[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.