[0:06] Okay, call this to order. Good evening everyone. Um, personally I want to check

[0:10] is Kurt online check.

[0:20] » The only two online are going to be part of the state revenue share when that

[0:24] comes up. >> Okay. Thank you.

[0:34] Uh first thing on the agenda after that is any declarations of conflict of

[0:40] interest there any >> No.

[0:45] Thank you. >> And then did people

[0:48] » Well, wait a minute. Wait a minute. Should I mention that I am on the Cedar

[0:51] board? >> Okay. So, I'm going to mention that I'm

[0:54] on the Cedar board. Okay. >> So, There's

[0:59] but I make money from it. So, >> right. And we'll we'll talk about that

[1:03] later. Thank you for that. >> Um, and did everyone get a chance to

[1:08] review the amazing detailed minutes from the 15th of April?

[1:20] » Are there any corrections or statements changes to the minutes you made?

[1:26] Would

[1:30] someone like to make a motion to approve the minutes?

[1:32] » Move to approve the minutes from the budget committee meeting Wednesday,

[1:36] April 15th, 2026. >> I'll second.

[1:40] » All in favor? >> I opposed.

[1:47] Thank you. So now we'll move to the public hearing

[1:53] portion of our meeting.

[1:58] Some things I have to say explicitly here. This is a public hearing regarding

[2:03] state revenue sharing for the city of our fiscal year 2026 through 2027.

[2:09] Does anyone object in jurisdiction of the budget committee to hear this matter

[2:13] at this time?

[2:19] Does any budget committee member believe they have a conflict of interest?

[2:25] And just remember that the conflict of interest is you can be a member of an

[2:29] organization, you can participate in organizations. It's just that you can

[2:36] financially benefit from any decision which but then make it conflict.

[2:44] Thank you.

[2:48] » Conflicts of interest. Is there any additional correspondence to proceed? I

[2:53] think as of yesterday nothing

[2:55] » no additional other than I did distribute um a letter that's two

[3:01] letters but from the same person at the last meeting and I will make sure that

[3:05] it just goes into the public hearing but nothing beyond those letters you've

[3:09] already seen.

[3:15] » Okay. Next we will have public testimony. will have presentation by

[3:20] proponents and opponents and any additional questions or uh followers. So

[3:27] first of all are there any presentations by proponents for anything?

[3:32] I >> think we have two online and two

[3:36] organizations out there. You want to get started? Oh sure. Um

[3:42] » one one moment. Is there was there any sign in or anything that needed to be

[3:45] done for that? Okay. Thank you. My name is Elizabeth Roberts. I'm a

[3:51] member of Trails in Art Association. And is there anybody here that is not

[3:57] familiar with we're right across the street from you?

[4:03] Um we are hosting our 75th annual judge show this year. So I hope

[4:12] there are people here that might be interested. Um, I'm here representing

[4:17] the club uh because I submitted an entry for a grant consideration.

[4:26] So, I'm hoping there's a little money in your budget. Um, we're hoping to upgrade

[4:33] our uh basics. We are in need of a sink, a stainless steel sink that's suitable

[4:42] for those with disabilities to use. And also, um,

[4:49] depending how much money we get this year, we would like to make all of our

[4:55] tables and chairs accessible for handicapped and hopefully for children.

[5:02] Um, we're starting to offer if if we can get enough um

[5:09] uh support, we're hoping to offer classes for children also.

[5:21] » Thank you very much. >> Any questions?

[5:25] » I don't know how detailed you want me to be.

[5:29] Well, my daughter is a high schooler and she's taken several classes though, so

[5:33] » Oh, great. A little bigger than a little one, but

[5:36] » Well, encourage her to submit something for the show in August. Um, it's free

[5:42] for high school and younger. So, we're really trying to encourage young people

[5:48] because a lot of us in the club are getting older and it's great to have

[5:54] fresh ideas and artists coming in.

[5:59] » Elizabeth, >> I don't know. How familiar are with this

[6:03] actual budget that was finished? >> I'm not familiar with it.

[6:10] » Okay. on on the form it said it had two

[6:14] different um amounts. One was uh less than 500, one was 500.

[6:21] And I just checked the box that said available funds because I know there was

[6:28] a statement put out that the funds are less this year than no surprise there

[6:34] with what's going on nowadays. So >> I was just wondering there was a line

[6:39] item for under income for city of Gearhart grant. This is of course

[6:47] believe this is this is fiscal year this year.

[6:51] I thought it was for last year when we wanted to show finally last year because

[6:58] this is for upcoming

[7:04] » he's asking about this budget attached was this for last year or this upcoming

[7:09] year6. So that's probably why it does not look.

[7:13] » Yeah. >> Answering my own question.

[7:18] Do you know how much the sink modification or remodel will be

[7:23] approximately? >> Um, well, I I think it's close to 500

[7:29] because it has to be adjustable for a wheelchair actually. And with the plump

[7:35] kit, it's it's actually going to be more than that. We're just, you know, we just

[7:41] get by on uh we all volunteer our time and we all

[7:47] chip in for lots of things. So any amounts that we can get, we just hope to

[7:53] eventually get that replaced. >> Do you know what the artist payments

[8:01] what that is? There's a line item for under expenses

[8:07] for artist payments. Oh. Um, gosh, I wish I had a copy of that. I I didn't

[8:13] know. Um, probably uh if if one of of the artists make a sale, then um the the

[8:23] association keeps 15% and then the artist gets the rest of the money.

[8:30] So, I don't know exact what that is. If I had this, I could have um looked at it

[8:38] ahead of time

[8:42] » and then Sorry, I'm not prepared. >> It's okay. I think

[8:47] » I think we've got an answer.

[8:57] » What line was it you were looking at? is the 17,5001.

[9:08] » Okay. So that Yeah. So for that amount that would have been all the sales for

[9:14] the whole year um that the artist had.

[9:21] So the the association would have kept 15%

[9:26] and paid out the rest. So I'm I'm sure that's probably what that is.

[9:36] » So that that would be the expense of the income of 001 up top. Right.

[9:41] » Right. And then there's artist payments down below. That's for 17,500.

[9:48] » Right. And then the artist sales for 22,000. Okay.

[9:52] » I really apologize if I would have realized I would have had our treasurer

[9:56] come. I'm so sorry. >> No, we're we're just trying to No,

[10:01] there's nothing wrong. We're just trying to figure out because we're not familiar

[10:04] with your format. So, >> there's you you have done nothing wrong.

[10:10] » Any any other questions, comments? Thank you, Miss Roberts.

[10:14] » Thank you. Thank you.

[10:18] » Next.

[10:21] So, I am Jennifer Paragus and I just stepped into the role of being the

[10:27] interim president of the St. Vincent Paul um food pantry that's located in

[10:33] Kart just at the North Coast Plaza right across street actually three minutes

[10:39] from and I'm learning everything. Um I just started this April 1. um where I

[10:46] was really handed over all of her tasks and trying to get the numbers and we've

[10:52] just felt so fortunate by the past when I've kind of gone over how much you've

[10:57] generously given back to the community with your financial support and all of

[11:03] our volunteers were up to about 40 give or take. Um it just kind of depends. Um,

[11:10] but we all volunteer our time and that's just clock time on uh how much we

[11:16] actually serve the clients in our area right here. So, all of your funds

[11:21] graciously go back to supporting uh the community. As you know, the SNAP

[11:28] benefits have dramatically been uh decreased. So, a lot of people have been

[11:34] affected by this. It just sort of got a report from the Oregon um human

[11:39] department and uh I think it was I think but it was um about 22,000 or 29,000 in

[11:49] the state of Oregon were being affected by SNAP benefits which truly impacts our

[11:55] community here as we are seeing um our needs increase dramatically. Um, also

[12:02] something that is truly affected by us is our fuel costs. Everybody here is

[12:08] been affected by that. But we take a truck and we have to maintain this in

[12:13] order to get our donations um from our just our local services uh

[12:19] we get from, but we also have to purchase

[12:23] our food too. And so we do require I know I checked off a little box for it

[12:28] as much as you could give us. Um and it's just mainly to help make up for

[12:34] some of that that deficit that we're seeing um as our numbers increase with

[12:40] families and clients that we're serving and then also the food and fuel costs

[12:45] that we're actually being um forced to look at.

[12:52] Any questions? If I can't answer them, I'll find out if they're not.

[12:58] » Yeah. >> Do the recipients have to be a member of

[13:02] the victims at the ball? >> Absolutely not. So, and nor did the

[13:07] volunteers. So, they um the volunteers do not have to be per se a member

[13:13] Catholic. It is a Catholic community. Um, so we have volunteers who've

[13:18] actually been clients and they've came back and they've returned to volunteer

[13:24] with us too, which just makes your heart kind of throw a little bit. And then we

[13:30] also have um people who in order to be on the board and to run um and have the

[13:37] support of St. and some depth that so we do have that on board and I

[13:46] just so happened to be able to change that and to be able to say your

[13:50] president so that was good to be able to it's great to not have that uh

[13:57] discrimination if you want to say that as in we don't believe in uh

[14:02] discriminance any race gender sex uh age, anything. So that I really feel

[14:11] strong about that. It's just a great organization to see that we can fight

[14:15] for food and security just locally direct right here. It's amazing. I

[14:22] encourage you to want to become a mom.

[14:27] So, am I reading this correctly? your income it looks like for 2025 to 2026

[14:35] has gone down from 44,000 it's changed to 39,000

[14:41] so and I um kind of request that too we had a major repair we had a leak and uh

[14:48] under our contract with our release we had to incur that cost okay

[14:53] » so we're hoping and we're um really fortunate enough to

[14:58] keep maintaining everything that we hope that we won't have to incur something

[15:02] like that. And then we also had to purchase so you see that little

[15:06] additional increase from last year and we're hoping that it won't have to

[15:11] continue is that we have a purchase here and then also a freezer. So we currently

[15:17] have um how many freezer spaces do you think we have? We have um

[15:25] 8 to 10 free >> and we have refrigerators too that we

[15:30] can actually store and then we have u room where we can store non-p perishable

[15:36] foods like um in a kind of shop you say that kind of shelf

[15:43] » an open shelf. >> Yeah, open shelf stuff. So, so um again,

[15:49] if I'm reading this correctly, it looks like your total income is 67,000, but

[15:53] you you are expecting your expenses to be 67600. So, you're 600 in the hole.

[16:00] So, okay. >> Yeah. Yeah.

[16:04] » Yeah. We have uh >> been some elderly donors that have

[16:09] donated that actually have been volunteers in their up in their 80s and

[16:15] 90s and they even after they stopped volunteering they continue to donate and

[16:21] we've lost them. >> Right.

[16:26] It's humbling to ask for money and solicit, but we appreciate you

[16:32] taking the time to just even consider us and of course be able to call us

[16:38] neighbors too. Really makes an impact. >> You certainly serve our community while

[16:46] I use. >> I was in a different meeting with the

[16:52] food banks and feeding centers. The coordination and work is going. So,

[16:57] thank you for your work there. >> Oh, thank you.

[17:01] » Any other questions, comments?

[17:07] » Anyone else?

[17:12] » So, uh Ellie from the North Coast Food Bank, would you like to go next?

[17:17] » Hi. Yes. Can you hear me? >> Yes.

[17:22] » Yeah. >> Okay. Brilliant. Um so I am with the

[17:26] North Coast Food Web. We are an online farmers market and we are a web of food

[17:32] um sort of found within 100 miles of Atoria sourced um from producers and

[17:39] farmers typically very small and we are requesting funds for our free food box

[17:45] program. In the free food food food box program,

[17:49] we give out 15 boxes a week to anybody who identifies as being food insecure.

[17:56] And we pay full price for the food from the farmers and producers to do this.

[18:01] And so it's not a profitable service, but it does mean that the money donated

[18:10] to us for this program passes through the producers and the farmers as well as

[18:15] the people in needs hands. So, we like to say it's feeding two birds with one

[18:19] seed. But it is a fantastic program that needs

[18:25] constant support because we are giving away food

[18:29] and supporting farmers and producers and it's contributing to a strong and

[18:33] resilient local food system which as we know from 2020 things can go haywire

[18:40] very fast. It's nice to have local food. So that is why we are requesting funds

[18:48] to continue to um build this food system locally

[19:00] » questions.

[19:10] All right. Thank you very much. Thank you.

[19:13] » And last, the barber, please. I see Morgan Shar.

[19:21] » Yes. Hi, can you hear me? Okay. >> Yes, we can.

[19:26] » Okay. Um, so my name is Morgan and I work for the harbor. I am the volunteer

[19:31] and outreach coordinator along with um Dies. I am the on call manager for the

[19:36] harbor. And uh I believe we are asking for funds

[19:42] for our DEART program. We are the only sexual assault, domestic violence

[19:48] nonprofit agency in the area and we are looking to serve Klatsup County um by

[19:54] putting survivors into hotels um providing support as far as fleeing

[20:01] whether that's a bus ticket, airplane, any type of

[20:07] uh confidential shelter needs that may need to be met.

[20:12] um any clothing, food items that also may need to be met and paying for an

[20:17] advocate to be able to provide these needs um 24 hours

[20:24] um daily and 7 days a week.

[20:33] Thank you. Any questions?

[20:44] pretty straight, >> right? I think that's one.

[20:49] » Um Morgan, um so the funds you're asking from the city of Jurgart, you say it

[20:55] would go directly into the deepart uh program.

[21:00] » Yes, that is correct. And is that do you have the operational

[21:08] budget by chance in front of you? >> I do not um my manager is at a um

[21:16] conference at the moment. So I took over this evening.

[21:19] » Okay. I I don't see a line item in there that would direct money to that

[21:27] specific program.

[21:30] » Oh, Anderson. Yeah. I'm not entirely sure. Um I just know that we were doing

[21:35] it as dies as a whole, but I wouldn't know um item by item.

[21:40] » Okay. Do you have any idea by chance? You may not, but what how much funding

[21:46] that particular program is is has earmarked for it

[21:53] and what it costs to run that particular program

[21:59] » in a year. I couldn't tell you, but I do know that as far as for the grant

[22:05] itself, I think we're looking at the max just because being a DEART myself, um

[22:12] knowing that putting somebody in a hotel for a week when we don't have room in

[22:15] our confidential shelter can cost to about $1,000.

[22:20] um on top of anything they may need, clothing, toiletries,

[22:26] uh phone, gas cards, anything like that. It can be pretty costly, but as in a

[22:32] total amount, I'm not entirely sure what that adds up to by the end of the year.

[22:38] » Okay. >> Seems like it should be within emergency

[22:41] services, but we have a break out of that.

[22:44] » Yeah, possibly.

[22:47] » Great. Thank you, Morgan. Yes.

[22:54] » Then we have others in your packet that people had a chance to look at that were

[23:00] given previously. No other presentations for opponents

[23:06] requests. Are there any presentations by

[23:10] opponents?

[23:15] No.

[23:20] I think that would be it just right. Um first of all I want to thank all the

[23:24] presenters. Thank you guys for for coming both online and in person. Much

[23:29] appreciated. And you don't have to stay for the rest of the meeting if you don't

[23:32] want to. Won't affect how we the web rate or anything. It'll all be recorded

[23:35] so you can watch later. So feel free to enjoy the sunshine morning. Yeah.

[23:44] » Thank you. >> Thank you.

[23:58] So that would be the public hearing portion is closed and we should move on

[24:02] to the public comment on the proposed project program. So

[24:08] that's the overall budget that we talked about on the 15th at

[24:16] no one else online. I just check that

[24:22] and you guys are not here for that portion. So public comment is now closed

[24:28] these guys up. So now the fun parts for us budget any

[24:32] discussion on a proposed programs and services. I guess we start with just the

[24:37] additional staff input. Correct. >> Right. So this year I did do a staff

[24:41] report just because I felt like there was a few things I specifically wanted

[24:44] to cover and I always feel like if I write it down then it's easier for

[24:49] people if they happen to be see documents online that they have access

[24:53] to that. and then it kind of helps me focus my thoughts and and kind of get

[24:59] out what I need to get out for. So, the first two things on my staff

[25:06] report are just a technical spreadsheet calculation thing and I'm thankful for

[25:12] um Eric Halpern for calling me and letting me know this actually was

[25:18] something even from last year that was in the proposed column. I used a

[25:23] template and I had changed it in the approved and the adopted. I had not

[25:29] changed it in the proposed. So the first two things

[25:35] are just technical spreadsheet issues and what had happened is that in

[25:42] state tree and the Ghart Road District the formula had not gotten pulled all

[25:47] the way down for the totals but I need the totals to be the totals. So, I had

[25:52] to adjust certain line items um in order to make those totals mount. So, they're

[25:58] just technical amounts that need to be adjusted. There's no specific action

[26:04] that you have to take at this moment because um unless you have an objection,

[26:09] which we we can talk about now, or during the budget committee discussion,

[26:13] they will just get approved. will have an amended budget and make sure that

[26:18] these get approved for the um approved copy. Any questions about those two

[26:25] technical issues? The um next section that I just kind of

[26:31] wanted to highlight was the transaing tax. Uh, a I had had a couple questions

[26:38] about definitions and so I just kind of went out online

[26:43] and pulled some definitions specifically of the tourism related facilities

[26:50] um tourism promotion uh ecoourism

[26:55] sustainable tourism and responsible travel and again kind of the theme of

[27:01] this is is that I do feel like it's really important that if we do increase

[27:07] transient lodging, the terms are real in the state of Oregon requirements for how

[27:14] we spend tourism related facilities or tourism promotion. How we as a city

[27:21] adopt those and we define them depends upon us. So when we set an ordinance or

[27:28] we set programs, we can define tourism as

[27:35] responsible travel as sustainable tourism. We can move those words to

[27:41] words that meet the definition of what we want to see and we can control those

[27:48] by setting boundaries. You you can't have certain things. You can't do

[27:53] certain things. This is our objective with that money. And I think that those

[27:58] need to be much more in depth, longer conversations with the public, with

[28:03] businesses, with the planning commission, um, with other the public,

[28:08] uh, to have their input and the businesses that it impacts.

[28:13] So, I just put those just for general purposes because I do think that they're

[28:17] important to this message. Um, question.

[28:22] » Yeah. So the the bottom line for this is it would be or an an ordinance or

[28:27] ordinances setting this in place and using language such as this to encap you

[28:35] know to capture what it is we want to do that's that's where that would all take

[28:39] place >> and it wouldn't have to be I mean I

[28:42] think that the ordinance can be generic but you would want to define in the

[28:48] ordinance how that process is established whether it's establish

[28:52] establish like Nikki makes the decision how that taxis

[28:56] and and the guidelines that they're supposed to use. You know, they're

[29:01] supposed to follow the comprehensive plan, they're supposed to do other

[29:04] things. So it depends on how detailed, but you could put it in the ordinance

[29:09] rather than a line item that says all transit logging lodging tax that is

[29:14] approved for tourism or tourism is a related exper

[29:22] um governed by like their planning commission. like nothing can be spent

[29:26] out of there until the planning commission approves it and then the

[29:30] planning commission would hopefully get input in the public. And and I'm not

[29:34] saying that that would be the way to go, but you could set a committee that does

[29:38] it. You can set that the council has to see all of the expenditures before they

[29:43] go out, that type of thing. You could have it that restrictive. A committee

[29:47] does it. You have a committee of three business people or something that

[29:51] decides how that money goes. Do we have choices about how this is set up in

[29:56] this? >> Absolutely. Yes. And our timeline for

[30:00] having the ordinance completed is the end of the year.

[30:03] » We needed the second reading approved in in December.

[30:08] » Yes. We would need it I mean ideally we wouldn't have to have a special meeting.

[30:12] You could have a meeting on December 31st to implement it on July 1st. And

[30:18] the first reading needs to be in November and then it's 30 days. And so

[30:23] then it would be in December would be the second reading. So it would be

[30:27] effective 30 days later and there's then it would push it into January which

[30:34] is the January deadline of when it actually gets imposed. So we would want

[30:38] to do all the work and kind of talked as a staff we kind of talked about what

[30:45] that looks like because it's going to need a lot of community input. You're

[30:51] just approving as the budget committee. You're just approving that revenue

[30:56] source is an approved way to balance the budget. You're not approve really

[31:01] approving the percentage. You're not really approving

[31:05] um that the tax will be increased. That will be a city council decision.

[31:12] » Are we even approving the language? >> I saw a shake of that. Not really

[31:18] because that will be an ordinance decision.

[31:20] » Okay. Because I I you and I I know discuss this but that was one of my

[31:25] terms around tourism and I looked at some things in the comprehensive plan

[31:28] like at the very least for discomfort with it,

[31:31] » right? >> Some things that we state we want to do

[31:33] and some things that sort of conflict with that.

[31:37] » And that kind of transitions me into another discussion which I want to

[31:44] follow up on. Is there any other questions about that? Yeah.

[31:48] » So, basically what we're trying to do is take more money for us instead of giving

[31:53] it to tourist industry basically.

[31:57] I mean when we're when the you know with the state mandates we can only get it a

[32:02] certain percent. Okay. So my thought on this was well I mean it doesn't make any

[32:09] difference whether one tourist comes into this town and 500 of them still

[32:13] using our roads. are still police department still having to do stuff,

[32:17] fire department still involved. Every single

[32:22] thing that we do in the city is, you know, is

[32:28] basically shared with the tourist tax,

[32:33] » right? And maybe we're maybe maybe Ghart chooses not to call them tourists. Maybe

[32:37] we choose to call them business >> visitors,

[32:41] » you know? I mean I think it will be important for us and it and we will have

[32:45] to meet the guidelines. They will define and have an expectation and this new

[32:51] legislation will require quarterly reports where they never had reports

[32:56] before that you're reporting what you're doing with the money. And so we will

[33:01] have to think about and justify that's why setting up a plan in advance like

[33:07] kind of like you said like these are the definitions these are the way we see

[33:11] tourism you you can't tell us how we see our visitors you know we get to decide

[33:16] that but it will have to fit in the structure that the state has set

[33:22] » but that's just basically I mean that just puts more of a burden on the city

[33:26] staff which then should be paid for by tourist dollars.

[33:30] Some some people have been creative and and they do pay um

[33:37] communication people but there will be an outcome that there's an expectation

[33:42] that somehow that's encouraging people to come to Gart.

[33:49] So the state will have an expectation. >> People already get encouraged to come to

[33:54] Ghart visa v the golf course >> trails and the thousand pictures that

[34:02] are posted on Facebook. >> I've never understood why the coast

[34:07] be used to promote tourism. >> It's just like you know going to the

[34:11] mountains, right? I mean there may be some I mean

[34:16] the unclea valley you know the winery down there and everything like that you

[34:20] know or down in Medford or wherever it happens to be nobody has to encourage

[34:24] people to come to coach >> but there but there are people who say

[34:27] we should encourage them to come to canon beach or seaside or here or

[34:31] something >> well canon beaches they they made their

[34:34] own nest okay they get they got exactly what they wanted now you know they're a

[34:40] couple brother So, you know, I mean, people from the

[34:45] valley are going to flock to the coast during hot weather up there. We don't we

[34:50] don't need to spend money on Kurdish tourist. So, that's all been.

[34:58] But if they're going to come here and we want more of their money,

[35:06] » but if we want the tax money, then we have to encourage them to come.

[35:09] » They're going to come to the store. Well, that's you know, I mean, you know,

[35:12] » that's that's the price we pay for decals

[35:18] that are in Hammond as our attorneys currently. They've written guide books

[35:23] for the League of Oregon cities for cities on how to do this. They're very

[35:27] much up on it and we'll definitely be leaning on them to make sure we do this

[35:32] correctly. And I really want to be I really feel like we need to be leaders

[35:36] in redefining the term tourism and what that looks like in our city. I

[35:42] feel like that that's really important and if we do not stand by that then we

[35:47] jeopardize our small rural community.

[35:51] » Well, especially to make it uh consistent with our comprehensive plan.

[35:56] » Yes. Right. And that's really important. And I think that that's where all the

[36:00] leg work has to go in to make sure because because we live in a city that

[36:05] doesn't have a public septic, you know, sewer system. We have septic tanks which

[36:13] automatically and limited property. We're not really not that big of a city.

[36:18] We're not really looking or have the ability to accept a lot of

[36:22] large hotels. that's not something that's necessarily ever going to

[36:26] necessarily look here unless there's some pretty dynamic changes. So, I feel

[36:32] like putting the budget together and sitting around this table, we are not

[36:36] asking to increase the number of at this point increase the number of

[36:43] people coming in. We're we're asking to increase the amount they have to pay to

[36:50] this point. We're asking for a bigger percentage.

[36:53] » We are. >> Well, um, if there are empty hotel

[36:59] rooms, we want to encourage the hotel rooms to be full.

[37:03] » Sure. Well, that could be the excellent, you know, plus and minus to that

[37:10] » because we do have a comprehensive plan. They come along to support the

[37:14] businesses that are here, right? Yeah. >> Yeah. This is what our comp plan says in

[37:21] commercial development policies. The city will prevent the city from becoming

[37:26] a tourist destination. To achieve this polit policy, the city through its land

[37:31] use designations shall seek to accommodate only a limited

[37:35] level of tourist development. So it doesn't say no tourist development. just

[37:39] as control it like you said to what is acceptable and appropriate for your

[37:44] resources that you have law enforcement you have the emergency services septic

[37:49] all of those types of things and so what we need to do is decide what's

[37:53] acceptable we have a finite number of beds so I mean even if we wanted to

[37:59] we're not going to I mean we can't increase the C1 we can't increase the C

[38:03] I mean it's already designated how much space we have the finite number of beds

[38:08] But do we want to encourage more people to visit our restaurants? Now, the state

[38:13] defines a tourist as somebody who travels more than I think it's 50 or 51

[38:18] miles. But what it doesn't say is that round trip because if it's 50 miles

[38:23] round trip, you're talking on the far side of the story,

[38:27] you know, maybe from the halo. Um, so but we don't necessarily have to adopt

[38:36] their definition of tourism as long as whatever we do with that money meets

[38:42] what they describe as promoting tourism. Exactly. Agreed. So we define tourism

[38:50] and then we live by their rules and that way we get to keep our 50% and then we

[38:55] appropriately use the other 50% that we're mandated to spend on supportive

[39:00] tourism. We find a way that it works with our complent and I think we can do

[39:04] that but I think we do need legal advice on it. Yes. But

[39:08] » because she >> Well, I'm sorry. But uh

[39:15] the only way it affects our revenue directly is if they spend the night.

[39:20] It's not just it's not just >> coming as a day tripper to walk the

[39:27] Ridge Pass and have dinner and eat. >> That's sorry. I mean that's good.

[39:33] » No, that's that Well, that's true and that's not true. I mean, if we have 10

[39:37] rooms that are being rented out and we're renting out 10 rooms and only

[39:41] getting $5 per room versus renting out 10 rooms and getting $10 per room,

[39:47] » right? >> We're not increasing the number of beds,

[39:49] but we are increasing our income, >> right? And of that additional $5, 250

[39:54] goes to the city. 250 goes has to go back into what our, you know, tourism,

[40:00] the type of tourism that we decide is acceptable, whether it's day trippers

[40:03] coming in, um, or whatever. So, let's say we wanted to take that money and

[40:08] somehow support our restaurants down here in the C1 or like you've suggested,

[40:12] we wanted to support art walks or some type of a something that would encourage

[40:18] that would be something I think I I agree the community would need to

[40:22] discuss and decide what are we what you know what are we going to consider

[40:27] tourism and and the mayor had some some good points when we talked about this

[40:31] last time also >> and so you know in the new house bill

[40:35] there is the new option now that has been added the resiliency grants for

[40:42] small businesses in the restaurant and lodging industry. So th that has been

[40:46] added. It was not an option before and so now it does potentially open up for

[40:52] some of the things like Dana was talking about. there isn't

[40:57] going to be another opportunity to help our um local businesses. And so that

[41:06] kind of leads me to my next topic, which I'm going to change a little bit. So the

[41:11] account description, name modification in the budget document. So I thought

[41:16] about this for the last few days. I I met with um Carl at the last on this

[41:24] week to go over the agenda just so we can talk about it so that we can be

[41:28] prepared for today. And just in that conversation, we were just talking about

[41:34] planning commission and the comp plan. And after he left, I was thinking about

[41:39] it and I thought, you know, we we was going to talk about make a

[41:46] recommendation to by consensus to change promoting

[41:52] Gearhart instead of business incentives because it for more flexibility. And you

[41:58] know, after talking to him, I I I want to reig on that again because I think

[42:05] promoting Gear Heart is exactly what we wouldn't want to do in the comp plan. I

[42:12] thought about it and I kind of just did some definition things because the comp

[42:17] plan does say prevent tourist destination,

[42:21] but it also says ensure healthy and stable economy. dear heart through all

[42:27] available sources >> and maintain a commercial zone in the

[42:30] center of the city that provides for the needs of residents, right? And there's

[42:33] no way that we can do that without, you know, allowing folks from out of town to

[42:39] come visit them because there's just simply not enough of us to keep them

[42:42] going. >> Agreed. So, I thought of other other

[42:44] words, other line descriptions that we could use that maybe might better suit

[42:49] that. So things like promoting business, supporting business, enhancing business

[42:57] or maybe nurturing businesses. And every one of those words have different

[43:02] different meanings, right? So I looked up promoting business encouraging growth

[43:07] and development or popularity is promoting supporting furnishing

[43:12] assistance encouragement or structural strength acting as a foundation to

[43:19] uphold enhancing means intensive intensity increasing further improvement

[43:25] the quality value or extent of nurturing helping or encouraging the development

[43:31] of so I think that we should get rid of promoting dear heart. I'm reiging on my

[43:38] my >> right

[43:39] » um recommendation. >> I you know I think that we need to put a

[43:43] placeholder in here for sure but I really do think that we need legal

[43:46] recommend a legal recommendation on this.

[43:49] » Agreed. That's my >> and we can change it easily later but we

[43:55] do need to put a line and a description in there but promoting your heart is not

[43:58] the line we want. >> Yeah. council, you you read line two of

[44:02] the goals and number seven was the city will limit the number of business uses

[44:06] in the C1 zone so that the zone does not become a destination for tourists.

[44:10] » We've already limited the number of businesses because there are no more

[44:14] there's no more room. We've already said we're not going to increase the level

[44:17] down there. So, we've already met the intention of that.

[44:20] » Correct. I think I think we're I think we're in agreement on that that we can

[44:26] that you know our comp plan doesn't say no tourism. It just says no more

[44:31] tourism. And so we can still promote our tourists, our businesses that that

[44:36] depend on tourists at the level that our comp plan says is acceptable and it also

[44:41] serves our needs in a way without increasing it. And if we can support and

[44:46] help them in some way in the months of January and February, maybe you know

[44:51] that's something that we decide to do and we can encourage you know Atoria

[44:55] residents seaside residents to come to our local businesses during that time

[45:01] then they're still there in the summer when we have fourth of July you know

[45:05] they're still there 12 months later because they cannot ser

[45:12] you know in January might not be able to serve them ice cream or or be open

[45:16] enough days in order to do something. But in the months of May through August,

[45:22] you might have plenty of people there in order to support it. So again, I think

[45:27] it's um it's looking at it in a different approach. So

[45:33] » you can also use that money to um if you come up with a let's say hypothetically

[45:40] we said we want to um one of our other goals and I don't have the whole comp

[45:46] plan for me but one of our other goals is to encourage I don't know encourage

[45:50] ecourism but support ecoourism that we are going to you know the people here in

[45:55] this community care very much about the bridge path and about our beach and

[45:59] those are things that people want to come walk, you know. Um, so if we found

[46:05] that there was something we needed to to maintain those or to improve those, you

[46:11] can use the money for that. You could say, hey, we're for the next two years,

[46:15] we're going to set aside that money to go into a bathroom where I'm just

[46:18] saying, you know, or signs or whatever. We could divert that money temporarily

[46:22] and then in two years we would then have to say, okay, that we fulfilled that

[46:27] goal. What is our next goal? And so a group like this would have to make a

[46:32] determination going on, right? I agree and I think it Yeah. Go ahead, Eric.

[46:37] Eric, >> I just wanted to reinforce something

[46:40] that Paulina said a moment ago. I don't know how direct we can be about this,

[46:45] but we only benefit if they stay overnight and pay the lodging tax. We're

[46:50] encouraging people come walk on the beach for a day or go climbing for a day

[46:53] or whatever they do to go to Trails End for a day, but don't stay overnight. We

[46:58] haven't we haven't paint anything. So So we have to just keep that part in mind.

[47:03] » Well, because historically, okay, when the comp plan was written, everything

[47:10] north of 10th Street was out of the city limits.

[47:14] So it wasn't until Bowman wanted a third police officer

[47:19] that Maltman said to him, "If you can find a revenue source, then we can

[47:23] support a third police officer." So that's when they annexed Attica West

[47:28] and then the golf course and then everything on it basically to 13th

[47:34] Street. Okay. And so that was where all of the basically all the hotel rooms

[47:43] originally they were opposite. Now we get to Okay. But the C1, okay,

[47:51] basically was written to maintain our small

[47:56] downtown core area for, you know, the benefit of the residents.

[48:03] There isn't anything that says that we can't, you know, we can't tell the

[48:07] minimum we're going to take your money and use it for, you know, for what we

[48:11] want to do. And you know, I think we should have

[48:17] to be honest with you. >> Well, if there's if they're paying the

[48:22] tax, it's determined what we're going to do.

[48:26] » Yeah. >> Well, that's the See, that's the dollar,

[48:30] you know, the overnight people and everything like that are using the

[48:33] streets, they're coming down here. Hopefully, they're going to they're

[48:37] going to support the downtown businesses as well as walking the beach or bridge

[48:41] path, whatever it is. >> Sure. you know, and the more people I

[48:43] mean, you know, if they fill those rooms up

[48:47] » for 300 days a year, >> that's kudos to us.

[48:52] » Nothing nothing in nothing in the statute requires that we increase

[48:59] people utilizing our beds. Nothing requires that we promote the beds. We're

[49:06] just saying if we have 10 beds and we are currently being five, you know,

[49:11] charging them $5 tax on it, we would now like to charge them, and this is again,

[49:16] I'm just throwing out numbers. Now, we would like to charge them $10 for the

[49:19] same number of beds. You know, you know, before you come and visit McMinman's

[49:24] now, you're not going to pay $5 in tax. Now, you're going to pay $10. And then

[49:29] the city is going to get the additional $5. That additional $5 has to be split.

[49:36] 50% can go to city's needs because they recognize that we will have additional

[49:43] infrastructure needs. And then the other 50% has to be put into um promoting

[49:51] tourism but not necessarily promoting people to be in those beds promoting

[49:55] tourism. But my point but my point is we I seems to me we

[50:02] wouldn't want to promote them staying in the other vacant beds.

[50:06] » Yeah. >> Because so we could get more of the tax

[50:08] money which is the whole point because we're only encouraging people come for

[50:12] the day >> our beach

[50:15] go to our our art center walk and we don't encourage them to stay overnight.

[50:22] We've only increased the traffic but we haven't increased our income. Well, and

[50:26] I think you brought up a good idea last time and I I like it and it's something

[50:30] I thought about too is it's >> count,

[50:34] » right? Like when my husband and I went to McMinums and on the table there's

[50:38] eight different things that they're doing throughout the state of Oregon.

[50:41] They're having a bicycle right here and they're having a um outdoor barbecue and

[50:46] brush and all sitting on my table while I'm sitting there and we're talking

[50:50] about oh are we going to be here or there and that be a you know we might be

[50:54] able to do that. We want the same thing when they're going to the vend. They

[50:58] want to see Bony's Fest, right? They have the same number of beds. They've

[51:01] always had the same number of beds. But maybe

[51:04] » encouraging them through an incentive or through a resiliency grant to say, "Hey,

[51:10] you're already advertising you. We know that this is going to cost you

[51:14] additional money in tax. you know, if you can prove to us you're pro, you

[51:20] know, uh, supporting people to come here to stay in your rooms, we'll we'll give

[51:24] you $5,000, right? I mean, that's an option. And I think you mentioned

[51:30] something about incentives for those people for promoting, right?

[51:34] » Um, and >> right. So, I mean, I don't think that

[51:38] that's a a bad idea. And I think that in the short term that I even might be

[51:44] something that eases the burden for them to kind of go along with like Dana said,

[51:50] this is we don't want to be the most expensive place on the coast. So if they

[51:55] could somehow get money back,

[52:00] » um it might be less. It helps them to have I'm sorry, but it helps them to

[52:04] have restaurants down here that are successful because you don't want to go

[52:07] stay in a place where you have no place to go where you have to drive you know

[52:10] 20 minutes. So I think that that kind of resolves itself to some extent.

[52:16] » Are we going to do something for the three primary drivers which is probably

[52:20] minimum privacy and drift and have them directly involved

[52:26] you know provide them some incentive for doing this to

[52:33] reduce the the burden of the tags for them and help us solve the whole tourism

[52:38] thing. They're now, you know, it's a joint effort to to promote.

[52:42] » I don't even know if we could put it into the bike lane out here on the 101.

[52:46] That's part of the ODOT plan. I mean, there's all kinds of things and I don't

[52:49] think we are supposed to determine that tonight. I think we're supposed to

[52:52] determine whether we think the city should pursue that money, make the

[52:57] recommendation to get the attorneys involved and tell us how we do it.

[53:01] » Correct. >> But we do need to come up with an item

[53:05] description line. >> I was going to ask you to summarize what

[53:09] you would like that to say. >> It can be something simple. Um, I don't

[53:14] know if we just want to use something like

[53:19] supporting your heart or enhancing your heart or if we specifically want the

[53:23] word business in there. Um, I think that we need to get rid of

[53:29] promoting though and pick a different word like supporting, enhancing,

[53:33] nurturing. Um, and whether or not we want to leave it really broad and just

[53:39] say nurturing your heart or supporting your heart or enhancing your heart or

[53:43] whether we specifically want to put the word business in there. It does not lock

[53:48] us into anything. All it does is appropriate money for us to spend. And

[53:53] when we end up going to put this together, we can change this line item.

[53:59] But how we present this, when people pull this out tomorrow, we're going to

[54:03] want something in there. supporting deer. It's broad.

[54:07] » Supporting. >> I like the word supporting. I put

[54:10] supporting local business, but I don't need to have the word business. Uh I

[54:15] like enhancing too. >> I like supporting better than enhancing.

[54:20] Enhancing feels like it might be making the flowers.

[54:23] » Yeah. Enhancing increasing which is maybe not our

[54:28] » right content. So

[54:31] » I think that we're supporting >> better.

[54:35] » It's deposit. >> I And I'm not even sure that for this

[54:39] for the purposes tonight that we even have to do that. Why can't we just say

[54:43] um TLT tax and then the um city's portion and then um obligated funds or

[54:50] something like that and then we can work out the

[54:54] later TLT distribution.

[54:58] » There you go. Yeah. Yeah. Yeah. Um allated distribution and

[55:02] » and we could do that. The only thing I would say is is that all of this is TLT

[55:07] distribution and I think I think that if we give them

[55:12] some idea of where we're headed, supporting their heart might be a better

[55:16] way for probably means call for you. >> It might and it might be if somebody are

[55:22] saying >> if somebody happened to ask you, you

[55:25] could throw out ideas that we're having for supporting their heart. I mean, I

[55:29] want to believe that it could be hiring extra police or extra people on Fourth

[55:36] of July. Then somehow if we could find somebody who would be willing to be an

[55:41] enforcement, a parking person that that that would be something we might be able

[55:47] to do with the money. We're now eligible TLT uses

[55:56] » eligible TLT uses. >> I like it.

[56:00] » Doesn't say tourism. It doesn't say promotion.

[56:03] » Yeah. So, it's identifiable. >> Yeah. And that way the first time we

[56:08] introduce it to the public, we can explain where we're going without

[56:13] the assumptions about the um I was looking in CE trying to see what Seaside

[56:19] what they listed theirs under, but I can't find it real quick. So well and

[56:23] they a lot of them have hired personnel. So they'll have like a 0.5 person that

[56:29] does like restrooms during busy times. So you'll see the personnel breakdowns.

[56:34] It doesn't say exactly what it is, but you'll see they'll have a staffing

[56:37] person in there. And I mean, those are all options for us as we go down the

[56:42] road and we learn what we can and can't use it for.

[56:46] » So, are we moving with eligible TLT uses? That seems great.

[56:51] » By consensus, we're moving to that. >> Okay. We'll change that line item. to

[56:57] put in eligible.

[57:01] » I just put a little thing in there for you for the TLT revenue breakdown. Um,

[57:06] since Eric had asked, like I said, I see the individual checks and the individual

[57:12] deposits. So, I look at this differently than um in a group. So, we have 62

[57:20] houses that produce 39% and this is tracked on a calendar year,

[57:27] but in a 12-month period, it's all the same amount of money. So, uh 39% is

[57:33] about $224,000. Uh the four condos is 2% is about

[57:42] $12,000. And then the hotel motel condo which is

[57:48] an actual word Chad I looked it up which is um a condominium complex that runs

[57:55] like hotels so you can own it but there's a reservation person there that

[58:01] checks in and checks out. So people really think they're kind of at a hotel

[58:05] even though it's a condominium complex. Is that

[58:08] your heart by the city? >> Yeah,

[58:10] » that's a wedge. >> And so six six businesses bring in 58%

[58:19] which is about $335,000.

[58:24] So six businesses. Now remember those six businesses here are going to see I

[58:29] might have 200 rooms. >> Can you give me that number again?

[58:32] » 335K for six businesses. This is their current TLT.

[58:37] » This is actual data from calendar year last year.

[58:40] » Out of the TLT. >> Yes. Yes. Actually taken in by the city.

[58:45] » This brings up part of the discussion that we haven't had, which is that

[58:49] people who have short-term rentals are bringing going to be bringing in more

[58:54] money, right?

[58:56] » In theory. >> And would we want to be in conversation

[59:00] with them? Oh, I think everybody who pays TLT should be included. Now,

[59:06] whether or not they choose to participate, I don't know because many

[59:09] of them have vacation rentals like AASA or um Airbnb or, you know, other

[59:18] organizations. So, a lot of the owners don't even manage their properties, but

[59:23] they absolutely I think that they should be part of the conversation. It will

[59:27] impact them, too. Justin and I have had some discussions about how to move

[59:31] forward with this. This is step one and then when to get um some folks involved

[59:36] so that we can be open and transparent uh as to what's coming down and give

[59:41] people the opportunity to speak. So, uh, once we get this through the budget,

[59:46] then we'll move into adopting that budget through the city council and at

[59:50] that time we'll start having conversation,

[59:53] uh, and getting them involved in the process for us to develop the ordinance

[59:57] that would be needed to establish this house.

[1:00:01] So, I was surprised that the houses were close to 40% that was that much because

[1:00:07] that's seemed like more than we anticipated at last meeting. 72

[1:00:13] Some of them have one rental that they only rent. The ordinance

[1:00:19] requires them to rent at least once. And so they will have one rental a year. One

[1:00:25] night, >> one night.

[1:00:28] » Just to make sure that their $36 in tax for the whole year.

[1:00:33] » They also have paid $600 for the year >> and they have to pay that

[1:00:38] » for the permit fee. Now, is that transferable?

[1:00:43] » It's not transferable if they sell the property. It's only transferable is at

[1:00:48] the time of the permit, they had uh like multiple means like it was a

[1:00:56] » family >> or a family member that was like death.

[1:01:00] Yeah, I'm trying to think of the word, >> but it's

[1:01:05] » inheritance. There are a few ways that they can be

[1:01:09] passed, but selling never. Yeah, we made a decision on that last year and year

[1:01:14] before. It's not it's not it's been in place for

[1:01:19] » well we had um we had a situation a year and a half ago where we had like five

[1:01:25] owners and what they were wanting to do was transfer their ownership and

[1:01:30] everybody else stays and then they you know they eventually what you could end

[1:01:34] up with is your original five owners are completely gone and it's completely new

[1:01:38] group of five owners and uh I think we I can't remember the exact circumstances

[1:01:43] but I remember we No, because that could mean perpetually,

[1:01:48] you know, doing it and that wasn't the intent.

[1:01:52] So again, tonight this whole process of looking at the TLT and approving this

[1:01:57] budget um is simply an acknowledgement from the budget

[1:02:03] committee that that this is the way that city staff are going to proceed forward

[1:02:08] in order to have a balanced budget next year and that we do still have to go

[1:02:13] through the city council process. We still have to go through, you know,

[1:02:18] public hearings. We still have to go through readings. Uh I think as much um

[1:02:23] involvement that we get with the businesses to hear what they have to

[1:02:28] say. Um and and the percentage is not even

[1:02:32] defined at this point. We've put 15% in to balance the budget, but it doesn't

[1:02:40] have to be 15% when the ordinance isn't.

[1:02:45] » It could be lower than that. Um, that's >> right.

[1:02:50] And that's not starting until the spring of next January,

[1:02:55] » right? Okay. But if if let's say that we were able to fast track this, I do

[1:03:01] believe that I read that it could be effective as early as June 1st. We could

[1:03:06] if we were if we were >> you can implement it. You just can't get

[1:03:10] any the revenue can't go into effect until January one.

[1:03:15] » Okay. So you can implement the ordinance anytime you want. It's just you can't

[1:03:20] can't collect any additional funds. >> Yeah.

[1:03:24] » Okay. Thank you. >> So we're on top of it at this point.

[1:03:28] » Yeah. We're out of it. >> And her plan is a good one in regards to

[1:03:32] what the state is saying would be able to

[1:03:36] howling. So,

[1:03:38] » okay, >> the rest of the wrestling

[1:03:41] » we don't have any other ideas on the table, do we for balancing the budget

[1:03:46] besides this? >> Uh, nothing that's

[1:03:51] not painful. >> I mean, we all we all seem to agree that

[1:03:54] this seems like a good idea, but this so far is the only idea we can discuss.

[1:03:58] Well, I mean you you can do options like local levy options where you can go to

[1:04:04] the voters and ask them to support or tax.

[1:04:09] » That seems like a

[1:04:14] do home

[1:04:17] fee. >> You can do a utility fee if it's

[1:04:22] defined. Um and those are things that we may have to consider. that this is a

[1:04:27] good start. >> Closes the budget gap.

[1:04:31] » Yeah. >> And next year able to do that plus some

[1:04:34] more depending on how we handle it. >> And we're still going to have to have

[1:04:38] some discussions with the folks about Gearart about some other funding moving

[1:04:43] forward if we continue on this path. >> What's a utility fee? It's where you put

[1:04:47] it on uh the water utility meter and there's an additional $5 fee per month

[1:04:54] or two months that goes for a specific purpose as defined by the city council.

[1:05:02] » Yeah. that came in. what it sounds like if you're full-time

[1:05:07] resistant.

[1:05:11] I I heard about it about a year ago on the I'm on the sit on the housing task

[1:05:18] force for the city council and uh we had presentation because uh

[1:05:26] uh Vancouver BC was the presentation was a planner who helped Vancouver BC do

[1:05:31] that because uh you know several years ago you went into Vancouver they've got

[1:05:36] all these highrises that are dark because nobody's in them and took took

[1:05:41] up the whole downtown where people lived

[1:05:46] and that was how they saw that. >> Well, looking at it right now, there's

[1:05:53] been a couple of articles in the newspaper about empty home tax. That's

[1:05:58] what they were calling it. Um, >> a lot of communities use levies, which

[1:06:03] is for a short period of time, five years, and usually or communities buy

[1:06:08] into those because there's an end and there's a responsible use.

[1:06:13] » That's what the schools do, >> right?

[1:06:15] » But raising tax year >> is almost impossible. It's never really

[1:06:21] been done in Oregon where you have your permanent tax goers and say, "We'd like

[1:06:25] to go from a dollar to $2." that that's permanent tax and they they

[1:06:31] never did what they did. So, we got some other ideas of things we need to talk

[1:06:34] about, but this is a good start. >> Well, I know last year at this time we

[1:06:38] talked about putting together a committee just to explore revenue

[1:06:42] sources on this and I I'm one that if you're going to ask me to pay more, I'm

[1:06:47] going to ask you, you know, did you leave any money on the table? what

[1:06:51] other, you know, have you exhausted or the other, you know, are you, you know,

[1:06:56] every city I've ever lived in, if you want to do a rental, not a short-term

[1:06:59] rental, but any kind of rental, you had to have a business license. And I know

[1:07:03] we've had a couple problems with rental rental homes here in town that are not

[1:07:08] being run to code that that would help us identify where they are and whether

[1:07:12] they're rental and you could still get a little bit of a fee. And I'm not saying

[1:07:15] that's not someone's fault, but so you have this money and then you look at

[1:07:19] your um all system development fees and that's not all that much money, but put

[1:07:24] together that now we're starting to build a little bit more. So I think we

[1:07:27] look at this as a holistic. I think we put together a committee and and that we

[1:07:32] really do a deep dive into this and I think we need to do it starting uh soon

[1:07:39] soon.

[1:07:43] Yeah.

[1:07:46] I guess a question about the revenue sharing. Sure. I was just kind of

[1:07:51] reading the back of the back of the staff report and um

[1:07:59] I think I've troubled a little bit uh by not having line item next year

[1:08:09] that would allow us if we want to partner say with Trails End or

[1:08:16] » well I think St. existent or C there. >> But I think what would happen honestly

[1:08:21] is is you would take the state revenue share budget you would take the budget

[1:08:26] number 45 you would look at it in the budget and all the expenditures would

[1:08:31] move to non-EP departmental just as they are. You could still have

[1:08:37] the grants, you'd still have celebration. The line items would stay

[1:08:41] the same. they would just move to the general fund under non-dep departmental

[1:08:46] category. >> Same line items.

[1:08:49] » And those non-EP departmental could be anything that we design.

[1:08:53] » We we have that already in there and it's and some of those items we've

[1:08:57] already moved over to state revenue share like the muppets and you know we

[1:09:01] would just move all of that back and put it in non-EP departmental. It's just

[1:09:06] that now the revenue goes into the general fund. So the grants wouldn't be

[1:09:12] necessarily tied to the state revenue share. It would be like for some reason

[1:09:17] if TLT this that this works out and we end up getting $300,000 more. It might

[1:09:24] be that we're back to being able to say, you know, we can give $15,000 this year.

[1:09:29] We're just not sweating bullets because the state changed the PSU formula and

[1:09:33] now we don't have enough money to give it because we were here and now we're

[1:09:37] here and we were locked into the state revenue share and we don't have the

[1:09:41] money to pay it. Now it lumps in and it doesn't become this weird tie thing.

[1:09:49] But they would stay my intent would be to take every single thing that exists

[1:09:53] there and just move it straight into the non-denom non departmental budget in the

[1:09:59] general fund. >> So would a would a process similar

[1:10:04] » same exact >> similar process?

[1:10:06] » It could be exact same process. Yes. >> And other cities have put like Atoria

[1:10:12] has put uh specific grants tied which they consider to promoting your hard.

[1:10:18] they have put those in the TLT um statemandated

[1:10:23] uh and that's something that a committee could just you know they they might want

[1:10:27] to give some kind of grant like does North Coast Land Conservancy want to do

[1:10:31] bird watching or do they want to do something in your heart and this is an

[1:10:36] opportunity for them to maybe buy shirts or buy nets to kind you know catch frogs

[1:10:42] or something you know that that they can come and ask for that and then that can

[1:10:46] be TLT money But it wouldn't be. We would move them over to non-EP

[1:10:51] departmental and they would have a line item just like they do now. Okay. Yes.

[1:10:59] » Are are we in the part of the agenda where we're having general discussion?

[1:11:03] » Oh, we can move there. I just >> I don't know.

[1:11:06] » The only um we had kind of moved to the state revenue sharing section of my

[1:11:11] staff report. Um, I don't necessarily feel the need to read it since you had

[1:11:17] access to it unless you have specific questions. It's kind of things we've

[1:11:20] talked about. My only thing would be that um we decide at least by consensus

[1:11:26] that I can move the state revenue share over to the general fund

[1:11:30] » so that when you see the budget the next time for the 2007208

[1:11:36] fiscal year the state revenue share will be a revenue item line on the revenue

[1:11:42] page and will all the expenditures will be moved into the non-EP departmental.

[1:11:48] So, you need a a motion right now for >> not a motion. Just my consensus that we

[1:11:53] decide that that's okay for me to do that.

[1:11:56] Okay. >> I consent.

[1:11:58] » I consent.

[1:12:02] » And if we don't like it, we can move it back. But

[1:12:05] » no problem. >> I think it's better.

[1:12:07] » Makes it easier. And then the other thing is just to kind of transition

[1:12:13] to to clarify and help just kind of talk about um do I the budget officer

[1:12:20] proposed $4,000 um to go to the state revenue shared

[1:12:27] grants? Uh does anybody uh I mean do you agree with that or

[1:12:32] would you like to talk about changing that dollar amount?

[1:12:37] And we can change it while we're doing it too. I just by consensus maybe if we

[1:12:43] could just start with the 4,000 and then talk about

[1:12:48] it's not permanent at that point. It's just a starting point. Let me put it up

[1:12:52] on the screen. We have it in there maybe just

[1:12:59] so I consent. >> I consent. Okay. Good. And then we can

[1:13:06] transition into budget >> committee discussion.

[1:13:10] » We need the I need this final motion right at the bottom.

[1:13:13] » Not not until the end. >> Yeah, that's just the help.

[1:13:16] » Got it.

[1:13:21] » Okay.

[1:13:24] Uh, the one thing I want to say that I didn't have my staff report that I

[1:13:28] wanted to add is that I did have a budget committee member call and ask me

[1:13:33] about um what it was that I felt like the uh city

[1:13:42] what I would ideally like to see the goal of the reserve amount. And so

[1:13:48] having a conversation with this person, they were looking at the revenue and

[1:13:51] expenditures report that I had handed out and they were specifically looking

[1:13:57] at the last page of that document. So this document, they were specifically

[1:14:02] interested in this back page. They were specifically interested in the revenues

[1:14:07] minus the expenditures, what the net income was, which they see that which is

[1:14:15] accurate. is is you know at this this moment this is how much money we had at

[1:14:20] the bank which is true and so they were asking me

[1:14:25] what what do you want to see this doesn't look like we're in trouble we

[1:14:28] have $2.6 $6 million. What What do you think that that number should be?

[1:14:33] » Just seeing just Hang on. Was that part of our pack?

[1:14:36] » It was. Yeah, I'm looking for the same document.

[1:14:38] » I don't document.

[1:14:42] » Yeah, I must. >> It didn't come in this one. It was last

[1:14:49] » right. >> I don't think I've ever seen that.

[1:14:53] » And it was just a guidance document. >> It was right here. I wrote nine months

[1:14:59] on it >> when we had the last

[1:15:01] » I I remember seeing it but for whatever reason I

[1:15:05] » just ending it.

[1:15:11] » You got it.

[1:15:15] » Oh, you got it. >> Okay. So, this was just it it wasn't

[1:15:20] relevant to the current budget other than just a supporting document, but

[1:15:23] this budget committee member called and said, "Oh, well, we have $2.9 million. I

[1:15:28] feel like that that seems like we're adequate. We're not poor. This doesn't

[1:15:32] mean that we're in red." And that's accurate. It doesn't mean that we're in

[1:15:36] red. But when I look at this document, I never look at this document as one

[1:15:41] document. Each one of these are vitally important funds and vitally different.

[1:15:46] That's why they're presented in the budget that way. So I look at the

[1:15:50] general fund. I look at the expenditures which is the 1.9 million and I look at

[1:15:55] the revenues for that fund, not as a whole because the reserve funds

[1:16:03] are in there and we don't spend those, right? So it's it's like they need to be

[1:16:09] in there. It's the ones that we pay on a daily basis, like am I going to be able

[1:16:14] to pay the power bill because the general fund revenues exceed the

[1:16:18] expenditures. So I look at each one independently.

[1:16:23] And so I I told them, I don't know if I can have like the dream number for you,

[1:16:30] but I'm just going to give you just a brief description of what I felt like I

[1:16:36] look for. So for me, the most important place in the whole world is the general

[1:16:41] fund because it's mainly where we pay most of the people and most of the

[1:16:45] operating expenses come from. It's where we pay our light bill. It's where we pay

[1:16:49] our gas. It's really the majority of our general operating budget. This is my

[1:16:54] cash flow. So every month I keep a cash flow of what I think our revenues is and

[1:16:59] what our expenditures are. And then I put the actuals in hoping that at the

[1:17:04] end we're going to be positive. So I try to keep this going. So ideally what I

[1:17:11] look for and and my goal would be is that the general fund would be 3 months

[1:17:20] operating expense. That's what I would like to see. So 3 months operating

[1:17:25] expense of the general fund would be about 540,000.

[1:17:29] If you look at page one of the budget and look at the beginning fund balance,

[1:17:35] it's 207,000. So 207 versus 500.

[1:17:42] The auditors would like to see six months.

[1:17:45] » Yeah. See, I was going to say they always say they have six months.

[1:17:48] » Yeah. They think, you know, if we wanted a outstanding bond rating, if something

[1:17:53] bad happened, they would say they would want to say six months, which would be

[1:17:57] like a million dollars. Then if we strive for our goal, which really my

[1:18:05] goal is please let us have 10%. Let's let's have a little bit of extra.

[1:18:11] Then it would be 216,000 and we put two, you know, I'm thinking

[1:18:15] we're going to be at 207. So that's where we want to be. But that means that

[1:18:20] people in their regular budget have to not spend all of their money.

[1:18:27] So 10%'s our goal. Ideally, I would love to see three months, but ultimately the

[1:18:33] auditors and standard and board would like to see six months. That would be in

[1:18:39] the general fund and that would be in the operating fund. Same kind of thing.

[1:18:44] I'd like to see three months. We had a water consultant come and help us. He

[1:18:48] said he would like to see three months. Auditors would like to see six months

[1:18:54] and standards and pores would like to see that we have six months. the actual

[1:18:59] reserve funds. So the like the water reserve, the police car reserve, the

[1:19:05] fire apparatus, those are bonus funds and they they show um

[1:19:14] growth and they show uh good stewardship

[1:19:20] » and but there's no requirement. the higher they are, the higher the bond

[1:19:26] rating is, but there's no requirement that they have to be a certain level.

[1:19:30] So, I don't I don't necessarily look at those as like a priority except the

[1:19:37] departments would argue because if they need a police car every 5 years and

[1:19:41] we're only putting $3,500 in there because that's the only extra money we

[1:19:46] have, they're not going to get a police car for a lot of years because $3,500 is

[1:19:53] going to take a lot of years in order to be able to buy. Each one of those

[1:19:57] reserve accounts are set up by an ordinance to be specifically spent in a

[1:20:01] certain way by the city council. And so we can't just spend the money without

[1:20:06] going to the council first. We go with a request and say that it fits between

[1:20:09] that ordinance that you had originally set it up. Your heart's been unique in

[1:20:14] the past on having these reserve accounts. Many cities do not. So when we

[1:20:18] went to go buy a police car, we could pay in cash rather than having to go for

[1:20:23] a levy or a tax rate increase. And in the past, Dear Heart's Reserve accounts

[1:20:29] were in pretty good shape. Every 3 years, we could buy a new police car.

[1:20:33] Every 5 to 10 years, we could buy a new fire truck. Well, we haven't been able

[1:20:37] to put the money into those reserve accounts, but yet we've been spending it

[1:20:41] because we needed to. Just a little background.

[1:20:47] Well, and it's the only way that you can actually take a surplus

[1:20:51] and and and distribute it into the reserve funds,

[1:20:56] » which is fiscally responsible for a city to do and we've been in a good good

[1:21:00] shape of that up until >> recently. So, just that was kind of a

[1:21:06] long answer to her question because it was important to me because ending fund

[1:21:11] balances, which are beginning fund balances matter because they're what

[1:21:16] support and if you if you have a zero balance moving forward, you run the risk

[1:21:22] of being negative and we can't afford that. So, that that was kind of I don't

[1:21:28] look at it as that back number. is the number because that number includes all

[1:21:33] the reserve funds. I look at each one of those funds independently with their

[1:21:38] revenues and their expenditures and some of them have a lot of transactions and

[1:21:44] those are the ones I focus on. And the water reserve, this was a graph that he

[1:21:49] had given us for the consultant. This is where we were when we hired the

[1:21:55] consultant. We did a transfer to bring us up to here and and we're right here

[1:22:01] right now. And the water reserve I think we're carrying forward. I wrote it down.

[1:22:07] Um we put on page 16 of the budget the beginning fund balance we're going to

[1:22:13] carry forward 205. And he says in 2026 we we should be at 206. So, we're

[1:22:20] exactly where he says we should be with rate increases because we were so low

[1:22:25] that we went up and then we knew we were going to drop down and move back up with

[1:22:30] rate increases and all of the things that we're doing to try to improve that.

[1:22:34] So, we're right on target of where we should be. We don't have three months,

[1:22:39] but we're, you know, we're getting close closer than the general.

[1:22:44] Well, Jesse, this discussion we've just had is very much what I've been thinking

[1:22:48] about because I want to pass. >> So, just to flesh it out a little bit

[1:22:53] more. Um, the general shortfall we've been talking about and that we want to

[1:22:58] use transient tax to supplement and other ideas that really is specific to

[1:23:04] the general fund. Correct. >> Pretty much only,

[1:23:08] » right? Yes. Yes. And when we're talking about a budgetary shortfall or potential

[1:23:12] shortfall or getting skinny, >> correct?

[1:23:15] » It's the general fund. >> Correct.

[1:23:17] » So in that regard, all the other funds are they and you alluded to this, but to

[1:23:23] ask a more specific question, are they generally healthy in your mind? I

[1:23:30] mentioned the police, you know, 3500 bucks.

[1:23:32] » Well, the water reserve, the reserve accounts are different though. I mean,

[1:23:36] they are beneficial and they're important, but they don't have something

[1:23:40] pulling out of them all the time that you can't eat.

[1:23:43] » And do we have enough reserves in those funds for those specific needs?

[1:23:49] » No. >> Right.

[1:23:50] » No, we do not. >> Okay.

[1:23:52] » All of the the fire apparatus and the um police reserve

[1:23:59] building >> by and and

[1:24:01] » a new fire engine is a million. >> Sure. uh new police cars 5560,000.

[1:24:07] So the other one that gives me hair on the back of my neck is is that the

[1:24:12] building fund we are negative and so we the budget committee last year for

[1:24:18] $10,000 transfer >> again this year we have it in there to

[1:24:22] support them and every month they make me scared that we're not going to meet

[1:24:30] revenues and expenditures because and they do go negative but I know a

[1:24:36] payment's coming in So I I >> sweat bullets knowing whether or not

[1:24:43] they're going to be negative or positive. They used to be in the general

[1:24:46] fund. So it was like the state revenue share, right? So I didn't have to sweat

[1:24:50] bullets over it because they could compensate. But because we have a third

[1:24:55] party independent, the state made us pull that out and put it in a special

[1:24:59] revenue fund and said, "Hey, you need to make this work. you need to treat this

[1:25:03] like an enterprise fund and you need to charge enough fees in order to make it.

[1:25:08] And at this point there are times we carried to over $12,000 last year for

[1:25:15] the year before but we we made it right by $12,000 but I was sweating bullets

[1:25:20] and this year there are months that we have been negative.

[1:25:22] » What fun number is this? >> 40.

[1:25:25] » Oh this is 40. And the reason is that I mean we don't have we don't have vacant

[1:25:32] lots here where they're building new houses.

[1:25:36] You know most of the most of the construction that happens in this town

[1:25:40] are you know remodels and those kinds of things.

[1:25:47] » So so we could ostensively increase building permit fees.

[1:25:53] » Yes. And that could help. And what I what I would I I would suggest that we

[1:25:59] look at that other people are looking at that and my listening would suggest that

[1:26:03] that is something because we don't have a choice. We cannot let that be

[1:26:08] negative. So what that means is we either have to reduce staff in there

[1:26:12] because we have a partial staff person in there or we have to um figure out a

[1:26:19] way to supplement through transfers or other things. And uh it's you know it's

[1:26:27] not necessarily a bad thing because we have to provide that service but it

[1:26:30] takes away that's $10,000 we're putting towards the building fund and not 10,000

[1:26:35] we're putting towards other reserve funds that we need.

[1:26:38] » So staff time is used whether or not it results in income in

[1:26:43] » Yes. So when somebody calls and says oh I want can I build an 8ft fence and

[1:26:48] you're talking on the phone no you can only build a sixoot fence. Oh, but a one

[1:26:52] penny bird. You spend 35 minutes with this person and then two hours later

[1:26:56] they come down and you have to show them the GIS map and then you have to show

[1:26:59] nothing. You get zero dollars for that. >> And that's there's no way to cover any

[1:27:05] of that. You know, there's a way to cover a staff time like if they have

[1:27:10] come in and they are planning a development and you sit down and you do

[1:27:14] pre-planning meetings and you have them come in and we charge for here's time

[1:27:18] and we charge for the city administrators charge and we charge for

[1:27:21] that. But just general questions about oh what's the lots of realators right is

[1:27:28] is this can we build a multi-dwelling home on this house? Can we, you know,

[1:27:33] just lots of questions like that that and some of them are obscure

[1:27:38] questions, lots of wetlands questions and it kind

[1:27:42] of bleeds over to planning, but mainly it has to do with they want to develop

[1:27:48] it. So, it has to do with a structure. >> Now, do we run the risk of even more

[1:27:55] income here as the community gets built out and we have potential? Well,

[1:28:00] potentially no, because the the the expense we expense out, large majority

[1:28:06] of it is for the inspector. >> So, if he's not inspecting, we don't pay

[1:28:11] him. >> Okay,

[1:28:14] » that's one of the saving graces for Dear Hart, yet it's still expensive. If we

[1:28:18] had a full-time employee to take care of that issue and then permit, new permits

[1:28:24] coming in went way down, we would still be paying that full-time employee. So

[1:28:28] essentially we pay 75% of the permit fees to our contract

[1:28:34] » which only leaves 25% of support partial staff person

[1:28:38] » which is Angelina. >> Yeah.

[1:28:40] » Okay. >> And we're really I mean this I've worked

[1:28:44] with this guy. We're really fortunate to have Leonard as our building official.

[1:28:49] He comes all the way till >> you know I mean the guy really knows

[1:28:53] what he's doing. He he's a pleasure to work with from a contractor standpoint.

[1:28:58] Um if you've got a problem, you know, he doesn't it isn't my well this is the

[1:29:03] code, you know, it's let's see what the intent of the code is. I mean he's been

[1:29:07] around for a long long time and he doesn't need any old search.

[1:29:13] Well, I mean, I get your idea because to me, I equate that to if somebody puts in

[1:29:18] a public record request or whatever you call it here. Um, you say, "Let me look

[1:29:23] at that and I'm going to tell you how much it's possible for me to go around

[1:29:26] and collect all that information." They have to pay for your staff time to do

[1:29:30] that. >> Correct.

[1:29:31] » And essentially, these people are using you as their researchers instead of

[1:29:35] going through getting legal advice. So, they should be paying you for it. And we

[1:29:41] do public records requests. We do charge them if it takes any time

[1:29:46] » and if it's going to be a difficult >> public records request, but if they're

[1:29:50] just calling for an inquiry, >> how tall is a fence?

[1:29:54] » We don't check how far is the boundary line. Then you say, "Well, what property

[1:29:58] is?" And then you pull it up and there's like 50 things about that piece of

[1:30:02] property is why it doesn't have a house on my neighbor. So, we're at the point

[1:30:06] where we would need to set up a system where we say, "Okay, we'll schedule you

[1:30:10] for an appointment. We figure that'll take

[1:30:12] » an hour. That'll take half an hour and this is what this is what it will cost

[1:30:16] you." >> The problem is you get 12 realers

[1:30:20] calling you for a five minute question. >> That's 60 minutes.

[1:30:25] » Because as soon as the property comes on, everybody's calling about it.

[1:30:29] » Or my neighbors building a fence that I think is too tall. Or can they mow out

[1:30:33] in the dunes? or is that fence in the correct position? You know, those are

[1:30:37] very simple things that could be >> But if we can quantify any amount of

[1:30:42] time, we do build them. >> We do build them.

[1:30:46] » I'd like to talk to you about whether or not we can develop this land next to the

[1:30:49] neoxoxy in the pickum zone. Oh yeah, we'll set that meeting up and just let

[1:30:53] you know it's going to cost establish a minimum. It's you're going to be charged

[1:30:56] for 15 minute and 15 minute increments or you're going to be charging half hour

[1:31:00] and less time. >> How about lawyers? They charge every 10

[1:31:02] minutes. >> Well, there you go. And

[1:31:04] » well, I mean, we just we set we set the playing rules and everybody has to play

[1:31:08] by >> or six minutes. I think it's six

[1:31:10] » because really we have no other choice because at this point we're not, you

[1:31:14] know, we're going to have to pay for additional stuff that we can't afford

[1:31:17] and a lot of information is available online a lot. So they just are choosing

[1:31:24] not to use it. >> Are there other funds that keep you up

[1:31:28] at night? >> No. Building fund is my other one. out

[1:31:32] of the general fund. >> Well, yeah, general fund.

[1:31:35] » Yeah. Now, will increases in the general fund by virtue of tax, uh the money that

[1:31:43] we have discretion over, could it be used to move it out, transfer,

[1:31:48] » right? Which one would be the goal? >> To start back in a program where we're

[1:31:52] making enough money to >> fulfill our obligatory, right,

[1:31:57] » just standard of living things that keep going up, right? And we can still put

[1:32:02] things to transfer because we >> putting transfers. The goal wouldn't be

[1:32:07] to have this to in my opinion to have a million dollars sitting there in the

[1:32:12] ending fund balance. My goal would to be $500,000 in an ending fund balance and

[1:32:18] our reserve funds to be robust. >> Right?

[1:32:22] » In the end, the equation is the same. when you look at the equation, if those

[1:32:28] two equal were strong versus having one stronger than the other.

[1:32:35] So that would be my goal. Well, you can always do the fund

[1:32:39] transfers, too, right? Yes. >> The problem is that the base tax rate

[1:32:45] here is $1.5 cent per thousand.

[1:32:51] Okay? And

[1:32:55] you know, everybody wants services and everything else. I mean, PERS is going

[1:32:59] up 6% a year, >> more than that.

[1:33:05] » But the revenue isn't going up six. So, we need to figure out

[1:33:14] what it is we can do in order to keep up with with the expenses.

[1:33:22] test. >> Yeah.

[1:33:23] » In fund 79 on page 32 um in the year 2024 25

[1:33:31] we spent 217,000 changed for Catholic for the public

[1:33:37] safety. So is that what would invest in the whole planning process for the it

[1:33:45] turned out to be the $30 million?

[1:33:52] » Uh yes >> the $30 million design or the one before

[1:33:55] as well. >> I I think that would have been the

[1:33:58] cottages. We didn't really pay architects. This is like um Clash and

[1:34:04] the architects, >> right? That was what So, we spent

[1:34:06] roughly $200,000 to move that project forward.

[1:34:10] » Correct. >> And then people complained that we

[1:34:15] shouldn't have spent all that money and now they're complaining that we haven't

[1:34:21] told them what we want to build. We should spend money to get a design. Is

[1:34:26] that how this is all? That is exactly we've hired professionals to get input

[1:34:32] and to make sure that what we were doing was

[1:34:36] » validated and transparent. >> Correct.

[1:34:38] » That didn't pass. And now we're offering a different idea. They're saying, "Well,

[1:34:42] where are the plans, >> right? And we never you don't get plans

[1:34:46] until where are the design?"

[1:34:49] » Even then, the $30 million project was not a full design. And that would cost

[1:34:53] almost a million dollars to get we have a partial plan.

[1:34:58] » Yeah. >> So is there any merit to the comments

[1:35:02] that came in by eating elf that um in pursuit of the city's public safety

[1:35:10] building we're under the impression emergency and cash reserves have been

[1:35:14] drawn down to very precarious levels. not from I think it's a sematics thing

[1:35:20] in the sense where um because in this particular fund we never made transfers

[1:35:27] to any of the other funds. So this fund did not support um if you look at the

[1:35:34] beginning fund balance in 2023 2024 that beginning fund balance was in that fund.

[1:35:42] So, kind of like we talked about, it was in here. It wasn't going anywhere else,

[1:35:47] » but it's been spent drawn down.

[1:35:51] » Yes. But it wasn't doing that didn't affect our general fund,

[1:35:55] » right? >> It didn't affect that fund at all in any

[1:35:59] way. >> But I think what they're trying to say

[1:36:02] is we could have been putting that money >> but not easily into

[1:36:09] the the reserve other reserve funds. Elsewhere.

[1:36:12] » Elsewhere.

[1:36:17] » Okay. I'm good. Thank you. >> Any other discussions

[1:36:23] items of the budget?

[1:36:27] » Um, this isn't this is a ton of money, but um

[1:36:34] I can't remember how much money is on our account right now for the expenses

[1:36:38] for elected officials. I think it's $5,500. It's generally $5,500. Our

[1:36:44] existing budget as of April. I I think we get to the end of the year and we we

[1:36:49] never use that much. I think that that depends upon how many

[1:36:54] we did have a couple cancellations of some workshops that people went were not

[1:37:00] going to that ended up go didn't go. So I think it's misleading. Um, my

[1:37:07] » I just want to confirm that you still think that's an appropriate amount.

[1:37:11] » Uh, if anything, it's it might not be enough money if people decide to

[1:37:16] continue to go. I mean, it's hard to go anywhere in the

[1:37:23] state, get reimbursed for your lodging and your mileage

[1:37:28] for two to three days for an annual meeting for less than a thousand. And so

[1:37:36] the budget is basically one trip per counselor per year.

[1:37:41] » And so in 2324 we spent 5,000. In 2425, we spent 6,000 and we have 5,500 in.

[1:37:50] » Okay. I'm I'm just confirming. I'm I'm not ready to resolute.

[1:37:57] » Are those monies cumulative? >> No. Each year it rolls over in the

[1:38:02] beginning balance. >> So,

[1:38:06] » can't go to Hawaii. >> Some some counselors have gone on trips

[1:38:11] to see like maybe they have TLT tax there.

[1:38:14] Not our counselors

[1:38:18] say

[1:38:22] or not. >> So we do

[1:38:25] need to allocate funds. Do do does anybody like a break before we

[1:38:31] transition into that or feel good enough to go? Okay.

[1:38:36] » Okay. >> So we're going in for revenue sharing

[1:38:41] » if you feel comfortable. I think we're good to go. Christie can put the um

[1:38:48] spreadsheet up on the screen. >> Yes, it's

[1:38:53] » okay. >> And then as you see fit um what we just

[1:38:59] do as a starting point because um from past experience we've learned sometimes

[1:39:04] it can be difficult to get the ball rolling.

[1:39:12] » Not much. asking specific questions for that.

[1:39:14] » Yeah, our police police chief need and maybe our fire

[1:39:19] any questions specifically for them before we move move on

[1:39:25] or they can be excused.

[1:39:30] » Yeah. >> Um we we took a pretty good hit this

[1:39:34] year on our budget. Um, for the police department, I know I'm looking at about

[1:39:39] 24,000ish uh of materials and services. I can

[1:39:43] speak for myself on this. We'll make that happen. That's okay. I get it. Uh,

[1:39:47] we're going to do what we need to do. Um, however, for as we talked about

[1:39:51] earlier with the uh vehicle reserve fund, that's kind of important and we

[1:39:58] had to take a hit on that. Chad kind of mentioned this to get our vehicles

[1:40:02] actually patrol ready. when I first got here, that was a cut into that fund. Um,

[1:40:08] the laptops that we had to use to switch to our new system, that was a cut into

[1:40:12] that fund. Um, we really will need some money in those reserve funds. Um, and I

[1:40:19] know we're you guys are about to to come together and determine what what kind of

[1:40:23] money needs to go where, right? And I got some really good or organizations in

[1:40:27] our community that deserve what they can get and they are doing a great a great

[1:40:32] job. Uh however, right right now it feels like it maybe we can put that

[1:40:37] money into the reserves. I know that probably will not be met with uh smiles,

[1:40:43] but that being said, I had to say it because I have to speak up for public

[1:40:47] safety. So just uh asking that you know whatever you can do to see maybe so that

[1:40:52] might be the reserve fund would be nice.

[1:40:58] » Thank you. >> Thank you

[1:41:05] for the fire department at the moment. They've got some repairs that they're

[1:41:08] holding off on that they need to do. I was I was with Hank when he uh went to

[1:41:15] go talk to the Royal Fire District and they were throwing hay makers at him.

[1:41:20] So, he wasn't quite in the field position,

[1:41:23] but they weren't happy. So, >> well, they're paying for

[1:41:26] » they're paying they're pay they did tell me we're paying more and I see people

[1:41:30] are paying more. >> Not only did they pay us, but they also

[1:41:34] have to pay forestry whether they have a tree on their property or not.

[1:41:41] And you know it's going to get worse diesel.

[1:41:45] » Yeah. >> So we just started out the spreadsheet

[1:41:52] just doing what we had done before. We we had seven grant applicants. We just

[1:41:57] divided it equally out and then we let the mayor's time take the hit or give it

[1:42:02] some but not the same as the other ones. There is nothing set in stone here. We

[1:42:08] have $35,220 that can be manipulated in here. The

[1:42:14] budget officer put where they best felt like the money was to go, but you guys

[1:42:22] can decide how and when you know how you want this to be

[1:42:29] distributed. So she has just put in the top portion

[1:42:33] the materials and supplies but you are welcome to put in move from the

[1:42:39] transfers or move from the ending fund balance but I would caution you if you

[1:42:44] take money from the ending fund balance please don't put it anywhere that I

[1:42:48] might not have be able to give somebody a grant because that's my cushion

[1:42:52] because I never know exactly how much money we're going to get. It's just the

[1:42:56] best guess and I would not want to allocate all I think we're going to get

[1:43:02] just in case we go with that.

[1:43:08] » Jay, can I throw out an idea? >> Yes.

[1:43:13] » Um, okay. So, uh, first of all, I'm thinking the people who asked us for

[1:43:20] money should get the most attention. Second of all, if you look at the um

[1:43:30] numbers that we got from Helping Hands, Cedar,

[1:43:35] uh the Harbor, and North Coast Food, they've all got a fairly decent uh net

[1:43:44] income. What I can see, you guys can correct me

[1:43:48] if you're wrong. The only people who don't have uh much of a cushion are

[1:43:54] Trails End and St. Vincent Depal. Those two organizations are directly connected

[1:44:03] to Ghart. So my idea is those are the two organizations that we give money to.

[1:44:11] It's stronger now.

[1:44:20] I've got $500 for each and every one of them except for the scouting group. I

[1:44:25] gave them $150 and I gave $350 to the North Coast Food Web. But everyone else

[1:44:32] is $500 works out to be $3,000 and that's what is then allocated by the

[1:44:39] master of money. I think that's fair. >> And you were saying everybody who turned

[1:44:45] in a brand. Yes, I know. >> Not everybody that's

[1:44:50] » everyone who's got an application. >> Sharon, are you saying everybody who

[1:44:55] turned in an application or everybody who present it?

[1:44:58] » Turn an application.

[1:45:02] » Which the two you want to support did present?

[1:45:05] » Yeah. >> But they turned in an application.

[1:45:08] » Yes.

[1:45:13] Show me how that's Oh, you're still making changes.

[1:45:22] » You want to take the mayor's emergency off?

[1:45:27] » You didn't say that. You want me to? It's thought 150.

[1:45:34] You did you didn't you I was trying to make it make 3,000 is all

[1:45:43] » is are we there on >> it equals 3,000 but she actually

[1:45:47] allotted 4,000 >> right

[1:45:51] » put in reserve

[1:46:03] is there a Is that below what we're looking at or usually one of the other

[1:46:08] thousand? >> This is how it equals out. There's a

[1:46:11] thousand left. You'd have to put it in one of the three up here.

[1:46:16] » But she they can move it down to recommended transfers.

[1:46:20] » Oh, down here. Okay. >> They could move it down there.

[1:46:24] » So, what's the city reserve fund? It says

[1:46:28] 105. >> That is I'm recommending uh 10,500. the

[1:46:33] city reserves. And so each one of the reserve funds, police, car, fire

[1:46:38] apparatus, and building reserve would get 3500.

[1:46:45] » I just put a placeholder of 10,500. Okay. But but if you were to change

[1:46:50] that, it it would change depending on what you approved. I just recommended

[1:46:56] 10,500 to those funds, those three funds.

[1:47:00] » I'd make a 12,000. So we take a nice round amount.

[1:47:07] » Could we take that 1,000 then and move that to that 10 10 five?

[1:47:11] » Right. That that that was one suggested. Correct. You can at this point you have

[1:47:16] the freedom to move it around. Later on it's not as easy when we have to do

[1:47:19] appropriations resolutions later on. This is the one time a year you get a

[1:47:24] chance to move things between sections. >> Yeah. We don't want it to be a thousand.

[1:47:31] We want it to be >> 115 or 12.

[1:47:36] Yeah.

[1:47:40] » You're just trying to get it. >> I'm trying to get around and it's three

[1:47:45] and there's three funds. Correct. >> There's three funds and the the if I had

[1:47:52] to rate them in priority, I would rate them police car, fire apparatus, and

[1:47:56] building reserve. And I only do that because the fire apparatus um

[1:48:03] is going to take uh more than what we have. It's and the police have a better

[1:48:12] opportunity with the more money they get in order to buy something quicker.

[1:48:19] » What are you suggesting? Three grand. >> I will suggestions on paper.

[1:48:27] the 10,500 $3500 each. Perfect.

[1:48:33] » So if you moved it over to the next column that 10,500 below would be 35

[1:48:38] 3535.

[1:48:42] » Yeah. >> Yep.

[1:48:46] Is what that's what I recommended. But that's only because your heart has had a

[1:48:51] traditional philosophy of giving grants. we have an obligation where we have

[1:48:56] already put some funds in the community celebration and event. Um I put a little

[1:49:03] bit more money in there because I would love this to potentially see

[1:49:10] Earth Day be resupported. There wasn't money in there to really do it to the

[1:49:16] extent that it potentially was going to cost us. But we had a lot of interest in

[1:49:22] it. >> Is that the garbage collection?

[1:49:25] » Yes. >> People really liked it. So I did

[1:49:28] increase it. But we also have Fourth of July

[1:49:32] thanks to the um you know, you never know what activities

[1:49:39] are needed. And we have the muts in there which also is a huge thing for

[1:49:44] love. Um if you work in the city hall, you will um get calls going empty

[1:49:54] every it's a big deal to them. So it just

[1:49:59] tried to spend 30 days >> about $5,000 a year.

[1:50:04] » That that is one of the questions I I had that and I talked about that last

[1:50:10] year. I don't know if both of those are that $10,000 material and services. Um

[1:50:17] they're 300.

[1:50:22] » I will. So just

[1:50:25] you I think you told me the history of this last year that the that the um

[1:50:29] homeowners association said they'd take care of the dog waste bags and then they

[1:50:34] stopped and the city picked it up. >> Correct. And I don't see I see our fire

[1:50:42] and our police departments needing the money more than people need dog waste

[1:50:47] bags. That bothers me. >> Well, not only that, though. I mean,

[1:50:51] when you walk down the ridge path and everything like that, you they just

[1:50:54] throw them they just throw them in the in the bushes.

[1:50:58] » Yeah. >> I would like to to mention something

[1:51:01] that >> Yeah. Yeah, I mean they don't you know I

[1:51:04] mean >> you know what they leave them out

[1:51:07] anyway. >> You know what that's the worst

[1:51:11] when we have a lot of people that are visiting our town.

[1:51:16] » Um I would like to point out that the porta potty might be a problem this year

[1:51:20] but if we're all optimistic that that bond is going to pass. I don't imagine

[1:51:24] it's having a porta potty out there after we remodeled city hall. So that

[1:51:30] might be an expense that gets absorbed at closing

[1:51:35] » the septic field here. Take this.

[1:51:41] » Are we talking? Uh maybe >> I'll tell

[1:51:45] » maybe maybe. >> No, I can't take it. It's not

[1:51:50] » okay. >> Operational.

[1:51:51] » Let's get back to state

[1:51:57] » septic is >> Yeah.

[1:51:59] I I also think I and I'm every organization that we support does great

[1:52:06] work, but I I took the time to speak with both Chief Gregory and Hank. And um

[1:52:15] I just feel that the 4,000 that you set aside ought to be going to support our

[1:52:24] police and fire instead of our local organizations this year. I have to say I

[1:52:29] agree. I I we are exactly on the same page. I several of these organizations I

[1:52:36] said these were going to be I brought my checkbook because I intend to um give

[1:52:41] them money, but I don't I don't know that the city has the budget to give

[1:52:44] them money.

[1:52:50] So I appreciate what you both have said but I

[1:52:56] of course we're small amount of resource to meeting groups.

[1:53:01] » Yeah. But so my my thoughts about is going to distribute

[1:53:06] the money. Um, I think that St. Vincent Paul should get something direct direct

[1:53:14] help to people in our community and and a small budget operation. So, I think

[1:53:19] they should get something. I feel the same for Trails End. They they're

[1:53:24] they're a they're an arts organization in our community. They're a tourist

[1:53:28] destination. They do a lot and we give them $500. It's needful to them. I would

[1:53:34] give this sh I also actually think we should give

[1:53:40] some money to Cedar. We're the only because they benefit our businesses or

[1:53:46] at least they're there to benefit our businesses and um we're the only

[1:53:51] municipality that's not giving up on it. Uh Seaside uh Atoria, Canon Beach,

[1:53:58] Warrington, they all help fund Cedar and we're the only we're the outrider there.

[1:54:03] And even though they have a big budget and they try to do without us, so to

[1:54:06] speak, they do service our community. And I think we should give them $500

[1:54:11] just so we're on the books. >> And I think an opportunity for us could

[1:54:16] be that they may be funded out of our state mandated TLT.

[1:54:23] » Yeah. permanently because I think that um providing that business support seems

[1:54:30] appropriate and for attracting and improving and longevity of our

[1:54:34] businesses. So, I'm hoping that if all goes well that with this that it may be

[1:54:42] uh two that they could become a permanent line item in our TLP for their

[1:54:48] full amount of IP3, >> but in the meantime, I would allow $500

[1:54:53] um >> and 500 to

[1:54:58] 500. So, that's $1,500. And the other groups uh worthy as they are, most of

[1:55:04] them have large budgets with up surpluses. And much as we'd like to help

[1:55:09] them, we you know, we have other needs, too. So, I would just more or less agree

[1:55:15] to share on that, but at Cedar to it,

[1:55:20] » I you know, I I could be persuaded to that because Cedar not only supports our

[1:55:25] businesses, but it's our kids. you know, they do the they do the things with the

[1:55:30] school where they're doing the business fairs and everything else. They do the

[1:55:34] internships and and everything else. So, they're they're actually helping our

[1:55:38] community be more successful. >> Um I I and I think SE provide more

[1:55:44] leverage for promoting tourism. >> Well, not only that,

[1:55:48] » putting flyers out, >> right? And they they're also working

[1:55:51] with us. every time they have a state leader come into town, they invite us

[1:55:56] come sit down with them so we can get some face-toface time with them about

[1:56:00] where our problems are here in our community. So, I'm sorry I didn't you

[1:56:04] are absolutely right and I I my brain was a conflict there being you're on the

[1:56:10] board. Well, but I did I I was thinking along the lines she was talking about

[1:56:15] earlier was that that would come out of the TLT that would be a no-brainer for

[1:56:19] the TLT money. But yes, I you know, it would make my life easier at my next CER

[1:56:24] meeting if I didn't have to go in like this. Um because they didn't even

[1:56:28] mention when we don't put money into their budget. That's

[1:56:31] » well I I I agree. >> Well, no, it's but it's it's I mean I

[1:56:36] agree with what you all are saying, but I I have a little bit of discomfort

[1:56:44] in a process where we we put out this broad swap. Here, give

[1:56:53] us your applications. And then

[1:56:57] people did what we asked them to do and did their presentations

[1:57:02] and they go, "Oh, well, you just didn't quite

[1:57:07] make the cut." >> Well, the city's denied for grants all

[1:57:11] the time. >> That's the grant process.

[1:57:14] » Part of the process. >> Yeah,

[1:57:16] » we we do attempt. >> Yeah. And well, I think we owe him at

[1:57:20] least a letter or something to say, >> hey, we couldn't we couldn't support you

[1:57:25] this year. >> So, let me let me ask you a question.

[1:57:29] So, is the mayor's fund emergency fund on the on the is it on the table or

[1:57:34] » it's gone? >> It's gone. Okay. All right. I missed

[1:57:38] that. >> I did.

[1:57:39] » Sorry, mayor. >> No, that's all right.

[1:57:42] » Thank you. >> So, St. Depal

[1:57:46] » trail art center and um and Cedar.

[1:57:53] » Yeah, that's what I was going to say. So I agree with you and I would add

[1:57:58] Bush Library. >> I agree. Those are the top total 1500.

[1:58:08] » Yeah. Okay. I'm fine with that. These ch

[1:58:12] » I know. Scouting America. I mean those girls, you know, they they come and

[1:58:17] » put the flags out. >> We give them a hundred bucks.

[1:58:22] » Well, I'm intending. >> Well, they won't be selling lemonade

[1:58:25] when they're here, you know, selling it, giving it away and accepting donations

[1:58:29] for lemonade. So, >> okay.

[1:58:32] » Did you sell the lemonade? >> I think they asked for 250,

[1:58:36] I think, is what they ask for. >> A donation of 250 for lemonade. No

[1:58:44] service.

[1:58:53] » So >> said it would be swell to be considered

[1:58:56] regardless. We'll be putting our flags out on the board.

[1:59:02] » That was where that I brought my check for. So I don't know if that makes a

[1:59:06] difference here, but they're going to get 250.

[1:59:08] So have we moved uh everything except the funds going to trails end and cedar

[1:59:14] and state fall. Is that moving to the transfers? So the 10 five would be 10

[1:59:22] the >> 13.

[1:59:25] » Yeah. That would change to Yeah. The 13. No,

[1:59:30] » not 13. Five. 13. Right. Even 35. Yes. Yeah,

[1:59:50] that was correct.

[1:59:58] » So the 13,000 would be divided, right?

[2:00:03] Yes, you can do one different apparently.

[2:00:08] » Would the fire truck or apparatus what we call

[2:00:13] that? Would that be an opportunity for a levy? That's sort of a

[2:00:17] » yes >> that we could put out there.

[2:00:19] » We've done that before. Actually, it was so anything in Gearhart, we can't go

[2:00:25] into in debt more than $100,000 without a referendum to the residents of

[2:00:32] Gearhart. In the past, we bought a fire engine for somewhere near $400 and did a

[2:00:39] fiveyear loan. Went to the people at Gear Hart. They approved it and I think

[2:00:44] it raised our taxes by about 20 cents or 12 20 cents per thousand per

[2:00:49] » 1200. >> Yeah,

[2:00:52] » it was before. >> Yeah, it was some time ago and that's

[2:00:55] how we accomplished it. Fire trucks are very expensive. Yeah.

[2:00:59] » Um I think this is a good plan to get us started and we do have some repairs that

[2:01:04] need to happen. Fire engines now that we like coming to soon.

[2:01:12] Justine, would you say you had these three funds ordered in your order of

[2:01:16] priority? Correct. >> So, I would give 4500 to the top two and

[2:01:21] 4,000 to the next one. >> I I I think that that is an excellent

[2:01:28] distribution.

[2:01:41] like that

[2:01:46] when they will get back into putting $30,000 a year into some little

[2:01:53] one that I regret and can't >> Yeah.

[2:01:57] Absolutely. >> But there was pretty good.

[2:02:00] » That's true. Right. >> The hor is the safe house. Right.

[2:02:06] » Right. >> I think that I think that they they get

[2:02:09] an awful lot of donations. I know that I don't

[2:02:17] » they have a surplus

[2:02:32] I think that's negotiated. So I think we're think we're at a point

[2:02:37] where we can decide we'll mention that in the letter

[2:02:45] » we need to either move to recommend this budget to the city council or if we

[2:02:49] decide otherwise we have a meeting to discuss further which I don't get a

[2:02:54] sense but >> do we give you approval to support city

[2:03:00] staff to move forward with the formal city processing with ordinance change.

[2:03:05] Do we do that? >> Uh, you don't do that. If you approve

[2:03:09] the budget, it systematically says that we need 41,000, which we propose through

[2:03:14] a TLT, which means that we have to move to the city council to prepare an

[2:03:19] ordinance, but is no action required.

[2:03:26] Is it ever appropriate to have the budget committee meet at a different

[2:03:31] time in the year to maybe absolutely >> do like a special project and like have

[2:03:36] a a work session on what are our other >> potential

[2:03:43] revenue sources that we can absolutely >> seems like that would be the best way to

[2:03:48] go because you're the most intimately familiar with the money and how it is

[2:03:52] that we're doing it. You've asked the questions and so that would be Well,

[2:03:56] » I think with this type of a budget, it's critical that we schedule that.

[2:04:01] But no,

[2:04:09] » anything else go back for the budget. >> I mean, even if even if we just did one

[2:04:16] just one meeting, >> we could just that would be part of the

[2:04:21] agenda would be do we need to do more of this work?

[2:04:25] » Well, but you're asking us to keep it up for the negation.

[2:04:29] We'll double your double

[2:04:35] » taking it under consideration. You're denied.

[2:04:39] » Never mind. >> Okay. So, I will make a motion unless

[2:04:42] anybody has anything else. So I move that the Ghart budget committee approve

[2:04:47] the amended 2026 2027 budget in the amount of 18,793,79354

[2:04:57] which includes a permanent tax rate limit levy of $1.005,000 0053 cents

[2:05:05] thousand of assessed value and general obligation debt service as well as

[2:05:09] approval of the amended PR road district proposed 2026 2027 budget in the amount

[2:05:16] of 399,329

[2:05:22] with a primitive tax rate limit levy 0602

[2:05:28] per thousand of assessed value. There is also an acknowledgement that if measure

[2:05:32] 4-239 was not passed in May 2026, related appropriations of the debt

[2:05:39] service fund and public safety city bond project fund will not move forward to

[2:05:44] the adopted budget column. >> I second that.

[2:05:49] » All in favor? >> Oppos?

[2:05:55] You guys did amazing. Thank you. Good job.

[2:05:58] » So before I adjourn, all the staff, especially you Justine, thank you for

[2:06:03] all of your hard work, including coaching me for getting us through

[2:06:06] tonight. So >> you did an excellent job.

Budget Mtg2 May 13 2026

Transcript