younger sitting around all day.
That's a nice way of putting it. They're
not they're less sedentary.
sanitary than a lot of the other
employees.
CIS retirement um city's defined benefit
plan is decreasing by
532,000. This coming year it actually
went up by about half million dollars
last year. So it's going back down to
where we were hoping it would be at. And
about $378,000 of that is the general
fund. $96,000 to light power, $58,000
public
works. I know that because I have the
[Music]
actuary I have calculated police, fire,
general, employees, and general separate
public works.
I have all I have each of those
categories
costy. The city's divine benefit plan is
now a closed plan. There's no employees
in
it. He took police fire in
2016 like power 2020 I think there
power at that point in time closed.
That's a pension plan. That's a pension
plan. That's a yes pension plan which
means we have three plans the city the
city has. We have PERS. We have the
city's defined benefit plan. We have
defined contribution
plan. The fine benefit plan for the city
is
a retirement payout to the employees
based
on a formula which is like general
employees is 1.67% times their highest
average 36 months earning their last 10
years of
service times years of service. That's
the general. public safety 2% instead of
1% essentially the old PERS tier one
formula without the money match portion
of it. So actually it was a very it's a
very lucrative
plan which is one of the reason why we
got to go away with it away from it was
getting very expensive for the city to
try to
maintain per is kind of a hybrid plan.
It's got the defined benefit portion and
then it's got the individual account
plan which is where the employees
contributions go now and the various
level tiers and curve I'm not going to
go through that right
now portion contribution
portion then
we ask me
employees ask me employees recently had
the option of going to pers or to stay
in the city's defined
contribution. We're having quite a bit
of turnover with asking employees to try
and plus we're trying to make it so they
were on par with the other employees in
the city.
No, these are as this is like public
works, the office workers, water
treatment plant people,
library
staff. So we gave them the option of
going to join to PERS or staying in the
fine contribution plan. Most elected to
go to PERS. So we have
about 10 of them still contribution
plan their reasons for it varied they
very close retirement they
didn't pay we put about we put 10% of
their salary into that for them and 12%
2% contribution of their own 457 comp
those are the three retire
class make the auto report
longer. Um so the main reason getting
back to this for the decrease is due to
the actual earnings for the plan
exceeding the assumed assumed rate of
return of
5.25%. We exceeded that by 6.57% for the
year end.
So that rate will become effective July.
The contribution in the metal will
become effective July 1st of
2025. PERS rates are increasing by 8% on
July 1st. They go up that whole 8% on
July 1st. However, then that rate in
will be in effect for the next two years
through June 30th of 2027. That mean
their investments didn't do as well.
Um, they their investments did well did
okay, but they've
got they've got other structural issues.
I mean, they've got they've got some
they got employees that are they got a
lot of unfunded actual liability.
They're trying We do too. They employees
are trying back in the days that they're
trying to work through
That's the retirement
changes workers compensation rates
likely increasing by 10% on July 1st
2025 for us. That's based on our
experience mod going up from
66.76. Actually, we were 0.94 a while
ago 66.
76 and you get one large claim that
greatly change your experience. However,
say it's been awarding a dividend for
several years now and I typically give
that dividend to keep the cost of
workers comp. I try to keep workers comp
fairly flat for the for the department
and so that's what I use the dividend
for. Cost go up. I cover it with the
dividend money. We account for that in a
risk management fund. So that might
separate separated out.
Try not to raise the lowest compar by
using the dividends. Property liability
insurance is increasing by 5 to 8% this
year. Auto liability insurance that's
genre. Just some comments on some other
funds.
Uh we're reviewing the rates for the
public port enterprise fund and also for
power.
We're going to be conducting a water
rate study this fiscal year when
presented to the council for
consideration. Staff will likely propose
a 3% increase on July 1 of 2025 and
propose implementing the results of the
water rate study on July 1,
2026. Don't want to go too long. Water
rate increases. do
that much larger just the one year and
the public
public kind of doesn't mind the smaller
increases.
Yeah, we've been hit with we've been hit
with not changing it for several years
and then we had to raise it a lot. So
the council said at that time we'd like
to see a series of smaller raises so we
don't have to do the large the larger
tax. So that's that's what we've been
trying to do. Uh, clean water
services has proposed a 4% rate increase
on July 1st for sewer sewer and surface
water management rates. They haven't
approved yet, but that's what proposed.
Who approves that? What is the approving
body? Uh, the Washington County Board of
Commissioners is the board for clean
water services. I mean, they're
technically separate agencies, but the
county commissioners are the board for
clean water services as well.
Um they uh county typically doesn't
approve those until around early June.
So we typically wait till the second
meeting in June to do our sewers rates.
We in the past we tended to mirror the
clean water service rate increases but
we're still reviewing we're still
reviewing the sewer and swim funds. We
haven't
determined potential rate increase yet.
probably something
but% line power fund potential rate
increases will be reviewed now that BPA
rates for the next three years are close
to being finalized I think finalized
August July so we're going to start the
study study now shouldn't be that too
bad of a study because consultant has
most information it's just a matter of
hopefully changing a few factors
We'll get it started and then BP rates
finalized. We'll plug in the final rates
and then see if that changes. We're
going to put the preliminary rate
increases. We know what the average BPA
rate increase is,
but you don't necessarily we you don't
necessarily get the average BPA rate.
Each utility
rs typically tends to be a little
higher. The average rate
Yeah. So, but we'll plug in we'll plug
in what they think our proposed rate
going to be and it's final. We'll plug
in the final
rates work
session all of the same
power that'll be for the next threeear
period which will close out the current
contract.
That's that
one. Any questions on any of that?
C we don't I we tend to mostly stick on
the larger fund like the general fund.
So the other stuff these meetings it's I
mean the C we could talk about C. It's
you know it's about an $800,000 bud.
Right now we're getting two components
for C. We're getting C grant
money and we're also getting what's
called the community investment
fees. There's $1 C there's a $1 fee at
the transfer stage. That's for CP per
ton per ton and then there is a
uh 50 cent per ton fee called the
community impact community that fee CIF
fee transportation. the waste management
can elect to collect or can elect not to
collect. At first they didn't collect.
So for the they collected a much smaller
fee. So the first year we we got a
couple hundred bucks a year from the
CIA. Now they're collecting the 50 cent
fee. So that fee is that fees coming in.
Right now, Metro's allowing you and I
don't unless they finalize the rule that
check they're allowing you to since they
don't have any specific rule how you can
spend the CIF they're allowing spend
CO for relocation
uh Metro is pro um Metro's coming up
with their plans.
Cornelius is not scheduled to be a
full-blown transfer station. It's it's
more to be recycling. I think it's a
full transfer station and this this one
over here will
still
do
that. I think there was some indication
center would find some way to keep it
going.
That's what you mean.
Um it's I they're looking at their whole
solid waste system now. So I think I
haven't I don't know what they discuss
about the CP future. So it's going to
retain or not. So it's because they're
going to be doing they're going to be
doing different things transfer
stations and they're going to be they're
going to be located recycling some other
type transfer stations in various
places. So not sure exactly where all of
it
in case you're not a
community monies that come to us from
Metro Transfer
Station. This year we awarded about
$90,000
grants. We gave Chamber of Commerce a
three-year grant, $40,000 each year.
Then we awarded three other three other
entities. 2020, I believe
10,000. You notice we did the C
this decided last year to switch over to
fall. that we kind of know better what
revenues are
plus staff workloading it. It's just a
hard thing to try to do in the spring
with everything else that we do. The
fall tends to
be it's busy but there tends to be fewer
established programs like other stuff.
Shall we take a break?
Yes, but we have three more. Might take
a little bit of question.
I say we stretch our legs for a moment.
[Laughter]
I do it all the time. No, now I can't
see anyone. I don't think that'll work.
No. As soon as someone talks, it'll back
out. What? You don't like to have your
picture on the screen. So, watch. Soon
as someone's talking and then the next
time someone talks, you don't. Okay,
we're going again, everyone.
I don't want to silly. You don't like
Not really, but I'll just I'll just roll
with it.
I didn't hear tonight.
There. That is not large enough for
everybody. I'm going to zoom a whole lot
bigger anyway.
Yeah, I think it might go off the
screen. Yeah,
there we go. There you go.
Hey, the last thing is
the general fund fiveyear forecast. And
that's what it is. It's a forecast. I
didn't go meticulously through each out
to year 2930 and say I think this
expendure revenue wise. said let's kind
of do this 26 25 26 and 26 27 we know a
lot of the parameters so there are some
of those numbers are fairly good but
after the
27 through 30 I said I did go through
and apply percentage increases to some
of the different revenues and
expenditures I just didn't apply a total
factor to all revenues otherwise it's
your Ouija board right
yeah and to explain it real quickly The
two blue columns are the current fiscal
year. There's the original budget
forecast where what we think we're going
to hit the end of the year. Then there's
the for the green columns are the
forecast for the next five years. First
two green columns will be what we I mean
those that will be the first two years
of the banual budget. the red red or
whatever color not red so
much for it is um that's forecast 2728
reason I put that that color is that is
the last year of the fiveyear local
auction
we have two we have two things permit
rate which is about $3.96 per
thous which is additional property tax
one property tax bill that expires every
five years. operating least can only max
that's a thousand's assessed value of
assess and it got that two years ago two
years ago as I said we're 25 26 will be
the third year
it just basically helps
us a bond appreciation bond
and
operational
staff, right? Yeah. For example, the
police obligation is a general
obligation for up to 21
years finance
cost local operating levies are to
supplement your get additional revenue
to do more operations. It started out
years ago at 99 cents a thousand and
over over time it's increased and it's
now
$1.95,000
and that expires June 30th of 2028.
Typically we have gone out a year early
to try to renew or replace the last
time you're renewing just asking the
voters the same.
We'll ask the voters in June of May of
2027 at that election probably to
approve renew.
So probably in
the probably in the fall of 2026 early
fall start planning
for doing projections for
what to do for the next five year oper
Start fall 2026. That will give you
about seven months
time before you have to approve
it. Okay. So going down here, I said the
first two columns are
the are the current year one's the
budget amount. be appropriated. The
other one we're
forecasting. You'll see number one
property taxes. That's that's our
permanent
rate. Number two, where it says local
option electric is also property tax.
That's the 5year local option. I
separated those out so people can see
kind of the magnitude of it. See the
local option levy is not insificant when
it compares to our
rate what barely less than half of
what all other taxes or franchise fees
things of that
nature governmental revenue is what we
collect from the government for example
the
county money
Washington County Department services.
Also, we we have a contract for services
with the fire districts. We charge them
for operational services based on
rolling average of calls. Like I said,
next year it's going to
12.4%. So that's the other major line
item between the
library. It's about half
grants. You see that's that's a fairly
small amount charge us for services or
what we
charge some of the fees we charge out
for services we perform. You'll see $6.2
million. The largest line item there is
actually what we call our general fund
for service charge. It's overhead
charges that we charge to our other
funds like water, sewer, light and
power. Central we do a lot of services
for those apartments that we charge and
they get charged back for them. That's
probably close to five of that $6.2
million. Licenses, permits, fees is like
business is like planning fees of that
nature. Fines exactly what it says. So
there's traffic lines
mostly fines, parking
lines charges for
services one
way into funies
that stand. Yes.
And city's always done that. It really
hasn't changed the
methodology for a long time. I
essentially use the same methodology
almost that the person before me, but I
changed it somewhat. I charge some like
utility billing staff. I charge
specifically out all of it out to
me% of it
outdoed the cost we did cost
services they did a very complicated
cost allocation method and it came with
about 20 $30,000 how I was charging how
I my easy method of charging the fun. So
I've always just kept it doing easy
method.
Um miscellaneous that's most of that's
interest
income some of his
donations transfers and reimbursements.
The
uh that's money mostly comes from other
funds as well. For example, remember I
mentioned all other taxes we charge.
Some of that's franchise fees which are
charged like Northwest natural
gas
companies waste management for operating
on city right away. That's about 5% fee
city. Now we do the same thing. We're
charging charge our electric company we
charge
5% tax. So that's why it's transfers
charge 5% to water 5% of the
portion of the sewer fees that we keep
of the city. We don't charge the 5% on
the clean water services fees because we
don't have we don't have a right or we
want to work on develop
shortway or charge 5% services fees that
probably
a
year flip side that
$170,000 on the
customer
not say that we're going to pay this
franchise. We don't care about we don't
care that we have
that discussion on you want to do that
just
have
to so like I said in these are the big
ones of that money there so that's kind
of a quick rundown on revenue
categories in each of the revenue
categories you'll see we've budgeted
27.9 million
We're receiving about 27.4
million. Doesn't bother me
because we budgeted some expenses for
the recreation
programs in the non-EP departmental
fund. However, we just we ended up just
charging those most charging all of
those to in the ARPA fund itself. So, we
didn't actually make the transfer. We
didn't incur the expense. So, we didn't
bring the revenue over. So there's kind
of a wash there between between expenses
and the revenues. That's that's quite a
bit of the revenue differential there.
Some funds for those familiar is
government funds
came that was awarded to cities
municipalities.
Yes, that money's gone. We got about
$5.8 $8 million we had to spend at the
end of by December 31st,
2024. We did that. So, some of them went
to summer recreation
program. So, you'll see I'm not mean to
have short some of the other little some
of the other shortages. Some of the
state shared
revenue didn't commit was
budgeted. So, you'll see the total
resources to see the how much. So,
scroll down just a little bit, Danny. We
can see the
expenditures. Okay. Expenditures. You'll
see we have each of the general fund
departments there on the left column.
You'll see the various departments that
we
use. You'll see budgeted amount. You'll
see the what we think we're going to
spend in
those. And you'll see we budgeted about
28.5 million and we think we're going to
spend about 26.7 million. So, we're
spending quite a bit less than budgeted
and the big areas of differential are
administrative services. We have quite a
few staff vacancies
have still staff vacancies now that
we're trying on filling or some other
method of driving
service. Police
um police they can spend their we don't
think they're going to spend outside
$700,000 their budget. They had some
vacancies in there
again.
Um other the other place that's
returning some money, but it doesn't
actually look like it is fire. Um fire
has had some vacancies. I know I know it
doesn't look like they're going to
return much because difference between
the budget and the actual and they like
projected like
$5,000. They have a lot of comp they
went to a lot of complication fires.
That's where we send our fire staff and
they declare like emergency like
California or we'll send a fire crew out
there and we will get reimbursed for the
cost of the crew that goes out there. We
also get reimbursed for the cost of
anybody we have to call in to work that
person's crew. So we call in a
firefighter to cover the station. We get
paid the crew out there and approve the
station. So there's a lot of overtime
occurred there, but we've got the
revenue we get into consultation revenue
to receive that. Um it doesn't show
fully up in the resources because we
got little over about a quart million
dollars of that revenue. The general
fund is prior just went down to
California.
California doesn't pay the fastest. We
probably won't get that money till late
fall of this year. So, so we incur the
expenditures and we budgeted the revenue
next year. So, it's
got so reimbursement. Yeah, we have
reverse recruitment. Yes. And we get I
think the fire trucks are about $100 an
hour and you get paid from the time they
leave till the time they pull back in.
So, so those
deficits that we see
there for the next three four years
disappear we'll explain I'll explain
that in a second. So you'll see for this
year we budgeted a deficit of
$592,000
basically knowing we probably would hit
that deficit due to staff vacancies.
You'll see we're actually going to we're
actually projecting a surplus of about
$750,000 this year due to a lot of those
staff vacancies and some other expenses
not being paid. So go down to the next
page.
Sure. the municipal court. Is that um is
that the expenditures of us sending some
of the signs that we collect over to
we the municipal court expenditures?
Yeah, that's that's the the personnel
around the court software computers and
we also have we send some of the money
to the state some of the money down
Washington County for example. Both
assessments are like $62 a ticket.
reduces the
ticket6. So
yeah, I really like I really
love this. So you'll see beginning fund
balance we budgeted we projected about
$7.9 million fun balance. We were
actually at about $9.3
million over due to some of the same
circumstances from the year before.
And so we projected an ending fund
balance about 7.3. We're actually going
to have an ending fund balance around
$10 million at the end of this year. And
I looked at the cash in the bank. So
here's how much cash we have the general
fund. I kind of eyeballed how much we
typically spend in the last few months.
I'm reasonably
comfortable that projection
number. So you'll see that the next line
item you'll see down there is the target
fund balance. The city council has set a
policy where they want 10% of the
expenditure 25% of the expenditures of
the minimum fund balance. So you'll see
the minimum target fund balance is about
6.7 million which is about 25% right now
we're carrying
376% fund balance. So go back up to
other page.
So you'll see go down down expenditure
like I said the revenues I projected
some the revenues
out specifically for the first two years
we have a decent idea on most of those
other revenues are like I took property
taxes out a certain percent other
revenue line items out a certain
percentage based on historical how they
go up a lot of our small fees don't
change a lot I mean we raised the fee 3%
that doesn't mean a whole lot more fee
fee revenue some of them based
So general fund expenditure sort of the
same way I
took for the first two years. I mean
some of that's based on that's based on
taking money but some of this is some of
this is actually out of the the budget
that we're reviewing and some of some of
the stuff I've taken some of the
expenditures are requested but not
approved. So I've taken some of those
out of the budget out of the
expenditures for next year. So I've
tried to limit this to this projection
is kind of based on where we currently
are right now for how many people we
have, what revenues we have, what
expenditures we're doing. I try to just
take the current run across for the next
five years. I should have said that
earlier. flower. You see the total
expenditures, they go up, you know,
they're going up from $29 million and
this kind of roughly next year up
through about $33 million through five
of the projection. So, you'll see in
each of those years again there's a
surplus and there's a surplus or there's
a deficit, excuse me, um of amount in
parentheses. Now, that is based on full
employment. It's based on every
authorized staff person being there
never having any vacancies which really
isn't
accurate really isn't an accurate way to
project things out because it doesn't
take into account you will have you will
have some vacancies during it we go back
back through the years and say
traditionally comes up these other other
departments they're trying to take their
turn having vacancies people retire and
other stuff other stuff so another way
to put it is almost never spend the
amount that we had budgeted. Yeah. The
first two the first two blue columns are
private.
So when you see a projected deficit, you
might think, "Oh my gosh, we're going to
be spending the whole chances are we
will not have a deficit and also
remember that the 25% that we keep in
reserves."
Yeah. So go back to the next
page. Jamie question. So if they don't
fill a vacancy, there's no risk of
losing that headcount, those salary
dollars. No. No. Yay. If it's an
authorized position in the budget, the
dollar stays. And also what we've done
over the
years,
typically we don't we we don't if a if a
department we try to budget material
services fairly close. We try not to
have a lot.
So, so the department doesn't spend tend
to spend all their materials and
services budget so long as it's not a as
long as it's within a reasonable amount.
We don't take that money away from them.
My philosophy has always been I don't
want to encourage them to spend their
money at the end of the year just for
the sake of spending. I'd rather keep
the money there and then when we're
reviewing next year's materials and
services, we can say, "Okay, you didn't
spend this much money this year. You're
not projected to spend this much money.
Do you truly need that much money next
year? But we don't want them to try to
get have to spend something so they
don't lose. In other words, you don't
play games with me, I won't
do it.
I don't get it. So I've always we've
always done it that way and I think
that's the best way the best way to do
it. So, so you'll see you any fund
balance report it's going down because
of those uh deficits that you saw. And
so if we didn't do anything and let's
say there's some miracle we had full
employment of those five years the next
five years when we got to the when we
get to the end of the five years our
target fun our forecast fund balance any
fund balance would be about $5.6 6
million which is about 17.2% of
expenditures. Now
17.2% the GFA recommends a minimum fund
balance around 16%.
What the government finance offices
association recommends about a minimum
fund balance about two months operating
expenses which is about
16%. So it's even that 17.2% 2% is
within is within the
is
balance. So just just kind of if I
could I think you may have mentioned it
earlier if I missed it I apologize. It
is the 25% you see up there right now is
current city policy. So the reserves
that we have right now try to retain a
25% reserve.
When Jamie gets back, what I'm going to
do is I'm going to show you
essentially the same forecast with
adjustments, right? I wanted to clarify
just one thing just in case. So the
forecast that you're seeing here and
chair Anderson also mentioned this all
the two. This does assume full input and
as it was mentioned earlier, you almost
never have full input. It just doesn't
happen. You're going to have
vacancies. A lot of
organizations, shouldn't say a lot, but
some organizations also look at what's
called vacancy factor. You kind of
factor in what you think it might
be. Inherent in that process, however,
is just a little bit more risk. And so
there's different kind of ways to do
budgets. This way assumes full
expenditures, but it also budgets
revenue as well. And so it's a very kind
of prudent way to look at your budget. I
think there's always kind of different
lenses in which you can look. This is
what I would call a prudent and kind of
um fiscally sustainable way to look at
your budget because it does make these
kind of
assumptions. Another lens to kind of
look at this is the one that Paul is
going to present next, which will be
essentially kind of a 2% vacancy factor,
which would assume that you will have
some turnover in positions, you will
have some savings from vacancies.
there there's looking at that kind of
scenario. It's a good scenario to look
at it is a very difficult scenario
however to predict right because you
just don't know and so that's just one
thing to kind of keep in mind as you
look over these different scenarios and
what what the implications are as you
move it through time. So sorry but as
far as we look back we look back we've
always you want to bring up the next
file. Yeah. Are you wanting B2 of the
same file? B2. Yes. Okay,
let me know if this is premature, but
I'm curious how it factor
in mandates, legislative
mandates
housing that we're not sure because if
we don't meet we don't meet the
production
goals, I mean when do we have to
deductible. What's the time? What I mean
by expense, I mean, I assume there's
going to be more expenses that try to
get essentially
maybe there's there's a number of kind
of different ways to answer that. One of
I'll give you an example in police.
There was a recent piece of legislation
passed that said if you have a police
entity of 35 or more, you have to do an
annual audit. Okay? in that annual audit
is a minimum expense of
$20,000. State does not offer any grants
for that process. They don't offer even
a staff for that process. So the
unfunded mandate in that case is going
to be the minimum amount of the 20,000
bucks then also staff, right? So it's a
little bit sometimes there's not clear
connection with that with housing
production. If that results in say 40%
extra work for FTP, you might be able to
get that through a grant through DLC for
development. If you do, great. Go that
route. It might result in materials
expenses. It might result in consulting
expenses. So, it's really going to be
kind of situational dependent on what
the mandate is, how you have to meet it.
And to the best that we can as we go
through this, we'll try and point that
out. If there's a state mandate that
comes down, how responding to
it regard both of those. They're both
still a little ways out there. So, I
don't know that. and you got there's
also a menu of options. So you don't
necessarily have to spend all that
money. So for example with housing
production strategies there's yes you
have to plan for that you can choose to
spend a whole bunch of money and also
apply for a grant to pay for that
planner or here's a list here's a menu
that DLC has actually provided you pick
off that list. So you've got sort of
like teach options on how to meet
I mean the state may set housing
production goals but if you don't have
any buildable land
can you also say what is the
cost sorry didn't do it my handrian
Brian and Dan, that's going to be a very
interesting one for planning to work
through. I mean, they've also got the
potential bullet in there on the uh gun
permits.
Well, curious just a process question is
do we does that part of the process to
have list you know here are all the
imminent mandates and when they land and
and then each one I guess branches out
into the different ways in which there's
a material increase in the budget of
source associated with
that and we'll point to what the expense
category would
be like one that came to mind was I
don't know if we're planning on that
this
year, but we're very close.
Yeah. So we do have to start
think well I mean that's
so expens associated with the
accreditation process is going to be on
top of that
official services.
cities
which have got to start doing those July
1st
2026
forunately you're concerned about $60
per staff that fee didn't cover the
cost but we're talking about raising the
fee to $150 which has other implications
But it helps cover. I guess the only
other thing I would mention about
[Music]
self there are groups that we
participate in whether it's city
managers whether it's chiefs of police
whether it's fire events board where if
everybody's dealing with the same thing
sometimes you can find a way to come
together and deal with it right maybe
you can join a common contract and
everybody pays a little bit and that
contract does it for everybody and you
look for the expense on a per basis
can't do it all yourself Right. So like
Paul's example, I think there's a lot of
discussion to be had about okay one
entity does it but everybody pays into
that entity scale. We do a lot of things
like that already a lot. Um
and building inspection process is good
example. They don't
do super high level certification can't
afford to do it. County does it for
everybody. It's a lot less expensive.
Dispatch is another
example. So
It's just how you know how you respond
to these mandates. It's going to vary
depending on the mandate and
spirit. Just since we're in a
legislative
session, at what point is is
there staff being able to identify bills
that have some budgetary consequence
that we should beating?
There's nothing that come to mind right
now.
Um come to mind right now. There's been
a lot of conversation about housing
production, but it's not necessarily a
mandate. It's kind of just changing some
existing that's not
something. So I don't have
associated. Okay, this you'll see this
is essentially the same same forecast
with just
some modifications. So if you go down,
you'll see the title 98% of extended.
So down to it down to the bottom.
So you'll see
a little bit more.
Okay. So you'll see let's say we
assumed the expendit the vacancies and
other not expenditures and so we only
spent 98% what we were projecting the
budget. You would see there are still
deficits, but the deficits are much
lower. They're probably more within the
range of where we probably hit based on
just based on historicals looking back
historically on what percentage we
typically don't
spend at all historically. Oh, we don't.
But yeah, but some Yeah, some will some
we've had some, but you'll see the
deficits are much smaller and
is consequential. So we'll go to the
next
page. So you look at the fund balance,
you look at the beginning fund balance
or the ending fund balances. If that we
started with $10
million, we would end with about $8.7
million. So we would
end so if we didn't spend every if all
the revenue came in exactly as budgeted,
we only spent 98% of our expenditures
over the next five years. we would end
up with about $8.2 million I mean excuse
me $ 8.7 million in fund balance which
is like 26% of our fund balance 26% fun
balance level which is just which is 1%
above the target so it's not so it's
just you see the difference between the
two two forecast like I said there's a
little bit more risk if you take this
forecast because don't have
latencies not
traditionally significant.
So just an active consideration as to
whe part of when we're looking at part
of when we're looking at the decisions
being the
budget take a look at what's kind of
what's realistic and I like when we're
budgeting this I mean we looked at just
the other one we'd be saying no we can't
prove anything but
that's based on based on history
typically our revenues right about what
we are
maybe like 1% above some of the areas
and the expenditures we I don't remember
too many years where we spent all the
funds that we budgeted that would be
that would be more exception than norm
so there's there's good basis looking at
this as a looking at this 98% of
expenditure forecast when we're
reviewing the budgets we're kind of
saying
realistically what do we You might
expect
decades of experience doing this.
We have
Yeah.
So
that's that's why I have any general
questions or anything up to you. You
want to take questions
after question. Paul, you still had one
other document on your list with
staffing. Oh, okay.
No, this is No, this is an easy one.
Essentially, when we're looking at this
one, you want to zoom up. Um I'm when
we're doing the levy needs assessment
um we were looking at we looked at we
were looking at adding
position two on the top line that
added
first then we were
looking we're looking at the
uh you'll see
the blue column 2526 the lending needs
assessment show that We look at adding
three firefighters that
year. See the cost of those firefighters
for the whole year. Then 26 27 we're
looking at adding potentially adding the
two police officers recreation
coordinator we've already added. We've
moved we've added the point42 utility
worker by moving used that parks person
used to work seven months in parks five
months in line power now they work all
12 months in parks that's how the parks
got the benefit of that staff person
back then so we've got so the blue
highlights are what we've got to
consider from the needs assessments over
the
next two years firefighters the two
police
officers seeing projection
pretty low. We got staff staff at
several departments have started kind of
looking at what do other cities have
staff and there's probably not too many
or any
department probably lower most cities
and staff.
Now we we made a change in it last year.
We had an IT staff because of staff.
This chart is intended under the money
to cover those four general funds. So
community development you can look at
other fund sources besides just the
general fund. This
was for
planning fees through other
self-sustaining sources other than
discretionary fund
because we budget review as the
community say review funding
sources with associate new funding
sources legitimately charge some of that
associate planners building permits
fund. That's a consideration. The
building permits fund has about has
about $3.5 million. They could collect
no money, no changes probably five
years and that's after we took $3.2
million of that money to build the build
the build.
building perfect.
I don't know. We want
I think we have to take an analysis of
where the how much the revenue is coming
in, whether that was kind of onetime
revenue associated with a large project,
what the future revenue projections are.
But right now we can safely say that
it's a very healthy fund and it is a
candidate to look at a possible
reduction. Just have to be careful when
we can't hire a person out of that. You
might be able to. Yes.
Certain aspects of certain position it
does have to be related however to that
function. So you can't stray too far
from there.
The other thing I would just maybe point
out about this, there was a question
earlier about a banual budget. This is
one of the reasons for looking at banial
budget. Obviously in this we're
forecasting out over five years, but the
next two years can give you a much
better picture about those potential
positions and how to bring those into
the budget than if you were just looking
at it in one year. Um, and so if you
look at that on a one-year basis, it's a
lot of positions to try and do in just
one year. We might be able to look at
this over a longer period and absorb
that cost and also that revenue over a
little bit longer but still accomplish
the same
thing. It's safe to say that we are
looking at those positions. However, as
part of
the appointment made to the community
and levy for that all the assumptions
stay the same from staff and a planning
perspective. We feel like we have
direction to move forward and do our
best to try and include that in any
perspective budget budget that's going
to be presented to
this. We're working on that right
now. Any other questions anybody has?
[Music]
Thank you so much.