[0:05] Testing. Testing.

[0:10] Thank you. I'm calling this meeting of

[0:12] the budget committee to order at

[0:15] 6:00 and we'd like to start with a roll

[0:18] call, please.

[0:22] Anderson.

[0:25] Mayor Melinda Wel. Are you calling my

[0:28] here? I'm sorry. I'm here. And then,

[0:32] forgive me. Is it Rachel or Raquel?

[0:35] Relle. Okay. Relle Baitman.

[0:39] Tom Cook here. Angel Falconer here.

[0:44] Galvin here. Don Gustoson here. Mallerie

[0:48] Highfield.

[0:52] Carla Kinsey

[0:54] here. Michael

[0:57] Marshall, Karen Martinez here, Brian

[1:00] Shiml, and Mariana Valen here. Thank

[1:05] you. Thank you very much. Um, has there

[1:07] been any public comment received that

[1:09] you're aware of, Jamie? I received no

[1:11] public comment. And is there anybody on

[1:13] Zoom who might be wanting to address us?

[1:18] I do not see anybody on Zoom with their

[1:21] hands raised. All right.

[1:25] Yes.

[1:27] Absolutely. I apologize

[1:31] if I want to extend some gratitude to

[1:36] the the budget committee last

[1:39] year the proposal that the city council

[1:42] adopted last night.

[1:45] grateful for the time and thoughtfulness

[1:49] and preparing that

[1:52] proposal and allowing some extra time

[1:59] for

[2:03] that. You're still here.

[2:07] Thank you for mentioning that, Brian.

[2:09] Yes, the city council did need to have a

[2:12] work session where they considered this

[2:14] budget committee's recommendations for

[2:17] counselor compensation and they found a

[2:20] consensus though formal action of course

[2:22] is not taken at a working session so

[2:25] that will be in the near future no we it

[2:28] was a resolution

[2:30] work session session

[2:34] so we reach consensus but no formal

[2:36] action

[2:38] yeah it's all right

[2:41] um any other comment anyone like to make

[2:44] before we move

[2:46] on. All right, seeing none, consent

[2:49] agenda has nothing on it. So rather than

[2:52] spend time on the consent agenda, what

[2:54] I'd like to do is just briefly go around

[2:56] the room and make introductions as we

[2:57] have several new members of our

[2:59] committee. Um, and Tom, we'll start with

[3:03] you if that's all right. My name is Tom

[3:04] Cook. I've been on the committee now

[3:07] six, seven years, something right of the

[3:10] town for eight years.

[3:13] Glad to hear you. Tom is a veteran.

[3:16] Again, my name is Dave Anderson. Tom and

[3:18] I have served about the same length of

[3:20] time, I

[3:21] think. I've lived in town for a little

[3:23] over 10 years, and it's a pleasure to be

[3:27] here, and I appreciate all of those

[3:28] people who have joined us this

[3:30] year. I'm Pauly, assistant city manager,

[3:33] finance director, and I've been with the

[3:35] city since January of

[3:38] 1994. City councelor, and this is my

[3:40] fifth year.

[3:43] Highfield first year on the budget

[3:45] committee also on the parks committee

[3:47] and

[3:51] [Music]

[3:53] thank you for joining

[3:57] us since 2014.

[4:22] 2019 Angel was selected last November

[4:26] and here for three

[4:28] years had my foot in the community since

[4:31] 2010 when my husband told three start

[4:36] program to be

[4:39] Shiml, also a first time counselor and

[4:47] president. This is my second year for

[4:49] budget committee.

[4:54] Good evening everyone. Jessie, I'm city

[4:57] manager and August will mark my 10th

[5:00] year of

[5:05] my name is Carla Kinsey. I've been a

[5:07] president of Forest Grove the last 12

[5:09] years. Uh this is my first budget

[5:12] committee um year. So thank

[5:18] you Michelle B. I moved to the area

[5:21] about 15 years ago but I've only been in

[5:24] my forever home in

[5:28] Scot. This is also my first year.

[5:36] My name is Salis Certi and I'm the

[5:39] assistant finance director for the city

[5:42] and I've only been in the position for

[5:45] six months but I've worked for the city

[5:47] for 22 years. What did you do before? I

[5:50] was the senior accountant for

[5:54] wonderful experience. Thank you.

[5:58] I am Jamie Bake. I'm executive assistant

[6:00] to our city manager and to call

[6:04] You really want to get something

[6:08] done. That's why

[6:10] [Laughter]

[6:14] I like my power director.

[6:18] with the city a little over 30 years.

[6:30] [Music]

[6:34] Director coming Sunday.

[6:45] So if you want to get stuff done, you

[6:46] see if you want to know something, you

[6:49] ask. All right. Thank you all very much.

[6:52] Um are there any additions or deletions

[6:56] to our agenda tonight?

[6:58] One

[7:02] more project not discussed

[7:07] tonight off the

[7:11] list. Um All right. U then we'll launch

[7:15] into our discussion items. Those will be

[7:18] led by

[7:20] Paul. Paul Jesse Jess wants to make some

[7:24] opening. All right, Jesse. We'll turn

[7:26] the time over to the floor.

[7:29] Thank you, chair. And I'll I'll be

[7:30] brief. Um so just to kind of give a I

[7:35] know we have a lot of new budget

[7:36] committee members. Thank you for serving

[7:38] and to those who are already on the

[7:40] committee, thank you for continuing to

[7:41] serve. This is a very important

[7:43] committee. Obviously the committee kind

[7:45] of shapes and forms the budget. Budget

[7:48] process for any municipality is a very

[7:51] important

[7:52] process

[7:56] transparent. Um and and I kind of wanted

[7:58] to give a brief overview about kind of

[8:00] what to expect this evening but also

[8:04] throughout. Forest Grove is a as many of

[8:08] you know as a full service city and as a

[8:11] full service city we have a lot of

[8:13] services that other municipalities do

[8:15] not. What that means from a budget

[8:17] perspective is we have a lot more funds

[8:20] than a lot of cities. Uh, and as a

[8:22] result of that, there's a little bit

[8:24] more complexity and there's a lot more

[8:25] volume in our budget than you may see in

[8:29] in other budgets. Paul knows the exact

[8:31] number of funds, but

[8:32] it's plus 34. So, okay. 34. So, in case

[8:37] you're wondering, more funds doesn't

[8:39] mean more money. It means more buckets

[8:40] of money. That's exactly right. Yeah.

[8:43] Um, we're kind of This year is our first

[8:46] year in a banual budget. Council made it

[8:49] a priority last year.

[8:50] budget and in our planning amongst the

[8:53] staff. It really does kind of change the

[8:56] focus of how we've been approaching this

[8:58] budget in this budget cycle. It really

[9:00] does land a little bit longer term

[9:02] approach. Before it was an annual

[9:04] budget. you would look one year ahead,

[9:06] but you might talk about subsequent

[9:08] years from a capital process or from the

[9:10] budgeting process

[9:12] budgeting. So, it's a little bit

[9:14] different this year and especially in

[9:16] terms of how this kind of connects to

[9:18] the levy, how this connects to state

[9:20] shared revenue. State is on the same

[9:22] banual that we're going to be on. Um,

[9:24] it's it's just a little bit of a

[9:26] different focus and a little bit of a

[9:27] different kind of planning to it. As a

[9:30] result of that, there's a little more

[9:31] work to do this year. There typically is

[9:34] theformational meeting tonight and then

[9:35] there's two budget committee meetings

[9:37] after that. Right now what we're

[9:39] planning on is theformational meeting

[9:41] tonight and then three budget meetings

[9:43] after that. Um what you can kind of

[9:46] expect tonight is kind of in the title

[9:49] it's information. So Paul is gonna

[9:51] deliver a lot of information. Um, and so

[9:55] somewhat um, a little bit of kind of fun

[9:57] way because there's a lot of information

[9:59] that we want to present, but I'd like to

[10:02] kind of just explain kind of two things

[10:05] briefly because some of this is going to

[10:07] cover what Paul's going to cover

[10:08] tonight. Anytime we we are talking about

[10:11] the budget, at least from kind of a big

[10:14] picture standpoint, there's those funds

[10:15] where the money is restricted to that

[10:17] use. Okay? And that's generally like a

[10:20] self- sustaining fund. In other words,

[10:22] if a fee or a charge is charged for a

[10:24] certain use, that money could only be

[10:26] used for that particular service, you

[10:29] can't take that money, back it out here,

[10:31] and stick it into a different fund over

[10:33] there. Okay? That's a self- sustaining,

[10:36] self-generating fund. We're going to

[10:38] have a lot of examples of

[10:39] those. The other fund, and one that

[10:42] you'll see that Paul will pay kind of

[10:43] particular attention to tonight from

[10:45] anformational basis, is the general

[10:47] fund. The general fund has more

[10:49] discretion. It has more discretion with

[10:51] the budget committee and it has more

[10:52] discretion with the city council about

[10:54] how those monies are spent. They're not

[10:56] tied to any particular service. They're

[10:58] not tied to any particular rate or fee

[11:02] where it cames from that has to go back

[11:04] to the same thing. So that's what we

[11:06] call our general fund. So when you hear

[11:07] Paul kind of refer to the general fund,

[11:09] that's generally what it means. That's

[11:11] going to be our property tax revenues,

[11:13] state shared revenues, those revenues

[11:15] that go into kind of the common fund.

[11:16] And that general fund funds parks,

[11:20] library, police

[11:22] and departments that fund. So if you

[11:25] look at power for example, that's a

[11:26] self-sustaining fund. That's a rate

[11:28] based fund that doesn't have it's not

[11:30] going to be in the general fund. That's

[11:32] going to be their own fund. So anyways,

[11:34] those are some kind of bigger pictures

[11:36] um with that. Uh if you have any

[11:38] questions at any time, sometimes this

[11:40] can get complex. Sometimes there's some

[11:42] background to it. Uh, and if there is,

[11:44] please just ask Paul, ask myself, ask

[11:46] anybody on staff. We try and do our best

[11:48] to answer it. We do want to make sure

[11:49] that this is as informative and

[11:51] transparent and that you have the tools

[11:52] to kind of help guide this process as we

[11:54] go forward.

[11:56] That's all I have. Thank you. I do have

[11:58] a question. How will the budget impact

[12:03] the budget in terms of the off years or

[12:07] not? actually you're the first

[12:11] presentation right into it. Great segue.

[12:14] He's my setup. So

[12:18] that's what I get the pizza for. Right.

[12:20] That's right. Why you got pizza? Nobody

[12:21] else got to eat. You got for setting up.

[12:24] Okay. All right. Go ahead. One one more

[12:27] note. This is this is what since we're

[12:30] calling this anformational budget

[12:31] committee. One thing we don't do or we

[12:33] can't do is we can't discuss specifics

[12:36] for the next two years. We have not

[12:38] advertised this as our first official

[12:40] budget committee meeting where we're

[12:42] going to take testimony we're going to

[12:44] present to the public. This is more this

[12:47] is more of a set stage meeting for

[12:50] tonight and a lot of setting stage for

[12:52] the general as forward.

[12:54] So that comments we should begin.

[12:59] First thing we're going to talk about is

[13:00] by budgeting the process discussion and

[13:04] what we do.

[13:07] Is it working?

[13:16] I'll use my

[13:19] remote voice. Maybe. There we go. Okay.

[13:24] Leave that to you. All right. We'll find

[13:27] out. Okay.

[13:30] Preparing our first banial budget which

[13:32] will be effective for July 1st through

[13:34] June 30th,

[13:36] 2027. What that means is all anticipated

[13:39] reven expenditures that we are aware of

[13:42] need to be for the two-year period for

[13:44] the total 2-year

[13:46] period. Some we won't know all

[13:49] expenditures. Some expenditures such as

[13:50] changes from your labor contracts will

[13:52] not be known until after twoear budget

[13:54] commences.

[13:56] funds are used when necessary to cover

[13:58] labor cost changes contract changes.

[14:01] We'll have to look at that budget. We're

[14:03] currently negotiating the police

[14:06] contract with that and next year we are

[14:11] going to

[14:12] negotiate the electrical workers

[14:15] contract and also

[14:18] for contracts.

[14:22] don't know all of the contract

[14:29] number this year. What we'll what we'll

[14:31] be what we'll ask you to do is to

[14:33] approve the bianual

[14:35] budget, establish the appropriations for

[14:38] the two-year period and set the property

[14:41] tax rates for both years. So, you'll be

[14:42] asked to approve total two years, not

[14:46] each year individually and then a total,

[14:48] you'll be asked to approve the total for

[14:50] the two years.

[14:52] and we'll set the legal appropriations

[14:54] for the total two-year

[14:57] period. Staff will monitor the expenses

[14:59] as we

[15:01] go. And uh to answer Dave's question,

[15:05] next year budget process, what we'll do

[15:07] is we'll conduct a review of the banual

[15:10] budget, how it's going, and also adopt

[15:12] any changes to the banial budget. Again,

[15:15] not all reven expenses are known when

[15:18] we're preparing and adopting this this

[15:20] first two-year budget. So, changes will

[15:22] be needed in the first year. For

[15:25] example, one change might

[15:27] be right now for the county is looking

[15:30] at the Washington County Cooperative

[15:32] Library

[15:33] Services in

[15:36] November. depending on how that vote

[15:38] goes and depending on how the I think

[15:41] they're also working on the funding for

[15:42] that funding for change based on that

[15:45] money then we'll know better for the

[15:47] second year what the actual library

[15:50] funding will be made assumption for the

[15:53] second year preparing this budget but we

[15:55] should know better next year what the

[15:57] actual revenue for the second year will

[15:59] be so that's kind of example where we

[16:01] made we went past the budget make the

[16:04] change second year.

[16:13] Oh, while you're getting that to click,

[16:15] I have a question for you.

[16:18] During the year, as life happens and

[16:20] things change, from what I understand,

[16:23] um that you have some latitude to adjust

[16:26] things in the general fund somewhat

[16:29] without having to go through a formal

[16:31] process, correct?

[16:34] We can do in the general fund that for

[16:37] examp we divide our fund balance into

[16:39] two

[16:40] things fund and an unappropriated fund

[16:44] balance. The unappropriating fund

[16:46] balance you cannot touch unless there's

[16:48] certain emergencies in those conditions

[16:51] are established by state statute. That

[16:52] was the next question.

[16:55] Contingency. The contingency contingency

[16:57] funds are funds we have there in case we

[17:00] said life happens and you have

[17:01] unexpected events. Now staff can't

[17:04] arbitrarily change to take money out of

[17:05] contingency. Staff has to go back to the

[17:07] city council and get a transfer and have

[17:10] them appropriate a transfer out of

[17:12] contingency into the expense areas where

[17:14] we need those expenses covered. So staff

[17:18] staff doesn't have I mean we staff can

[17:20] manage between say line items like so I

[17:25] can I can manage with my line items

[17:27] material services but I've got an over

[17:29] expenditure

[17:31] here I'm going to need some money at

[17:33] this line item instead of this line item

[17:35] I will manage kind of the total

[17:38] materials and services look at that but

[17:41] as long as we're not changing the

[17:42] overall appropriation I don't have to do

[17:44] anything with council we're not going to

[17:45] take money from the police to firefight

[17:48] police vice versa. That kind of thing

[17:51] within the

[17:52] police

[17:57] around

[17:59] but the contingency funds are considered

[18:02] appropriated, right? Not unable to

[18:05] expand without city council. That is

[18:07] correct.

[18:09] That's a good thing to keep in mind as

[18:10] we're going through this is appropriated

[18:13] funds and reserve funds which are not

[18:16] appropriated.

[18:20] pass. We have a certain amount that

[18:22] we're trying to maintain in those

[18:24] reserve

[18:28] funds.

[18:30] Okay. And staff's going to monitor each

[18:33] budget year separately. The revenues and

[18:35] expenditures is they're not the same for

[18:38] each year. For example, you can't spend

[18:40] 50% of your personnel expenses the first

[18:42] year because your personal expenses will

[18:44] be higher will be higher the second year

[18:47] than they will the first year. budget

[18:49] cost increases they can't spend half

[18:51] your half your personel so I also spoke

[18:54] with a nearby city pills they use the

[18:57] same accounting software as we do their

[19:00] financial staff and other departments

[19:02] they monitor on a year-by-year basis as

[19:04] well and that's they they like

[19:07] monitoring it that way even though they

[19:08] know it's a two total they like

[19:10] monitoring on a yearly basis to see

[19:13] how without having to say this is for

[19:16] the this money's for the twoear period

[19:17] How does that work? How's it looking?

[19:19] They can take a quicker look at it.

[19:23] Looking at this is our first year to do

[19:26] the

[19:28] first the first time we're doing. Yes.

[19:30] What's the driving force? Driving force

[19:33] is it takes some more time the first

[19:36] year, but hopefully the second year it

[19:38] saves some time and also like Tessa

[19:40] said, it requires you to plan a little

[19:43] better because you're working it over a

[19:45] two-year period. So you look at this we

[19:49] always looked ahead but this makes you

[19:51] look ahead for that second year because

[19:53] you're actually going to budget it

[19:54] you're actually set budget and

[19:56] appropriate the funds to spend whereas

[19:59] in the normal process you just budget

[20:00] one year you meet appropriate the funds

[20:03] you meet the next year appropriate the

[20:04] funds for that following year. This year

[20:06] we're going to be a total appropriation

[20:08] for two years. So you have to really

[20:11] think about the second year as you're

[20:13] moving forward.

[20:15] to

[20:16] better accounting purposes or planning

[20:19] purposes. Planning purposes probably

[20:21] better than accounting purposes. It's

[20:23] and because the last point is we're

[20:27] still required by the law to have an

[20:28] annual financial audit even though we're

[20:30] going to banual budget that does not

[20:32] change the requirement to have an annual

[20:34] financial audit. So what you'll see on

[20:37] the first year of the first of the

[20:39] two-year

[20:40] biion ending year the fiscal year end

[20:43] for June June 30th 2026 which will be

[20:46] end of the first year

[20:48] bianium first year two years in the

[20:50] bienium when you look at the auto you

[20:52] will see the total two-year budget

[20:55] appropriation then you'll see the first

[20:56] year expenditures and you you're going

[20:58] to see a large variance on the

[21:00] expenditure side because you've got the

[21:01] second year's worth of expenditures to

[21:03] spend still. So the

[21:06] honors first your honor strange two

[21:10] period but that's just how you have to

[21:12] do it you have to report to the state on

[21:14] your expenditures on an annual basis

[21:17] we'll actually see an example Tom later

[21:19] in one of the

[21:21] presentations for example increasingly

[21:24] our our retirement system is PERS and

[21:27] when the PERS calculation comes out from

[21:29] the state it's for a ban but it all

[21:32] occurs on the first year of

[21:34] And so if we're looking at it from a

[21:36] year-to-year basis, it would be a large

[21:38] increase in one year and then nothing

[21:40] the following. So if you're looking at

[21:42] staff, if you're looking at appropriate

[21:44] expenses over that kind of two-year

[21:45] period, they give you a broader window

[21:47] in which to do that. And also from a

[21:49] capital planning perspective, too,

[21:51] whether it's replacements, additions,

[21:53] etc., you also have some more room there

[21:55] to say, you know what, I might be able

[21:56] to defer that purchase for a year, but

[21:59] this one over here broke down, so we

[22:01] kind of need to move that one up. even

[22:03] though you typically try to do that on a

[22:04] five-y year basis, you're actually kind

[22:06] of allocating money for two years. So,

[22:08] it just it it really has kind of

[22:10] facilitated some conversations

[22:13] uh in in our planning meetings um that I

[22:16] think it's intended to do, which is what

[22:19] about the following year? How do we plan

[22:21] for that? What does that look like? And

[22:23] in doing so, is Chris more kind of

[22:25] vision and and forecasting. Are

[22:29] there is it in is it in sync the two

[22:32] years with other

[22:37] entities the same for in like contracts

[22:40] you know what I'm saying the labor

[22:41] contracts is that do you're in sync with

[22:44] that or for this first one it's in sync

[22:47] with our lab right I think that was like

[22:50] kind of the goal I don't know we have

[22:52] contracts are negotiated

[22:55] different we do a couple contracts for

[22:57] this organation So anyways, I think with

[23:00] some yes, some no, but with this, and I

[23:02] don't mean to overstep on staff, but

[23:04] with this first fighting, it was really

[23:05] to try to align it with the levy. The

[23:08] levy is our operational budget.

[23:16] And I think Paul

[23:21] go pause. Well, Paul is paused for just

[23:24] a second. Let me say to our newer

[23:27] members, if you start hearing acronyms

[23:29] or terms tossed around that you don't

[23:30] know what they are, please just ask us

[23:33] because it's frustrating to not know

[23:35] what the heck people are talking about.

[23:37] So, please don't hesitate to say what

[23:39] what's an STC or whatever it is that

[23:41] we're talking

[23:43] about. All

[23:45] right. Any questions on the ban?

[23:54] I need to go to the city's website next.

[23:57] Oh,

[23:58] okay. Not for revenue

[24:01] cost factors. Number two, I'm going to I

[24:03] have to drive the bus. No problem. Let

[24:06] me

[24:09] get there.

[24:26] I know my arm is scrunched.

[24:33] She said it's cuz everybody's

[24:47] watching. Sorry to change. Last year we

[24:50] most people got an online had had got

[24:54] the online budget book. If you want a

[24:56] paper copy, we'll still make you a paper

[24:58] copy. But if you but you know you don't

[25:00] ask for one, we just send you the online

[25:02] book. So what I was going to do is show

[25:03] you how to navigate through the online

[25:05] budget book.

[25:12] budget.

[25:14] You'll get a link that'll take you to

[25:16] more more quickly than I am because this

[25:18] is the in the finance department. Where

[25:21] did you miss the first?

[25:25] You'll have a link. We'll send you a

[25:26] link in the email.

[25:32] I'll start again here.

[25:36] There's

[25:38] government. Then you go to excuse me

[25:41] department

[25:43] and then you'll go to finance and you

[25:46] click budgets.

[25:54] And after you click budgets, you'll see

[25:56] down here there's some budget

[25:58] documents and there's the online version

[26:00] of the 24 to 25 adopted budget. I'm

[26:04] going to use this for the example

[26:05] tonight because obviously we don't have

[26:07] the 25 to 27 proposed budget document

[26:11] prepared.

[26:12] So click on that and then you'll click

[26:15] on proceed to

[26:17] site. This takes you to our budgeting

[26:20] software

[26:21] site and what this is the only page on

[26:26] the city's website. This is the

[26:28] essentially the table of contents for

[26:30] the budget.

[26:33] And there's various information on it.

[26:35] There's the budget committee. There'll

[26:36] be the org chart for the

[26:39] city. There's the city boards and

[26:42] commissions. And then you'll see fund

[26:45] structures and descriptions. And that

[26:46] just kind of talks about what Jesse

[26:48] talked about earlier talked about what

[26:50] the general fund is, what the enterprise

[26:52] funds in. This these are our funds

[26:54] basically charge rates. And it's

[26:57] essentially the light, sewer, water, and

[26:59] surface water management. Then there's

[27:01] special revenue funds which we have to

[27:03] do by contract or by state law require

[27:06] some for example building permits is you

[27:08] have the streets you need to have those

[27:10] funds by state

[27:13] law. Then we have some internal service

[27:15] funds where we account for charges

[27:17] between

[27:19] funds and capital project funds. Most of

[27:22] these are system development charges

[27:24] funds. Um, TDT is the county

[27:28] transportation development tax. That's

[27:31] like that's one like for single family

[27:33] residents. Next year you'll pay about

[27:35] $12,800 in TDT tax if you build

[27:39] one. Um, bikeways, pedway, pedestrian,

[27:44] that's a 1% of the gas tax. parks SDC

[27:48] funds, capital projects funds, and then

[27:50] the capital improvement tax, which is

[27:52] that $3 bill you see on the utility

[27:55] funds. Capital projects we don't really

[27:57] use right now. Although the police bond

[27:59] passes, we will be using the capital

[28:01] projects fund to account for the

[28:03] construction of the new police facility.

[28:06] And we have some debt service funds. We

[28:08] currently aren't these aren't active

[28:10] funds, but if the levy passes in May,

[28:13] the general debt service fund will

[28:14] become active again next

[28:18] year. Pay the debt service. That's some

[28:20] of the fund

[28:23] descriptions. Budget, we talk about the

[28:25] process, the budget message, the council

[28:27] goals will be in there. Then there'll be

[28:29] a revenue summary and expenditure

[28:31] summary for all

[28:33] funds. Example, the revenue summary will

[28:36] show

[28:38] It'll show the total revenues for by

[28:41] fund

[28:42] category. Then it will enterprise

[28:45] funds, all the utility funds. You'll see

[28:47] there's about $84 million there. General

[28:50] funds about was about $36 million this

[28:54] year, special revenue

[28:57] funds, street funds, the big fund in

[28:59] that one. and some of the internal

[29:02] service funds and some of the capital

[29:04] projects

[29:07] budgets. The one in the budget summary

[29:10] the one as I told the new members of

[29:13] budget committee the budget

[29:16] message is a good place to spend some

[29:18] time on this is where we summarize a lot

[29:21] of what's going to happen and then it'll

[29:24] be the next two years next year. of the

[29:26] budget message. We'll we'll start out

[29:28] and we'll go overall budget discuss

[29:31] staffing any staffing changes we're

[29:32] going to

[29:35] propose a little bit about the local

[29:37] option levy when it expires wage

[29:39] increases we know retirement overall

[29:42] overall insurance and then we'll go fund

[29:45] we'll start with the general fund and

[29:46] we'll go department by department and if

[29:48] the department has a significant change

[29:51] proposed you'll see those changes

[29:54] described in each of these departments

[29:56] section. So, like I said, you want to

[29:58] spend some good time on this when you're

[30:00] looking at it. This is this is a good

[30:02] budget message is a good thing to read.

[30:05] We've put a lot of time into putting the

[30:06] budget message out to try to make it

[30:08] when we're writing it to make it as

[30:10] formative as we can.

[30:16] Message this year is not done yet,

[30:18] right? Not even started. So that's

[30:23] well it started in my mind in Jesse's

[30:25] mind but we're actually actually when

[30:27] we're when we're going through

[30:28] departmental budget because we're making

[30:30] notes make sure we include this in the

[30:31] budget that says make sure we include

[30:33] this in the budget. So we're we're

[30:34] starting a list a list of what we want

[30:36] to be putting in the budget message as

[30:38] we're going through

[30:40] them. And I'll just use I'm just going

[30:43] to show a couple examples. I'm not going

[30:45] to go through everything in here. For

[30:47] example, there's a resource summary for

[30:49] the general fund since there's several

[30:50] different

[30:56] areas. So, you'll see the general fund.

[30:58] You'll see the various sections that we

[31:00] have. Local taxes, intergovernmental

[31:03] revenue. These are the sections that we

[31:05] use for general fund

[31:08] revenues. And if you want more detail,

[31:10] you'll see there's like 14.4 $4 million

[31:13] here adopted for local taxes, about $3.6

[31:18] million for intergovernmental revenue.

[31:20] Go down here, you'll see this little

[31:22] view report in blue.

[31:26] If you click on

[31:28] that, that will expand it for

[31:35] you and you can see it graphically,

[31:38] which okay,

[31:40] but or you can go down here. Then you'll

[31:43] see you'll see the it'll show you the

[31:45] section again that we did you just kind

[31:48] of saw in the budget book. Then for

[31:50] example, you know, of these local taxes,

[31:53] how much is the regular, how much is our

[31:55] permanent rate tax, how much is our

[31:56] local

[31:57] option. This little black arrow

[32:01] here, if you click on it, it will expand

[32:05] it. I'll expand and show you what that

[32:07] $14.4 million consists of. It's about

[32:11] $8.7 million, which is our permanent

[32:14] rate tax. The local auction levy is

[32:16] going to be about 4.4 4.4 4 million this

[32:19] year. Prior property taxes, you're

[32:22] always collecting some back taxes.

[32:24] City's marijuana tax projecting about

[32:27] 190,000. Franchise taxes we charge.

[32:30] That's like cable TV, waste management,

[32:33] Northwest Natural Gas. That's 5%

[32:36] franchise fees we charge on those.

[32:38] That's about

[32:40] 803,000 in budgeted. And then uh the

[32:43] transient room

[32:46] tax

[32:51] 137,500. This is the money we get from

[32:54] the county on that. So and you can do

[32:57] that on any one of them. For example, in

[32:59] the governmental revenue, you

[33:01] click and you'll see it'll give you the

[33:04] the c what the revenue line item detail

[33:07] in those in there is.

[33:10] So for example at WCCCLS we're expecting

[33:13] about 97

[33:15] $977,000 this year

[33:18] rounded ro fire district will be about

[33:22] 835 state revenue

[33:24] sharing about

[33:27] 386 alcohol beverages which is also

[33:30] state shared revenue is about 585,000 so

[33:33] you can you can go through these and you

[33:35] can see the detail details by the

[33:37] sections in here.

[33:40] This is open to the public. Yeah. Hey,

[33:42] this is this is right off the city's

[33:44] website right now.

[33:51] Yeah. And now I clicking go back the

[33:54] correct way, I won't lose everybody. Are

[33:56] these also showing our contingency

[33:59] funds, unallocated funds? Yeah.

[34:03] No, I'm just going to click that.

[34:07] on the adopted budget. If I go back now,

[34:11] I want to go

[34:13] back. Let's say for

[34:15] example, the general fund. I mean, we've

[34:18] got several and we've got all the

[34:20] departments under the general fund.

[34:21] Legislative, executive, administrative

[34:22] services, the court, library, aquatic

[34:26] center, parks, recreation, and

[34:29] police,

[34:30] fire, planning, economic development,

[34:33] engineering.

[34:35] But the for the general fund we have

[34:37] what we have the non-dep departmental

[34:39] section and for example when you go to

[34:41] the general fund if you go down

[34:44] here that will

[34:47] show this will show the revenues and the

[34:51] fund balances that are available. But

[34:53] you go down to a budget

[34:56] expenditures out of budget expenditures

[34:58] what you'll see is there's a little bit

[34:59] of personnel services materials and

[35:01] services this year. Here's the general

[35:05] fund. We budgeted a million dollars for

[35:06] contingency this year of and then the

[35:09] remaining fund balance expected fund

[35:11] balance was about $6.2 million. So

[35:15] that's the unappropriating. Yeah, that's

[35:16] the this is the unappropriating fun you

[35:19] go to. Yeah, that's what we don't

[35:22] the reserve. Yeah, that's the reserves

[35:24] that we can't touch unless there's

[35:25] something goes wrong.

[35:29] And each fund each most of the operating

[35:32] funds will have a contingency like

[35:34] capital funds and I mean most some of

[35:36] the other funds we don't we don't put

[35:38] contingency in every fund because it

[35:39] doesn't need it. But the operating funds

[35:41] we typically will put contingencies in

[35:43] because you may need to take out some

[35:45] contingency

[35:50] funds. So I'm going to use I'll use

[35:53] police as the expenditure example.

[35:59] If you click on

[36:03] police talks about the mission

[36:05] statement, department overview and the

[36:07] departmental goals and budget resources.

[36:10] It will show what resources are assigned

[36:13] to the

[36:15] police. Most of its grants and some of

[36:17] its charges for services.

[36:19] Intergovernmental revenue is

[36:21] [Music]

[36:23] one. I'm probably thinking about making

[36:26] a change. I've been thinking about this

[36:27] for a while.

[36:32] You'll see intergovernmental

[36:35] revenue. We assign there's two items for

[36:39] intergovernmental re. The alcohol

[36:41] beverages and there's the school

[36:43] resource officer

[36:46] reimbursement. The alcoholic beverages

[36:48] are are actually unrestricted state

[36:51] shared revenue, but the city's always

[36:52] assigned them to the police department.

[36:55] thinking about moving them back into the

[36:57] non-EP

[36:59] departmental revenue. So, it's not

[37:01] assigned to the police department.

[37:02] Because, for example, let's say these

[37:05] state shared re the alcoholic beverages

[37:07] got cut in half. Does that mean I'm

[37:09] going to say that the police department

[37:10] I want you to take $300,000 out of your

[37:12] budget next year because this revenue

[37:14] that you have no ability to affect is

[37:18] going in half. It doesn't. So, I'm

[37:20] probably going to move that back into

[37:22] the unrest to the non-governmental,

[37:25] which is where we put the unassigned

[37:27] revenue. So, it makes it makes more

[37:29] sense to me to put this in the

[37:31] unassigned revenue than it does

[37:33] specifically in the police budget.

[37:37] Thank you. Um, so that was just one

[37:41] company wanted to make on the one

[37:42] revenue for the sh.

[37:46] So, so

[37:49] expenditures, police, we've got it just

[37:51] shows the overall categories right here.

[37:53] The personnel services, materials and

[37:55] services, and capital outlay on the

[37:57] summary sheet for the police budget.

[38:00] Again, if you click on the view

[38:07] report, you'll get the graph. And the

[38:10] graph shows personnel services and

[38:12] materials and services. And they have

[38:13] just a little bit of capital outlay, but

[38:16] too on the scheme of this graph, it's

[38:18] going to be too small to show up.

[38:21] So, so personnel services, if you want

[38:24] to know what personnel services consist

[38:26] of, again, you click on that little

[38:27] black

[38:29] arrow, it will show

[38:31] you regular

[38:33] employees, intermittent employees,

[38:37] overtime, health, dental, retirement for

[38:40] the defined benefit plan, PERS. Some

[38:44] officers are on the find benefit plan.

[38:45] Some of them are on PERS such as the

[38:48] Medicare workers comp and other payroll

[38:51] taxes. Then if you click on materials

[38:54] and

[38:56] services, it will take you down and show

[38:58] you all their materials and services

[39:00] line

[39:02] items, operating supplies,

[39:04] organizational business expenses, their

[39:05] personnel uniforms, utilities, and so

[39:09] forth. One of their major charges for

[39:12] them is their is the Washington County

[39:15] Consolidated Communications Agency or

[39:18] WACA as we refer to it. That's about

[39:21] $370,000 for dispatch fees for the

[39:24] police.

[39:26] Well, somebody might wonder why there is

[39:28] more capital equipment since they drive

[39:30] vehicles and things like that. I'm sure

[39:31] you'll explain that. I can explain that.

[39:34] And then you'll see their other large

[39:37] expense for them. One of their large

[39:40] expense is the equipment fund charge.

[39:42] Now, this is just their charge for the

[39:44] operation of their vehicles like

[39:47] insurance, fuel, repairs, and all that.

[39:50] That's about

[39:54] $287,000 for the police vehicles.

[39:56] titans. Um, we purchase those from the

[40:00] equipment. The equipment fund purchases

[40:03] the general fund vehicles and then quote

[40:05] rents them out to the general to the

[40:08] general fund departments based on the

[40:10] replacement cost of that vehicle. For

[40:12] example, Ford Explorer patrol vehicle we

[40:15] keep five years. We buy a new patrol

[40:17] vehicle. We have the cash saved up to

[40:19] buy that vehicle and then we certain the

[40:22] police pay the equivalent of of that

[40:25] rental advertised over five years. So

[40:28] when the next vehicle is due, we have

[40:30] the money saved up. We all we do

[40:31] equipment fund. We always have on a pay

[40:33] as you go pay as you go basis. So, but

[40:36] you won't see equipment fund rental in

[40:39] here or the actual vehicles because it

[40:42] comes out of the a different fund which

[40:44] I'll explain during the budget process.

[40:46] But the equipment fund buys all the

[40:47] general fund

[40:49] vehicles except for fire fun. They buy

[40:51] their own vehicles. Information system

[40:54] charges. This is the charges for their

[40:56] mobile data the rental for their mobile

[40:58] data terminals and they're prorated to

[40:59] share their desktops and their pror

[41:02] share of the city's uh network hardware

[41:05] servers and everything else. So they're

[41:07] also charged the rental for all the

[41:09] information systeming funds. It's also

[41:11] pay me.

[41:13] So and these line items correspond to

[41:17] line these each of these correspond to a

[41:21] specific line item in our accounting

[41:23] system. So we just don't put the account

[41:24] numbers here. But this is each of these

[41:27] is a specific account number in our

[41:29] accounting

[41:31] system. Capital outlay. Most general

[41:35] funds don't have a lot of capital

[41:37] outlay. Um materials they do major tools

[41:40] work. They do $10,000 a year for them.

[41:43] That's to replace that's to replace

[41:45] weapons. Weapons wear out over time. And

[41:47] so you've got to purchase new weapons,

[41:49] new shotguns, new AR-15s.

[41:53] handguns, such things of that nature

[41:54] because they they do wear

[41:57] out. They do use them. They do use them

[42:00] a lot for

[42:04] practice. So, that's how you can

[42:06] navigate through the budget book. And

[42:08] you can do that on any, like I said, you

[42:11] can click on any of the pages in there.

[42:15] Paul, do you have one of these for every

[42:17] fund then? I'm assuming you're not going

[42:19] to go through every fun. Oh, no, no, no.

[42:20] This is just an example I was giving

[42:22] tonight. No, I was just that that place

[42:25] I spent more time on because that was

[42:27] the example of how to maneuver through

[42:28] this. Okay. Yes. Uh when do you

[42:34] expect this to be given to the budget

[42:37] committee? May 6th. And when's our first

[42:40] May 13th May 13. We put it out a week

[42:42] before the first budget committee.

[42:54] So, there's no other questions on how to

[42:55] navigate it, but this it it works well

[42:57] if you and you can keep digging down and

[43:03] um question. So, you're going to give it

[43:06] out to us May 6. And if budget committee

[43:10] members have

[43:12] questions and the meetings on the 13th,

[43:15] would you like when would you like

[43:17] questions? I mean I I mean the answer

[43:20] staff always likes to give us as soon as

[43:22] possible of course but it's we get

[43:25] questions say by Friday or even

[43:26] sometimes on

[43:28] day we'll try to put try to put answers

[43:31] together.

[43:33] Is that going to be enough time for you

[43:38] depends how detailed the questions are.

[43:40] Some of Dave's questions we struggle

[43:42] with.

[43:44] I'll give you much time as I can type

[43:46] questions.

[43:49] Always asking for weird stuff.

[43:54] Well, and if one counselor and some one

[43:57] committee member asks a question, we

[43:58] give the answers to all of the committee

[44:00] members. So, we don't just answer for

[44:01] the one one committee member.

[44:04] So, I shall turn this back over. Okay.

[44:08] And you are going to have the city

[44:10] council objectives. Yeah.

[44:17] Next

[44:30] transition kind of raise a process

[44:32] question for for me. Since

[44:35] uh deliberations would have to be in

[44:38] public, would you prefer that individual

[44:40] budget members directly direct questions

[44:43] to you individually and then you can

[44:45] prepare answers that you can email. You

[44:47] can email them and then we we give the

[44:49] answers

[44:50] out their answer.

[44:53] Right. So not exchange.

[44:58] Yeah. So there's no

[44:59] violation question each way. you send

[45:02] your questions then answers.

[45:10] Hey, I'm Jesse goals and objectives.

[45:14] So, I'll just take a few minutes.

[45:26] Thank you. Um, so for the council, this

[45:30] is a

[45:32] give you for the budget committee

[45:34] members. Every year the city council

[45:36] goes

[45:37] through the goals and objectives

[45:39] process. Um it's in the council

[45:43] rules. Um and as part of that process um

[45:47] they may or extended or retreat and

[45:50] then work sessions and come up with

[45:53] goals and objectives. The purpose of the

[45:55] goals and objectives is to set the

[45:57] strategic policy direction for the city

[46:00] for the for the following year and in

[46:02] some cases two and even three years.

[46:05] Staff, this is really a blueprint for

[46:07] us. What what we do is staff takes city

[46:10] council's goals and objectives and we

[46:13] work those into the budget. This has

[46:15] a large influence on the budget. And so

[46:20] you'll see connections between the goals

[46:22] and objectives and what's in the budget.

[46:24] And so for example, if we're looking at

[46:27] updating an economic development

[46:28] strategic plan, we want to do that

[46:31] within a year and that requires the

[46:33] hiring of a consultant. I don't think

[46:35] this one does, but let's just assume it

[46:36] does for

[46:38] purp. We may put what we think the

[46:40] estimated cost of that consultant would

[46:42] be. In this case, we put it in the first

[46:44] year of the budget and that would

[46:45] address that total and objective or at

[46:47] least have resources to be able to

[46:49] address that goal of objective. Um, for

[46:53] the purposes of this conversation today,

[46:54] this is public. Um, I

[46:58] um it's available on the website. If you

[47:01] would like copies, we also have

[47:03] copies of your budget books. When that's

[47:05] handed out, they will be part of the

[47:07] budget book. Um, I'm not going to go

[47:09] over every objective. I do want to cover

[47:11] however some of the broader goals

[47:14] because there was some changes this year

[47:15] that the council

[47:17] made. Before doing that though, I also

[47:19] want to make a comment. I think many of

[47:21] you are probably pretty familiar with

[47:22] the 2040 process that's going on right

[47:24] now. We have a 2040 vision plan. It's

[47:27] one of the if not the first time the

[47:29] city's ever done it. It's got to be

[47:30] pretty close because the last vision we

[47:32] had was from 2009 and it was not near

[47:35] the amount of community engagement that

[47:36] we've had with this process. Under the

[47:39] current 2040 process, the idea behind a

[47:41] 2040 plan is obviously to look out 15

[47:43] years. It's really to kind of challenge

[47:45] the community about what type of

[47:47] community do you want to be in the next

[47:49] 15 years? What are your aspirations?

[47:50] What are your goals? What are we doing

[47:52] right? What do we need to do better? Um,

[47:54] and the community engagement in this

[47:56] project so far has been um very

[47:59] thorough. Uh there's been farmers

[48:02] markets electric survey and fire

[48:05] consultants to make sure that we're

[48:06] reaching those folks that historically

[48:08] don't don't participate in these

[48:10] processes. Uh they have any kind of

[48:12] barriers to participation. We've gotten

[48:15] a lot of feedback so far. All of that

[48:17] feedback we're calling you know we're

[48:19] just basically community engagement. Our

[48:22] consultants have kind of amalgamated

[48:23] that feedback into some broader themes.

[48:26] Um, and right now, as you may have

[48:28] heard, we're having vision labs. The

[48:30] vision labs are essentially meetings

[48:32] about what the themes are and a draft

[48:35] vision statement. And so, we're getting

[48:38] even more robust community engagement

[48:40] right now through our vision labs. We've

[48:42] had great

[48:43] participation. All of this input, all of

[48:46] our community input from all the

[48:48] residents. All this is eventually going

[48:50] to kind of get categorized. It's going

[48:52] to get put into themes, objectives,

[48:55] goals, vision. Eventually, it's going to

[48:57] make its way to the city council. And

[48:59] when the city council looks at it, of

[49:02] course, they'll take all of this kind of

[49:03] into consideration and promulgate what

[49:05] this what the goals, objectives long

[49:07] term are going to be for the city in the

[49:09] 2040 plan that will eventually kind of,

[49:12] you

[49:13] know, be consistent with these goals and

[49:16] objectives. And so these will kind of

[49:18] feed into that broader framework. Very

[49:20] similar to a bannual budget being a

[49:22] little longer term framework for

[49:24] allocating resources. 2020 plan is going

[49:26] to be an even longer term framework for

[49:29] policy analysis, for budgeting, for

[49:32] resourcing really to kind of make sure

[49:34] that everything we're doing is

[49:35] consistent. It has resources allocated

[49:37] to it and going in a direction wants to

[49:40] go to. So, so we're pretty excited about

[49:45] that because you won't see it on this

[49:47] document this year, but it's definitely

[49:49] starting to be talked about how it's

[49:51] connected to this, how this will feed

[49:53] into

[49:54] that. So, you you'll be hearing more

[49:56] about that. Um, but let's just cover

[49:59] goal one. Rule one, broadly speaking,

[50:01] address long-term growth that support

[50:02] housing. You'll see a number of

[50:04] objectives under there. We will see some

[50:06] budget things associated with that.

[50:08] We're gonna have a budget um allocation

[50:11] for the comprehens.

[50:15] I'm sorry. That's okay. I'm not used to

[50:17] the two screen um

[50:21] the two screens. You didn't pop up your

[50:24] card.

[50:26] I'm playing solitire. Yeah.

[50:29] So, if you if you could scroll down

[50:31] maybe Jamie real quick, you will see

[50:33] something. The comprehensive plan. The

[50:34] comprehensive plan is a very broad-based

[50:36] document that's got a number of planning

[50:38] documents underneath it for the city.

[50:40] It's something that we address on a

[50:41] long-term basis. So, we'll have some

[50:43] resources associated with that. Um, keep

[50:47] going if you would. So, the second goal,

[50:50] ensure an inclusive, accessible, and

[50:52] sustainable community. This goal got

[50:53] slightly changed this year. Um, if

[50:56] you'll scroll down a little bit, that's

[50:57] where you do see the 2040 vision and

[50:59] action plan. I think you will see some

[51:01] budget associated with that because

[51:02] we're still working on it. You'll

[51:04] probably see some things associated with

[51:06] DEI, associated with urban renewal,

[51:08] community academy. As I look down this

[51:11] list, there's going to be something in

[51:12] the budget for all of these things

[51:14] virtually. Accessibility and

[51:16] compensation that was talked about a

[51:18] little bit earlier.

[51:19] Um parks maintenance, we're doing that

[51:21] evaluation right now. And then a parking

[51:24] demand management plan. You'll see

[51:25] something in the budget about that. Keep

[51:27] scrolling down. Next goal is maintain

[51:30] community safety and wellbeing. So

[51:33] again, a lot of when we say we put this

[51:35] into the budget, sometimes city staff

[51:37] can do this. And if we just need some

[51:39] resources associated with that, it's

[51:40] probably not a very big budget item.

[51:42] It's something that's really outside of

[51:44] staff's expertise or we simply don't

[51:46] have the bandwidth to do it. A lot of

[51:48] times we'll need to hire a consultant,

[51:50] somebody that's has expertise in that

[51:52] area that knows how to do either the

[51:54] planning or the design or construction

[51:56] or the alternatives analysis. And so

[51:58] that's when I say request I may refer to

[52:00] that. If you keep scrolling down

[52:04] um kind of read those

[52:08] objectives let's go to the next

[52:11] goal enhance recreation opportunities

[52:13] for all. I think this is our last goal

[52:16] and again you'll see budget items and

[52:18] virtually all these whether it's Kyle

[52:21] Park master plan many of these things

[52:24] just broader kind of picture if there

[52:27] are grant programs that are eligible for

[52:29] some of these goals and objectives we

[52:31] always try so if you're looking at Kyle

[52:34] Park for course loop trail I think we've

[52:37] received in talking with director Ann

[52:39] lane she's been terrific about paying

[52:41] grants and I think we've received over 5

[52:45] $500,000 in grants for some of those

[52:47] planning processes. Another example,

[52:49] Keith has done a wonderful job getting

[52:51] grants from Department of Energy for

[52:54] mitigating wildfire and that urban rural

[52:56] interface. And so we definitely tried to

[52:59] do that first. Uh if there's a matching

[53:02] component, so oftent times in a grant

[53:04] you'll get $100,000, but the city has to

[53:06] pony up 10%.

[53:08] $10,000. You'll see the $100,000 in in

[53:11] the budget because we have to account

[53:13] for every all the money that comes in

[53:14] but it will be 100 coming in 100 going

[53:16] out and then you'll see matching

[53:18] funds,000 numbers that we need to match.

[53:21] So that'll be

[53:25] so that that's that's all I have. Do we

[53:28] only show grant monies once when it has

[53:31] been awarded?

[53:33] It's a great question. Yes, we if we

[53:36] have applied for a grant and not

[53:38] received an award, it's not in the

[53:40] budget. We have received an award and we

[53:43] expect to take receipt of money, then we

[53:45] will put it. So, in today's environment,

[53:48] we know that having been awarded the

[53:50] funds, but not receiving the funds

[53:52] leaves you still in a very iffy

[53:54] proposition. It does. Yeah. But lately,

[53:57] and I I kind of briefed the the council

[53:59] on this a little bit last night in my

[54:00] city manager comments, we're doing

[54:02] everything we can and not only kind of

[54:05] if we've been awarded, we're doing

[54:06] everything we can to get a grant

[54:08] agreement associated with it. Um, and to

[54:10] obligate the funds and so we're we're

[54:14] busy trying to advance those projects as

[54:16] quick as we can and obligate those

[54:18] funds. um if you can get a it's one

[54:21] thing to have it be awarded, it's

[54:23] another thing to have it obligated. It's

[54:25] just kind of another level of assurance,

[54:27] so to speak. And

[54:29] so I updated last night that four

[54:32] different grants that we have over the

[54:35] past three weeks obligated where we were

[54:38] reported, but now we've signed

[54:39] agreements with other entities to

[54:42] follow and that's

[54:44] just doing our best on that.

[54:49] That's all I have.

[54:55] I guess any questions? Sorry.

[55:00] I will send out the goals and objectives

[55:02] document to the group after the meeting.

[55:09] Is there a way to like maybe on the

[55:11] website on that finance with the budget

[55:13] like at the top to say these are the

[55:16] four I mean is there four overarching

[55:19] goals? Yeah. Like I think it would be I

[55:22] mean it's probably just a teacher and me

[55:24] but I think it would be really cool just

[55:26] to show that linkage like these are our

[55:28] goals and objectives and that so this

[55:30] budget those goals drive the budget

[55:33] right so that's the personal linkage but

[55:36] I could I don't want I think that like

[55:40] for

[55:41] transparency public do

[55:48] and also list our values we didn't cover

[55:50] those council has routinely accepted to

[55:52] be adopted some values that are

[55:54] associated with that. Whether it's

[55:55] inclusiveness, whether it's financial

[55:57] sustainability, whether it's long-term

[55:59] strategic planning, those values are

[56:01] also associated and factored into all of

[56:04] these deliberations that we have both at

[56:06] the committee level and just to clarify,

[56:09] are you requesting that the goals and

[56:11] objectives and values be listed on in

[56:14] the budget book within that section of

[56:16] the web? Are the web page like

[56:21] pages.

[56:23] Yeah. Anyways, we can talk about that.

[56:25] Okay. Are you asking for a I wanted an

[56:29] easy interface.

[56:32] There will

[56:33] be when we do, we'll ask Stephanie to

[56:36] put the proposed budget, but

[56:41] yeah. Someone who's not doing the budget

[56:44] should see if it's obvious. Yeah.

[56:47] Sorry. Someone who has I want to clarify

[56:50] one thing. I don't think you're asking

[56:51] this, but let me check. Are you asking

[56:53] that when the goals are listed if

[56:56] there's some hyperlink from specific

[56:58] goal to specific budget items?

[57:00] Absolutely not.

[57:04] [Music]

[57:06] [Laughter]

[57:11] That's why I was requesting the

[57:12] clarification. I'm happy to do it if if

[57:15] I can.

[57:17] We'll get it figured out.

[57:33] We're just going to go through

[57:35] some stuff to kind of set the stage for

[57:38] the 2527 budget.

[57:42] Most of this is again general fund

[57:44] related again purpose to help set the

[57:47] stage and discuss some of the

[57:49] assumptions that we're using when we

[57:50] prepare 257 budget without getting the

[57:54] specific expenditures amounts for those

[57:59] expenditures. Property tax

[58:01] revenue we're going to we're going to

[58:03] use a 4.25% 25% increase that decreases

[58:07] value for both both of the two fiscal

[58:09] years of the next banial budget uh based

[58:12] on the

[58:13] last increase over the last four years

[58:16] and continue development and what's left

[58:18] for

[58:20] development some potential industrial

[58:23] development coming through that

[58:24] increases reasonable for us you know we

[58:27] don't get the industrial development

[58:29] right we have some enterprise zones that

[58:32] are starting to expire. So to assess

[58:35] value off some prior industrial

[58:39] development state shared revenues

[58:42] projects a little bit in 2526 about

[58:46] between all four of them probably about

[58:49] $60,000 total and that that will start

[58:52] to increase again fiscal year

[58:56] 2627. Um for the specific some some

[59:02] specific examples for the

[59:04] library we're projecting the Washington

[59:07] County library system revenue to

[59:10] increase 1% growth year already

[59:12] mentioned this 25 26 and 26

[59:16] 27 we will know what the county is

[59:18] planning to do for fiscal year 25 26 on

[59:22] April 29th

[59:24] 2025 is going to release their budget 28

[59:29] April next year and then for 2627 and

[59:33] future fiscal years we won't know what

[59:34] the projection for that revenue will be

[59:37] again until after the results in the

[59:38] November 2025 levy is known funding

[59:41] formula is finalized

[59:48] but didn't

[59:50] doesn't prefer like option of funding

[59:53] haven't they kind of released a funding

[59:55] mechanism that they use like or I I mean

[59:59] yeah for the library. So I guess yeah I

[1:00:01] want to like just make this quicker. Uh

[1:00:05] shouldn't we have a couple like

[1:00:07] forecasted options based on what they're

[1:00:09] recommending or at least what they're

[1:00:11] recommending happen? So there's there's

[1:00:13] a couple things that play into this and

[1:00:14] and for for those that haven't kind of

[1:00:17] mentioned the budget process. The reason

[1:00:19] 1% is significant in this

[1:00:21] context and I don't know the exact

[1:00:23] figure I'll correct me if I'm wrong but

[1:00:25] I think approximately 55% of the library

[1:00:28] funding actually comes from comes from

[1:00:32] WCCLS. We've historically always

[1:00:34] received a 3% increase on a per basis

[1:00:37] which was attached to essentially the

[1:00:38] assessed value in the general fund that

[1:00:41] come from the county to the city.

[1:00:44] they have lowered that percentage down.

[1:00:46] They the county has lowered that

[1:00:47] percentage to one to two% on a random

[1:00:50] basis. And so even though it's an

[1:00:53] increase, thus the amount of projected

[1:00:55] revenue that we would otherwise have is

[1:00:57] a little bit less. And and it's and so

[1:01:00] it it just creates

[1:01:03] um some challenges for the library and

[1:01:04] some some challenges for the city. What

[1:01:06] the county is looking at at this point

[1:01:08] and what they've talked about openly at

[1:01:09] the board of commission meetings is they

[1:01:12] want to replace the existing library

[1:01:14] levy and what they are looking at they

[1:01:17] haven't voted on it yet but they're

[1:01:19] looking at voting on it consensus at the

[1:01:21] work session to increase it 15 cents

[1:01:25] um calling in

[1:01:29] 22 so from 22 to 37 they did some they

[1:01:34] did some polling

[1:01:35] The polling at the time was

[1:01:38] generally generally pretty good.

[1:01:41] Libraries have pretty good um public

[1:01:44] approval in Washington County. Um that

[1:01:47] poll was done about two two months ago.

[1:01:51] Are they planning on polling that again?

[1:01:54] I don't know.

[1:01:56] They're going to pull that yesterday

[1:01:58] public. Yeah, that was that was one of

[1:02:01] the the kind of constraints on the poll

[1:02:03] is that it was not necessarily

[1:02:05] juxtaposed to the public safety levy

[1:02:07] which is also looking for

[1:02:09] replacements. So the context of just

[1:02:11] asking for the library changes a little

[1:02:13] bit if you ask for it in the context of

[1:02:14] replacing two liies. We're going to look

[1:02:17] at doing some additional I guess my I'm

[1:02:21] not speaking super clear right now. So

[1:02:22] I'm going to clarify my question. I

[1:02:25] remember that the recommendation by this

[1:02:28] consultant was to fund li to find fund

[1:02:32] all libraries at the same amount for

[1:02:35] open hours or like however many hours.

[1:02:37] So my question is we have a general idea

[1:02:41] of what they're going to fund that

[1:02:44] gives. So can't we I guess I'm just not

[1:02:47] understanding why we can't have some

[1:02:49] sort of educated guess about because you

[1:02:52] don't know

[1:02:55] theology. I mean you might know the

[1:02:58] formula. Well you would either know the

[1:02:59] le passing or the not passing and the

[1:03:02] formulas. But basically what I'm saying

[1:03:03] is that you have some information to to

[1:03:06] have like a fall to have two different

[1:03:12] one. I I would also caveat by saying

[1:03:15] WCCCLS, excuse me, the consultants are

[1:03:18] right now are literally kind of meeting

[1:03:20] with the library directors um and and to

[1:03:24] a certain extent the city managers and

[1:03:26] trying to sharpen up on what that will

[1:03:28] be like if the money doesn't pass, what

[1:03:31] the revenue forecast would be, what the

[1:03:33] funding formula would be. So, I'm not

[1:03:36] sure when some of those changes will

[1:03:37] take effect. I think there's a couple

[1:03:39] assumptions we can assume. one is if it

[1:03:41] does pass there's going to be a certain

[1:03:44] amount of funding available and if it

[1:03:45] doesn't pass there's going to be another

[1:03:47] amount of funding available and I think

[1:03:49] we can as information comes in during

[1:03:51] the kind of consulting process we'll be

[1:03:54] able to sharpen that estimate up because

[1:03:56] there is going to be there's going to be

[1:03:59] two different estimates for

[1:04:07] sure we imagine that's material

[1:04:11] Some of that's going to be consolidating

[1:04:13] services the collection

[1:04:35] change how we do business.

[1:04:42] I don't think we know that yet

[1:04:44] definitively because we don't have the

[1:04:47] agreement yet on how

[1:04:49] the this new proposal to do things

[1:04:52] countywide is going to work. So, we

[1:04:55] don't have a plan yet that says this is

[1:04:57] what that's going to look like and as a

[1:04:59] result of that plan, this is what's

[1:05:00] going to happen.

[1:05:16] That what's been talked about is

[1:05:18] teachers. The specific function that

[1:05:21] they've talked about is collections.

[1:05:23] There's a lot of elements to

[1:05:24] collections. Um there's selecting,

[1:05:28] there's cataloging, there's sorting,

[1:05:30] there's actually putting on the shelves,

[1:05:32] there's delivering, there's so there's a

[1:05:34] whole kind of and that conversation I

[1:05:37] think is probably all to has not

[1:05:39] started. It's virtually not even

[1:05:42] started. It's just the overall concept

[1:05:44] of collections has been kind of put out

[1:05:46] there and there's been some I think kind

[1:05:50] of general thought that yeah, we should

[1:05:52] talk about it, but I don't think there's

[1:05:54] any consensus on how it would look or

[1:05:57] how much money it may or may not save.

[1:06:04] No, I I just want to say I don't like to

[1:06:06] work with estimates when it comes to

[1:06:08] money. I learned from my grandma, you

[1:06:10] cannot put it in your budget. until you

[1:06:12] have it in your

[1:06:13] hand. And you know that's something that

[1:06:16] I just truly believe in. We can have an

[1:06:19] idea and be happy

[1:06:21] surprised when all this is over with.

[1:06:24] But I think we should just stick with

[1:06:26] the numbers of what we have.

[1:06:30] That's why as I said earlier the library

[1:06:34] budget might be

[1:06:37] mightier hopefully have more information

[1:06:40] by what's actually

[1:06:49] happen income significantly increased

[1:06:52] due to dramatic increase in rates

[1:06:53] although those rates level up they've

[1:06:56] actually started to lower slightly

[1:06:58] recently however the other Reason we're

[1:07:01] getting we're getting very good interest

[1:07:03] rates right now is we're continually

[1:07:05] replacing lower interest rate

[1:07:07] investments with a higher

[1:07:10] rate. The interest rate is down about

[1:07:13] 0.25 or half a percent buying two-year

[1:07:17] treasuries and other stuff at point 2.5.

[1:07:21] outline those

[1:07:30] maturing will probably stay on for a

[1:07:33] while before it starts to tail off tail

[1:07:36] off in future years. So interest a

[1:07:39] pretty significant component of our

[1:07:41] income. I it it is I mean it didn't used

[1:07:45] to be but general funds are fairly

[1:07:47] significant but we also try to look at

[1:07:49] what we're spending the interest

[1:07:51] on how you want to get on interest

[1:07:55] rates. Uh the fire rar district share of

[1:07:59] fire operating rating expenditures will

[1:08:02] increase from 12 to

[1:08:03] 12.4%. Their percentage is based on a

[1:08:06] 5year rolling average of calls. And so

[1:08:09] there's been enough additional calls out

[1:08:12] the district where we're changing that

[1:08:13] 12 to

[1:08:15] 12.4%. That may not sound like much, but

[1:08:18] it's about 32

[1:08:20] $33,000 general fund just on that 24%

[1:08:24] change. So it's not that helps. And

[1:08:27] cattle expenditures for the fire split

[1:08:29] on a 50/50 basis. City pays half. Fire

[1:08:32] district pays half.

[1:08:34] apparatus

[1:08:37] capital changes at the federal level

[1:08:39] that we're currently looking at current

[1:08:41] experience experiencing do not affect

[1:08:44] the city's operating funds. Cities not

[1:08:47] receive a lot of operating federal

[1:08:48] operating

[1:08:50] grants cops grants which appears to be

[1:08:53] safe. We've gotten requested

[1:08:56] reimbursements and received the first

[1:08:58] year on that. So we are getting grant

[1:09:00] funding still. We just have some very

[1:09:03] very

[1:09:04] small police department like DUI seat

[1:09:08] belt grants. I think maybe about 10,000

[1:09:10] small to not a lot of money. So um

[1:09:14] capital grants could be most risk for

[1:09:16] the city. That's why as Jess said we try

[1:09:18] to obligate obligate current capital

[1:09:21] grants as we trying to protect the ones

[1:09:23] that we have like say school and

[1:09:26] other federal money. We were going to

[1:09:30] apply for what they call a brick grant

[1:09:32] in our public works department that

[1:09:35] was for the water program. We were going

[1:09:38] to apply for

[1:09:40] a about 30 $36 million storage

[1:09:49] billion% naturally million. We had the

[1:09:52] application filled out already sent in

[1:09:55] and the whole program.

[1:09:58] What's even worse I think people who had

[1:10:02] Yeah, I should have mentioned that

[1:10:08] 202120 you received a prior

[1:10:11] grant funds

[1:10:14] going the federal government's going

[1:10:15] back to 2020 to take that

[1:10:23] so it's so that and that's a if we would

[1:10:27] have got that grant would help a lot

[1:10:28] because we have to build. So if we don't

[1:10:33] grant program doesn't come back

[1:10:37] for success, it's probably going to

[1:10:41] cause us to have to borrow some money

[1:10:44] for that tank. the water funds. You'll

[1:10:46] see when we get to the budgets that we

[1:10:48] we have a lot of cash

[1:10:52] funds there's a lot of

[1:11:02] private

[1:11:05] future because it's not just

[1:11:10] replacing the tank

[1:11:12] essentially I mean it's 5 million gallon

[1:11:15] tank Right now we currently

[1:11:18] have build two tanks.

[1:11:21] So tanks up there one. So half half of

[1:11:25] the tank half of each tank will

[1:11:27] be but you have to have the funds in the

[1:11:30] SDC the SDC. We have some but we have

[1:11:33] some good funds in the SDC but not that

[1:11:36] not that much. So we always look at the

[1:11:38] water projects as system development

[1:11:40] charge. Let's say system development

[1:11:42] charges can be used for growth can also

[1:11:45] be used for reimbursement. For example,

[1:11:48] if you have used capacity in

[1:11:51] system charge

[1:11:54] people development to pay for some of

[1:11:57] that prior development you put in that's

[1:12:00] currently not being utilized. For

[1:12:01] example, at the water treatment plant,

[1:12:03] the water commission plant 10 million

[1:12:06] gallons of capacity, we use about six.

[1:12:08] So, we've got about four million gallons

[1:12:10] of capacity. We can

[1:12:13] charge we can charge system development

[1:12:15] charges to

[1:12:16] recruit

[1:12:21] cost SDC's are

[1:12:30] botting for the federal we're fairly

[1:12:32] comfortable on that

[1:12:35] for budget. Do you know what system

[1:12:37] development charges when they say

[1:12:39] there's like the fees you like new like

[1:12:43] builders pay or new construction they

[1:12:46] just like infrastructure for water or

[1:12:50] parks or water parks for local SDCs and

[1:12:52] sometimes county a lot of so for for

[1:12:57] there's two STC's that the city charges

[1:13:00] directly is that yes city charges yeah

[1:13:02] the city charges water is one and parks

[1:13:06] is the other the other SDC's that you

[1:13:08] will see as part of any new develment

[1:13:10] This is not unique to course. This is

[1:13:13] municipwide in the tri county area and

[1:13:16] also in other parts other

[1:13:18] municipalities. But as the mayor

[1:13:20] mentioned in SDC's system development

[1:13:22] charge, the intention of the charge is

[1:13:24] that you are paying for the cost of that

[1:13:26] development on public infrastructure. So

[1:13:29] when you add a house, add 72. Add a

[1:13:32] house transportation. So fee is charged

[1:13:35] to try and renumerate the expense of

[1:13:38] that addition. We do water and parks.

[1:13:41] The county does what's called DDT. I

[1:13:43] refer to it earlier. That's

[1:13:44] transportation development tax. That's

[1:13:45] one that I think is approximately

[1:13:48] $12,000. Um and then there's a storm and

[1:13:51] sewer SDC. I believe 80% of that is

[1:13:55] clean water services. 20% is the city

[1:13:57] for the sewer. The

[1:14:00] city retains 20% test services. That's

[1:14:05] going to be about seven or eight next

[1:14:10] year% and then we collect sometimes

[1:14:13] we'll collect a surface water management

[1:14:15] system development charge city retains

[1:14:18] all of that

[1:14:20] city but that's only

[1:14:23] $700 by the city or that's by the county

[1:14:27] by the county and when you when you hear

[1:14:29] about surface water when you see those

[1:14:30] collection basins around town that have

[1:14:34] plants where a lot of the runoff whether

[1:14:36] it's a road or your gutters from your

[1:14:39] house or whatever the city maintains all

[1:14:42] of those. So the SDC when Paul says

[1:14:44] storm that's referring to those areas

[1:14:47] and there is a

[1:15:09] maintenance of the cities.

[1:15:12] You have a sewer and a storm

[1:15:16] charge. Most of that is clean water

[1:15:19] services. Approximately 80% of that is

[1:15:22] clean. We keep 75% of the surface

[1:15:26] surface storing sewer. The majority

[1:15:31] majority%. So there's some conversations

[1:15:34] currently about whether municipalities

[1:15:36] are going to continue to build that

[1:15:38] expense for clean water services or

[1:15:40] whether clean water services should just

[1:15:42] build that expense directly since they

[1:15:44] are the ones that acrew most of the

[1:15:45] funding and then bring it back to the

[1:15:48] city. Right now the municipalities it's

[1:15:50] done differently but most of the

[1:15:52] municipalities build with clean water

[1:15:53] services and then we give the money back

[1:15:55] to clean water services. some smaller

[1:15:58] cities like King City, Durham,

[1:16:02] um they clean water services actually

[1:16:04] bills for them and then sends them

[1:16:06] money. So some other cities are looking

[1:16:08] at that saying why don't you do that for

[1:16:10] us. I mean that looks like a pretty good

[1:16:12] deal. Certainly, but that's personally I

[1:16:14] prefer billing for clean water services

[1:16:16] because when you send just out a

[1:16:18] sewer collectible rate goes up because

[1:16:21] you have no you don't have a lot of

[1:16:24] teeth to collect that

[1:16:25] bill can't really sew you can't

[1:16:29] go to stop the sewer services from so I

[1:16:34] would

[1:16:37] think that's just that's a good

[1:16:41] public charge

[1:16:43] Yeah, that doesn't mean we can't say the

[1:16:45] other is there be an administrative

[1:16:48] expense for the cities that do it

[1:16:51] because right now we don't regular

[1:17:15] Well, that that's I mean if you can

[1:17:17] that's kind of brought

[1:17:26] this just some examples of federal

[1:17:28] grants that we've done. Talk about the

[1:17:30] cost grant. That's a

[1:17:32] $250,000 award partially fun two officer

[1:17:35] positions. We received the money over

[1:17:37] three years. Year one will get

[1:17:40] 125,000, year two will get 70,000. Year

[1:17:43] three will get5,000. The city's match

[1:17:45] increases the

[1:17:49] years they set dollar amount. We just

[1:17:52] have to make the

[1:17:54] difference money for safety highway.

[1:17:59] Yeah, I think that's one that's the one

[1:18:01] 850,000 Jesse got obligated. Pardon?

[1:18:05] 850,000 is one of the Yeah, we signed on

[1:18:09] 850,000. We signed an agreement with

[1:18:11] ODOT that project got now that we've

[1:18:14] signed the

[1:18:16] agreement we agreed to the matching

[1:18:18] funds and that's now in step that's

[1:18:21] going to be calculated into our

[1:18:23] statewide transportation program. So

[1:18:26] yes, that would be considered poly and

[1:18:28] it's cool because it got moved up got

[1:18:31] moved up and so construction that's

[1:18:33] going to go towards the Street

[1:18:35] intersection which is one of our most

[1:18:37] like high crash intersections in town by

[1:18:40] 71 in Dory. So it's going to start in

[1:18:42] 2026 right? Yeah. We got we got into the

[1:18:46] 2020

[1:18:48] 2025 to 2027. Yeah. That was a a great

[1:18:53] example of a project that was not really

[1:18:55] on ODOT's radar screen to be candid. And

[1:18:58] when the city came to the table through

[1:19:00] a lot of kind of efforts of lobbying

[1:19:02] etc. We came to the table with federal

[1:19:04] funding. We got we got it on the table.

[1:19:07] We got it in the step and now it's

[1:19:10] so that that

[1:19:12] was work out really well. They knew they

[1:19:15] needed project done.

[1:19:22] And then he's $900,000 community solar

[1:19:26] project which we installed with city

[1:19:27] substations.

[1:19:29] revenue from that will be used to the

[1:19:31] city's low energy assistance program

[1:19:35] that has not beenated that's been

[1:19:37] awarded but not

[1:19:41] sol that is a great project that kudos

[1:19:44] to our light power team that's that one

[1:19:47] may be more risk than some of the other

[1:19:52] we have I will say that Jamie Keith and

[1:19:57] have been working try and get

[1:20:01] HUD program money. It's been

[1:20:09] cut and that's just examples. There are

[1:20:12] other grants like he's got the grant to

[1:20:15] bury the overhead cable and

[1:20:17] underground and

[1:20:20] the areas prone to wild wild fire.

[1:20:25] And we're starting that work, right?

[1:20:28] That with our own money. First question.

[1:20:30] We're doing joint projects with our own.

[1:20:34] Yeah. Then we'll finish it up with still

[1:20:36] waiting

[1:20:43] on spender assumptions, wages, benefits

[1:20:46] increase contract negotiation will be

[1:20:49] budgeted.

[1:20:50] We're also going to propose a coal for

[1:20:52] nonrepresented staff.

[1:20:54] CPI 2.6 2.7. We're trying to figure out

[1:20:57] exactly what it was last year. We keep

[1:20:59] getting different percentage numbers

[1:21:01] slightly different percentage numbers

[1:21:02] from people. But police association

[1:21:05] contracts be negotiated. So actual

[1:21:07] increases will not be known until the

[1:21:09] negotiations are

[1:21:11] complete. Waging known wage

[1:21:14] increases ask me

[1:21:17] 2.62 CPI by contract. IBW is 3.5% by

[1:21:21] contract. Fire association is 4% by

[1:21:24] contract. Non-represented staff at this

[1:21:26] model we're thinking about towards any

[1:21:28] 3% cost of living and that's partly

[1:21:30] based on what surround surrounding juris

[1:21:33] jurisdictions are doing for colas. One

[1:21:36] of the things that we look at when we're

[1:21:37] setting colas decreases

[1:21:41] is we do we don't want to get too far

[1:21:45] behind the market on these things.

[1:21:48] people larger cost adjustments than

[1:21:51] cities are we tend to get behind tend to

[1:21:54] get kind every three years when we do

[1:21:56] when we labor contract labor contracts

[1:21:59] about

[1:22:00] expire services does

[1:22:03] a wage wage and benefit comparison for

[1:22:07] the comparable comparable cities or

[1:22:14] likew utilities around us some other

[1:22:17] utilities

[1:22:18] And for management, we'll we do a on our

[1:22:23] staff. We do a study every three years,

[1:22:25] which typically contract, but we'll do

[1:22:28] it every three years. So, we're sort of

[1:22:29] on the same

[1:22:31] cycle and we use the same comparable

[1:22:34] cities.

[1:22:38] So if you get too far behind then you're

[1:22:41] then you're below the market. The

[1:22:42] council pay policy of setting

[1:22:45] salaries plus or minus 5% of the market

[1:22:49] median. We try to try to keep it close

[1:22:53] to the market to the market median.

[1:22:55] Again we try not too far out on the five

[1:22:58] above the low get too far particularly

[1:23:01] on the blow side have to do

[1:23:04] stepping back up a little bit. You don't

[1:23:07] staff tends to leave the

[1:23:11] pasture hiring staff at some positions

[1:23:14] not the easiest things

[1:23:16] anymore and we have some requests for

[1:23:19] additional staffing. We're reviewing

[1:23:20] those to determine if the positions are

[1:23:22] sustainable, the projected

[1:23:24] revenues

[1:23:26] and cost increases that we're for other

[1:23:42] the opioid settlement money. Um the

[1:23:44] count last year the council we council

[1:23:46] set a resolution the opioid money just

[1:23:49] sent to the cat in Washington County.

[1:23:57] Yeah.

[1:24:05] We saw I think money's actually been

[1:24:08] slowing down. got we got 90,000 once or

[1:24:11] twice and the last payment we got was

[1:24:13] around $50,000. So

[1:24:17] it's starting to taper

[1:24:19] off kind of big picture was is a lot of

[1:24:24] municipalities received wasn't enough

[1:24:28] to anybody wasn't enough to kind of

[1:24:30] implement their own program so to speak

[1:24:33] and so there

[1:24:35] was a lot of conversation about how to

[1:24:37] get the community addiction treatments

[1:24:39] that are going program county was

[1:24:42] heading up. And

[1:24:45] so could be mistaken, but virtually

[1:24:48] every municipality said we pull all of

[1:24:53] the opioid addiction recovery money that

[1:24:56] will sustain the operations of the

[1:24:58] center not operations of the center for

[1:25:01] the first I don't remember however many

[1:25:03] years until the county could look at

[1:25:05] doing the budget for that.

[1:25:09] So that's essentially where the money

[1:25:11] program and I I know we did

[1:25:19] it. I don't know about

[1:25:23] those but that's

[1:25:29] generally frame.

[1:25:34] Um there was there was an estimated

[1:25:36] table that was put

[1:25:38] out that we could definitely represent

[1:25:45] I don't remember I don't think we're

[1:25:47] yeah I don't remember how

[1:25:51] long I don't think we're getting as much

[1:25:54] it was a structured settlement I think

[1:25:56] it was 10

[1:26:02] years princely

[1:26:07] [Music]

[1:26:11] because we can

[1:26:14] get all

[1:26:24] that medical and

[1:26:27] dental police and fire.

[1:26:30] police and fire associations are the

[1:26:33] Northwest Firefighters Trust or

[1:26:36] everybody else with

[1:26:39] CIS police fire went off on it went off

[1:26:43] the line previous contract and the

[1:26:45] police went over over the last their

[1:26:48] last contract with most firefighters

[1:26:51] associated trust with minimum

[1:26:53] dental their estimate of their increase

[1:26:56] for July is about 8%

[1:26:58] %

[1:27:00] other Kaiser CIS Kaiser project 13%

[1:27:07] 9% dental delta dental which is cross is

[1:27:11] 7% Kaiser's 3% dental is 7%

[1:27:19] CIS is the county insurance services

[1:27:21] it's where we it's a pool arrangement

[1:27:24] for uh there's one one side for city and

[1:27:27] one counties. So we buy our property and

[1:27:30] liability insurance from CI from city

[1:27:32] county insurance services and for all

[1:27:34] employees except for police and fire we

[1:27:36] buy our dental vision all that insurance

[1:27:40] from CIS as

[1:27:43] well. Northwest firefighters firefighter

[1:27:46] it's a better probably better program

[1:27:49] than CIS but they're very particular

[1:27:51] with the take. They tend to mostly take

[1:27:53] police and

[1:27:55] fire. That's from an experience basis.

[1:27:58] Most of the police and fire employees

[1:28:00] themselves tend to have better health

[1:28:02] and better longevity, you know, better

[1:28:04] health, but not as poor condition as

[1:28:07] some other types

[1:28:11] of younger sitting around all day.

[1:28:15] That's a nice way of putting it. They're

[1:28:17] not they're less sedentary.

[1:28:22] sanitary than a lot of the other

[1:28:24] employees.

[1:28:28] CIS retirement um city's defined benefit

[1:28:32] plan is decreasing by

[1:28:35] 532,000. This coming year it actually

[1:28:38] went up by about half million dollars

[1:28:39] last year. So it's going back down to

[1:28:43] where we were hoping it would be at. And

[1:28:46] about $378,000 of that is the general

[1:28:50] fund. $96,000 to light power, $58,000

[1:28:54] public

[1:28:55] works. I know that because I have the

[1:28:57] [Music]

[1:28:59] actuary I have calculated police, fire,

[1:29:03] general, employees, and general separate

[1:29:05] public works.

[1:29:07] I have all I have each of those

[1:29:09] categories

[1:29:15] costy. The city's divine benefit plan is

[1:29:18] now a closed plan. There's no employees

[1:29:21] in

[1:29:23] it. He took police fire in

[1:29:27] 2016 like power 2020 I think there

[1:29:34] power at that point in time closed.

[1:29:37] That's a pension plan. That's a pension

[1:29:40] plan. That's a yes pension plan which

[1:29:44] means we have three plans the city the

[1:29:47] city has. We have PERS. We have the

[1:29:51] city's defined benefit plan. We have

[1:29:52] defined contribution

[1:29:54] plan. The fine benefit plan for the city

[1:29:57] is

[1:29:59] a retirement payout to the employees

[1:30:02] based

[1:30:04] on a formula which is like general

[1:30:07] employees is 1.67% times their highest

[1:30:10] average 36 months earning their last 10

[1:30:12] years of

[1:30:13] service times years of service. That's

[1:30:16] the general. public safety 2% instead of

[1:30:20] 1% essentially the old PERS tier one

[1:30:24] formula without the money match portion

[1:30:28] of it. So actually it was a very it's a

[1:30:31] very lucrative

[1:30:34] plan which is one of the reason why we

[1:30:36] got to go away with it away from it was

[1:30:38] getting very expensive for the city to

[1:30:40] try to

[1:30:43] maintain per is kind of a hybrid plan.

[1:30:46] It's got the defined benefit portion and

[1:30:48] then it's got the individual account

[1:30:50] plan which is where the employees

[1:30:52] contributions go now and the various

[1:30:56] level tiers and curve I'm not going to

[1:30:58] go through that right

[1:31:00] now portion contribution

[1:31:03] portion then

[1:31:05] we ask me

[1:31:09] employees ask me employees recently had

[1:31:12] the option of going to pers or to stay

[1:31:14] in the city's defined

[1:31:16] contribution. We're having quite a bit

[1:31:18] of turnover with asking employees to try

[1:31:20] and plus we're trying to make it so they

[1:31:22] were on par with the other employees in

[1:31:24] the city.

[1:31:27] No, these are as this is like public

[1:31:29] works, the office workers, water

[1:31:31] treatment plant people,

[1:31:34] library

[1:31:35] staff. So we gave them the option of

[1:31:38] going to join to PERS or staying in the

[1:31:40] fine contribution plan. Most elected to

[1:31:42] go to PERS. So we have

[1:31:45] about 10 of them still contribution

[1:31:49] plan their reasons for it varied they

[1:31:53] very close retirement they

[1:31:58] didn't pay we put about we put 10% of

[1:32:02] their salary into that for them and 12%

[1:32:06] 2% contribution of their own 457 comp

[1:32:12] those are the three retire

[1:32:17] class make the auto report

[1:32:19] longer. Um so the main reason getting

[1:32:23] back to this for the decrease is due to

[1:32:25] the actual earnings for the plan

[1:32:26] exceeding the assumed assumed rate of

[1:32:29] return of

[1:32:31] 5.25%. We exceeded that by 6.57% for the

[1:32:35] year end.

[1:32:40] So that rate will become effective July.

[1:32:43] The contribution in the metal will

[1:32:45] become effective July 1st of

[1:32:47] 2025. PERS rates are increasing by 8% on

[1:32:51] July 1st. They go up that whole 8% on

[1:32:53] July 1st. However, then that rate in

[1:32:56] will be in effect for the next two years

[1:32:58] through June 30th of 2027. That mean

[1:33:00] their investments didn't do as well.

[1:33:04] Um, they their investments did well did

[1:33:07] okay, but they've

[1:33:08] got they've got other structural issues.

[1:33:12] I mean, they've got they've got some

[1:33:15] they got employees that are they got a

[1:33:17] lot of unfunded actual liability.

[1:33:20] They're trying We do too. They employees

[1:33:23] are trying back in the days that they're

[1:33:25] trying to work through

[1:33:34] That's the retirement

[1:33:38] changes workers compensation rates

[1:33:41] likely increasing by 10% on July 1st

[1:33:44] 2025 for us. That's based on our

[1:33:46] experience mod going up from

[1:33:52] 66.76. Actually, we were 0.94 a while

[1:33:55] ago 66.

[1:33:58] 76 and you get one large claim that

[1:34:01] greatly change your experience. However,

[1:34:03] say it's been awarding a dividend for

[1:34:05] several years now and I typically give

[1:34:07] that dividend to keep the cost of

[1:34:09] workers comp. I try to keep workers comp

[1:34:12] fairly flat for the for the department

[1:34:15] and so that's what I use the dividend

[1:34:16] for. Cost go up. I cover it with the

[1:34:19] dividend money. We account for that in a

[1:34:22] risk management fund. So that might

[1:34:24] separate separated out.

[1:34:26] Try not to raise the lowest compar by

[1:34:28] using the dividends. Property liability

[1:34:30] insurance is increasing by 5 to 8% this

[1:34:33] year. Auto liability insurance that's

[1:34:43] genre. Just some comments on some other

[1:34:45] funds.

[1:34:47] Uh we're reviewing the rates for the

[1:34:49] public port enterprise fund and also for

[1:34:52] power.

[1:34:53] We're going to be conducting a water

[1:34:56] rate study this fiscal year when

[1:34:57] presented to the council for

[1:35:00] consideration. Staff will likely propose

[1:35:02] a 3% increase on July 1 of 2025 and

[1:35:05] propose implementing the results of the

[1:35:07] water rate study on July 1,

[1:35:10] 2026. Don't want to go too long. Water

[1:35:13] rate increases. do

[1:35:15] that much larger just the one year and

[1:35:18] the public

[1:35:20] public kind of doesn't mind the smaller

[1:35:23] increases.

[1:35:25] Yeah, we've been hit with we've been hit

[1:35:27] with not changing it for several years

[1:35:29] and then we had to raise it a lot. So

[1:35:31] the council said at that time we'd like

[1:35:33] to see a series of smaller raises so we

[1:35:36] don't have to do the large the larger

[1:35:39] tax. So that's that's what we've been

[1:35:40] trying to do. Uh, clean water

[1:35:44] services has proposed a 4% rate increase

[1:35:47] on July 1st for sewer sewer and surface

[1:35:49] water management rates. They haven't

[1:35:51] approved yet, but that's what proposed.

[1:35:53] Who approves that? What is the approving

[1:35:55] body? Uh, the Washington County Board of

[1:35:57] Commissioners is the board for clean

[1:36:00] water services. I mean, they're

[1:36:02] technically separate agencies, but the

[1:36:04] county commissioners are the board for

[1:36:05] clean water services as well.

[1:36:12] Um they uh county typically doesn't

[1:36:16] approve those until around early June.

[1:36:18] So we typically wait till the second

[1:36:21] meeting in June to do our sewers rates.

[1:36:25] We in the past we tended to mirror the

[1:36:26] clean water service rate increases but

[1:36:28] we're still reviewing we're still

[1:36:30] reviewing the sewer and swim funds. We

[1:36:32] haven't

[1:36:33] determined potential rate increase yet.

[1:36:37] probably something

[1:36:41] but% line power fund potential rate

[1:36:44] increases will be reviewed now that BPA

[1:36:47] rates for the next three years are close

[1:36:49] to being finalized I think finalized

[1:36:52] August July so we're going to start the

[1:36:55] study study now shouldn't be that too

[1:36:57] bad of a study because consultant has

[1:37:00] most information it's just a matter of

[1:37:03] hopefully changing a few factors

[1:37:07] We'll get it started and then BP rates

[1:37:10] finalized. We'll plug in the final rates

[1:37:14] and then see if that changes. We're

[1:37:15] going to put the preliminary rate

[1:37:18] increases. We know what the average BPA

[1:37:20] rate increase is,

[1:37:23] but you don't necessarily we you don't

[1:37:26] necessarily get the average BPA rate.

[1:37:28] Each utility

[1:37:31] rs typically tends to be a little

[1:37:33] higher. The average rate

[1:37:37] Yeah. So, but we'll plug in we'll plug

[1:37:40] in what they think our proposed rate

[1:37:42] going to be and it's final. We'll plug

[1:37:43] in the final

[1:37:45] rates work

[1:37:47] session all of the same

[1:37:54] power that'll be for the next threeear

[1:37:56] period which will close out the current

[1:37:59] contract.

[1:38:05] That's that

[1:38:07] one. Any questions on any of that?

[1:38:17] C we don't I we tend to mostly stick on

[1:38:21] the larger fund like the general fund.

[1:38:23] So the other stuff these meetings it's I

[1:38:25] mean the C we could talk about C. It's

[1:38:28] you know it's about an $800,000 bud.

[1:38:31] Right now we're getting two components

[1:38:32] for C. We're getting C grant

[1:38:36] money and we're also getting what's

[1:38:38] called the community investment

[1:38:40] fees. There's $1 C there's a $1 fee at

[1:38:43] the transfer stage. That's for CP per

[1:38:46] ton per ton and then there is a

[1:38:50] uh 50 cent per ton fee called the

[1:38:53] community impact community that fee CIF

[1:38:56] fee transportation. the waste management

[1:39:00] can elect to collect or can elect not to

[1:39:03] collect. At first they didn't collect.

[1:39:05] So for the they collected a much smaller

[1:39:08] fee. So the first year we we got a

[1:39:10] couple hundred bucks a year from the

[1:39:12] CIA. Now they're collecting the 50 cent

[1:39:15] fee. So that fee is that fees coming in.

[1:39:18] Right now, Metro's allowing you and I

[1:39:21] don't unless they finalize the rule that

[1:39:24] check they're allowing you to since they

[1:39:27] don't have any specific rule how you can

[1:39:29] spend the CIF they're allowing spend

[1:39:38] CO for relocation

[1:39:44] uh Metro is pro um Metro's coming up

[1:39:47] with their plans.

[1:39:49] Cornelius is not scheduled to be a

[1:39:51] full-blown transfer station. It's it's

[1:39:54] more to be recycling. I think it's a

[1:39:56] full transfer station and this this one

[1:39:59] over here will

[1:40:04] still

[1:40:06] do

[1:40:08] that. I think there was some indication

[1:40:11] center would find some way to keep it

[1:40:14] going.

[1:40:16] That's what you mean.

[1:40:18] Um it's I they're looking at their whole

[1:40:23] solid waste system now. So I think I

[1:40:26] haven't I don't know what they discuss

[1:40:27] about the CP future. So it's going to

[1:40:30] retain or not. So it's because they're

[1:40:33] going to be doing they're going to be

[1:40:34] doing different things transfer

[1:40:37] stations and they're going to be they're

[1:40:39] going to be located recycling some other

[1:40:42] type transfer stations in various

[1:40:44] places. So not sure exactly where all of

[1:40:47] it

[1:40:49] in case you're not a

[1:40:52] community monies that come to us from

[1:40:55] Metro Transfer

[1:41:03] Station. This year we awarded about

[1:41:05] $90,000

[1:41:07] grants. We gave Chamber of Commerce a

[1:41:10] three-year grant, $40,000 each year.

[1:41:13] Then we awarded three other three other

[1:41:17] entities. 2020, I believe

[1:41:23] 10,000. You notice we did the C

[1:41:28] this decided last year to switch over to

[1:41:32] fall. that we kind of know better what

[1:41:34] revenues are

[1:41:36] plus staff workloading it. It's just a

[1:41:39] hard thing to try to do in the spring

[1:41:40] with everything else that we do. The

[1:41:42] fall tends to

[1:41:43] be it's busy but there tends to be fewer

[1:41:47] established programs like other stuff.

[1:42:00] Shall we take a break?

[1:42:05] Yes, but we have three more. Might take

[1:42:07] a little bit of question.

[1:42:11] I say we stretch our legs for a moment.

[1:42:32] [Laughter]

[1:42:35] I do it all the time. No, now I can't

[1:42:38] see anyone. I don't think that'll work.

[1:42:40] No. As soon as someone talks, it'll back

[1:42:41] out. What? You don't like to have your

[1:42:44] picture on the screen. So, watch. Soon

[1:42:46] as someone's talking and then the next

[1:42:48] time someone talks, you don't. Okay,

[1:42:50] we're going again, everyone.

[1:42:54] I don't want to silly. You don't like

[1:42:59] Not really, but I'll just I'll just roll

[1:43:01] with it.

[1:43:18] I didn't hear tonight.

[1:43:25] There. That is not large enough for

[1:43:28] everybody. I'm going to zoom a whole lot

[1:43:30] bigger anyway.

[1:43:32] Yeah, I think it might go off the

[1:43:33] screen. Yeah,

[1:43:36] there we go. There you go.

[1:43:40] Hey, the last thing is

[1:43:43] the general fund fiveyear forecast. And

[1:43:46] that's what it is. It's a forecast. I

[1:43:49] didn't go meticulously through each out

[1:43:52] to year 2930 and say I think this

[1:43:55] expendure revenue wise. said let's kind

[1:43:57] of do this 26 25 26 and 26 27 we know a

[1:44:03] lot of the parameters so there are some

[1:44:06] of those numbers are fairly good but

[1:44:07] after the

[1:44:09] 27 through 30 I said I did go through

[1:44:13] and apply percentage increases to some

[1:44:15] of the different revenues and

[1:44:16] expenditures I just didn't apply a total

[1:44:19] factor to all revenues otherwise it's

[1:44:21] your Ouija board right

[1:44:23] yeah and to explain it real quickly The

[1:44:27] two blue columns are the current fiscal

[1:44:29] year. There's the original budget

[1:44:33] forecast where what we think we're going

[1:44:35] to hit the end of the year. Then there's

[1:44:37] the for the green columns are the

[1:44:41] forecast for the next five years. First

[1:44:44] two green columns will be what we I mean

[1:44:46] those that will be the first two years

[1:44:48] of the banual budget. the red red or

[1:44:53] whatever color not red so

[1:44:55] much for it is um that's forecast 2728

[1:44:58] reason I put that that color is that is

[1:45:00] the last year of the fiveyear local

[1:45:02] auction

[1:45:10] we have two we have two things permit

[1:45:12] rate which is about $3.96 per

[1:45:17] thous which is additional property tax

[1:45:20] one property tax bill that expires every

[1:45:23] five years. operating least can only max

[1:45:34] that's a thousand's assessed value of

[1:45:37] assess and it got that two years ago two

[1:45:41] years ago as I said we're 25 26 will be

[1:45:44] the third year

[1:45:46] it just basically helps

[1:45:50] us a bond appreciation bond

[1:45:56] and

[1:45:57] operational

[1:45:59] staff, right? Yeah. For example, the

[1:46:02] police obligation is a general

[1:46:04] obligation for up to 21

[1:46:06] years finance

[1:46:11] cost local operating levies are to

[1:46:14] supplement your get additional revenue

[1:46:17] to do more operations. It started out

[1:46:20] years ago at 99 cents a thousand and

[1:46:23] over over time it's increased and it's

[1:46:25] now

[1:46:26] $1.95,000

[1:46:29] and that expires June 30th of 2028.

[1:46:33] Typically we have gone out a year early

[1:46:37] to try to renew or replace the last

[1:46:42] time you're renewing just asking the

[1:46:44] voters the same.

[1:46:47] We'll ask the voters in June of May of

[1:46:50] 2027 at that election probably to

[1:46:53] approve renew.

[1:47:07] So probably in

[1:47:09] the probably in the fall of 2026 early

[1:47:14] fall start planning

[1:47:17] for doing projections for

[1:47:20] what to do for the next five year oper

[1:47:25] Start fall 2026. That will give you

[1:47:28] about seven months

[1:47:32] time before you have to approve

[1:47:44] it. Okay. So going down here, I said the

[1:47:47] first two columns are

[1:47:49] the are the current year one's the

[1:47:51] budget amount. be appropriated. The

[1:47:53] other one we're

[1:47:55] forecasting. You'll see number one

[1:47:57] property taxes. That's that's our

[1:48:00] permanent

[1:48:01] rate. Number two, where it says local

[1:48:03] option electric is also property tax.

[1:48:06] That's the 5year local option. I

[1:48:08] separated those out so people can see

[1:48:10] kind of the magnitude of it. See the

[1:48:14] local option levy is not insificant when

[1:48:16] it compares to our

[1:48:20] rate what barely less than half of

[1:48:25] what all other taxes or franchise fees

[1:48:29] things of that

[1:48:32] nature governmental revenue is what we

[1:48:34] collect from the government for example

[1:48:36] the

[1:48:38] county money

[1:48:41] Washington County Department services.

[1:48:44] Also, we we have a contract for services

[1:48:47] with the fire districts. We charge them

[1:48:50] for operational services based on

[1:48:53] rolling average of calls. Like I said,

[1:48:55] next year it's going to

[1:48:57] 12.4%. So that's the other major line

[1:49:02] item between the

[1:49:08] library. It's about half

[1:49:13] grants. You see that's that's a fairly

[1:49:16] small amount charge us for services or

[1:49:18] what we

[1:49:21] charge some of the fees we charge out

[1:49:24] for services we perform. You'll see $6.2

[1:49:27] million. The largest line item there is

[1:49:30] actually what we call our general fund

[1:49:32] for service charge. It's overhead

[1:49:35] charges that we charge to our other

[1:49:37] funds like water, sewer, light and

[1:49:40] power. Central we do a lot of services

[1:49:44] for those apartments that we charge and

[1:49:47] they get charged back for them. That's

[1:49:49] probably close to five of that $6.2

[1:49:54] million. Licenses, permits, fees is like

[1:49:56] business is like planning fees of that

[1:50:00] nature. Fines exactly what it says. So

[1:50:02] there's traffic lines

[1:50:04] mostly fines, parking

[1:50:08] lines charges for

[1:50:11] services one

[1:50:14] way into funies

[1:50:17] that stand. Yes.

[1:50:21] And city's always done that. It really

[1:50:24] hasn't changed the

[1:50:25] methodology for a long time. I

[1:50:28] essentially use the same methodology

[1:50:30] almost that the person before me, but I

[1:50:34] changed it somewhat. I charge some like

[1:50:37] utility billing staff. I charge

[1:50:39] specifically out all of it out to

[1:50:43] me% of it

[1:51:02] outdoed the cost we did cost

[1:51:07] services they did a very complicated

[1:51:09] cost allocation method and it came with

[1:51:11] about 20 $30,000 how I was charging how

[1:51:15] I my easy method of charging the fun. So

[1:51:17] I've always just kept it doing easy

[1:51:22] method.

[1:51:25] Um miscellaneous that's most of that's

[1:51:28] interest

[1:51:29] income some of his

[1:51:31] donations transfers and reimbursements.

[1:51:34] The

[1:51:35] uh that's money mostly comes from other

[1:51:38] funds as well. For example, remember I

[1:51:41] mentioned all other taxes we charge.

[1:51:44] Some of that's franchise fees which are

[1:51:46] charged like Northwest natural

[1:51:49] gas

[1:51:52] companies waste management for operating

[1:51:55] on city right away. That's about 5% fee

[1:51:58] city. Now we do the same thing. We're

[1:52:00] charging charge our electric company we

[1:52:03] charge

[1:52:04] 5% tax. So that's why it's transfers

[1:52:08] charge 5% to water 5% of the

[1:52:12] portion of the sewer fees that we keep

[1:52:16] of the city. We don't charge the 5% on

[1:52:19] the clean water services fees because we

[1:52:22] don't have we don't have a right or we

[1:52:25] want to work on develop

[1:52:27] shortway or charge 5% services fees that

[1:52:33] probably

[1:52:35] a

[1:52:37] year flip side that

[1:52:40] $170,000 on the

[1:52:43] customer

[1:52:46] not say that we're going to pay this

[1:52:48] franchise. We don't care about we don't

[1:52:50] care that we have

[1:52:56] that discussion on you want to do that

[1:52:59] just

[1:53:00] have

[1:53:04] to so like I said in these are the big

[1:53:08] ones of that money there so that's kind

[1:53:10] of a quick rundown on revenue

[1:53:13] categories in each of the revenue

[1:53:15] categories you'll see we've budgeted

[1:53:17] 27.9 million

[1:53:20] We're receiving about 27.4

[1:53:23] million. Doesn't bother me

[1:53:26] because we budgeted some expenses for

[1:53:29] the recreation

[1:53:33] programs in the non-EP departmental

[1:53:36] fund. However, we just we ended up just

[1:53:38] charging those most charging all of

[1:53:41] those to in the ARPA fund itself. So, we

[1:53:43] didn't actually make the transfer. We

[1:53:44] didn't incur the expense. So, we didn't

[1:53:46] bring the revenue over. So there's kind

[1:53:48] of a wash there between between expenses

[1:53:51] and the revenues. That's that's quite a

[1:53:53] bit of the revenue differential there.

[1:53:55] Some funds for those familiar is

[1:53:58] government funds

[1:54:00] came that was awarded to cities

[1:54:03] municipalities.

[1:54:08] Yes, that money's gone. We got about

[1:54:11] $5.8 $8 million we had to spend at the

[1:54:13] end of by December 31st,

[1:54:16] 2024. We did that. So, some of them went

[1:54:19] to summer recreation

[1:54:21] program. So, you'll see I'm not mean to

[1:54:25] have short some of the other little some

[1:54:27] of the other shortages. Some of the

[1:54:29] state shared

[1:54:30] revenue didn't commit was

[1:54:33] budgeted. So, you'll see the total

[1:54:36] resources to see the how much. So,

[1:54:39] scroll down just a little bit, Danny. We

[1:54:42] can see the

[1:54:45] expenditures. Okay. Expenditures. You'll

[1:54:48] see we have each of the general fund

[1:54:50] departments there on the left column.

[1:54:51] You'll see the various departments that

[1:54:52] we

[1:54:53] use. You'll see budgeted amount. You'll

[1:54:56] see the what we think we're going to

[1:54:58] spend in

[1:55:00] those. And you'll see we budgeted about

[1:55:02] 28.5 million and we think we're going to

[1:55:05] spend about 26.7 million. So, we're

[1:55:08] spending quite a bit less than budgeted

[1:55:10] and the big areas of differential are

[1:55:15] administrative services. We have quite a

[1:55:17] few staff vacancies

[1:55:19] have still staff vacancies now that

[1:55:22] we're trying on filling or some other

[1:55:26] method of driving

[1:55:28] service. Police

[1:55:30] um police they can spend their we don't

[1:55:33] think they're going to spend outside

[1:55:34] $700,000 their budget. They had some

[1:55:36] vacancies in there

[1:55:38] again.

[1:55:41] Um other the other place that's

[1:55:45] returning some money, but it doesn't

[1:55:46] actually look like it is fire. Um fire

[1:55:50] has had some vacancies. I know I know it

[1:55:53] doesn't look like they're going to

[1:55:53] return much because difference between

[1:55:55] the budget and the actual and they like

[1:55:58] projected like

[1:56:00] $5,000. They have a lot of comp they

[1:56:02] went to a lot of complication fires.

[1:56:05] That's where we send our fire staff and

[1:56:07] they declare like emergency like

[1:56:09] California or we'll send a fire crew out

[1:56:12] there and we will get reimbursed for the

[1:56:14] cost of the crew that goes out there. We

[1:56:16] also get reimbursed for the cost of

[1:56:18] anybody we have to call in to work that

[1:56:20] person's crew. So we call in a

[1:56:22] firefighter to cover the station. We get

[1:56:24] paid the crew out there and approve the

[1:56:26] station. So there's a lot of overtime

[1:56:29] occurred there, but we've got the

[1:56:31] revenue we get into consultation revenue

[1:56:34] to receive that. Um it doesn't show

[1:56:37] fully up in the resources because we

[1:56:40] got little over about a quart million

[1:56:42] dollars of that revenue. The general

[1:56:44] fund is prior just went down to

[1:56:47] California.

[1:56:49] California doesn't pay the fastest. We

[1:56:51] probably won't get that money till late

[1:56:54] fall of this year. So, so we incur the

[1:56:58] expenditures and we budgeted the revenue

[1:57:00] next year. So, it's

[1:57:07] got so reimbursement. Yeah, we have

[1:57:10] reverse recruitment. Yes. And we get I

[1:57:14] think the fire trucks are about $100 an

[1:57:16] hour and you get paid from the time they

[1:57:17] leave till the time they pull back in.

[1:57:21] So, so those

[1:57:23] deficits that we see

[1:57:29] there for the next three four years

[1:57:37] disappear we'll explain I'll explain

[1:57:40] that in a second. So you'll see for this

[1:57:41] year we budgeted a deficit of

[1:57:44] $592,000

[1:57:46] basically knowing we probably would hit

[1:57:48] that deficit due to staff vacancies.

[1:57:50] You'll see we're actually going to we're

[1:57:53] actually projecting a surplus of about

[1:57:56] $750,000 this year due to a lot of those

[1:57:58] staff vacancies and some other expenses

[1:58:00] not being paid. So go down to the next

[1:58:04] page.

[1:58:08] Sure. the municipal court. Is that um is

[1:58:12] that the expenditures of us sending some

[1:58:15] of the signs that we collect over to

[1:58:20] we the municipal court expenditures?

[1:58:22] Yeah, that's that's the the personnel

[1:58:24] around the court software computers and

[1:58:27] we also have we send some of the money

[1:58:29] to the state some of the money down

[1:58:32] Washington County for example. Both

[1:58:34] assessments are like $62 a ticket.

[1:58:38] reduces the

[1:58:43] ticket6. So

[1:58:46] yeah, I really like I really

[1:58:48] love this. So you'll see beginning fund

[1:58:53] balance we budgeted we projected about

[1:58:57] $7.9 million fun balance. We were

[1:58:59] actually at about $9.3

[1:59:01] million over due to some of the same

[1:59:04] circumstances from the year before.

[1:59:06] And so we projected an ending fund

[1:59:08] balance about 7.3. We're actually going

[1:59:10] to have an ending fund balance around

[1:59:12] $10 million at the end of this year. And

[1:59:15] I looked at the cash in the bank. So

[1:59:18] here's how much cash we have the general

[1:59:19] fund. I kind of eyeballed how much we

[1:59:21] typically spend in the last few months.

[1:59:23] I'm reasonably

[1:59:24] comfortable that projection

[1:59:27] number. So you'll see that the next line

[1:59:30] item you'll see down there is the target

[1:59:32] fund balance. The city council has set a

[1:59:34] policy where they want 10% of the

[1:59:38] expenditure 25% of the expenditures of

[1:59:40] the minimum fund balance. So you'll see

[1:59:43] the minimum target fund balance is about

[1:59:45] 6.7 million which is about 25% right now

[1:59:49] we're carrying

[1:59:51] 376% fund balance. So go back up to

[1:59:56] other page.

[2:00:02] So you'll see go down down expenditure

[2:00:05] like I said the revenues I projected

[2:00:07] some the revenues

[2:00:09] out specifically for the first two years

[2:00:12] we have a decent idea on most of those

[2:00:15] other revenues are like I took property

[2:00:17] taxes out a certain percent other

[2:00:19] revenue line items out a certain

[2:00:20] percentage based on historical how they

[2:00:22] go up a lot of our small fees don't

[2:00:25] change a lot I mean we raised the fee 3%

[2:00:27] that doesn't mean a whole lot more fee

[2:00:30] fee revenue some of them based

[2:00:35] So general fund expenditure sort of the

[2:00:37] same way I

[2:00:40] took for the first two years. I mean

[2:00:43] some of that's based on that's based on

[2:00:46] taking money but some of this is some of

[2:00:48] this is actually out of the the budget

[2:00:50] that we're reviewing and some of some of

[2:00:52] the stuff I've taken some of the

[2:00:54] expenditures are requested but not

[2:00:56] approved. So I've taken some of those

[2:00:57] out of the budget out of the

[2:00:59] expenditures for next year. So I've

[2:01:01] tried to limit this to this projection

[2:01:04] is kind of based on where we currently

[2:01:06] are right now for how many people we

[2:01:08] have, what revenues we have, what

[2:01:10] expenditures we're doing. I try to just

[2:01:11] take the current run across for the next

[2:01:14] five years. I should have said that

[2:01:15] earlier. flower. You see the total

[2:01:18] expenditures, they go up, you know,

[2:01:20] they're going up from $29 million and

[2:01:24] this kind of roughly next year up

[2:01:26] through about $33 million through five

[2:01:29] of the projection. So, you'll see in

[2:01:32] each of those years again there's a

[2:01:34] surplus and there's a surplus or there's

[2:01:37] a deficit, excuse me, um of amount in

[2:01:40] parentheses. Now, that is based on full

[2:01:44] employment. It's based on every

[2:01:46] authorized staff person being there

[2:01:49] never having any vacancies which really

[2:01:52] isn't

[2:01:53] accurate really isn't an accurate way to

[2:01:56] project things out because it doesn't

[2:01:58] take into account you will have you will

[2:02:00] have some vacancies during it we go back

[2:02:03] back through the years and say

[2:02:05] traditionally comes up these other other

[2:02:08] departments they're trying to take their

[2:02:09] turn having vacancies people retire and

[2:02:12] other stuff other stuff so another way

[2:02:14] to put it is almost never spend the

[2:02:17] amount that we had budgeted. Yeah. The

[2:02:18] first two the first two blue columns are

[2:02:21] private.

[2:02:23] So when you see a projected deficit, you

[2:02:26] might think, "Oh my gosh, we're going to

[2:02:27] be spending the whole chances are we

[2:02:30] will not have a deficit and also

[2:02:33] remember that the 25% that we keep in

[2:02:36] reserves."

[2:02:38] Yeah. So go back to the next

[2:02:40] page. Jamie question. So if they don't

[2:02:44] fill a vacancy, there's no risk of

[2:02:46] losing that headcount, those salary

[2:02:48] dollars. No. No. Yay. If it's an

[2:02:52] authorized position in the budget, the

[2:02:53] dollar stays. And also what we've done

[2:02:56] over the

[2:02:58] years,

[2:02:59] typically we don't we we don't if a if a

[2:03:04] department we try to budget material

[2:03:06] services fairly close. We try not to

[2:03:09] have a lot.

[2:03:11] So, so the department doesn't spend tend

[2:03:13] to spend all their materials and

[2:03:15] services budget so long as it's not a as

[2:03:17] long as it's within a reasonable amount.

[2:03:19] We don't take that money away from them.

[2:03:22] My philosophy has always been I don't

[2:03:25] want to encourage them to spend their

[2:03:27] money at the end of the year just for

[2:03:28] the sake of spending. I'd rather keep

[2:03:30] the money there and then when we're

[2:03:32] reviewing next year's materials and

[2:03:33] services, we can say, "Okay, you didn't

[2:03:35] spend this much money this year. You're

[2:03:37] not projected to spend this much money.

[2:03:39] Do you truly need that much money next

[2:03:41] year? But we don't want them to try to

[2:03:43] get have to spend something so they

[2:03:45] don't lose. In other words, you don't

[2:03:47] play games with me, I won't

[2:03:49] do it.

[2:03:54] I don't get it. So I've always we've

[2:03:57] always done it that way and I think

[2:03:58] that's the best way the best way to do

[2:04:00] it. So, so you'll see you any fund

[2:04:03] balance report it's going down because

[2:04:05] of those uh deficits that you saw. And

[2:04:09] so if we didn't do anything and let's

[2:04:12] say there's some miracle we had full

[2:04:14] employment of those five years the next

[2:04:17] five years when we got to the when we

[2:04:20] get to the end of the five years our

[2:04:23] target fun our forecast fund balance any

[2:04:26] fund balance would be about $5.6 6

[2:04:28] million which is about 17.2% of

[2:04:32] expenditures. Now

[2:04:35] 17.2% the GFA recommends a minimum fund

[2:04:38] balance around 16%.

[2:04:42] What the government finance offices

[2:04:44] association recommends about a minimum

[2:04:47] fund balance about two months operating

[2:04:49] expenses which is about

[2:04:51] 16%. So it's even that 17.2% 2% is

[2:04:56] within is within the

[2:04:59] is

[2:05:01] balance. So just just kind of if I

[2:05:06] could I think you may have mentioned it

[2:05:08] earlier if I missed it I apologize. It

[2:05:11] is the 25% you see up there right now is

[2:05:14] current city policy. So the reserves

[2:05:16] that we have right now try to retain a

[2:05:19] 25% reserve.

[2:05:25] When Jamie gets back, what I'm going to

[2:05:27] do is I'm going to show you

[2:05:30] essentially the same forecast with

[2:05:35] adjustments, right? I wanted to clarify

[2:05:38] just one thing just in case. So the

[2:05:40] forecast that you're seeing here and

[2:05:42] chair Anderson also mentioned this all

[2:05:44] the two. This does assume full input and

[2:05:48] as it was mentioned earlier, you almost

[2:05:50] never have full input. It just doesn't

[2:05:52] happen. You're going to have

[2:05:54] vacancies. A lot of

[2:05:56] organizations, shouldn't say a lot, but

[2:05:58] some organizations also look at what's

[2:06:00] called vacancy factor. You kind of

[2:06:02] factor in what you think it might

[2:06:05] be. Inherent in that process, however,

[2:06:08] is just a little bit more risk. And so

[2:06:10] there's different kind of ways to do

[2:06:12] budgets. This way assumes full

[2:06:14] expenditures, but it also budgets

[2:06:17] revenue as well. And so it's a very kind

[2:06:19] of prudent way to look at your budget. I

[2:06:21] think there's always kind of different

[2:06:23] lenses in which you can look. This is

[2:06:25] what I would call a prudent and kind of

[2:06:28] um fiscally sustainable way to look at

[2:06:30] your budget because it does make these

[2:06:33] kind of

[2:06:34] assumptions. Another lens to kind of

[2:06:36] look at this is the one that Paul is

[2:06:37] going to present next, which will be

[2:06:39] essentially kind of a 2% vacancy factor,

[2:06:41] which would assume that you will have

[2:06:43] some turnover in positions, you will

[2:06:45] have some savings from vacancies.

[2:06:49] there there's looking at that kind of

[2:06:51] scenario. It's a good scenario to look

[2:06:52] at it is a very difficult scenario

[2:06:54] however to predict right because you

[2:06:57] just don't know and so that's just one

[2:06:59] thing to kind of keep in mind as you

[2:07:01] look over these different scenarios and

[2:07:03] what what the implications are as you

[2:07:05] move it through time. So sorry but as

[2:07:08] far as we look back we look back we've

[2:07:11] always you want to bring up the next

[2:07:13] file. Yeah. Are you wanting B2 of the

[2:07:16] same file? B2. Yes. Okay,

[2:07:19] let me know if this is premature, but

[2:07:21] I'm curious how it factor

[2:07:25] in mandates, legislative

[2:07:32] mandates

[2:07:39] housing that we're not sure because if

[2:07:41] we don't meet we don't meet the

[2:07:43] production

[2:07:45] goals, I mean when do we have to

[2:07:47] deductible. What's the time? What I mean

[2:07:50] by expense, I mean, I assume there's

[2:07:51] going to be more expenses that try to

[2:07:53] get essentially

[2:07:55] maybe there's there's a number of kind

[2:07:58] of different ways to answer that. One of

[2:08:01] I'll give you an example in police.

[2:08:03] There was a recent piece of legislation

[2:08:05] passed that said if you have a police

[2:08:07] entity of 35 or more, you have to do an

[2:08:11] annual audit. Okay? in that annual audit

[2:08:14] is a minimum expense of

[2:08:16] $20,000. State does not offer any grants

[2:08:18] for that process. They don't offer even

[2:08:20] a staff for that process. So the

[2:08:23] unfunded mandate in that case is going

[2:08:25] to be the minimum amount of the 20,000

[2:08:27] bucks then also staff, right? So it's a

[2:08:30] little bit sometimes there's not clear

[2:08:32] connection with that with housing

[2:08:33] production. If that results in say 40%

[2:08:36] extra work for FTP, you might be able to

[2:08:38] get that through a grant through DLC for

[2:08:41] development. If you do, great. Go that

[2:08:43] route. It might result in materials

[2:08:46] expenses. It might result in consulting

[2:08:47] expenses. So, it's really going to be

[2:08:49] kind of situational dependent on what

[2:08:51] the mandate is, how you have to meet it.

[2:08:54] And to the best that we can as we go

[2:08:57] through this, we'll try and point that

[2:08:58] out. If there's a state mandate that

[2:08:59] comes down, how responding to

[2:09:02] it regard both of those. They're both

[2:09:06] still a little ways out there. So, I

[2:09:07] don't know that. and you got there's

[2:09:11] also a menu of options. So you don't

[2:09:13] necessarily have to spend all that

[2:09:15] money. So for example with housing

[2:09:17] production strategies there's yes you

[2:09:20] have to plan for that you can choose to

[2:09:22] spend a whole bunch of money and also

[2:09:26] apply for a grant to pay for that

[2:09:27] planner or here's a list here's a menu

[2:09:30] that DLC has actually provided you pick

[2:09:33] off that list. So you've got sort of

[2:09:36] like teach options on how to meet

[2:09:43] I mean the state may set housing

[2:09:46] production goals but if you don't have

[2:09:47] any buildable land

[2:09:52] can you also say what is the

[2:09:58] cost sorry didn't do it my handrian

[2:10:05] Brian and Dan, that's going to be a very

[2:10:06] interesting one for planning to work

[2:10:08] through. I mean, they've also got the

[2:10:09] potential bullet in there on the uh gun

[2:10:12] permits.

[2:10:13] Well, curious just a process question is

[2:10:16] do we does that part of the process to

[2:10:18] have list you know here are all the

[2:10:20] imminent mandates and when they land and

[2:10:25] and then each one I guess branches out

[2:10:27] into the different ways in which there's

[2:10:30] a material increase in the budget of

[2:10:31] source associated with

[2:10:34] that and we'll point to what the expense

[2:10:36] category would

[2:10:39] be like one that came to mind was I

[2:10:43] don't know if we're planning on that

[2:10:44] this

[2:10:45] year, but we're very close.

[2:10:49] Yeah. So we do have to start

[2:10:53] think well I mean that's

[2:10:57] so expens associated with the

[2:10:59] accreditation process is going to be on

[2:11:01] top of that

[2:11:12] official services.

[2:11:36] cities

[2:11:37] which have got to start doing those July

[2:11:40] 1st

[2:11:41] 2026

[2:11:43] forunately you're concerned about $60

[2:11:47] per staff that fee didn't cover the

[2:11:51] cost but we're talking about raising the

[2:11:53] fee to $150 which has other implications

[2:11:58] But it helps cover. I guess the only

[2:12:01] other thing I would mention about

[2:12:03] [Music]

[2:12:05] self there are groups that we

[2:12:07] participate in whether it's city

[2:12:09] managers whether it's chiefs of police

[2:12:12] whether it's fire events board where if

[2:12:14] everybody's dealing with the same thing

[2:12:16] sometimes you can find a way to come

[2:12:18] together and deal with it right maybe

[2:12:21] you can join a common contract and

[2:12:23] everybody pays a little bit and that

[2:12:25] contract does it for everybody and you

[2:12:26] look for the expense on a per basis

[2:12:29] can't do it all yourself Right. So like

[2:12:32] Paul's example, I think there's a lot of

[2:12:34] discussion to be had about okay one

[2:12:36] entity does it but everybody pays into

[2:12:38] that entity scale. We do a lot of things

[2:12:40] like that already a lot. Um

[2:12:44] and building inspection process is good

[2:12:46] example. They don't

[2:12:48] do super high level certification can't

[2:12:52] afford to do it. County does it for

[2:12:53] everybody. It's a lot less expensive.

[2:12:56] Dispatch is another

[2:12:58] example. So

[2:13:00] It's just how you know how you respond

[2:13:02] to these mandates. It's going to vary

[2:13:04] depending on the mandate and

[2:13:10] spirit. Just since we're in a

[2:13:12] legislative

[2:13:13] session, at what point is is

[2:13:17] there staff being able to identify bills

[2:13:21] that have some budgetary consequence

[2:13:24] that we should beating?

[2:13:32] There's nothing that come to mind right

[2:13:33] now.

[2:13:36] Um come to mind right now. There's been

[2:13:39] a lot of conversation about housing

[2:13:41] production, but it's not necessarily a

[2:13:42] mandate. It's kind of just changing some

[2:13:46] existing that's not

[2:13:51] something. So I don't have

[2:14:02] associated. Okay, this you'll see this

[2:14:06] is essentially the same same forecast

[2:14:09] with just

[2:14:11] some modifications. So if you go down,

[2:14:14] you'll see the title 98% of extended.

[2:14:18] So down to it down to the bottom.

[2:14:23] So you'll see

[2:14:25] a little bit more.

[2:14:27] Okay. So you'll see let's say we

[2:14:31] assumed the expendit the vacancies and

[2:14:34] other not expenditures and so we only

[2:14:38] spent 98% what we were projecting the

[2:14:41] budget. You would see there are still

[2:14:45] deficits, but the deficits are much

[2:14:48] lower. They're probably more within the

[2:14:51] range of where we probably hit based on

[2:14:53] just based on historicals looking back

[2:14:56] historically on what percentage we

[2:14:57] typically don't

[2:14:59] spend at all historically. Oh, we don't.

[2:15:02] But yeah, but some Yeah, some will some

[2:15:05] we've had some, but you'll see the

[2:15:07] deficits are much smaller and

[2:15:12] is consequential. So we'll go to the

[2:15:14] next

[2:15:16] page. So you look at the fund balance,

[2:15:20] you look at the beginning fund balance

[2:15:21] or the ending fund balances. If that we

[2:15:25] started with $10

[2:15:26] million, we would end with about $8.7

[2:15:29] million. So we would

[2:15:32] end so if we didn't spend every if all

[2:15:35] the revenue came in exactly as budgeted,

[2:15:37] we only spent 98% of our expenditures

[2:15:39] over the next five years. we would end

[2:15:42] up with about $8.2 million I mean excuse

[2:15:45] me $ 8.7 million in fund balance which

[2:15:48] is like 26% of our fund balance 26% fun

[2:15:51] balance level which is just which is 1%

[2:15:54] above the target so it's not so it's

[2:15:58] just you see the difference between the

[2:16:00] two two forecast like I said there's a

[2:16:03] little bit more risk if you take this

[2:16:05] forecast because don't have

[2:16:09] latencies not

[2:16:19] traditionally significant.

[2:16:21] So just an active consideration as to

[2:16:27] whe part of when we're looking at part

[2:16:29] of when we're looking at the decisions

[2:16:31] being the

[2:16:33] budget take a look at what's kind of

[2:16:36] what's realistic and I like when we're

[2:16:38] budgeting this I mean we looked at just

[2:16:40] the other one we'd be saying no we can't

[2:16:42] prove anything but

[2:16:44] that's based on based on history

[2:16:47] typically our revenues right about what

[2:16:49] we are

[2:16:51] maybe like 1% above some of the areas

[2:16:55] and the expenditures we I don't remember

[2:16:58] too many years where we spent all the

[2:17:01] funds that we budgeted that would be

[2:17:03] that would be more exception than norm

[2:17:06] so there's there's good basis looking at

[2:17:10] this as a looking at this 98% of

[2:17:13] expenditure forecast when we're

[2:17:14] reviewing the budgets we're kind of

[2:17:16] saying

[2:17:18] realistically what do we You might

[2:17:20] expect

[2:17:29] decades of experience doing this.

[2:17:35] We have

[2:17:40] Yeah.

[2:17:46] So

[2:17:47] that's that's why I have any general

[2:17:50] questions or anything up to you. You

[2:17:53] want to take questions

[2:17:55] after question. Paul, you still had one

[2:17:58] other document on your list with

[2:18:00] staffing. Oh, okay.

[2:18:06] No, this is No, this is an easy one.

[2:18:08] Essentially, when we're looking at this

[2:18:11] one, you want to zoom up. Um I'm when

[2:18:13] we're doing the levy needs assessment

[2:18:17] um we were looking at we looked at we

[2:18:21] were looking at adding

[2:18:23] position two on the top line that

[2:18:27] added

[2:18:29] first then we were

[2:18:31] looking we're looking at the

[2:18:34] uh you'll see

[2:18:36] the blue column 2526 the lending needs

[2:18:40] assessment show that We look at adding

[2:18:42] three firefighters that

[2:18:45] year. See the cost of those firefighters

[2:18:49] for the whole year. Then 26 27 we're

[2:18:53] looking at adding potentially adding the

[2:18:55] two police officers recreation

[2:18:58] coordinator we've already added. We've

[2:19:02] moved we've added the point42 utility

[2:19:05] worker by moving used that parks person

[2:19:08] used to work seven months in parks five

[2:19:10] months in line power now they work all

[2:19:12] 12 months in parks that's how the parks

[2:19:15] got the benefit of that staff person

[2:19:18] back then so we've got so the blue

[2:19:22] highlights are what we've got to

[2:19:24] consider from the needs assessments over

[2:19:27] the

[2:19:28] next two years firefighters the two

[2:19:31] police

[2:19:32] officers seeing projection

[2:19:40] pretty low. We got staff staff at

[2:19:43] several departments have started kind of

[2:19:45] looking at what do other cities have

[2:19:47] staff and there's probably not too many

[2:19:51] or any

[2:19:53] department probably lower most cities

[2:19:56] and staff.

[2:19:58] Now we we made a change in it last year.

[2:20:00] We had an IT staff because of staff.

[2:20:04] This chart is intended under the money

[2:20:05] to cover those four general funds. So

[2:20:08] community development you can look at

[2:20:09] other fund sources besides just the

[2:20:11] general fund. This

[2:20:14] was for

[2:20:22] planning fees through other

[2:20:24] self-sustaining sources other than

[2:20:26] discretionary fund

[2:20:29] because we budget review as the

[2:20:32] community say review funding

[2:20:36] sources with associate new funding

[2:20:40] sources legitimately charge some of that

[2:20:43] associate planners building permits

[2:20:45] fund. That's a consideration. The

[2:20:47] building permits fund has about has

[2:20:49] about $3.5 million. They could collect

[2:20:52] no money, no changes probably five

[2:20:56] years and that's after we took $3.2

[2:20:58] million of that money to build the build

[2:21:01] the build.

[2:21:05] building perfect.

[2:21:13] I don't know. We want

[2:21:19] I think we have to take an analysis of

[2:21:21] where the how much the revenue is coming

[2:21:23] in, whether that was kind of onetime

[2:21:24] revenue associated with a large project,

[2:21:27] what the future revenue projections are.

[2:21:30] But right now we can safely say that

[2:21:32] it's a very healthy fund and it is a

[2:21:34] candidate to look at a possible

[2:21:36] reduction. Just have to be careful when

[2:21:39] we can't hire a person out of that. You

[2:21:42] might be able to. Yes.

[2:21:44] Certain aspects of certain position it

[2:21:47] does have to be related however to that

[2:21:49] function. So you can't stray too far

[2:21:51] from there.

[2:21:53] The other thing I would just maybe point

[2:21:54] out about this, there was a question

[2:21:56] earlier about a banual budget. This is

[2:21:58] one of the reasons for looking at banial

[2:22:00] budget. Obviously in this we're

[2:22:01] forecasting out over five years, but the

[2:22:04] next two years can give you a much

[2:22:06] better picture about those potential

[2:22:07] positions and how to bring those into

[2:22:09] the budget than if you were just looking

[2:22:10] at it in one year. Um, and so if you

[2:22:14] look at that on a one-year basis, it's a

[2:22:16] lot of positions to try and do in just

[2:22:18] one year. We might be able to look at

[2:22:20] this over a longer period and absorb

[2:22:22] that cost and also that revenue over a

[2:22:25] little bit longer but still accomplish

[2:22:26] the same

[2:22:29] thing. It's safe to say that we are

[2:22:32] looking at those positions. However, as

[2:22:33] part of

[2:22:34] the appointment made to the community

[2:22:36] and levy for that all the assumptions

[2:22:39] stay the same from staff and a planning

[2:22:41] perspective. We feel like we have

[2:22:44] direction to move forward and do our

[2:22:45] best to try and include that in any

[2:22:47] perspective budget budget that's going

[2:22:50] to be presented to

[2:22:51] this. We're working on that right

[2:22:55] now. Any other questions anybody has?

[2:23:02] [Music]

[2:23:05] Thank you so much.

Budget Committee Informational Meeting

Transcript