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With that, I'd like to call the meeting to order, uh, live webcasts. The

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meeting may be viewed on the city's website, and if you're

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watching, uh, live via zoom, interpreter instructions will appear in the chat

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box at the bottom of your screen if you prefer to sit in the chamber. And

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for translation head, uh, sets are available to provide live spanish

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translation. Please see the clerk's desk, uh, to check

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out a, uh, headset. Alright, a, uh, a notice

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agenda and information on the city of nashville city's website informs members of the public

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that they may submit a general public comment or a public comment on a specific agenda

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item in a number of ways. In person, uh, at the, by submitting

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one of these salmon colored speaker slips or at the back of the chamber. And you'd wanna get that over

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right away over to our clerk's desk via zoom by pre-registering on the

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city's website, no later than two hours before the meeting. Um, and I don't believe

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we had any comments on that, uh, or emailing

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no later than four hours before the meeting. I don't think we had anything on that either. Nope. Alright. Just

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want to clarify for all that, for everyone. Uh, all written comments, which we did not

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receive in, but if they had received ones, they would be distributed to the council prior to the meeting and

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published on the city's website if received by the deadline. With that, we

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have roll call, please. Thank you. Council member

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iani here. Council member rodriguez, present,

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vice mayor molina. Present, mayor

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morrison, uh, present. And we'll, uh, note that council member bush

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is absent and we have a quorum. Alright, if we could please stand for the pledge

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of allegiance. Uh, I'll ask, uh, member rodriguez, if you would

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leave this, please, please, your right hand over your heart. Ready? Begin.

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I question the five, the states, united states of america

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and the republic one nation

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under god with liberty and justice for all.

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alright, so at this point we'll have, uh, public comments.

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I only have one slip, so we'll allow you to three minutes. And, uh, mr.

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nieto,

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this is a much anticipated meeting year end, you

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know, this is where you square up and everything. Now, I'm just really

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not sure how you're gonna handle this. You know, we haven't given ex explanation of how this gonna handle. I

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hope it's gonna be multiple meetings. Um, one of the things I notice

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is I still don't have a handle on how much of a deficit we really

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have. I know you have this presentation, it talks about previous year.

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it talks about this year, but it doesn't talk about things that haven't been

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identified. For instance, the standard, uh, the audit report. We still haven't

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got the audit report. There could be surprises in there. I hope you checked to make sure there's no, no

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surprises, but there could be what that effects might be. The other thing

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is, I'm thinking here, is that, um, you haven't addressed what the unassigned

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fund balance should be, which, in my opinion would be $20 million

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more than what you have on top of the deficit. So if you wanna come up to

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standards, that's what you wanna have to, that's what you have to do. Okay? Let me get into what I want to say here.

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uh, I I, I just encourage you to all step back. I, you're gonna get into

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the details, but I want you to identify the underlying causes of what

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caused the de defense defense. Because if you don't identify that

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and correcting them, you're having these proposals for

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increase in taxes, cuts, dipping into the reserves. But if

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you don't identify those underlying causes, what's to stop the public from

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thinking you're just gonna do it again, and next year we're gonna have the same problems.

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so you go into these details, find out what, what,

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ask why is it that you have these problems from

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the get go or from the top level here? I think a lot of the problems you've had is

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because you don't have enough information. You don't have enough information from the accounting system.

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it's, uh, it's not due to the accounting staff. Make sure,

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I wanna make sure that they're, they're not playing for this, but you have a, a cost accounting

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system that's not fully implemented. And I

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think if you had that information, you would have the performance

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information for financial to make some of the decisions you're gonna have to make right now

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a lot easier. You know? And I just don't think you have that.

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so I think you're walking into this with somewhat of a blind

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eye and not having all the information you should make to make good, informative decisions.

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um, you know, I have a lot to say here, but I hope you've given me more opportunity

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to, uh, say these as you go along with these meetings. Thank you.

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e um, next we go into

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our staff report, which is our fiscal year, 26, 27. Budget

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workshop. Number one, uh, let me just say before we jump

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into this. This was originally scheduled for an evening meeting,

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um, tuesday before last. And it was supposed to be the main

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item on our agenda. Uh, there was an item also on there about the golf course,

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which was just a perfunctionary, um, increase of

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another five year extension. But because some people got on social media and

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made a big thing about it, we ended up with a packed house beyond packed

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of people wanting to speak on the golf course. So by the time we got to where this was

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supposed to be on the agenda, we were already past 10 o'clock at night, which was not

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a good time to do budget workshops that are gonna be lengthy. So

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that's the reason we ended up having to put it off to today. And, uh,

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so just to explain that, 'cause some people are wondering why we, why we were having it today.

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with that, I'll turn that over to our city manager. Uh,

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thank you mayor. Council members, members of the public. Uh, so we will

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be kicking off our first, uh, formal budget workshop, uh, as we prepare

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for the new fiscal year in 2027. Uh, as far as the

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format today, uh, we're gonna turn it over to our, our finance team,

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uh, led by, um, our acting director, uh, rachel

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bera and aberra, and also our budget manager, paul valez.

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um, at the conclusion, uh, we will be opening up for questions.

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uh, just to give, uh, a heads up, we are gonna be recommending a second budget

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workshop. Um, we're trying to coordinate calendars, uh,

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and at, at the end of, uh, paul's presentation, uh, I'll give a

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few highlights on what, what our plan is for the second budget workshop. With that,

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I'm gonna go ahead and turn over to paul to kick off the presentation. Thank you.

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thank you, city manager. Good afternoon, mayor morrison, vice mayor molina

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and members of the city council paul ez, budget manager.

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uh, today's presentation is intended to give an initial overview of

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the fiscal year general fund preliminary budget. These

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preliminary numbers include only the cost to maintain the city's current service levels,

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any increases in expenditures or due to labor agreements, inflation,

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contract agreements, or other existing obligations.

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here are some of the budget highlights. The budget includes 382 full-time

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equivalent permanent benefited positions 276

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of which are in the general fund. It includes an additional 1.9 million

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in unfunded pension liability over the fiscal year 2026

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general fund budget. It also includes an additional 1.4 million

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general liability insurance premium over the fiscal year 2026

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general fund budget. There's also $1 million

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in new funding for general fund cip projects.

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and of course, it also includes compensation increases approved during fiscal

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year 26, as well as scheduled fiscal year 27

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increases as a result of the city's recent labor negotiations.

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the slide illustrates the growth in sales tax. The city's primary revenue source

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over time from 2019, actuals through 2027,

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estimated this equates to a 3.6% average annual

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growth rate.

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our other, uh, main revenue source property tax revenue. The

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slide illustrates the growth in property tax over time. Again, from 2019,

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actuals through 2027, estimated this amounts to a 5.9%

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average annual growth rate and property tax.

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here we have the general fund revenues by category, the sales and use tax,

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as well as the district tax budgets are based on analysis provided by our sales

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tax consultant. I wanna point out that there are

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currently wholesale sailors that remit district tax to the city. However,

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the point of sale by the retailer occurs elsewhere. That's

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why you see a 7.5% growth in districts tax and only

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1.9% increase in sales tax.

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uh, the property tax categories, property tax amounts are based on valuation reports

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of property within the city. I have broken out the property tax

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allocated line, whoops.

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ah, there, it's broken out. The property tax allocated

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line, which shows the amount that is allocated to partially fund the parks,

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maintenance and library funds. These transfers are roughly $1 million

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each to each fund.

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property tax in lieu of elf is expected to increase by 58,000.

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so as a whole, property tax revenue is expected to be relatively flat compared

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to fiscal year 2027.

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other revenues are budgeted at 20.9 million, which I'll break down on the following

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slide.

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there are $4.1 million in successor agency distributions.

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uh, the associated debt service for, uh, obligations for the success

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successor agency run through fiscal year 20 20, 20 33.

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at that time, these, uh, distributions that you see up there will revert to property

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tax revenue for the city.

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the other large contributors in this category are f franchise fees,

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tot reimbursements from the port and

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investment earnings.

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I wanna point out that the 400,000 in cannabis revenue does not include sales

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tax and only reflects the 5% cannabis fee applied to

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gross receipts. This revenue stream has somewhat

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stabilized and is based on the monthly actuals received during fiscal year 2026.

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the remaining $6 million on the last line includes various revenues

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such as business license, tax plan, checking fees, building

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permits, and swimming pool revenue.

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this chart illustrates the growth in expenditures over time from 2019

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through 2027. Estimated that equates to

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a 5.3% average annual growth rate in general fund expenditures.

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this table shows the 92.5 million general fund preliminary budget,

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broken down, down by department with police and

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fire making up the biggest portion

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going down to the administration line. That's made up of city attorney, city

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clerk, city manager, finance, and human

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resources. The preliminary non-departmental

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budget of 15.9 million is detailed on the next slide.

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the 4.7 million pension obligation bond line is due to refinancing

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a portion of our unfunded pension liability in 2021. This

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transfers for that debt service, and these payments will run through fiscal year

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2043.

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4.6 million is to subsidize other city funds, which I'll break down in the next slide.

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and 4.4 million is for the remaining unfunded pension liability.

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here are the transfers out to the other funds.

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4.7 million is for that, uh, pension obligation fund,

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2.5 million and 1.4 million respectively to, uh,

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subsidize the library fund and park maintenance fund

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$1 million in a general fund funding of, uh, capital

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improvement projects. That's 1 million in new funding,

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6 7670 5,000 to subsidized nutrition fund.

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4 64 retiree health benefits, and approximately

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18,000 for the, uh, landscape maintenance district for the

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mile of cars.

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the slide shows the flow of general fund transfers to subsidized funds on the left

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and general fund. Internal service charges on the right

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here are our general liability and workers' compensation funds.

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during these to fiscal year 26, there is a significant increase in premiums

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and estimated claims.

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these are the city's internal service funds. The annual cost of these

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funds are spread equitably throughout the city based on allocation factors, such as

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number of vehicles, number of computers, square footage,

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et cetera.

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the slide shows the transfers out. Again, this time compared to fiscal year 26, adopted

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the transfers out, make up the difference between annual costs in the fund and any

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other revenue sources.

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here's an informational slide showing our, uh, expected increase

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in the city's unfunded pension liability payments. So you

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could see there are anticipated to continue to increase.

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another informational slide here is, uh, the perception is that

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the city typically outperforms the budget. If you

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drill down a little bit, the majority of that outperformance is on the revenue side, particularly

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in the other revenue category. This category has many accounts

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that are difficult to predict, such as investment earnings, which has been as high as

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1.7 million and as low as negative 900,000 during the

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period shown on this slide. Unrealized

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gains and losses also fall under this category, and that's an accounting entry

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made in order to comply with government accounting rules.

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here's a snapshot of, uh, the city's general fund vacancies.

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this, and I, I call it a snapshot because this, this is continuously changing

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. It'll look different last week than it will next week. So this is just to show you

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a snapshot in time. Here's what was vacant and the approximate,

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uh, 20 fy 27 value associated with those positions.

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here are the city's key reserves. The estimated

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balance is as of 6 30 20 25. Uh, the audit has not yet

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been complete.

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that middle uh, column there, the estimated balance is a 6 30 26,

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takes into account, uh, what's in the preliminary budget for the unassigned fund balance.

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and then that target on the right is based upon the $83 million

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budget that was adopted in, uh, fiscal year 26.

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that final column on the right shows, uh, just a brief

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summary of what the policy is.

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here are the general fund expenditures by category.

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so you can see the biggest increases in personnel ser services.

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that $7.2 million increase from 26 to 27

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is made up of the following, primarily $3.9 million

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in salary and benefits driven by the labor negotiations and

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mous that were recently, uh, negotiated.

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they include increases, uh, for fiscal year 26, as well as the scheduled

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increases for fiscal year 27

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includes $1.9 million payment and unfunded pension liability,

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and 1.4 million in general liability charges.

228
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debt services are going down due to paying off the rcs communication debt

229
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in fiscal year 26. That remaining

230
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amount is for energy bonds

231
00:18:40,085 --> 00:18:43,405
increases in internal sur. I I discussed that. I'm sorry.

232
00:18:44,845 --> 00:18:47,725
skipping down just to the bottom, the bottom line in bold

233
00:18:49,735 --> 00:18:53,165
shows the preliminary estimated general fund deficit of $16.1 million

234
00:18:54,665 --> 00:18:58,665
for fiscal year 27 compared to 9.3 million in

235
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the fy 26 adopted budget.

236
00:19:10,355 --> 00:19:13,125
this now shows how we closed the gap in 2026.

237
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that was done through the use of $8.3 million in unassigned fund balance,

238
00:19:23,095 --> 00:19:27,045
and $1 million in economic contingency reserve, which

239
00:19:27,415 --> 00:19:29,675
was for, uh, a city revitalization project.

240
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I didn't mention on the, uh, on the policy slide, but at the end of

241
00:19:35,515 --> 00:19:39,235
fiscal year 26, all or much of that $1 million

242
00:19:40,875 --> 00:19:43,155
revert back to the economic contingency fund.

243
00:19:52,445 --> 00:19:55,625
here's a calculation of the estimated unassigned fund balance.

244
00:19:58,765 --> 00:20:02,645
so starting with 23.4 at the end of fiscal year, uh, 20 25, 23

245
00:20:04,865 --> 00:20:08,625
0.4 million less the deficit projected in fiscal

246
00:20:08,935 --> 00:20:12,785
year 26, which was, uh, presented at our last council

247
00:20:13,025 --> 00:20:15,765
meeting on the 21st of 10.3 million.

248
00:20:19,615 --> 00:20:23,605
that leaves an estimated unassigned fund balance at the end of fiscal year 26 of

249
00:20:24,105 --> 00:20:24,105
13.1 million,

250
00:20:28,255 --> 00:20:31,105
less the projected deficit of the preliminary budget of 16.1 million

251
00:20:34,855 --> 00:20:38,745
results in the exhausting, uh, of the remaining of our unassigned

252
00:20:39,185 --> 00:20:42,315
fund balance and an additional $3 million

253
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deficit.

254
00:20:50,065 --> 00:20:54,045
and with that, I'll turn it over to the city manager to discuss the next steps.

255
00:20:56,865 --> 00:21:00,665
uh, thank you, paul. So as we, uh, previewed, we

256
00:21:00,955 --> 00:21:04,735
will be scheduling a second workshop, uh, in the coming, uh, weeks.

257
00:21:06,105 --> 00:21:09,985
um, essentially what we want to cover is, uh, if there are

258
00:21:10,205 --> 00:21:13,525
any questions that we're unable to address as part of this workshop,

259
00:21:14,385 --> 00:21:18,285
say, that may require some additional research and analysis, we'll go ahead

260
00:21:18,465 --> 00:21:22,365
and be prepared to respond to those at the next workshop. But primarily

261
00:21:23,545 --> 00:21:26,925
we want to focus on one, um, the remaining

262
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projected $3 million deficit. Um, we had,

263
00:21:31,665 --> 00:21:35,125
um, some very focused meetings with all the individual, uh, department

264
00:21:36,005 --> 00:21:39,545
directors and their teams where, um, they did a great job,

265
00:21:40,265 --> 00:21:43,885
uh, working with their staff to look at strategic measures that each department

266
00:21:44,405 --> 00:21:48,405
is being, is considering, um, to implement, to reduce the impact of

267
00:21:48,565 --> 00:21:52,035
the general fund. That will include looking at, um, potentially

268
00:21:52,965 --> 00:21:56,445
freezing some of those vacant positions you showed. Uh, in addition,

269
00:21:57,025 --> 00:22:00,945
we want to provide, uh, our comprehensive review and, and

270
00:22:01,165 --> 00:22:05,005
options for revenue initiatives. Obviously, uh, when you look at that presentation,

271
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um, our expenditures continue to be, um,

272
00:22:10,915 --> 00:22:14,845
exceeding, you know, revenues on a, on an annual basis. So we want

273
00:22:15,045 --> 00:22:18,995
to take a deeper dive into that. Try to quantify what some of these revenue streams

274
00:22:19,485 --> 00:22:22,685
that have been touched upon over recent years could actually generate.

275
00:22:23,585 --> 00:22:26,915
in addition to focusing on, uh, what are some new revenue opportunities

276
00:22:27,875 --> 00:22:31,565
that can hit within the next 12 to 18 months, given the fact that

277
00:22:31,905 --> 00:22:35,765
we, um, have, uh, really begun to, to, uh, deplete

278
00:22:36,165 --> 00:22:39,885
our reserves at a very rapid rate. Um, so with that,

279
00:22:40,405 --> 00:22:44,025
I am going to, uh, go ahead and open it up to questions, um,

280
00:22:44,785 --> 00:22:48,725
on the presentation and the, uh, general budget budget questions.

281
00:22:49,145 --> 00:22:53,125
uh, thank you for your time. And paul, again, thank you for all you and,

282
00:22:53,325 --> 00:22:56,205
um, rachel, your hard work preparing this presentation tonight.

283
00:23:01,255 --> 00:23:04,845
mayor, thank you mayor. Uh, thank you very much

284
00:23:05,265 --> 00:23:09,245
mr. Steve manganello. Um, just for the public to know, uh, mr.

285
00:23:09,445 --> 00:23:12,805
manganello is now our acting city manager for the time being.

286
00:23:13,545 --> 00:23:17,485
um, I have questions mr. Valdes, on the presentation. If you could

287
00:23:17,645 --> 00:23:21,565
please, um, scroll to slide 15. Um, my questions right now, really, I

288
00:23:21,685 --> 00:23:24,745
just, I just wanna understand the calpers, um,

289
00:23:26,425 --> 00:23:29,665
um, what is it? Ual, um,

290
00:23:30,875 --> 00:23:33,805
liability. What's ual unfunded? Unfunded

291
00:23:34,965 --> 00:23:38,595
unfunded pension liability? Yes. Uh, yeah, these numbers here come

292
00:23:39,125 --> 00:23:43,045
directly from calpers, the actuarial, and that's what we base that budget

293
00:23:43,425 --> 00:23:46,605
on, and I understand their projections. Right. Um, fiscal year 26,

294
00:23:47,905 --> 00:23:50,295
the total ual is 3.029.

295
00:23:52,975 --> 00:23:56,865
right. Can you show me in the previous slides where that is in

296
00:23:57,145 --> 00:23:57,885
our, um, expenditures?

297
00:24:01,715 --> 00:24:05,505
I don't think I called that out as a specific line item. Uh, that

298
00:24:06,175 --> 00:24:09,955
the categories are a little higher. Okay. Um, I'd, I'd be happy to follow up and show

299
00:24:10,195 --> 00:24:13,275
you. Um, the reason I ask is because I'm nervous about the fiscal year 27,

300
00:24:14,775 --> 00:24:18,515
um, ual, which is, um, quite a balloon

301
00:24:18,915 --> 00:24:21,955
from that. It's 5 million that we will have to

302
00:24:23,335 --> 00:24:27,115
pay for, correct? That's correct. And I wanna understand where in the budget

303
00:24:27,535 --> 00:24:31,515
for 27 that is. So I was trying to see where it is in

304
00:24:31,635 --> 00:24:35,535
26 so that then I can understand where it's gonna be in 27. But if it's not in,

305
00:24:35,975 --> 00:24:39,315
you know, portrayed in the slide right now, I, I'm happy to wait and

306
00:24:40,655 --> 00:24:44,555
see it later. The, the 26th portion, I don't believe it's broken

307
00:24:44,855 --> 00:24:45,895
out that way, but

308
00:24:50,375 --> 00:24:54,225
for, uh, for fiscal year 27th, the general fund

309
00:24:55,025 --> 00:24:55,895
portion is

310
00:25:01,135 --> 00:25:01,905
one moment. Sure.

311
00:25:06,785 --> 00:25:10,735
4.4 million. So that was another question I had. 'cause I had, um,

312
00:25:10,955 --> 00:25:14,915
been studying this and I didn't understand why the difference, the, the difference

313
00:25:15,155 --> 00:25:19,155
between that number and the number that's on this slide. Correct. There, there are a

314
00:25:19,275 --> 00:25:23,235
portion of the city's positions staffing that reside outside

315
00:25:23,715 --> 00:25:27,435
of the general fund. Got it. The 4.4 million is the general

316
00:25:27,745 --> 00:25:31,575
fund portion, which is the vast majority, um, including all

317
00:25:31,795 --> 00:25:35,715
of our safety positions. Uh, and then that additional amount, the delta

318
00:25:36,045 --> 00:25:39,895
there are for positions that fall outside of the general fund. Got

319
00:25:40,115 --> 00:25:43,905
it. And my final question here is, when, when is that paid?

320
00:25:44,695 --> 00:25:47,845
is that in monthly installments? We do get a prepayment

321
00:25:48,745 --> 00:25:52,585
kind of, uh, discount if we pay it. I believe it's july

322
00:25:52,895 --> 00:25:56,715
one. Um, and I believe that's for the entire fiscal, for the

323
00:25:56,955 --> 00:26:00,835
upcoming fiscal year. Mm-hmm . And I believe that's typically what, uh, the practice has been.

324
00:26:01,575 --> 00:26:05,035
so we, our practice is to aim to pay the entire amount.

325
00:26:05,655 --> 00:26:09,615
so like for six, for 26, it would be something around 3 million. Um,

326
00:26:10,185 --> 00:26:14,155
this payment would've been made last july at the beginning of the

327
00:26:14,315 --> 00:26:18,275
fiscal year 26. That is correct. Last june. That's correct. Or

328
00:26:18,475 --> 00:26:22,395
last june, july. And, um, do you anticipate we will be able

329
00:26:22,555 --> 00:26:26,475
to do that again this year, pay the fi close to 5 million or the

330
00:26:26,595 --> 00:26:29,415
4 million? I will de I will defer that question to, uh,

331
00:26:31,145 --> 00:26:35,115
finance director. Thank you. Finance director, bur, thank you.

332
00:26:35,495 --> 00:26:39,265
uh, that is correct. Uh, vice mayor, uh, we are scheduled to process that

333
00:26:39,555 --> 00:26:43,385
payment and we do have the funding available to make that available. Thank you. Um, the

334
00:26:43,605 --> 00:26:47,565
way it's processed, and I'm just gonna kind of give you a, a snapshot of

335
00:26:47,725 --> 00:26:51,665
the way it works is we receive an invoice from calpers and

336
00:26:51,885 --> 00:26:55,475
they provide that information to us with a valid, um, invoice date

337
00:26:55,985 --> 00:26:59,865
and a expected pay date. And in to ensure that we have the

338
00:27:00,375 --> 00:27:03,435
retirement available for our employees, we have to make that payment by july.

339
00:27:04,625 --> 00:27:08,525
you have to make that payment what, uh, by july. By july 1st. Got it. Thank you.

340
00:27:08,785 --> 00:27:12,395
uh, that clarifies a lot of, um, my questions around the, the calpers

341
00:27:12,885 --> 00:27:16,785
payments. Um, I have another question related, not to this, but to the,

342
00:27:17,185 --> 00:27:21,165
um, $1 million contingency balance that we have in

343
00:27:21,325 --> 00:27:25,125
26. Um, there's, I think, um, it is not fully

344
00:27:25,375 --> 00:27:28,605
understood that that is going to revert back into reserves.

345
00:27:29,705 --> 00:27:33,585
um, but I'm not sure if that's something that we wanna talk about right now. Um, at,

346
00:27:33,805 --> 00:27:37,645
at some point if my colleagues are interested in that conversation, I do wanna understand

347
00:27:38,385 --> 00:27:40,725
the process around that. Thank you.

348
00:27:42,905 --> 00:27:46,905
um, question on a specific, I got a bunch of question, but specific one on,

349
00:27:47,225 --> 00:27:51,075
um, slide number that would be a slide number nine.

350
00:27:52,625 --> 00:27:56,485
and we're talking about the pension obligation bond payment there. And we got

351
00:27:56,645 --> 00:28:00,445
an asterisk that says previously part of labor cost. So then when

352
00:28:00,685 --> 00:28:04,685
we go over, when we start talking about our departments, most of that is labor

353
00:28:05,035 --> 00:28:08,485
cost. And so we have last, we have previous years in this year

354
00:28:10,505 --> 00:28:14,245
on our previous years on that slide, did we take that out there also since, so we're

355
00:28:14,635 --> 00:28:18,005
comparing apples to apples? Well, last year for 26

356
00:28:19,065 --> 00:28:22,965
is when it was, is when it was moved out of the labor costs. Okay. Okay. So it is apple

357
00:28:23,125 --> 00:28:26,345
to apples. So it is apple. Okay. That's what, that's what I wanted to, yes. Yeah. Um,

358
00:28:27,435 --> 00:28:31,365
okay. So yeah, normally I think then otherwise you say previous to 26, 'cause

359
00:28:31,445 --> 00:28:35,265
otherwise it looks like previous in the year that we're looking at now, that that could have been, uh,

360
00:28:35,485 --> 00:28:39,005
okay. Clear. Definitely. Okay. Yeah, that's what I was wondering. I just wanted to make sure we were doing one to the other.

361
00:28:39,585 --> 00:28:43,485
um, kind of see other hands.

362
00:28:43,665 --> 00:28:44,445
so starting at the top,

363
00:28:47,745 --> 00:28:50,905
uh, going back to slide two. And

364
00:28:52,225 --> 00:28:55,965
so we have our, well calpers, that one,

365
00:28:56,785 --> 00:29:00,725
you know, that's what calpers gives their actuaries. And we just, we have to pay that.

366
00:29:00,865 --> 00:29:04,815
so that's that one. The liability insurance going

367
00:29:05,165 --> 00:29:08,805
up quite a bit. How much, I mean, is that something that is

368
00:29:09,645 --> 00:29:13,605
dependent upon us individually as a city or a, is it

369
00:29:13,765 --> 00:29:17,695
a from a larger pot? I think our city attorney could,

370
00:29:18,065 --> 00:29:20,165
uh, sure. Eloquently answer that

371
00:29:22,295 --> 00:29:25,785
eloquently. Now you've put a contingency on it. Yes. Alright. So, um,

372
00:29:26,505 --> 00:29:30,485
the, the increased premium is a result of two factors. The first

373
00:29:30,605 --> 00:29:34,165
factor is what's called a hard market, a prism, like other insurance

374
00:29:35,045 --> 00:29:38,725
companies. This is not truly an insurance company, but a collective, um, is experiencing

375
00:29:39,245 --> 00:29:42,245
hard market. What that means is that there are more lawsuits

376
00:29:43,615 --> 00:29:47,245
which have much higher, um, verdicts or settlements,

377
00:29:47,905 --> 00:29:51,765
and that is an amount over $1 million. So what they have seen

378
00:29:51,925 --> 00:29:55,355
in the last five years is an extreme uptick in liability

379
00:29:56,305 --> 00:30:00,245
and number of judgments, um, against public entities. So that's

380
00:30:00,595 --> 00:30:04,555
part one. Part two is that this is a collective each

381
00:30:04,845 --> 00:30:08,475
city will pay in its proportionate share into the group. However,

382
00:30:09,355 --> 00:30:13,255
like any insurance company, if you have, uh, cause

383
00:30:13,605 --> 00:30:17,275
to use the insurance, it can cause your premiums to go up. Um, here

384
00:30:18,105 --> 00:30:21,925
in the city, there are, there are some judgements that are being handled

385
00:30:22,285 --> 00:30:25,965
mm-hmm . Should they come down. Um, we have one matter up on appeal.

386
00:30:26,385 --> 00:30:30,385
if that matter comes down with a, um, a different number or

387
00:30:30,605 --> 00:30:34,505
is retried, that number would be paid by and large through prism. And

388
00:30:34,725 --> 00:30:38,345
so that may potentially affect our numbers in the future. Mm-hmm

389
00:30:38,805 --> 00:30:42,725
. It's a pretty constant, um, sort of reworking of the numbers.

390
00:30:42,995 --> 00:30:46,795
they do constant valuations for each entity. And this is not unusual

391
00:30:47,585 --> 00:30:51,525
for, um, all of the entities that are here in prim, in southern california and in fact

392
00:30:51,765 --> 00:30:55,125
throughout california. Okay. Any other questions?

393
00:30:56,305 --> 00:31:00,275
yes. On that note, um, heidi, would you be able to provide us basically the actuals

394
00:31:00,765 --> 00:31:04,525
and all of the backup for that? Because I appreciate the verbal report, but I would like to

395
00:31:04,825 --> 00:31:08,745
sit down and actually understand what percentage or what proportion to the

396
00:31:08,965 --> 00:31:12,835
best as possible is because of this collective and what part

397
00:31:13,425 --> 00:31:17,405
is because of, uh, prior judgements. Right. And there'll be a couple of

398
00:31:17,565 --> 00:31:21,475
things. Um, the first is our premium just comes as a premium. Um, some

399
00:31:21,765 --> 00:31:25,605
of it'll come through actuarials and other items, but we can put those materials together

400
00:31:25,825 --> 00:31:29,745
for you so that you understand. I can also get you the prism materials that describe the

401
00:31:29,965 --> 00:31:33,645
market that we're in and what's happening. It is important to know, so I can get that all to you please, because

402
00:31:34,165 --> 00:31:38,165
I think we, um, we on council and the public needs to understand which, uh, portion,

403
00:31:38,495 --> 00:31:42,285
which we don't at this point, which portion is this because of the collective factors that

404
00:31:42,565 --> 00:31:46,545
are beyond our control versus what has been within our organization are

405
00:31:47,225 --> 00:31:51,005
our control. So I'd, I'd really be sure interested in that. I'll, uh, get that information

406
00:31:51,405 --> 00:31:55,145
to all of you. Thank you. Okay. Um, also then on

407
00:31:56,475 --> 00:32:00,085
page two, we have $1 million out of general fund going over to cip

408
00:32:00,565 --> 00:32:04,265
fund. Question is that, is that our

409
00:32:04,765 --> 00:32:07,365
matching amounts to, uh, to get grants?

410
00:32:10,495 --> 00:32:14,285
mayor, I can speak to that on behalf of I was you over there for some reason?

411
00:32:14,805 --> 00:32:18,625
? Yeah, it's, it's a combination. Um, so

412
00:32:19,045 --> 00:32:22,645
a a portion of that is, is to support matching funds

413
00:32:23,105 --> 00:32:26,795
to get after, um, grants. And, and just as a looking

414
00:32:27,285 --> 00:32:30,935
at some big picture numbers, I'll give an example. I mean, we've,

415
00:32:31,735 --> 00:32:35,565
we've received on average over the last four to five years,

416
00:32:35,895 --> 00:32:39,725
about $50 million in competitive grants. And I think we've leveraged about

417
00:32:40,085 --> 00:32:43,605
a million dollars in general funds. That's about a 20 to one return on investment.

418
00:32:44,385 --> 00:32:48,105
so that's very notable. In addition, there's some major maintenance, uh,

419
00:32:48,455 --> 00:32:52,305
needs that, um, we will, uh, we, we typically use

420
00:32:52,795 --> 00:32:56,645
when we request funding for the, uh, general fund to the cip.

421
00:32:57,205 --> 00:33:01,045
okay. Okay. Thank you. Just wanna bring that up. Um, going over

422
00:33:01,245 --> 00:33:05,105
to page five, uh, property tax, uh,

423
00:33:05,935 --> 00:33:09,885
going down, uh, what is our, what is

424
00:33:10,145 --> 00:33:13,225
the rationale for that to be going down in property tax?

425
00:33:14,395 --> 00:33:18,305
that can be caused by, uh, less turnover, less, less new

426
00:33:18,525 --> 00:33:21,705
sales or less turnover of existing homes. Okay. Um,

427
00:33:22,955 --> 00:33:26,875
it's really based on the valuation reports we get from, from the county. Okay.

428
00:33:27,425 --> 00:33:31,045
so, uh, but, but there's still gonna be, even on homes, there's still a two gonna be a 2%

429
00:33:31,805 --> 00:33:35,545
increase. I don't know if there were some possibly reassessments. Yep.

430
00:33:36,105 --> 00:33:39,725
uh, I will, I will drill down further into that and let you know the

431
00:33:40,325 --> 00:33:44,005
specifics behind. No, I I I'm assuming one of it would be some reassessments.

432
00:33:45,075 --> 00:33:48,925
another thing would be if commercial property is going over to

433
00:33:49,525 --> 00:33:53,485
becoming non-profit, uh, uh, is another thing. 'cause we

434
00:33:53,605 --> 00:33:57,525
got a lot of non-profits are getting grants and buying up buildings, things along that line,

435
00:33:57,725 --> 00:34:01,605
and all of a sudden they go off the tax roll. Another thing is affordable housing going off the tax

436
00:34:01,835 --> 00:34:05,725
roll. Uh, so there's a number of things that could probably

437
00:34:06,235 --> 00:34:09,955
lead to that. I just want to clarify, uh, next

438
00:34:10,245 --> 00:34:13,725
page over page six, um, we have a list of the revenues.

439
00:34:14,825 --> 00:34:18,725
it has $2 million for transient lodging tax. So that would be what

440
00:34:18,925 --> 00:34:21,925
we anticipate collecting during the next fiscal year, correct?

441
00:34:22,995 --> 00:34:26,865
that is correct. What about unpaid past due

442
00:34:27,085 --> 00:34:30,835
bills? That would, if we was, that,

443
00:34:31,125 --> 00:34:34,965
that is not factored into this 2 million. Okay. This is just based upon trends,

444
00:34:35,615 --> 00:34:39,485
right? Uh, I don't know if, uh, occupancy rates have increased or room rates have increased.

445
00:34:39,845 --> 00:34:43,025
sure. But these are, these are actual trends. Um,

446
00:34:43,905 --> 00:34:47,485
no, no. I just based that aside from, aside from any delinquencies that are outstanding,

447
00:34:48,505 --> 00:34:52,365
not included in that 2 million. Okay. So I'm just thinking that's another possible revenue sources

448
00:34:53,225 --> 00:34:57,165
in the delinquencies. Okay. Um, and this one

449
00:34:57,365 --> 00:35:00,845
down at the bottom on both revenues and when we go down to expenditures,

450
00:35:02,025 --> 00:35:05,925
uh, one of the largest numbers here is others. Uh, I would

451
00:35:06,045 --> 00:35:10,045
like to see a, a little bit more definitive list down to a certain point down to

452
00:35:10,165 --> 00:35:14,085
a certain point. We don't wanna get down into real, real dinky numbers, but I think in some

453
00:35:14,245 --> 00:35:18,045
of the larger numbers, both in revenues and we have our, our list

454
00:35:18,515 --> 00:35:22,365
also for, uh, expenditures, that other is a huge category.

455
00:35:23,105 --> 00:35:26,965
and so, you know, kind of determine where, where it kind of gets ridiculous to get down

456
00:35:27,155 --> 00:35:30,005
into too much minutia. But, but some of the large

457
00:35:31,205 --> 00:35:35,165
a, a more extensive list, I agree it, it is a fine line of where

458
00:35:35,325 --> 00:35:39,145
to cut, cut off the, the, you know, the small ones. But

459
00:35:39,365 --> 00:35:43,165
just to give you an idea of what's included in that 6 million, some of

460
00:35:43,405 --> 00:35:46,795
'em, the larger ones, business license tax building permits,

461
00:35:47,645 --> 00:35:51,325
swimming pool revenue, utility company permits. Yep. And then miscellaneous

462
00:35:51,955 --> 00:35:55,805
refunds. Um, okay. I'd be happy to provide

463
00:35:56,205 --> 00:36:00,125
counsel with, uh, you know, the buy account. Okay. Down to

464
00:36:00,325 --> 00:36:02,585
the, down to the smallest ones. All right. Um,

465
00:36:04,595 --> 00:36:08,515
then, uh, going down, I think most, most

466
00:36:08,805 --> 00:36:12,515
of the other ones, I mean, you did the same thing with non-departmental, but then you did a nice explanation

467
00:36:13,205 --> 00:36:16,645
of those non-departmental. He broke those down, which was really, really appreciate that.

468
00:36:17,345 --> 00:36:20,945
um, the, uh, um,

469
00:36:23,235 --> 00:36:24,825
next one, let's see. I'm trying to think what, um,

470
00:36:28,925 --> 00:36:32,835
yeah, once again, general, uh, general liability. Yeah, that was the other one on there. Um,

471
00:36:33,895 --> 00:36:37,895
question going down to page 13, and hopefully if I bring up

472
00:36:37,975 --> 00:36:41,715
some of these, maybe I'll answer some questions. Maybe some other people may have already had, uh,

473
00:36:43,655 --> 00:36:47,295
a significant deal in building maintenance. Do we have some specific projects

474
00:36:47,855 --> 00:36:51,335
coming up or something that's gonna cause an increase of another $400,000?

475
00:36:52,635 --> 00:36:56,405
or, I, I'm sure some of it is on the maintenance and operations side,

476
00:36:56,715 --> 00:37:00,415
but there's also staff there too. So the staff there,

477
00:37:01,445 --> 00:37:05,135
they receive their compensation increases, they, those costs increase,

478
00:37:05,675 --> 00:37:09,565
and then those get those costs then get allocated out to the departments. Okay.

479
00:37:09,995 --> 00:37:13,975
um, and then that becomes that, well that's part of the internal

480
00:37:14,095 --> 00:37:17,835
service then off of that. That's correct. Okay. And, uh, um,

481
00:37:18,275 --> 00:37:21,935
and I'm also looking at, well now another one that wouldn't necessarily be our, our staffing,

482
00:37:22,435 --> 00:37:25,275
but, uh, vehicle replacement charge. And we got, um,

483
00:37:27,035 --> 00:37:31,035
you know, uh, sizable increase about doubling, uh,

484
00:37:31,335 --> 00:37:35,125
I mean, do we have some really large purchase, uh, purchases that are scheduled

485
00:37:35,755 --> 00:37:39,565
to, to fall within this next year? A as part of our next

486
00:37:39,855 --> 00:37:43,795
steps? That's one of the funds we'll be looking at to identify any, uh,

487
00:37:44,435 --> 00:37:48,285
any potential savings that mm-hmm . Can be, uh, realized from that fund. Okay.

488
00:37:48,715 --> 00:37:52,615
as well as the replacement schedule. Okay. And, you know, and I don't want us

489
00:37:52,735 --> 00:37:56,655
to be dealing with antiques or whatever, but, um, you know, if

490
00:37:56,775 --> 00:38:00,185
you go back 20 years ago, once a car hit 60,000

491
00:38:00,975 --> 00:38:04,575
miles, it was time to get rid of the thing. I mean, they were, it was, they, they were ready. Total breakdowns.

492
00:38:05,315 --> 00:38:09,135
now anymore, they're just designed to last a lot longer. And I wanna make sure we're

493
00:38:09,375 --> 00:38:13,125
not still dealing with, you know, the same type concept that

494
00:38:13,415 --> 00:38:17,205
we were using, you know, for, for reasonable life of like

495
00:38:17,495 --> 00:38:21,455
vehicles and things along that line. So that, uh, um, at the same time, we

496
00:38:21,615 --> 00:38:25,135
don't want to put anyone in a hazard situation or put something we're putting too much maintenance

497
00:38:25,835 --> 00:38:29,565
or maintenance gets overburdensome, but, uh, don't necessarily want

498
00:38:29,855 --> 00:38:33,615
to be just changing out vehicles for changing out vehicles. Uh, just be concern.

499
00:38:34,715 --> 00:38:38,225
um, the,

500
00:38:39,905 --> 00:38:43,525
um, next page on 14.

501
00:38:45,395 --> 00:38:49,195
um, so I'm assuming the differences on

502
00:38:50,405 --> 00:38:54,375
library park maintenance and nutrition fund are once again assigned a lot

503
00:38:54,555 --> 00:38:58,195
to increase, uh, labor costs. That's a portion, that's

504
00:38:58,615 --> 00:39:02,495
a portion of the increase. Uh, there are, there also could be increases

505
00:39:02,795 --> 00:39:06,735
in, uh, maintenance and operation costs just due to, uh, existing

506
00:39:07,095 --> 00:39:10,495
contracts. Mm-hmm . Uh, that are scheduled to go up as well as just inflation.

507
00:39:11,315 --> 00:39:15,045
mm-hmm . But, uh, each of those funds does in fact have

508
00:39:15,825 --> 00:39:19,715
staff mm-hmm . Right. So that's why the costs go up. Okay. I'm, you

509
00:39:19,935 --> 00:39:23,725
know, I'm not picking on anybody or anything. I'm just saying with

510
00:39:24,015 --> 00:39:27,875
what we're looking for, everything's gotta be on the table. Everything needs to be looked at. Uh,

511
00:39:29,835 --> 00:39:33,555
the, uh, uh,

512
00:39:33,865 --> 00:39:37,265
let's see if I had anything more specific. I do appreciate your comments about

513
00:39:38,195 --> 00:39:41,585
the vacancy snapshot. If every one of these things were filled today,

514
00:39:42,245 --> 00:39:45,455
next week, we would have another list. That's just the re that's, that's the reality.

515
00:39:46,755 --> 00:39:50,155
um, and, uh, the,

516
00:39:51,475 --> 00:39:55,085
the other thing I would mention is of our reserve

517
00:39:55,615 --> 00:39:59,495
balances, every one of our reserves are below our targets, with

518
00:39:59,695 --> 00:40:03,485
the exception of unassigned fund balance, which with

519
00:40:03,775 --> 00:40:07,155
this budget, we're talking about wiping out entirely. So, um,

520
00:40:09,295 --> 00:40:13,155
the thing to, uh, um, to look at. Now, the other,

521
00:40:13,455 --> 00:40:17,315
uh, if I go down to 19 and on our

522
00:40:17,515 --> 00:40:21,435
expenditures, um, okay, personnel cost of what will be going

523
00:40:21,575 --> 00:40:24,855
up, um, this is 13.3%. That is, if,

524
00:40:25,695 --> 00:40:29,335
if all those vac, if, if vacancies are all filled 12

525
00:40:29,755 --> 00:40:33,715
months, if we have everybody in everything else, uh, that will be going up

526
00:40:34,115 --> 00:40:38,115
13.3%, uh, which is quite considerable, but then our internal service

527
00:40:38,395 --> 00:40:42,235
charges going up 23%. Is a lot of that also the connection

528
00:40:42,755 --> 00:40:45,035
with the increased, uh, uh, personnel costs?

529
00:40:47,505 --> 00:40:51,055
that is correct. The general liability gets charged as part of, uh,

530
00:40:51,615 --> 00:40:54,825
the payroll process against the salaries. Okay.

531
00:40:55,695 --> 00:40:59,375
um, and then the, on

532
00:40:59,705 --> 00:41:03,155
page 20, the economic contingency reserve. Now, that one we basically

533
00:41:04,265 --> 00:41:07,955
have not used during this year. Correct. There are a couple

534
00:41:08,525 --> 00:41:11,575
minor payments. Um, I think, uh,

535
00:41:12,835 --> 00:41:16,795
a plan for that city revitalization project, uh, a fully realized

536
00:41:17,065 --> 00:41:20,575
plan has never been presented. Right. So, uh,

537
00:41:21,095 --> 00:41:24,935
uh, staff believes that that $1 million will return to

538
00:41:25,155 --> 00:41:28,825
the, uh, economic contingency reserve. Okay. I've got some

539
00:41:29,635 --> 00:41:33,565
comments here. That's all the questions I have for right now. Uh, looking to others,

540
00:41:34,865 --> 00:41:38,635
uh, member imani. Thank you, mayor. Um, thank you very

541
00:41:38,925 --> 00:41:42,425
much. Um, for, um, this presentation, um,

542
00:41:44,155 --> 00:41:48,145
listening to those comments and insurance, um, insurance is

543
00:41:48,365 --> 00:41:52,325
the number one situation problems right now that we all are

544
00:41:52,525 --> 00:41:56,285
having. It's all trajectory to increase, um, housing

545
00:41:56,955 --> 00:42:00,805
liability, all of that. So property tax, um, I'm sure

546
00:42:01,025 --> 00:42:04,945
it took, because there's really no, um, housing sales in, in

547
00:42:05,165 --> 00:42:09,065
the industry right now is not, um, significant. That's why the,

548
00:42:09,745 --> 00:42:13,395
the, the decrease in property tax as well as in our city,

549
00:42:14,145 --> 00:42:18,145
we have a lot of affordable homes that we don't really collect property tax.

550
00:42:19,065 --> 00:42:22,905
um, but we serve, um, this, this, um,

551
00:42:23,465 --> 00:42:27,325
you know, I mean, affordable housing that we have, doti, I believe

552
00:42:27,985 --> 00:42:31,845
our, our city manager has, um, been looking

553
00:42:32,105 --> 00:42:36,085
at that. I, I understand there are, um, you know, I

554
00:42:36,205 --> 00:42:40,205
mean, collectibles that we have take care of. Um, but those

555
00:42:40,625 --> 00:42:43,795
are, um, things that we can, um, address.

556
00:42:44,665 --> 00:42:48,605
you know, I mean, this is a living document, you know, I mean, we can

557
00:42:49,035 --> 00:42:52,075
make adjustment quarterly or, um, or midyear,

558
00:42:53,145 --> 00:42:56,485
uh, nutrition center. Um, if we are going to subsidize $675,000,

559
00:42:58,755 --> 00:43:02,475
that means this pro, this program, I will have to direct our city

560
00:43:02,765 --> 00:43:06,065
manager to look very closely on it. Um,

561
00:43:07,325 --> 00:43:11,025
I appreciate the fact that our finance director had

562
00:43:11,525 --> 00:43:15,185
provided us all of us here, a actual

563
00:43:16,145 --> 00:43:20,125
as of march 30th, 2026. So, with that

564
00:43:20,355 --> 00:43:24,325
said, I believe, um, I would, I have requested our city manager,

565
00:43:25,505 --> 00:43:29,105
um, to look at a zero based approach, um,

566
00:43:29,825 --> 00:43:33,725
in order for us to really, um, do a deeper

567
00:43:34,155 --> 00:43:37,805
dive on, um, this numbers, um, as I have

568
00:43:38,525 --> 00:43:42,355
provided to our city manager and to our city attorney with,

569
00:43:42,745 --> 00:43:46,305
uh, a copy to our, uh, finance director. Um,

570
00:43:47,415 --> 00:43:50,865
these are actual costs that, um, we are looking at.

571
00:43:51,505 --> 00:43:54,965
um, and so it's very easy to put an estimate

572
00:43:55,545 --> 00:43:59,275
in the next three months to fulfill the, uh, the fiscal year.

573
00:44:00,345 --> 00:44:03,995
um, you, I mean, I have, uh, looked into

574
00:44:04,385 --> 00:44:07,705
our, um, into our, um,

575
00:44:08,785 --> 00:44:12,385
gen, um, our, um, our,

576
00:44:12,945 --> 00:44:15,065
um, 76,000, um,

577
00:44:17,105 --> 00:44:20,065
that is our revenue

578
00:44:21,125 --> 00:44:24,395
generating, uh, that will be generated for 2027.

579
00:44:26,355 --> 00:44:30,175
I know there are a lot of, um, other ways that, um,

580
00:44:30,495 --> 00:44:34,065
our city manager and the directors will be providing us,

581
00:44:34,985 --> 00:44:38,885
um, in our next, um, budget workshop.

582
00:44:39,825 --> 00:44:43,345
um, however, I think the expenses is

583
00:44:43,835 --> 00:44:47,725
what I really have looked into, uh, very, very carefully.

584
00:44:48,585 --> 00:44:52,405
you know, I mean, as of now, if you're asking about a 1 million cip that

585
00:44:52,755 --> 00:44:56,625
seed money for, for that, um, you, I mean, to date, we

586
00:44:56,845 --> 00:45:00,615
only spend about 365 of it, right. Based

587
00:45:00,965 --> 00:45:04,545
on the actuals. So I think we, our

588
00:45:05,055 --> 00:45:08,985
staff are also very diligent in how they use this, um,

589
00:45:09,205 --> 00:45:13,105
funding our economic, uh, contingency reserve. You

590
00:45:13,325 --> 00:45:17,165
know, I mean, uh, paul, paul valez, our manager said a few,

591
00:45:17,665 --> 00:45:21,605
but really those are just allocations that, um, you know, I

592
00:45:21,725 --> 00:45:25,375
mean, we may be able to use, but you know, I mean, based on us being

593
00:45:25,985 --> 00:45:29,825
so prudent in how we spend it, is why the,

594
00:45:30,345 --> 00:45:33,125
the, the funds are still there not being touched.

595
00:45:34,385 --> 00:45:38,295
our, um, question for our calpers, um, those

596
00:45:38,785 --> 00:45:42,685
are also allocated beforehand. So then we can you, I mean,

597
00:45:42,845 --> 00:45:46,845
with, with the actuals, were paid for 2026, uh, based

598
00:45:47,165 --> 00:45:50,945
on the actuals that I have received or we have received. So,

599
00:45:51,345 --> 00:45:55,105
um, I would like for our city manager to, um,

600
00:45:55,395 --> 00:45:59,345
have a sit down with our, uh, finance director to

601
00:45:59,565 --> 00:46:03,115
look into a zero base approach, um, based on the actuals

602
00:46:03,835 --> 00:46:07,445
that we have, um, that we have, uh, been provided

603
00:46:08,225 --> 00:46:11,825
in order for us to really streamline, um, our budget

604
00:46:12,625 --> 00:46:16,205
as, as, as I, I don't wanna see a 16 million

605
00:46:16,925 --> 00:46:20,645
deficit in our books. Um, so I, I

606
00:46:21,155 --> 00:46:24,965
believe it's doable. 'cause we, based on those

607
00:46:25,205 --> 00:46:29,065
numbers that I received, I crunched it and it

608
00:46:29,305 --> 00:46:33,125
is doable. Um, but I have, um, you know, I mean,

609
00:46:33,405 --> 00:46:37,245
I have, uh, sat down with our city manager and city attorney to look

610
00:46:37,435 --> 00:46:41,125
into those numbers and make sure that we start with the zero based

611
00:46:41,685 --> 00:46:42,765
approach. Thank you so much.

612
00:46:47,705 --> 00:46:51,655
okay. And so, uh, thank, thank you staff, uh,

613
00:46:51,975 --> 00:46:55,935
for the, uh, presentation and for, uh, responding to so many of, uh, my

614
00:46:56,355 --> 00:47:00,015
questions, including the, uh, providing the actuals. 'cause that was, um, really

615
00:47:00,435 --> 00:47:04,125
helpful. Uh, just to start, I would

616
00:47:04,545 --> 00:47:08,235
request the additional actuals. So I did do this over

617
00:47:08,565 --> 00:47:12,215
email, but just doing it just to reiterate, uh, what I asked, uh,

618
00:47:12,695 --> 00:47:16,515
for through our, uh, city manager on our council department budget.

619
00:47:17,335 --> 00:47:21,275
so that's going to increase, or at least it should,

620
00:47:21,645 --> 00:47:25,595
based on our, uh, the 5%. Uh, what, what was presented

621
00:47:26,075 --> 00:47:29,195
on here, uh, I don't think reflected

622
00:47:30,305 --> 00:47:34,085
any updates or any inputs that we on council or any of our staff

623
00:47:34,325 --> 00:47:38,255
provide finance, right? Because I

624
00:47:38,375 --> 00:47:42,175
see it flat from last year to the, from the past

625
00:47:42,605 --> 00:47:46,575
year to this year. I see that as flat. And it shouldn't be just the exact same, it should not

626
00:47:46,735 --> 00:47:50,645
be the exact same number. And it is the city council and mayor's,

627
00:47:51,435 --> 00:47:55,295
uh, districts include funding for, uh, the mayor

628
00:47:55,875 --> 00:47:59,855
and his staff. And then in the district budget, it includes the

629
00:48:00,015 --> 00:48:03,895
funding for the district members and their benefits. And then

630
00:48:04,235 --> 00:48:07,915
the additional a hundred thousand dollars that was added, uh,

631
00:48:08,515 --> 00:48:12,065
via policy three years ago, I believe. Right.

632
00:48:12,555 --> 00:48:16,335
so what I'm requesting is the actuals from this past year, like

633
00:48:16,575 --> 00:48:20,515
the detailed salary, actual, uh, breakdown. And, uh, no, we, we don't, I don't, do

634
00:48:20,735 --> 00:48:24,495
we have it, did we, that was just that give, give 'em to us today? No, it was even

635
00:48:24,955 --> 00:48:28,205
all of us. When was that? Um, last,

636
00:48:29,295 --> 00:48:33,225
last week? No, then I don't think that provided, unless I missed something, I don't think that provided,

637
00:48:33,495 --> 00:48:37,465
yeah. So that report was broken down by types of expenses,

638
00:48:38,035 --> 00:48:41,865
which included the personnel costs. Okay. I'll, I'll take a look at that. So I,

639
00:48:42,105 --> 00:48:45,925
I appreciate that because I think we need, in order for us to adjust our

640
00:48:46,145 --> 00:48:49,605
budget and, um, add more clarity, because if you look at, um,

641
00:48:50,285 --> 00:48:54,145
the fy 26 adopted, uh, budget, it, it hasn't been

642
00:48:54,415 --> 00:48:58,345
updated. Like, so we need to update the descriptions. We need to update, uh, there's

643
00:48:58,705 --> 00:49:02,705
placeholders like 60,000 for each of us. So, um, all of us need to

644
00:49:03,325 --> 00:49:07,265
put those, um, inputs because we all have our different staffing needs. We all have

645
00:49:07,425 --> 00:49:11,425
different, like we shouldn't use that 100,000 was just a placeholder. That's what I'm

646
00:49:11,585 --> 00:49:15,545
saying is that's done as a placeholder. Now we have enough data and info, uh, we have

647
00:49:15,795 --> 00:49:19,375
years of actual, so now we can actually budget and project, um, between

648
00:49:19,885 --> 00:49:23,725
the 5%, uh, increase. Um, all of us are

649
00:49:23,945 --> 00:49:27,765
using our budget in different ways. So that's what I'm saying is that, and I'm not saying you

650
00:49:27,985 --> 00:49:31,705
guys have to take the lead on that. I'm saying we as a council department, a m council,

651
00:49:32,725 --> 00:49:36,575
um, it's, it's our responsibility, but, but a, uh, we need to do those actuals,

652
00:49:37,325 --> 00:49:41,245
uh, get those actuals and actually project. And so if we can work with staff on

653
00:49:41,465 --> 00:49:45,045
that, I think that'd be helpful. So, um, so the,

654
00:49:45,485 --> 00:49:48,645
um, uh, slide eight, uh,

655
00:49:50,285 --> 00:49:53,705
did, so did, um, were the actuals in the breakdowns

656
00:49:54,365 --> 00:49:58,325
for slide eight, uh, were those included in the,

657
00:49:58,925 --> 00:50:00,225
uh, excel that we were given?

658
00:50:03,065 --> 00:50:06,945
I see what you're saying about the mayor, uh, city council line where there's not much of

659
00:50:07,105 --> 00:50:11,045
a change. I think that's just a coincidence. There's some ups and downs there. Mm-hmm

660
00:50:11,505 --> 00:50:15,085
. Uh, what I can tell you is this budgeted, just, just how I stated, um,

661
00:50:15,525 --> 00:50:19,485
for, for the districts, um, the council members salary and

662
00:50:19,945 --> 00:50:23,645
benefits, and then $100,000, um, that has,

663
00:50:24,015 --> 00:50:27,635
that you're correct in saying it has not been updated, uh, based upon

664
00:50:28,105 --> 00:50:31,905
any sort of, um, mou agreement with the, the

665
00:50:32,125 --> 00:50:35,965
labor unions. It, so it doesn't, but that's not correct. It's not an mou

666
00:50:36,325 --> 00:50:39,995
that needs to be done. We have, what I'm saying is that we have actuals

667
00:50:40,675 --> 00:50:44,645
from how we've spent that for the last couple of years. And so I think

668
00:50:44,835 --> 00:50:48,405
each of us, um, from our districts need to submit that to one place

669
00:50:49,045 --> 00:50:52,785
probably should be the mayor's office, um, one place. And then we

670
00:50:53,585 --> 00:50:57,485
put that kind of package that together and give it to you all to review. So we make sure

671
00:50:57,605 --> 00:51:01,085
we're including any of the healthcare, uh, adjustment increases

672
00:51:01,985 --> 00:51:04,915
the retirement, increases the, uh, 5%,

673
00:51:06,505 --> 00:51:10,505
um, increase. Uh, so that, that's what I'm, I'm, I'm

674
00:51:10,725 --> 00:51:14,165
saying that those inputs, I think because that number needs to be a more

675
00:51:14,755 --> 00:51:18,645
defined number, but I, I think, uh, that we, we need to do that work. So that's not

676
00:51:18,875 --> 00:51:22,825
necessarily for you guys, I'm just saying to my colleagues that we need to do that work and

677
00:51:23,045 --> 00:51:25,925
we need those act, but those, the actuals for this were provided

678
00:51:28,385 --> 00:51:32,245
or the break, the breakdown. The breakdown. Well, well the breakdown of this, so for example,

679
00:51:32,745 --> 00:51:36,065
um, one of the big increases, um, uh, was,

680
00:51:37,145 --> 00:51:40,965
uh, overtime in some of these departments that went beyond their budget. Yes. But then it's,

681
00:51:41,245 --> 00:51:45,205
the overtime is just a number, but there's nothing, no actuals beyond what

682
00:51:45,405 --> 00:51:49,405
that reflects. That is correct. So overtime is an overall, and there's different

683
00:51:49,645 --> 00:51:53,645
categories that roll up into an overtime category. So if that's what you're

684
00:51:53,885 --> 00:51:57,725
trying to , yes. So, so overtime, for example, is just one of many things.

685
00:51:58,035 --> 00:52:01,665
correct. That we need to understand the actuals and,

686
00:52:02,145 --> 00:52:05,965
uh, in order to know why it went over budget so much,

687
00:52:06,425 --> 00:52:10,365
um, and how we can control those costs. So some of it, from what I hear from staff

688
00:52:11,265 --> 00:52:15,245
is that, uh, there's, um, been a struggle with hiring.

689
00:52:16,545 --> 00:52:20,425
so I understand that, but then that means we need to beef up the hiring or

690
00:52:20,645 --> 00:52:24,445
something needs to be done on that end. So that, that's where getting those

691
00:52:24,685 --> 00:52:28,205
actuals will be helpful for that. And then if we can go to slide 19,

692
00:52:30,955 --> 00:52:34,555
that was similar, needing to understand that breakdown.

693
00:52:36,305 --> 00:52:40,045
um, and that's not for right now, but if you all could

694
00:52:40,365 --> 00:52:44,365
provide what factored in, so there's no

695
00:52:44,525 --> 00:52:48,275
breakdown here on personnel for, unless, like

696
00:52:48,565 --> 00:52:51,985
I said, you all provided this in excel, so personnel services, um,

697
00:52:52,645 --> 00:52:56,205
I, it's too broad. So we need to understand from which department,

698
00:52:56,975 --> 00:53:00,765
which categories, what are the inputs that the directors

699
00:53:01,665 --> 00:53:05,595
are feeding into this. So we can take a look at that, and then that way we can understand, okay,

700
00:53:05,915 --> 00:53:09,345
well this is how we can reduce the future,

701
00:53:10,185 --> 00:53:14,125
um, expenditures. Because what it seems like we're, like, what staff has done from

702
00:53:14,345 --> 00:53:18,185
an exercise, and I don't mind this, but I, I just wanna be clear, is

703
00:53:18,405 --> 00:53:22,195
it staff just rolled over? Like we just we're assuming just

704
00:53:22,485 --> 00:53:26,485
kind of the best case scenario. Um, everything we want, this is

705
00:53:26,645 --> 00:53:30,365
kind of a reflection of everything. Staff kind of wants no reductions in expenditures

706
00:53:30,965 --> 00:53:31,645
or anything like that. Right.

707
00:53:35,675 --> 00:53:39,505
council member, the, the numbers for 27 reflect the cost of

708
00:53:39,725 --> 00:53:43,605
the city, uh, maintaining its current service levels. Got it. Okay.

709
00:53:43,845 --> 00:53:47,725
so no adjust, no adjustments for cut? No, just no changes

710
00:53:49,635 --> 00:53:53,545
from the baseline. From the status quo. This is basically the status quo. There are no new

711
00:53:53,765 --> 00:53:56,925
enhancements, no new, um, program, no new staff.

712
00:53:57,865 --> 00:54:01,645
uh, just whatever it would cost for the city to keep performing

713
00:54:02,325 --> 00:54:06,225
the same services that we currently perform. Okay. That's fine. Great. Thank you. Um,

714
00:54:06,505 --> 00:54:10,315
and I do wanna say, I definitely second what council member yamani said

715
00:54:10,605 --> 00:54:14,585
about, uh, needing to go to a zero based, uh, approach of

716
00:54:14,805 --> 00:54:18,765
budgeting. And so I'd be interested to know, um, we we're in a quick

717
00:54:19,245 --> 00:54:22,625
timeline, so we need to get this out, but I think even if we can't, um,

718
00:54:24,065 --> 00:54:27,845
uh, transform right away because of we're restricted in time and, uh, need

719
00:54:28,125 --> 00:54:31,885
to get this out by july 1st, we need to get this adopted. Um, but in concept,

720
00:54:32,765 --> 00:54:36,765
I would like us to do that. So for me, for example, for overtime, I would like us to start

721
00:54:37,395 --> 00:54:41,165
zero on that. And then, uh, because what, what hasn't worked

722
00:54:41,585 --> 00:54:45,165
for overtime in particular is we budget for it, but then we

723
00:54:45,605 --> 00:54:49,605
continue to go over budget. And I've seen this year, over year, over year, it continues to

724
00:54:49,725 --> 00:54:53,405
go over even when we, like, I understand budgeting for it, but I, I think there needs,

725
00:54:53,785 --> 00:54:57,165
and there hasn't been in the interim, there hasn't been any reporting

726
00:54:57,805 --> 00:55:01,685
to us on, hey, we're, it looks like we're going over on over overtime,

727
00:55:02,105 --> 00:55:05,925
so we need to, you know, do something different. And we need to be,

728
00:55:06,145 --> 00:55:10,125
as a council, I think we need to be getting more reports on specifically

729
00:55:10,555 --> 00:55:14,405
when we're going over budget and how, what we need to do to fix it. So that's

730
00:55:14,645 --> 00:55:18,485
where, what I'm kind of looking at for this moving forward. So I'm requesting

731
00:55:18,885 --> 00:55:22,565
those details for that and request. And I like the idea of going to a zero

732
00:55:22,895 --> 00:55:26,635
based approach so that we can start there and then build, like what are, what

733
00:55:26,925 --> 00:55:30,275
are our needs, uh, where are our priorities that are, uh, public safety, that,

734
00:55:31,025 --> 00:55:34,765
um, our obligations that that, that we, we need

735
00:55:35,165 --> 00:55:38,815
to do? And then what are, you know, how can we, uh, make efficiency

736
00:55:39,795 --> 00:55:43,645
adjustments, uh, moving forward, what we can do on that. So that's why

737
00:55:43,805 --> 00:55:47,685
I like that on the zero-based approach, um, it was

738
00:55:47,845 --> 00:55:51,035
mentioned by a couple of my colleagues on the economic contingency reserve.

739
00:55:51,975 --> 00:55:55,905
there was a presentation by the chamber and a couple of

740
00:55:56,125 --> 00:55:59,925
other groups in a co, uh, conceptually, and they, I think they

741
00:56:00,195 --> 00:56:04,045
estimated there, uh, was a 250,000 they did present in december

742
00:56:04,265 --> 00:56:08,085
to staff and city council. So, um, that, uh, we haven't

743
00:56:08,415 --> 00:56:12,075
acted, uh, on that. But I think for that,

744
00:56:12,475 --> 00:56:16,405
that, um, I, as I would recommend, we take a look at that,

745
00:56:16,715 --> 00:56:20,085
what I envision economic contingency reserve, this city revitalization,

746
00:56:21,185 --> 00:56:24,795
uh, project, which we did talk about, but it's actions

747
00:56:25,285 --> 00:56:29,025
that we can take to enhance specifically our sales tax

748
00:56:29,375 --> 00:56:33,285
since that's one of our largest, uh, contributing revenue sources. And there's a lot of ways

749
00:56:33,425 --> 00:56:37,165
to do that. The chamber came with a proposal on focusing on events,

750
00:56:37,875 --> 00:56:41,835
special events, and attracting people to national city has been proven from

751
00:56:42,125 --> 00:56:45,745
a data perspective to increase our sales tax revenue. So

752
00:56:46,325 --> 00:56:50,125
I definitely want to, uh, explore that more and have more discussions

753
00:56:50,605 --> 00:56:53,805
about specifically what that could look like. Um, and then

754
00:56:54,765 --> 00:56:58,645
question on slide 13, um, I think the mayor talked about this. This was

755
00:56:58,805 --> 00:57:02,765
the internal service charges, so he brought this up. I don't really

756
00:57:03,095 --> 00:57:06,685
understand what the net positive or benefit

757
00:57:07,505 --> 00:57:11,435
is on this, because this is internal. So I'm really confused about what this

758
00:57:12,045 --> 00:57:15,935
actually means, positive or negative to our budget. Each

759
00:57:16,225 --> 00:57:20,225
of these funds are outside of the general fund, and they provide a service

760
00:57:20,685 --> 00:57:24,305
to the general fund. So, uh, the way we determine the charges

761
00:57:24,725 --> 00:57:28,665
is we take the total cost of those funds for the year. For example,

762
00:57:28,975 --> 00:57:32,865
just looking at the vehicle replacement charges. We look at that charge, those charges

763
00:57:33,245 --> 00:57:36,705
for the year, and then we allocate them to the city departments

764
00:57:37,555 --> 00:57:41,465
based upon an equitable factor, which in this case, of course, would be the

765
00:57:41,625 --> 00:57:45,485
vehicles. So everybody gets a, a piece of that, or

766
00:57:45,995 --> 00:57:48,865
maybe it is, is, uh, more straightforward.

767
00:57:50,245 --> 00:57:54,045
that's the, that's a separate fund outside the general, you said the beatles. I'm sorry, you

768
00:57:54,265 --> 00:57:57,785
said the beatles? The beatles. I, I did it. Vehicle.

769
00:57:58,645 --> 00:58:02,625
oh, the vehicles. Vehicles. I'm sorry. I thought you said beatles. That's what I'm vehicles. I'm, I got so confused.

770
00:58:02,705 --> 00:58:06,225
I'm sorry. I'm a mumbler. I apologize. No, no worries. I'll take where you go, .

771
00:58:08,575 --> 00:58:11,965
okay, thank you. So it's, so let me, uh, let me use it,

772
00:58:12,805 --> 00:58:16,625
it as an example. Uh, that's information technology that's outside the

773
00:58:16,825 --> 00:58:20,545
general fund. It's, its, it's its own fund. They have staff there,

774
00:58:21,255 --> 00:58:25,095
they buy equipment there. Uh, and what you see there, that

775
00:58:25,445 --> 00:58:28,865
2.9 million is the cost for fiscal year 27.

776
00:58:29,895 --> 00:58:33,745
that cost needs to be allocated. So depending

777
00:58:34,345 --> 00:58:38,295
on, in this case, it's probably computers, phones that

778
00:58:38,585 --> 00:58:42,115
total cost is allocated throughout the city so that every department

779
00:58:42,805 --> 00:58:46,545
and fund gets their fair share. Okay. So this could be

780
00:58:46,985 --> 00:58:50,965
adjusted after if we give direction to the directors to look at

781
00:58:51,425 --> 00:58:54,275
savings. Um, and for me, I would prioritize,

782
00:58:55,765 --> 00:58:59,705
um, labor people over vehicles, equipment,

783
00:59:00,225 --> 00:59:03,625
obviously with the asterisk that it depends on, you know, what the assignment

784
00:59:04,365 --> 00:59:08,215
and, you know, there's a lot of other factors, but in general, I feel like we should put people over

785
00:59:08,825 --> 00:59:12,765
vehicles and equipment and property. But I, that to me is

786
00:59:13,485 --> 00:59:17,485
the, I feel like that's for the directors to decide. So once the directors and,

787
00:59:17,765 --> 00:59:21,605
and hopefully the employees expect all the directors to be engaging every single employee from

788
00:59:21,885 --> 00:59:25,725
the bottom all the way to the top, it it, to me, it shouldn't matter ranker title or position.

789
00:59:26,385 --> 00:59:29,855
but, so once the directors have some recommendations there,

790
00:59:30,795 --> 00:59:34,685
then like, so say the, uh, directors, um, identify a bunch

791
00:59:34,805 --> 00:59:38,605
of, uh, cuts or a bunch of reductions, like putting off a bunch of purchases, then

792
00:59:38,885 --> 00:59:42,825
this number would theoretically go down, right? In theory, if

793
00:59:43,285 --> 00:59:47,095
reductions were made in theory to these internal service funds mm-hmm . Those savings would

794
00:59:47,445 --> 00:59:51,365
then flow through to the general fund by the appropriate portion and being positive.

795
00:59:51,485 --> 00:59:55,165
okay. Theory, like hope, being hopeful. Okay. Um, and then

796
00:59:57,795 --> 01:00:01,315
what, um, the nutrition fund,

797
01:00:01,805 --> 01:00:05,765
I have a bunch of questions, a, a bunch of the little different funds, but I, I

798
01:00:05,885 --> 01:00:09,865
can save some of those, but while I'm at it, the nutrition fund, what was causing it

799
01:00:10,085 --> 01:00:13,565
to increase by 171,000? Uh, was that,

800
01:00:14,115 --> 01:00:18,025
like, how do we know how much of that was labor versus how much is, uh,

801
01:00:18,515 --> 01:00:22,175
food material cost building energy?

802
01:00:25,115 --> 01:00:29,095
I don't know the breakdown off the top of my head. Yeah, I don't, I don't, I don't expect you to, but,

803
01:00:29,335 --> 01:00:33,155
but the way we, we fund that, the, the nutrition, uh, the nutrition center

804
01:00:33,615 --> 01:00:36,685
is funded by, um, a county grant

805
01:00:38,095 --> 01:00:41,595
by a transfer from . Oh, partly, right? Partly they, they have revenue sources

806
01:00:42,495 --> 01:00:46,105
and then whatever the, the change is, whatever the difference is between

807
01:00:46,935 --> 01:00:50,515
the revenue and the cost of that program for the year,

808
01:00:51,225 --> 01:00:54,945
they don't carry a fund balance. So the general, that's why the general fund

809
01:00:55,295 --> 01:00:59,125
has to make them whole and transfer those funds. Right.

810
01:00:59,615 --> 01:01:02,885
so that's the, that's the estimated amount to make them whole,

811
01:01:03,695 --> 01:01:07,635
uh, for 27. If I could, can you put your mic on

812
01:01:07,755 --> 01:01:11,715
though? I'm sorry. So it would make, I think it would help if I like that

813
01:01:11,895 --> 01:01:14,735
on that line, if we was to know how much that 674

814
01:01:16,655 --> 01:01:20,435
was coming from gen, that's all general fund, the 674, right?

815
01:01:20,695 --> 01:01:24,635
the 6 74 is completely from the general fund. So that's, so that's over

816
01:01:25,055 --> 01:01:28,925
and above what the feds and what they, what the county, state,

817
01:01:29,495 --> 01:01:33,345
any of, any other funding sources. So all of that is general fund.

818
01:01:35,785 --> 01:01:39,715
that is correct. And got it. So that's, I mean, I'm just giving one example. I I

819
01:01:39,835 --> 01:01:43,615
really think, uh, it should be all hands on deck. I don't think there should be any

820
01:01:44,055 --> 01:01:47,655
sacred cows. Everything should be on the table. And, uh,

821
01:01:48,495 --> 01:01:52,035
we have discussed, um, restricting

822
01:01:52,605 --> 01:01:56,475
ideas to restrict our costs there. Uh, for example, I think

823
01:01:57,005 --> 01:02:00,835
there was an idea, uh, from scott actually, uh, from a few months

824
01:02:01,015 --> 01:02:04,955
ago about restricting adjust to national city residents, um, what we're doing to reduce

825
01:02:05,235 --> 01:02:09,075
our costs. So there's some ideas there, like, I don't wanna get too into the weeds, but there's some good ideas there.

826
01:02:09,455 --> 01:02:12,725
that's all the questions. Um, can I ask a follow up on this slide?

827
01:02:13,535 --> 01:02:16,895
um, I, I, so I understand fully what you just stated,

828
01:02:17,575 --> 01:02:21,505
um, mr. Valez about the, um, nutrition fund, right? So

829
01:02:21,725 --> 01:02:25,405
this is, um, the money that is needed to continue the service for 27,

830
01:02:26,345 --> 01:02:30,245
um, that isn't covered by grants and, and everything else. Is that the same

831
01:02:30,585 --> 01:02:34,365
for like the library this, um, transfer out to other

832
01:02:34,685 --> 01:02:38,475
funds? Is that explained the same for the library fund?

833
01:02:40,515 --> 01:02:44,305
some funds, it's, uh, potentially do carry a fund balance, and at

834
01:02:44,525 --> 01:02:48,165
the end of the fiscal year we do review that. Uh, we look at the

835
01:02:48,545 --> 01:02:52,445
actual expenditures because we don't want to transfer more money, uh, than that

836
01:02:52,565 --> 01:02:55,585
fund actually needs. But, but, uh, there is,

837
01:02:56,585 --> 01:02:59,965
it is possible that some of these funds actually carry a fund balance

838
01:03:01,065 --> 01:03:04,705
and we could use a portion of that to offset,

839
01:03:05,385 --> 01:03:08,905
uh, the total transfer. In other words, kind of scale back the

840
01:03:09,445 --> 01:03:12,905
transfer out from the general fund to these, uh,

841
01:03:13,725 --> 01:03:17,245
subsidized funds. Yes. I, I think it would be important

842
01:03:17,875 --> 01:03:21,805
because we are talking about, just as mr. Bush mentioned, we are

843
01:03:21,965 --> 01:03:25,305
talking about like the granularity in the numbers here, right? Um,

844
01:03:26,225 --> 01:03:30,125
and now that we are getting into the details here, I think it is important to understand

845
01:03:30,895 --> 01:03:34,645
truly the library and how it is funded. And in 26,

846
01:03:35,945 --> 01:03:39,945
um, 2.2 million from the general fund funded the

847
01:03:40,165 --> 01:03:43,945
library. And, and what I'm asking is, is that beyond,

848
01:03:45,225 --> 01:03:48,965
um, all of the grants that were acquired by the library, everything else.

849
01:03:49,505 --> 01:03:53,465
so then the increase for 27 is

850
01:03:53,715 --> 01:03:57,565
perhaps because of the labor increases, um, that are expected.

851
01:03:58,385 --> 01:04:02,305
uh, and then what else? You know, like the, you

852
01:04:02,525 --> 01:04:06,325
know, the bills that have to be paid, right? Like the, the, I don't know, the, the maintenance

853
01:04:06,765 --> 01:04:10,545
of the library, the books and the, the fees to all of the,

854
01:04:11,625 --> 01:04:15,605
you know, everything that, that needs to be paid in order to make the, the library function.

855
01:04:15,905 --> 01:04:19,645
uh, I think I do need to understand truly what it means, just

856
01:04:19,925 --> 01:04:23,825
as mr. Bush mentioned, to transfer this money out of the general fund. Um,

857
01:04:24,795 --> 01:04:28,325
when it isn't a balance, we can definitely provide

858
01:04:28,885 --> 01:04:32,265
that information in the, in the next budget workshop. Um,

859
01:04:33,645 --> 01:04:37,595
I would ha I would hate to misspeak and tell you which of these funds actually have a fund

860
01:04:37,885 --> 01:04:41,725
balance at the moment. Um, but we will provide that information. Yeah, that

861
01:04:41,925 --> 01:04:45,655
would be helpful. Thank you. And just, I don't have any

862
01:04:46,025 --> 01:04:50,015
more questions, but just, uh, uh, f follow up, uh,

863
01:04:50,235 --> 01:04:53,915
thought, so I just talked about the expenditures, but on the, the revenues,

864
01:04:54,565 --> 01:04:58,555
again, I think, uh, all hands on deck. Oh, uh, and I did forget

865
01:04:58,955 --> 01:05:02,735
to mention, um, I, we, we need more breakdowns on and, uh,

866
01:05:02,975 --> 01:05:06,075
for reductions need more breakdowns on professional

867
01:05:06,995 --> 01:05:10,755
services and consultant services. And, sorry, I forgot what code

868
01:05:11,035 --> 01:05:15,015
that is. But basically across the board, which are generally our outside consultants, um,

869
01:05:15,455 --> 01:05:18,885
before we cut staff, that's what also I would like to,

870
01:05:19,505 --> 01:05:23,445
uh, prioritize is, and I, um, can't really

871
01:05:24,165 --> 01:05:28,045
recommend what to prioritize over another if I, if I don't know, you know, what,

872
01:05:28,325 --> 01:05:32,305
on, on some of the consultant services. So if we can look at that, but getting, shifting over to the

873
01:05:32,525 --> 01:05:36,045
revenue, um, I, I do worry,

874
01:05:36,665 --> 01:05:40,385
uh, in my review of the actuals that was

875
01:05:41,005 --> 01:05:44,785
provided, that we might be undercounting some revenue sources. Um,

876
01:05:45,065 --> 01:05:48,965
and I did send staff this over, um, email. So if you don't have an

877
01:05:49,085 --> 01:05:52,685
answer for that right now, that's fine. But for example, parking, uh, parking

878
01:05:53,405 --> 01:05:57,245
citations, code 3, 2, 0 1. Um, and that is reflected in the adopted

879
01:05:57,525 --> 01:06:01,525
budget. Um, I, when I looked through the actuals, I couldn't find that anywhere. And

880
01:06:01,725 --> 01:06:05,305
there was a couple of the, uh, different, uh, actuals for,

881
01:06:05,985 --> 01:06:09,805
um, some of the permits, I think residential permit, commercial permit, um, that weren't

882
01:06:10,155 --> 01:06:14,075
reflected. And so if those inputs are feeding into this,

883
01:06:14,705 --> 01:06:18,605
uh, budget, then we're, um, when then we're undercounting our, our revenues.

884
01:06:19,125 --> 01:06:22,285
so if, if staff could take a look at that, unless you had an update for that specifically.

885
01:06:23,395 --> 01:06:27,325
well, with, with respect to the parking citations, the parking programs in its own

886
01:06:27,435 --> 01:06:31,365
fund, it's in a separate fund. The actuals that you were

887
01:06:31,685 --> 01:06:35,545
provided were for general fund only. Got it. Okay. Understood. Um,

888
01:06:36,225 --> 01:06:40,085
but so I then still want to talk more about that

889
01:06:40,245 --> 01:06:44,245
because there's still re revenue potential there with, with parking. So we can,

890
01:06:44,595 --> 01:06:48,165
like, we should have, um, more discussions. So I can understand

891
01:06:48,805 --> 01:06:52,705
that. 'cause I know a lot of it is just my lack of understanding. And then revenue. Oh, can

892
01:06:52,925 --> 01:06:56,805
I do a follow up on that? Also, um, on this slide related

893
01:06:57,345 --> 01:07:01,165
to the sales tax that is projected, um, on another slide

894
01:07:01,465 --> 01:07:05,075
you mentioned the 5% gross receipts, um, expectation

895
01:07:05,825 --> 01:07:09,765
of the cannabis, uh, commercial cannabis businesses. The amount that,

896
01:07:10,145 --> 01:07:14,045
and you said that doesn't, that projection doesn't include the sales tax, the amount

897
01:07:14,315 --> 01:07:17,885
that is part of the sales tax. Is that in this, is that

898
01:07:18,405 --> 01:07:21,965
included here? That is included in the sales tax? It is here that

899
01:07:22,605 --> 01:07:26,485
I don't have it broken out. I'm sure it could be derived right. Looking at that. No, but that's

900
01:07:26,685 --> 01:07:30,545
what I'm saying is, um, as mr. Bush is saying, is like we need to distill down, um,

901
01:07:31,145 --> 01:07:34,685
you know, is there perhaps revenue that is being under counted?

902
01:07:35,625 --> 01:07:39,605
it triggered my memory. Maybe the sales tax from the cannabis is one of those. But if you're saying it

903
01:07:39,805 --> 01:07:42,125
is accounted for here, then that's a moot point. Thank you.

904
01:07:46,575 --> 01:07:50,215
uh, we're always talking about like the library fund, the

905
01:07:50,705 --> 01:07:54,635
nutrition fund, uh, park fund, those, if we can also

906
01:07:55,015 --> 01:07:58,835
see, you know, what is their total budget because they get a lot of revenue.

907
01:07:59,155 --> 01:08:03,155
I know the library gets a state library fund and different stuff along that line. So that is not

908
01:08:03,315 --> 01:08:07,195
their total budget. That is just what we're going outta the general fund. So if we kind of

909
01:08:07,455 --> 01:08:11,395
see that difference, in other words, how much are we, are we paying above what they get

910
01:08:11,555 --> 01:08:15,125
from other sources to, to, to make that overall price? I think that would be helpful.

911
01:08:16,145 --> 01:08:20,145
you know, if we just, uh, just to that point, if you guys could just provide us, and

912
01:08:20,365 --> 01:08:24,245
this should have, this is all in excel, right? All the different department by department

913
01:08:24,725 --> 01:08:26,125
breakdown of the adopted budget.

914
01:08:28,735 --> 01:08:32,675
it's contained within the, uh, the city's financial system. Mm-hmm . Right?

915
01:08:33,025 --> 01:08:36,725
so if that can be broken out, like in this kind of, uh,

916
01:08:37,165 --> 01:08:40,945
format, and if there can be an additional line, like I just opened

917
01:08:41,225 --> 01:08:45,145
it up, 1 6 6 nutrition fund, and you have the fya and this

918
01:08:45,685 --> 01:08:49,545
how, how it appears organized. I'm 90% sure this is excel. So you have fy 24, you have

919
01:08:50,025 --> 01:08:53,925
fy 25 adopted, which should be actual, but that's okay by now. Um,

920
01:08:54,285 --> 01:08:58,245
and fy 26 adopted. Um, and

921
01:08:58,465 --> 01:09:02,005
then if, and then we could on our own, create an fy 27.

922
01:09:02,965 --> 01:09:06,845
and then if, if you guys gave us the inputs or we start from zero and

923
01:09:07,065 --> 01:09:10,905
then build from there. If, if we can have that to play around with some

924
01:09:11,185 --> 01:09:14,905
of this, I think that would be, that would be helpful. Okay. Okay. Down here.

925
01:09:18,405 --> 01:09:22,385
uh, thank you to the public, thank you to staff for compiling this and putting it

926
01:09:22,705 --> 01:09:26,465
together. I know we have a lot of things going on at the city at this particular moment.

927
01:09:27,245 --> 01:09:31,205
and so squeezing this in the daytime, I know it's something unusual, but

928
01:09:31,945 --> 01:09:35,865
considering, uh, everything we have going on, uh, it, it, it was the only thing

929
01:09:35,985 --> 01:09:39,745
we could fit in. And I appreciate everybody making time to do hopefully numerous,

930
01:09:40,085 --> 01:09:43,845
uh, budget workshops, which are very important. And so, um,

931
01:09:44,945 --> 01:09:48,305
I do echo the sentiment to my colleagues and going into a new

932
01:09:48,985 --> 01:09:52,785
approach to dealing with our budget. And, um, we've been discussing

933
01:09:53,445 --> 01:09:57,325
the zero based budget process, uh, one that is looking more at

934
01:09:57,545 --> 01:10:01,445
the actuals instead of constant projections, um, as

935
01:10:01,665 --> 01:10:05,505
something that we should probably change in our city because we seem to go by last

936
01:10:05,985 --> 01:10:09,565
year's projections. And the projections before that. And

937
01:10:10,095 --> 01:10:13,355
what we've noticed over the last 10 years is that the projections have been wrong

938
01:10:14,155 --> 01:10:17,985
oftentimes, uh, in incredibly conservative. And so

939
01:10:18,345 --> 01:10:22,145
I wanna go over some of the presentation right now and then I'll come back to that point at the end.

940
01:10:22,445 --> 01:10:26,405
but can you go, uh, to the page where we cover the property tax on

941
01:10:26,625 --> 01:10:30,415
page five? Is that it? Yeah.

942
01:10:30,705 --> 01:10:33,405
there we go. Thank you. So, um,

943
01:10:34,805 --> 01:10:38,525
the property tax in particular, does that account for new

944
01:10:39,105 --> 01:10:43,045
property that has been built and there's a new tax assessment for

945
01:10:43,265 --> 01:10:46,965
that property in the city, is that considered part of the

946
01:10:48,025 --> 01:10:51,865
property tax revenue that we get when a home is, when a home is sold, yes. When

947
01:10:52,145 --> 01:10:56,005
there's when, uh, the owner gets a property tax bill due.

948
01:10:56,395 --> 01:11:00,065
right? That's what makes up the property tax. It was, if it was an empty lot and then

949
01:11:00,745 --> 01:11:04,735
suddenly somebody built 20 units on it, then, then

950
01:11:05,025 --> 01:11:08,545
they're paying property off of those new units that are, that are built in the city. Correct.

951
01:11:09,215 --> 01:11:12,195
once it's assessed, yes. Yeah. Yes. Yeah. Affordable.

952
01:11:14,505 --> 01:11:17,325
and what about development impact fees? Where do they land on this

953
01:11:20,355 --> 01:11:24,335
in terms of where does that revenue come? So like if a project, they're gonna pay development impact fees,

954
01:11:24,455 --> 01:11:27,975
where does, where does that go? They fall outside the general fund. Where do they fall?

955
01:11:28,845 --> 01:11:32,055
they have their own development impact fee fund. I see.

956
01:11:33,275 --> 01:11:37,205
not part of the general fund, not part of the discussion, obviously. And okay. That's correct. Okay.

957
01:11:37,685 --> 01:11:41,615
just curious. Um, uh, when it comes

958
01:11:41,835 --> 01:11:45,675
to changing over to the slide when we're talking about, uh,

959
01:11:46,065 --> 01:11:50,005
staff time, I have it as slide number eight, but I think I have last,

960
01:11:51,465 --> 01:11:53,875
uh, yeah, there we go. I'm sorry. Yeah.

961
01:11:55,545 --> 01:11:59,405
so is there a way we can, um, because we did go over some of the actuals

962
01:11:59,885 --> 01:12:03,665
with individual staff members and realize that over time is

963
01:12:04,285 --> 01:12:07,645
considerable, but can we go over, we've had a,

964
01:12:08,585 --> 01:12:12,545
um, uh, big issue of human trafficking in our city and, and

965
01:12:12,925 --> 01:12:16,925
I know our pd or human trafficking task force have been working diligently on this.

966
01:12:17,685 --> 01:12:21,005
I, uh, did a ride along, uh, just this week and, uh, definitely,

967
01:12:22,025 --> 01:12:25,925
um, see the frustration in, in making sure we address this issue and

968
01:12:26,085 --> 01:12:29,845
it's costing our city a lot of money. And so we wanna make sure how much

969
01:12:30,225 --> 01:12:32,885
is that, is there a way we can get that breakdown for the next workshop?

970
01:12:36,175 --> 01:12:39,875
I'm, I'm sorry, what, what is the, uh, overtime cost relating to human

971
01:12:40,275 --> 01:12:43,715
trafficking in our city? I'll, I'll, uh, perhaps our police chief

972
01:12:44,335 --> 01:12:47,395
or somebody from our police department could field that question.

973
01:12:51,305 --> 01:12:55,145
, I, I, I will definitely have the breakdown for you.

974
01:12:55,465 --> 01:12:59,465
I, I was just overlooking it now. Uh, one of the challenges that we have,

975
01:13:00,085 --> 01:13:03,645
and ron's here with me today is, um,

976
01:13:04,255 --> 01:13:08,225
some of it is reimbursable that goes back to the city. Mm-hmm . But some of

977
01:13:08,345 --> 01:13:12,105
the operations I would have to categorize as overtime

978
01:13:12,535 --> 01:13:16,365
special events or, uh, whatever category we use. But

979
01:13:17,445 --> 01:13:20,575
it is substantial when I'm looking over these numbers. Yeah.

980
01:13:21,535 --> 01:13:25,505
yeah. I did see the jump in, uh, pd over time, but I know that some

981
01:13:25,665 --> 01:13:29,515
of that is related to that. So it's important to kind of differentiate even when we don't

982
01:13:29,865 --> 01:13:33,655
get reimbursed, how much is this issue causing us? And it's

983
01:13:33,945 --> 01:13:37,885
important that we work with our state legislators to hopefully get some of that, uh, be

984
01:13:38,345 --> 01:13:42,325
reimbursed. 'cause ultimately this is a regional issue. We happen to be at

985
01:13:42,565 --> 01:13:46,565
the epicenter regionally, um, as a result of, of, um,

986
01:13:47,645 --> 01:13:51,285
uh, some installations near our city. And so I think it's important for us to

987
01:13:51,945 --> 01:13:55,725
continue to make that argument and bring in revenue. Um, if our pd is,

988
01:13:56,445 --> 01:14:00,175
is accruing additional overtime and making sure that they're tackling this

989
01:14:00,465 --> 01:14:04,045
issue, we need to make sure that we get reimbursed for that as we continue to address it. So

990
01:14:04,945 --> 01:14:08,565
I definitely look forward to those numbers. And, uh, similar for pd,

991
01:14:09,005 --> 01:14:13,005
uh, sorry for fire, is it possible to get, uh, overtime numbers, I

992
01:14:13,125 --> 01:14:16,795
know a lot of our, a lot of our fire, uh, uh, go statewide

993
01:14:17,625 --> 01:14:21,165
to fight fires, , is there a way to get some of those

994
01:14:21,805 --> 01:14:25,705
overtime costs kind of, um, accounted for? Uh,

995
01:14:25,925 --> 01:14:29,845
yeah, absolutely. We actually had been looking at overtime closely for the past three

996
01:14:30,085 --> 01:14:33,685
years. So we have a very accurate breakdown on where each one of those

997
01:14:34,125 --> 01:14:38,125
overtimes categories, uh, is, is set apart. And we can certainly provide that

998
01:14:38,205 --> 01:14:42,085
to you. I appreciate it. 'cause I know it isn't just the person that is leaving, right?

999
01:14:42,545 --> 01:14:46,325
so if a crew leaves of four, like at the palisades, you left to the palisades

1000
01:14:46,765 --> 01:14:50,645
with a crew of four or 5, 4, 4, it, it, it also meant that,

1001
01:14:51,305 --> 01:14:55,285
um, our own stations were understaffed and as a result needed

1002
01:14:55,645 --> 01:14:59,565
to have overtime. Is that, that is somewhat accurate.

1003
01:14:59,945 --> 01:15:03,805
so the, the way that it works, if I may explain, uh, real briefly, as the engine goes to

1004
01:15:04,105 --> 01:15:08,045
an any incident on a mutual aid call, yeah. We are reimbursed at

1005
01:15:08,285 --> 01:15:12,265
a hundred percent for each one of those members that leave. So the overtime costs are,

1006
01:15:12,545 --> 01:15:16,405
are, are reimbursed to the city at a hundred percent. And on top of that, the city

1007
01:15:17,095 --> 01:15:20,285
makes an administrative fee on top of that, currently 24.6%.

1008
01:15:21,595 --> 01:15:25,245
okay. But, um, uh, yeah, we can certainly give you a, a

1009
01:15:25,605 --> 01:15:29,445
detailed expenditure of every overtime category and can answer all those

1010
01:15:29,765 --> 01:15:33,765
questions for you. Yeah, I appreciate that. Definitely looking forward to the, to the breakdown. And I know

1011
01:15:34,185 --> 01:15:38,175
our officers are first in line, always signing up to helping fight,

1012
01:15:38,625 --> 01:15:42,525
uh, fires throughout the state. So thank you for, thank you for that work. And I also echo

1013
01:15:42,805 --> 01:15:46,725
the sentiments of, um, uh, colleague bush. Uh, when it comes to the mayor council

1014
01:15:47,085 --> 01:15:50,725
budget, again, it is this kind of same approach that we seem to have

1015
01:15:51,275 --> 01:15:55,245
just going off of projections year to year. And the reason I know that, that is the

1016
01:15:55,405 --> 01:15:59,405
case is because just this last year, I believe we approved, um, the mayor's

1017
01:15:59,885 --> 01:16:02,975
assistant to go from executive to management.

1018
01:16:04,185 --> 01:16:07,985
and, and that should have at least changed the preliminary budget, but

1019
01:16:08,205 --> 01:16:12,085
it didn't. And so we need to make sure that we do a zero based

1020
01:16:12,565 --> 01:16:16,445
approach. Where are we in now? Where's the actual now? And go off of that instead of going through last year's

1021
01:16:16,765 --> 01:16:19,395
and the year before. That's projection. So just the observation,

1022
01:16:20,865 --> 01:16:24,525
um, I, I dunno what page this is on, on mine, it's 11.

1023
01:16:25,225 --> 01:16:29,075
uh, I'm looking at the nutrition fund. And this

1024
01:16:29,235 --> 01:16:33,225
is a conversation that's hard for me to constantly have because

1025
01:16:33,765 --> 01:16:37,715
every time we have a difficulty in the city, and it's been, I mean, every

1026
01:16:37,875 --> 01:16:41,395
time since I've followed the city, you have about 12 years now, 13 years.

1027
01:16:42,055 --> 01:16:45,735
and we always talk about cutting programs that, uh, uh, people

1028
01:16:46,155 --> 01:16:50,075
that need the most absolutely need. And I, I go to

1029
01:16:50,195 --> 01:16:53,915
the nutrition center, uh, often and I could tell you folks are desperate

1030
01:16:54,315 --> 01:16:58,315
to just eat. And oftentimes it's their only meal, um, especially those

1031
01:16:58,675 --> 01:17:02,055
that are being delivered food. And so I would be, um,

1032
01:17:02,785 --> 01:17:06,505
very considerate of those funding, uh, of that funding. But also,

1033
01:17:07,055 --> 01:17:10,885
uh, I do have a question for staff. Have we applied for additional county grants? And are

1034
01:17:11,085 --> 01:17:12,925
there opportunities for that to happen?

1035
01:17:15,625 --> 01:17:19,605
uh, thank you council member for that. That question. I know we've talked in the past about there's a

1036
01:17:19,725 --> 01:17:23,325
potential funding with, um, like the community enhancement grant. Um, but at this point

1037
01:17:23,935 --> 01:17:27,845
we're, we're still trying to see, um, kind of like where

1038
01:17:28,005 --> 01:17:31,885
we're at with the budget and how we can kind of restrict, um, or what kind of direction we're

1039
01:17:32,205 --> 01:17:35,895
gonna get from you all. Because if we are currently going

1040
01:17:36,245 --> 01:17:40,075
forward with our current model where we're just opening it up to the rest of the county, it's, it's

1041
01:17:40,365 --> 01:17:44,235
kind of getting to be un unsustainable. And so if we were to like,

1042
01:17:44,655 --> 01:17:48,265
apply for another grant that again, restricts us to that same parameter, um,

1043
01:17:49,115 --> 01:17:53,085
then it's, it's probably not gonna help. It's probably gonna make it even worse. 'cause right now we're actually,

1044
01:17:53,585 --> 01:17:57,465
um, restricting it. We've, we didn't have a cap before and

1045
01:17:57,685 --> 01:18:01,605
now we've actually finally put in a cap for our numbers. Um, it just, I don't know if food insecurity

1046
01:18:02,165 --> 01:18:06,125
kicked in or, or if just the word got out that the food at the nutrition center is really

1047
01:18:06,405 --> 01:18:10,245
a lot better than other, um, centers . But our numbers were up to like 400

1048
01:18:10,745 --> 01:18:14,725
at one point, and that just wasn't what we budgeted. Um, so staff

1049
01:18:15,105 --> 01:18:19,045
did a good job of, of finding a, a good point to kind of like put a

1050
01:18:19,165 --> 01:18:23,125
cap at. Um, but we still are getting a lot of non-residents that are coming.

1051
01:18:23,705 --> 01:18:27,645
and so that's what we, we need to kind of figure out and get some better direct or more direction on

1052
01:18:28,105 --> 01:18:32,005
how it could look, how it could look like if we did scale it back. And if it was gonna just be for

1053
01:18:32,325 --> 01:18:35,735
residents before we go out for another grant that could tie us to be, again,

1054
01:18:36,465 --> 01:18:40,205
it could be more cost exorbitant than, um, than what we're making. 'cause most,

1055
01:18:40,515 --> 01:18:44,485
most, uh, cities that have this grant, they're not actually, I can't think

1056
01:18:44,605 --> 01:18:48,265
of a single city that is fully subsidized by this grant. Everybody has,

1057
01:18:48,705 --> 01:18:52,605
has to pay, um, as part of when you put in the grant proposal that you

1058
01:18:52,725 --> 01:18:56,685
are gonna offset some of these costs. Um, so it's a, it's a great question. I know

1059
01:18:56,805 --> 01:19:00,805
you'd actually connected us, um, with, with the community enhancement grant is potential

1060
01:19:01,625 --> 01:19:05,485
and we're still kind of waiting to see how this outcome is gonna come. Have we applied for those grants?

1061
01:19:06,145 --> 01:19:10,005
uh, no. And again, it was all based off of this direction that was coming up because we knew there could be

1062
01:19:10,165 --> 01:19:13,885
some cuts and not knowing what, what that would look like. We didn't want, again,

1063
01:19:14,345 --> 01:19:18,285
tie us to a new, um, requirement, um, if we were

1064
01:19:18,565 --> 01:19:22,475
gonna reduce, reduce our services, if that makes any sense. It doesn't. I, okay.

1065
01:19:22,785 --> 01:19:26,645
yes. Lemme just give scenario. I just give some state to not apply for county funds that would bring in revenue

1066
01:19:27,025 --> 01:19:30,925
to address a problem that we all see is only getting worse. Right. Food

1067
01:19:31,165 --> 01:19:35,045
insecurity is a regional issue. So I do think it's important for us to apply to as

1068
01:19:35,205 --> 01:19:39,205
many grants as possible. Yeah. Some of these grants though, I will say, if they have these strings

1069
01:19:39,765 --> 01:19:43,725
attached to them where we have to keep feeding more people, that's, that's where the, that's

1070
01:19:44,085 --> 01:19:47,725
where it's gonna be cost prohibitive for us to try to apply for more grants when we just can't.

1071
01:19:48,265 --> 01:19:52,125
the problem is, um, the dining room is so small, you can only, you fit

1072
01:19:52,285 --> 01:19:56,245
like a little, a little bit more than a hundred people. And to get people within just a couple of hours,

1073
01:19:56,905 --> 01:20:00,685
we really shouldn't have been serving that many people. Um, it's supposed to be a congregate

1074
01:20:01,085 --> 01:20:04,945
setting where they actually have time to sit down, enjoy a meal and socialize. Um, so,

1075
01:20:05,265 --> 01:20:08,565
so that's where the kind of the problem is. We, we can't keep getting more and more money,

1076
01:20:09,305 --> 01:20:13,245
um, without kind of having a, a little bit better direction and seeing like where we,

1077
01:20:13,405 --> 01:20:17,285
where we need to go and where we can go with, with this, uh, with this program. So I think we're

1078
01:20:17,525 --> 01:20:21,505
gonna get there very soon, this next month from your leadership and, um,

1079
01:20:21,725 --> 01:20:25,645
knowing like what it could look like different scenarios, we could definitely, at that

1080
01:20:25,805 --> 01:20:29,805
time I think we'd be ready to apply for another grant. Um, but we just kind of need to

1081
01:20:29,885 --> 01:20:33,715
know where we're headed. How long has the nutrition center been open? Do we know? Gosh,

1082
01:20:34,165 --> 01:20:38,125
I don't know. It's been over over two decades, I believe. Yeah, I would imagine. I think that sounds

1083
01:20:38,245 --> 01:20:41,565
right. It's been a long time. Yeah. And it has been a staple to our community. And so

1084
01:20:42,415 --> 01:20:46,285
again, I realize that times are tough, but times are tougher for people

1085
01:20:46,485 --> 01:20:50,125
that go there to actually get a meal. And so I, I know we had this

1086
01:20:51,125 --> 01:20:54,845
specific conversation last year, but I, I would encourage all of us, and I've been in conversations

1087
01:20:55,325 --> 01:20:59,085
with, um, county supervisor aguire to bring in some additional

1088
01:20:59,405 --> 01:21:03,385
grants. I know we all have relationships with other in, uh, uh, organizations as

1089
01:21:03,605 --> 01:21:07,205
well. But I do think it's imperative to continue to fund the program, especially

1090
01:21:07,765 --> 01:21:11,765
the delivery portion, because those are individuals, uh, that

1091
01:21:12,005 --> 01:21:15,885
are seniors that cannot drive. And oftentimes they're caring for a loved one

1092
01:21:16,355 --> 01:21:20,325
that is sick, that is old, that can't move. And so anyw who

1093
01:21:20,485 --> 01:21:24,325
I, I just wanna reiterate that real quick. Uh, um, if I may, uh, councilman rodriguez.

1094
01:21:24,805 --> 01:21:28,605
so I agree with you, especially this spirit, it just integral, I think in principle, I hope we are a city

1095
01:21:29,075 --> 01:21:32,945
that, uh, does and acts exactly how you're saying. So

1096
01:21:33,465 --> 01:21:36,535
we should protect and prioritize the most vulnerable,

1097
01:21:37,505 --> 01:21:41,435
uh, a thousand percent. And I want to make sure to protect, uh, this program as much

1098
01:21:41,725 --> 01:21:45,665
as possible. So I don't see it as a giveaway. I don't see it as charity. I, I, I do see it as

1099
01:21:45,885 --> 01:21:49,665
like very valuable for, for our city. I for me, the,

1100
01:21:50,025 --> 01:21:53,965
the nuance, like what I, from, I think the information or the data

1101
01:21:54,105 --> 01:21:56,805
or the applying the grants, I would like to know

1102
01:21:58,195 --> 01:22:01,975
whether, um, the county grant,

1103
01:22:03,225 --> 01:22:07,025
um, if in getting that, if

1104
01:22:07,305 --> 01:22:11,245
it kind of the strings that are attached, such as requiring that, that be

1105
01:22:11,445 --> 01:22:15,325
open countywide, if I'd be interested in some kind

1106
01:22:15,485 --> 01:22:19,085
of analysis from staff, if that, if that doesn't cover those costs

1107
01:22:19,745 --> 01:22:23,405
versus if it would be better to just prioritize national city. Because as much as

1108
01:22:23,765 --> 01:22:27,045
I, I do, and you know, I don't really care about these jurisdictional

1109
01:22:27,805 --> 01:22:31,725
boundaries that much, to be honest. But just with, at least for this next year or two years

1110
01:22:31,925 --> 01:22:35,925
while we're in a crisis, then at least let's narrow that to let's do

1111
01:22:36,045 --> 01:22:39,645
a study and, and see if this county funding,

1112
01:22:40,345 --> 01:22:44,205
if it really does cover the cost of expansion, if that juice is even worth the squeeze. 'cause otherwise

1113
01:22:44,465 --> 01:22:48,405
we could just, we might be able to just completely fund it in-house and, and save

1114
01:22:48,645 --> 01:22:52,225
money. And I, I would also be leery, I guess, of,

1115
01:22:52,865 --> 01:22:56,865
uh, overreliance on the county because they're going through a lot of budget issues too.

1116
01:22:57,105 --> 01:23:00,905
so I just don't even know if that even is a sustainable, uh, pot

1117
01:23:01,125 --> 01:23:05,085
of funding. I, I appreciate that. And I think those are valid points. I think my frustration

1118
01:23:05,385 --> 01:23:09,205
is considering our, uh, fiscal position, we still did not apply

1119
01:23:09,485 --> 01:23:13,445
for the grants because the idea was, hey, leave it up to council to decide whether or not

1120
01:23:13,565 --> 01:23:17,525
they want to continue to support this program. That to me, is problematic. I think if

1121
01:23:17,685 --> 01:23:21,565
there's grants available for the fiscal year, I think we should apply for them and go for them. You know, I, okay, I

1122
01:23:21,785 --> 01:23:25,645
see your point. I I agree with that. I agree with that. That makes sense. Yes, I, I agree with that. Because then,

1123
01:23:25,985 --> 01:23:29,845
and then we should apply and then, and then if we decide not to, then we

1124
01:23:30,045 --> 01:23:34,005
have our conversation, not leave money at the table. I second that. Yeah, I agree with that.

1125
01:23:34,145 --> 01:23:38,045
I'm, I'm down for the conversation. I just do think we need to take advantage as much as we can. Oh, and if I could just add one

1126
01:23:38,205 --> 01:23:41,905
thing, sorry. Council member. Yeah. Um, we did not get

1127
01:23:42,285 --> 01:23:46,225
a grant, um, like a few years ago when it was time to re-up the grant. And

1128
01:23:46,445 --> 01:23:49,905
you'll, so you'll look, you'll see, uh, fy 24, we had, um, 600,000

1129
01:23:50,765 --> 01:23:54,125
in county grants. And then the next fiscal year, fiscal year 25,

1130
01:23:54,785 --> 01:23:58,605
it drops down to 3 79. And that's because we, um, had changed in the changeover

1131
01:23:59,205 --> 01:24:03,045
in the department. And there's some confusion. They didn't get the home meal delivery,

1132
01:24:03,545 --> 01:24:06,995
uh, grant. So we're about $220,000, like from

1133
01:24:07,565 --> 01:24:11,485
fy 24 to fy 25. That is a reduction. I don't

1134
01:24:11,685 --> 01:24:15,605
know what that grant would've looked like in fy 25 'cause it should have been more. 'cause each year they

1135
01:24:15,765 --> 01:24:19,525
usually give us an increase. Um, so there is that grant that's part of the county,

1136
01:24:19,785 --> 01:24:23,605
but you, once these grants come out, it's a five year process before you can reapply again.

1137
01:24:24,185 --> 01:24:28,125
so this grant's gonna run out in 2028. So then we just need two more years to

1138
01:24:28,325 --> 01:24:32,325
get through. So right now, the home meal delivery program is totally out of outta the drill fund.

1139
01:24:32,525 --> 01:24:36,285
we don't get any, uh, county grant reimbursement, but, but most cities do get that

1140
01:24:36,965 --> 01:24:40,685
reimbursed. Um, and again, just it was a change in leadership in the department

1141
01:24:41,045 --> 01:24:44,555
here that we didn't get that grant. Um, I'm not aware of any city,

1142
01:24:45,145 --> 01:24:49,145
any agency in the county that it has any other grant, um, has

1143
01:24:49,385 --> 01:24:53,325
any other funding than what we have right now. So we have all the funding that other cities

1144
01:24:53,635 --> 01:24:57,605
have, and I'm just not familiar with any other program that's out there. And we

1145
01:24:57,725 --> 01:25:01,685
just got notified last week from the county that, not this fiscal year, but the next fiscal

1146
01:25:01,955 --> 01:25:05,865
year is when they're gonna have reduction in funding. We think that's because of changes in

1147
01:25:06,085 --> 01:25:10,005
the federal administration that had been coming for a while. Now they're finally trickle down into this, uh, federal grant.

1148
01:25:10,785 --> 01:25:14,365
um, but I hear you, sir. If we have any funding available, we'll definitely make sure,

1149
01:25:14,945 --> 01:25:18,245
uh, we're going for that. I appreciate it. We appreciate all your support. Thank you.

1150
01:25:19,115 --> 01:25:22,935
looking at another page, I believe it's page 13, uh, there

1151
01:25:23,285 --> 01:25:27,125
was a general liability insurance question. There was a concern.

1152
01:25:27,645 --> 01:25:31,485
I do echo the symptoms to my colleagues and our attorney in getting a breakdown of that.

1153
01:25:31,805 --> 01:25:35,645
I do find it important and it feel, if my numbers are correct, does

1154
01:25:35,845 --> 01:25:39,845
that look like a 50% increase, which is significant from year to year.

1155
01:25:40,265 --> 01:25:44,175
and so I think it's important to, it's not 50, but it's around 38. Okay. 38

1156
01:25:45,515 --> 01:25:48,815
. I'm not a mathematician, but it, it was a significant increase of 1.3 million.

1157
01:25:49,895 --> 01:25:53,635
so I do think it's important for us to have that broken down.

1158
01:25:54,215 --> 01:25:58,075
um, uh, can we look at, uh, the

1159
01:25:58,235 --> 01:26:01,625
vehicle replacement charge? So earlier

1160
01:26:02,325 --> 01:26:05,535
there was a discussion of not increasing

1161
01:26:07,155 --> 01:26:10,565
from last year's budget, but this is an increase in last year's budget.

1162
01:26:11,345 --> 01:26:14,845
but I have assumptions myself, but I I am only assuming.

1163
01:26:15,425 --> 01:26:18,955
so can, can you kind of, can we look into that for next, next,

1164
01:26:19,545 --> 01:26:23,405
um, budget discussion? And, and this might just be that there's

1165
01:26:23,645 --> 01:26:26,965
cycles. I I get it. But is there a reason why there's a,

1166
01:26:27,925 --> 01:26:31,665
a substantial increase? We'll, we'll have the full details in budget workshop too.

1167
01:26:32,155 --> 01:26:36,045
okay. I appreciate it. Um, and then can we go over the general

1168
01:26:36,285 --> 01:26:37,405
fund vacancy snapshot?

1169
01:26:45,605 --> 01:26:49,265
uh, um, this is also, I think a reason,

1170
01:26:49,805 --> 01:26:53,225
as my colleagues mentioned, to go into a new budgeting process

1171
01:26:53,975 --> 01:26:57,865
because we do have this idea of, you know, aspiring to

1172
01:26:58,025 --> 01:27:01,885
hire all these positions and sometimes these petition, these positions are rotating, right? So,

1173
01:27:02,365 --> 01:27:06,365
so, um, when we say, you know, uh, uh,

1174
01:27:07,125 --> 01:27:11,105
we, we project a budget deficit of x amount of millions of dollars, that's assuming that all these

1175
01:27:11,465 --> 01:27:15,305
positions are filled, but they're not filled, right? So many of these positions are open,

1176
01:27:15,895 --> 01:27:19,865
they're vacant, they're, we're constantly bringing people in, right? Because

1177
01:27:20,225 --> 01:27:23,825
we have natural turnover within the organization. And so that's something

1178
01:27:24,345 --> 01:27:27,825
that I think we need to be more considerate of when we are thinking of,

1179
01:27:28,685 --> 01:27:32,455
uh, uh, or when we're discussing, uh, our budget. Because

1180
01:27:33,375 --> 01:27:37,305
this is assuming that, that we are at 100% capacity the

1181
01:27:37,505 --> 01:27:41,425
entire time. And I look, I just looked at last year's budget. Last year's budget included 22

1182
01:27:42,825 --> 01:27:46,785
positions, right? And, and I don't know, it, it, it, it looks like the

1183
01:27:46,985 --> 01:27:50,585
same positions as last year. So I don't know how many more were added

1184
01:27:51,325 --> 01:27:55,025
and how much more was added. I think it was a total of 1 million more than last year.

1185
01:27:55,805 --> 01:27:59,665
but, um, any who, so just a, just an observation of

1186
01:27:59,865 --> 01:28:03,695
us maybe needing to go through a different process in order to account

1187
01:28:04,245 --> 01:28:08,175
for this within our unassigned general fund balance, uh, depletion.

1188
01:28:08,975 --> 01:28:12,945
because that's how it is painted to us. Like, like, we're gonna use all these

1189
01:28:13,105 --> 01:28:17,025
funds, but we're, we know we're not, right? Because we haven't last year or the year before, or the year before.

1190
01:28:17,245 --> 01:28:20,465
so I think, I think it's important to account for that. Mm-hmm.

1191
01:28:21,445 --> 01:28:25,445
um, and then can we go over the, uh, oh wait, jose, if I may, um, on,

1192
01:28:25,725 --> 01:28:29,645
on that note, like for example, and I saw this on, um, police, uh,

1193
01:28:29,865 --> 01:28:33,865
on the fy 26 adopted budget. I think I saw it on police budget. Do we, do we have an

1194
01:28:34,065 --> 01:28:38,025
assistant police chief? It's a frozen

1195
01:28:38,665 --> 01:28:41,665
position, and you guys are right, you know, looking at some of these numbers,

1196
01:28:42,845 --> 01:28:46,705
you know, there's some that, that have, I show

1197
01:28:47,145 --> 01:28:50,945
a couple of higher numbers than, than the ones that we have here. So, but yeah,

1198
01:28:51,205 --> 01:28:55,135
to, to answer your question, it's been frozen and, and paul, uh, already

1199
01:28:55,655 --> 01:28:59,525
removed that from the process. Yeah. Council member, the, I, I reviewed the

1200
01:28:59,745 --> 01:29:03,425
list and assistant police chief was frozen. Uh,

1201
01:29:03,805 --> 01:29:07,285
I also assumed we weren't gonna operate without a, uh, a city manager,

1202
01:29:07,815 --> 01:29:11,125
which is technically vacant or a city attorney, which is technically

1203
01:29:12,185 --> 01:29:16,085
vacant. So those were, uh, or director of finance, you assumed those

1204
01:29:16,285 --> 01:29:20,205
because it's, are you here the status quo and you were just being consistent with applying the

1205
01:29:20,405 --> 01:29:24,355
status quo? I, I didn't, I didn't include them on this list because

1206
01:29:24,925 --> 01:29:28,925
I assumed that we would fill the city manager. I assumed that we would fill the city. Oh, oh, I get,

1207
01:29:28,965 --> 01:29:32,845
oh, got you. Okay. So, but, but for assistant police chief, for example,

1208
01:29:33,225 --> 01:29:37,105
you dropped it off because it was, the decision was made not to include it. So

1209
01:29:37,325 --> 01:29:41,085
that, that's why it wasn't, because there's no funding, there's already no funding

1210
01:29:41,725 --> 01:29:45,725
included for the position in fy 27. Got it. Okay. So there would be

1211
01:29:45,805 --> 01:29:49,245
no savings. Great. Okay. Thank you. Thank you.

1212
01:29:49,865 --> 01:29:53,775
can we also look at the, um, unassigned general fund balance slide?

1213
01:30:01,765 --> 01:30:05,715
there we go. So, so the projected ending unassigned general

1214
01:30:05,915 --> 01:30:09,865
fund balance for fy 25, that means this june 30th,

1215
01:30:12,305 --> 01:30:15,585
that was last june, june 30th of, uh, june 30th,

1216
01:30:16,505 --> 01:30:20,235
last year, 25. Yeah. That, and that number was, uh, what was presented

1217
01:30:20,755 --> 01:30:24,375
to counsel in december. Correct. Okay. And

1218
01:30:24,975 --> 01:30:28,975
the projected ending unassigned balance by this june would be 13, but

1219
01:30:29,195 --> 01:30:32,695
we don't, I haven't seen the actuals. I know that there might've been an email go out, but

1220
01:30:34,055 --> 01:30:37,915
do we know the, the, the actual, now, the thir, the 13.1

1221
01:30:39,775 --> 01:30:43,275
is start with the 23.4, and then that,

1222
01:30:44,015 --> 01:30:47,955
uh, the le the projected deficit of 2026 is what was

1223
01:30:48,155 --> 01:30:51,935
presented to council on april 21st. Correct. That's

1224
01:30:52,355 --> 01:30:56,055
the projected deficit for the, for, uh, this current fiscal year. So

1225
01:30:56,375 --> 01:30:58,835
we project and fy 26

1226
01:31:00,455 --> 01:31:03,515
at 13.1 million, uh, unassigned fund balance.

1227
01:31:05,585 --> 01:31:09,115
okay. And then from there, the, uh, you know, just the preliminary

1228
01:31:09,975 --> 01:31:13,435
27 budget is, uh, 16.1 million mm-hmm .

1229
01:31:14,345 --> 01:31:18,035
yeah. Again, I, I think we need to have actuals for this,

1230
01:31:18,465 --> 01:31:22,095
because I'm looking at, for example, last year's

1231
01:31:23,265 --> 01:31:26,675
projections. I'm looking at last year's budget that was presented to us

1232
01:31:27,335 --> 01:31:30,835
may 8th. And, and the nu numbers are very similar

1233
01:31:31,455 --> 01:31:34,875
to projections. Um, it also states we're having

1234
01:31:35,955 --> 01:31:39,835
a $8 million deficit for the next projected

1235
01:31:40,355 --> 01:31:44,335
year and a $3.3 million deficit for that fiscal year. But, but

1236
01:31:44,555 --> 01:31:48,055
that fiscal year was not a 3.3 budget deficit. And,

1237
01:31:48,695 --> 01:31:52,635
and I wanna see the actuals, you know, because I, I don't believe to,

1238
01:31:53,755 --> 01:31:57,535
I don't believe this actual number, because that has not been historically the case in our city. So

1239
01:31:59,435 --> 01:32:02,645
council member, are you referring to the 25 actuals? Correct.

1240
01:32:03,545 --> 01:32:05,995
uh, that, that is still unaudited? Yep. Okay.

1241
01:32:08,235 --> 01:32:12,185
well, I, I do think it's important for us to, to, to look at, at

1242
01:32:12,475 --> 01:32:16,445
actuals because we make, um, a lot of projections. And look,

1243
01:32:16,685 --> 01:32:20,685
I've been following the city for 12, 13 years now, and it's been the

1244
01:32:20,805 --> 01:32:24,745
same conversation over and over and over again. And, you

1245
01:32:24,965 --> 01:32:28,885
know, I think, I think it, um, uh, it just leads to

1246
01:32:29,045 --> 01:32:32,645
a sense of frustration because it, it comes from a perspective that I think is like a scarcity

1247
01:32:33,085 --> 01:32:37,045
mentality that seeps into every one of our departments. So we feel like the

1248
01:32:37,165 --> 01:32:41,165
money's gonna be gone, and then we should actually fight for a position because we want

1249
01:32:41,365 --> 01:32:45,245
to fill it, and then we leave that position open for years because we think there's not gonna

1250
01:32:45,405 --> 01:32:49,405
be any revenue. I think it's, I think it's really an approach that we have towards our city

1251
01:32:49,795 --> 01:32:53,445
that makes it very difficult for us to continue to operate. And I think we need to

1252
01:32:54,035 --> 01:32:57,965
have a new approach to look at our budget, seeing actuals, seeing what

1253
01:32:58,165 --> 01:33:01,705
we actually need going forward, uh, and budget accordingly and,

1254
01:33:02,385 --> 01:33:06,365
and, uh, and, and make the decisions, have those conversations. But there, there's just a

1255
01:33:06,635 --> 01:33:09,965
deep frustration with the process that has continued over, over the last

1256
01:33:10,905 --> 01:33:14,645
decade. And, and I understand the need for us to be conservative when it comes to our budgeting,

1257
01:33:15,345 --> 01:33:19,345
and oftentimes projections are, are, when it comes to revenue, are much higher. But,

1258
01:33:19,745 --> 01:33:23,605
um, at the same time, we need to be realistic as we're making decisions, because

1259
01:33:24,765 --> 01:33:27,925
I don't believe the point of a government is to just continue to have

1260
01:33:28,965 --> 01:33:32,905
humongous reserve balances and not utilize them for community when our

1261
01:33:33,125 --> 01:33:37,065
community needs them. So an example of that playing out now, right? It,

1262
01:33:37,305 --> 01:33:41,265
it, you know, I get it. We need to constantly, uh, fight to, to

1263
01:33:41,485 --> 01:33:45,445
save money, but, but it's difficult for me to make that moral argument when there's

1264
01:33:45,685 --> 01:33:49,545
people that are struggling to make ends meet, that wanna go to the nutrition center and

1265
01:33:49,765 --> 01:33:53,625
get a meal, and we're saying, no, we don't have money for you. Right? That is the

1266
01:33:54,075 --> 01:33:57,265
kind of, um, um, what is it called? Um,

1267
01:33:58,275 --> 01:34:02,045
kind of ethical conundrum that I deal with, right? So we need

1268
01:34:02,325 --> 01:34:05,765
to make sure that we try to take care of everybody in our city, and that means having the actual

1269
01:34:06,715 --> 01:34:09,505
numbers for us as we go forward. Um,

1270
01:34:11,105 --> 01:34:14,805
that's it. Those are all my comments. Thank you, mayor. Follow through? Yes. Thank you, mayor.

1271
01:34:15,545 --> 01:34:19,445
um, I have touched the expenditures. Um, for my first comment,

1272
01:34:20,245 --> 01:34:24,125
I would like to delve on the revenue right now. Um, you know, for

1273
01:34:24,325 --> 01:34:28,275
the other revenues that are, um, um, here,

1274
01:34:29,205 --> 01:34:32,865
I have requested the manager to have a breakdown of it. Um,

1275
01:34:33,505 --> 01:34:37,355
you know, I mean, and define, you know, I mean, um, this,

1276
01:34:37,795 --> 01:34:41,705
this, uh, revenue, um, uh, generating, um,

1277
01:34:42,605 --> 01:34:45,905
programs that we have. Mm-hmm. Um, I would also like to see,

1278
01:34:46,745 --> 01:34:50,505
you know, I mean the other services, um, like our

1279
01:34:51,145 --> 01:34:55,005
towing services, our land rental income, I think

1280
01:34:55,165 --> 01:34:58,705
those are the assets that we have, um,

1281
01:35:00,065 --> 01:35:04,005
to revisit. Um, because we know

1282
01:35:04,275 --> 01:35:07,985
that, um, there are opportunities there that we can,

1283
01:35:08,475 --> 01:35:11,945
that we can, um, benefit from, um, the

1284
01:35:12,765 --> 01:35:16,725
overtime reimbursement. Um, you know, I mean, that was defined last time, hopefully

1285
01:35:17,705 --> 01:35:21,585
can be defined, um, better. This, this school district, um,

1286
01:35:22,505 --> 01:35:25,905
uh, 408, this is ncpd. Um, so

1287
01:35:26,895 --> 01:35:30,105
these are the two school resource officers that, um,

1288
01:35:31,025 --> 01:35:34,825
you know, I mean, basically it's coming through the, uh,

1289
01:35:35,045 --> 01:35:38,965
general fund, but it's really, you know, I

1290
01:35:39,085 --> 01:35:43,045
mean, expensed by the pd because it's paid for by the

1291
01:35:43,165 --> 01:35:46,875
school district. So, um, I don't wanna touch that

1292
01:35:47,395 --> 01:35:50,855
away from the pd because we need those, um, those

1293
01:35:51,725 --> 01:35:55,535
resource officers. I'd like to delve onto the, uh, other

1294
01:35:55,965 --> 01:35:59,515
revenues more defined, please. And I would like to request,

1295
01:36:00,345 --> 01:36:04,065
um, city manager, I failed to request this from you earlier. Um,

1296
01:36:04,385 --> 01:36:08,275
all our enterprise funds, uh, that we have, uh, that covers vehicle

1297
01:36:09,075 --> 01:36:13,005
replacement, um, all the funds that we have, uh, I

1298
01:36:13,125 --> 01:36:17,025
know that we have those, I know these are all reflected via the,

1299
01:36:17,265 --> 01:36:20,985
uh, general fund, but I know that we have other, um,

1300
01:36:21,575 --> 01:36:25,485
enterprise funds that covers, um, you know, I mean those,

1301
01:36:25,815 --> 01:36:29,615
those other, um, like for example, there are staff

1302
01:36:30,155 --> 01:36:34,005
that are covered through hud. Um, you know, those are funds that we have. They're

1303
01:36:34,405 --> 01:36:37,945
called enterprise funds. That, that we can, why

1304
01:36:38,545 --> 01:36:42,205
do we not have this here? Because it's covered by this.

1305
01:36:42,845 --> 01:36:46,765
I think those will you, I mean, will make my colleagues here

1306
01:36:47,135 --> 01:36:50,845
understand where those funds are coming from. So if you will just,

1307
01:36:51,265 --> 01:36:55,125
um, uh, break down or identify all the funds that

1308
01:36:55,425 --> 01:36:59,425
we have within the city, so then they know that, or, or

1309
01:36:59,645 --> 01:37:03,525
we all know that we have some funds, like you said, oh, we need two,

1310
01:37:03,745 --> 01:37:07,245
we need 675 or 2.2 million for library.

1311
01:37:08,145 --> 01:37:12,085
but there is a library fund that is, um, covering

1312
01:37:12,245 --> 01:37:15,925
some of those. And I think identifying those and what is the,

1313
01:37:16,315 --> 01:37:20,165
what is the number, um, currently as of, you know, I mean,

1314
01:37:20,725 --> 01:37:23,255
whatever it is, you know, I mean, report as of march 31st,

1315
01:37:24,795 --> 01:37:28,465
then we will have an idea, um, on how we can,

1316
01:37:28,825 --> 01:37:31,065
um, you know, I mean, we can, um,

1317
01:37:32,965 --> 01:37:36,115
allocate some other funds, um, towards the general fund.

1318
01:37:36,985 --> 01:37:40,565
um, I, I, uh, I have all those.

1319
01:37:41,085 --> 01:37:44,345
I think, um, you know, I'm in city manager and

1320
01:37:45,195 --> 01:37:48,845
city attorney had, um, you know, I mean, received

1321
01:37:49,305 --> 01:37:53,275
all my, um, all my requests, um, with

1322
01:37:53,565 --> 01:37:57,545
regards to those, um, breakdowns and, and,

1323
01:37:57,905 --> 01:38:01,505
um, definition, um, to, to,

1324
01:38:01,945 --> 01:38:05,825
um, to, for, for all this revenue to be defined. Um,

1325
01:38:06,865 --> 01:38:10,745
um, so then it will be, um, clearer. And then we, we

1326
01:38:10,965 --> 01:38:14,765
can be, you know, I mean, there is no questions. Thank you, mayor.

1327
01:38:16,655 --> 01:38:20,545
thank you, mayor. Uh, quick question. Is there a reason why the, uh,

1328
01:38:20,765 --> 01:38:23,525
potential revenue opportunities page wasn't included on this presentation?

1329
01:38:24,845 --> 01:38:28,845
I think it was for last time. I can speak to that.

1330
01:38:29,065 --> 01:38:32,915
so this is an iterative approach. So the whole idea

1331
01:38:33,385 --> 01:38:37,125
of having two budget workshops is to get a big picture of our projected

1332
01:38:37,685 --> 01:38:41,645
expenditures and revenues. And then the second budget workshop is gonna be

1333
01:38:41,845 --> 01:38:45,785
a deeper dive into these revenue initiatives and opportunities. Um,

1334
01:38:46,185 --> 01:38:49,965
you know, one of the things I want to clarify is, you know, over

1335
01:38:50,385 --> 01:38:54,125
the, the previous months and weeks, uh, you know, your finance

1336
01:38:54,555 --> 01:38:58,545
team has done an excellent job working with the individual departments to

1337
01:38:58,765 --> 01:39:02,325
address and ultimately present what you will see at the next budget

1338
01:39:03,005 --> 01:39:06,925
workshop. A lot of what you're asking for, so I I, I just want to, I, I

1339
01:39:07,045 --> 01:39:10,905
want to clarify that, um, this was, uh,

1340
01:39:11,265 --> 01:39:15,025
an initial budget workshop. We didn't want to come to you with 50 slides

1341
01:39:15,515 --> 01:39:19,445
that covered every single account that the city has access to. So, as an

1342
01:39:19,645 --> 01:39:23,415
example, um, part of what the staff are looking at department

1343
01:39:24,085 --> 01:39:28,075
by department is how are we using to council member yi's,

1344
01:39:28,365 --> 01:39:31,255
uh, question, um, some of our enterprise funds,

1345
01:39:32,385 --> 01:39:36,265
um, and how do we maximize the use of those funds to offset,

1346
01:39:37,385 --> 01:39:41,165
uh, general fund expenditures? So I'll just give an example. Like, if we look at

1347
01:39:41,445 --> 01:39:45,405
a maintenance worker on our sewer crew, a hundred

1348
01:39:45,605 --> 01:39:49,525
percent of, of, of their salary and es is funded through the sewer enterprise

1349
01:39:49,955 --> 01:39:53,725
fund. So we have asked staff to go back and revisit that, whether

1350
01:39:54,075 --> 01:39:58,045
it's housing, whether it's, it's our, our sewer fund that is

1351
01:39:58,275 --> 01:40:01,745
part of, when we talked about a strategic approach. Um,

1352
01:40:02,505 --> 01:40:06,425
we have to revisit that and make sure what, if there is a position in

1353
01:40:06,645 --> 01:40:10,575
the city, maybe there's an operational shift where

1354
01:40:10,925 --> 01:40:14,785
now we can justify using 50% of that staff salary to

1355
01:40:15,005 --> 01:40:18,485
one of these enterprise funds. So what you guys are gonna get at the next budget

1356
01:40:19,045 --> 01:40:22,015
workshop is each one of our directors are gonna present about their department.

1357
01:40:23,145 --> 01:40:27,125
and in mr. Pachecos case, he, he's responsible for overseeing the

1358
01:40:27,245 --> 01:40:29,875
nutrition center operations. He's gonna give you options.

1359
01:40:31,345 --> 01:40:35,025
um, and I can assure you that what they are looking at are,

1360
01:40:35,785 --> 01:40:39,725
um, right sizing services to the community. So we don't have to cut services.

1361
01:40:40,435 --> 01:40:43,765
they are, each department is always looking at grant opportunities.

1362
01:40:45,265 --> 01:40:49,085
and, um, part of that, as mr. Pacheco said is, are there restrictions

1363
01:40:49,665 --> 01:40:53,490
or are some discretionary where we should be aggressively getting after funding?

1364
01:40:54,085 --> 01:40:57,685
'cause there aren't restrictions. We will be working with the departments on those.

1365
01:40:58,305 --> 01:41:02,165
um, you know, again, as we move through the budget process. But a lot has already

1366
01:41:02,405 --> 01:41:06,365
started, um, over the last couple months. And I think a lot of your

1367
01:41:06,725 --> 01:41:10,325
questions will get answered at this second budget workshop. I, I appreciate

1368
01:41:10,765 --> 01:41:14,625
that. And, um, one of the things I would be interested in

1369
01:41:14,845 --> 01:41:18,705
knowing is which ones of these fees are insourcing or,

1370
01:41:19,105 --> 01:41:22,915
or quote unquote taxes or economic development, which ones are these are able

1371
01:41:23,225 --> 01:41:27,205
to occur through, um, uh, council directive and which ones would

1372
01:41:27,365 --> 01:41:31,205
have to go through a ballot initiative? Um, and then,

1373
01:41:31,745 --> 01:41:35,565
you know, if we can commit to working on some of those or prioritize some of those,

1374
01:41:35,805 --> 01:41:39,085
I think that would be, that would be good for us as well. Thank you.

1375
01:41:44,145 --> 01:41:48,125
I'm sorry. There it is. Uh, couple of things. Uh, one of the things that was talked about was on

1376
01:41:48,325 --> 01:41:52,245
zero based approach. And I, I would like to see eventually, uh, for staff

1377
01:41:52,525 --> 01:41:56,475
to come back with a concept of that, uh, realistically,

1378
01:41:57,345 --> 01:42:00,605
we really can't consider that for this one. Uh, I mean, we gotta present

1379
01:42:01,405 --> 01:42:05,265
a, a balanced budget and a whole budget next month. And so,

1380
01:42:05,865 --> 01:42:09,805
uh, that's just kind of impossible to completely change our, uh, the whole format

1381
01:42:10,185 --> 01:42:14,045
within that shorter period of time. Um, but as say, I think we ought to be looking at

1382
01:42:14,245 --> 01:42:17,765
that policy for this next fiscal year and, and because it's gonna take a lot of preparation

1383
01:42:18,425 --> 01:42:22,085
to get to take a look and see if we want to take that approach and then to take that approach.

1384
01:42:22,545 --> 01:42:26,345
why mayor? Huh? Why, why are you answering for them? Why

1385
01:42:26,565 --> 01:42:30,505
am I answering them? Yes. Why are you answering for the, uh, finance finance? Um, I'm

1386
01:42:30,725 --> 01:42:34,565
not answering though. I'm answering for me. No, we're you're saying that we cannot do a zero approach right now

1387
01:42:34,785 --> 01:42:38,325
if you have the actual yes, you can. That's the direction that the city manager

1388
01:42:38,835 --> 01:42:42,635
will have to make. Okay. I'm gonna, city manager's got his hand up and then I'm gonna go back. Okay.

1389
01:42:43,495 --> 01:42:46,915
again, I think there's a misconception

1390
01:42:47,835 --> 01:42:51,805
that as part of our process, they're not looking at actuals. They absolutely

1391
01:42:52,085 --> 01:42:56,025
are looking at actuals. Yes, we have actuals through third quarter now. And,

1392
01:42:56,465 --> 01:43:00,345
uh, again, I'll use the staff vacancy slide, um, as

1393
01:43:00,565 --> 01:43:04,565
an example. Um, there's about 4 million, at least in that snapshot,

1394
01:43:04,915 --> 01:43:08,765
$4 million that is currently in the budget that is presented

1395
01:43:09,205 --> 01:43:13,025
to you tonight. Assuming all those get filled again, um,

1396
01:43:13,665 --> 01:43:17,545
you're starting to, um, take a more str we

1397
01:43:17,765 --> 01:43:21,645
are taking a more strategic look so that when we come back to you at the next budget workshop,

1398
01:43:22,565 --> 01:43:26,385
I can tell you there, some of these are going to be recommended to be frozen. And

1399
01:43:26,605 --> 01:43:29,595
now you are going to see how that, uh, reduces

1400
01:43:30,625 --> 01:43:34,085
the impact to the general fund. Mm-hmm . So give us that opportunity to second

1401
01:43:34,685 --> 01:43:38,545
workshop. I do think we're making progress towards getting our

1402
01:43:38,765 --> 01:43:42,585
budget process to where you want to see it go. And I, I do believe you're

1403
01:43:43,005 --> 01:43:46,445
gonna see a lot more detail in, in, in a strategic approach

1404
01:43:47,475 --> 01:43:51,345
with numbers to show how we start to reduce, um,

1405
01:43:51,635 --> 01:43:55,605
what I know you're considering to be a conservative budget by taking a deep dive

1406
01:43:55,955 --> 01:43:59,395
into services, into vacancies and then into,

1407
01:43:59,985 --> 01:44:03,965
um, more realistic revenues that we may actually be able to

1408
01:44:04,125 --> 01:44:07,705
get within the next 12 months. Yep. Yep. Um,

1409
01:44:08,475 --> 01:44:12,445
yeah. And as I say, the workload is gonna be heavy over these next few weeks. And plus

1410
01:44:12,725 --> 01:44:16,705
we got a few other things on our agendas and meetings, uh, including, you

1411
01:44:16,925 --> 01:44:20,505
know, city manager interviews and all these other fun, fun things. Uh, so

1412
01:44:21,355 --> 01:44:25,035
it's gonna be a jam packed few, few weeks in the next couple weeks. Um, another

1413
01:44:25,525 --> 01:44:29,525
thing is when we, you know, there's been a lot of discussion about overtime. If we

1414
01:44:29,685 --> 01:44:33,585
are wanting to see overtime by department, what I would like to see is what are

1415
01:44:33,805 --> 01:44:37,805
the reimbursements, in other words, for total amounts. Uh, and, and

1416
01:44:38,005 --> 01:44:41,965
so, so in other words, if you say, I'll just say million dollars in overtime, well, how much of that million

1417
01:44:42,165 --> 01:44:46,125
dollars that total amount was reimbursed, uh, and I'll use the example

1418
01:44:46,965 --> 01:44:50,475
'cause everyone keeps wanting to, the fire's kind of a complicated one, but I'm gonna use july 4th.

1419
01:44:52,275 --> 01:44:55,925
july 4th, we have police and park and, and, uh, public works on overtime.

1420
01:44:56,955 --> 01:45:00,805
well, that's in their budget. And so, but how much, how much

1421
01:45:00,965 --> 01:45:04,805
was that re how much of that was reimbursed so that we see, um, you know,

1422
01:45:05,005 --> 01:45:08,965
what the actual cost was to the city? And I think that's what

1423
01:45:09,085 --> 01:45:12,525
we really want to get to the, uh, and mayor, I, I think that's a great, uh, example.

1424
01:45:13,145 --> 01:45:16,885
and if I may jump in on that, and that's where there is the more difficult

1425
01:45:17,365 --> 01:45:21,095
conversation that's gonna take, I think more time is so, so in those

1426
01:45:22,005 --> 01:45:25,785
overtime things that we know are coming, do they have to be overtime? So can our pd,

1427
01:45:26,195 --> 01:45:30,185
whether it's fire, whether it's public works, I don't care which department it is, where can

1428
01:45:30,405 --> 01:45:34,005
you shift staff around instead of just the expectation of overtime,

1429
01:45:34,495 --> 01:45:38,435
where can be, there can be, um, staff adjustments,

1430
01:45:39,325 --> 01:45:42,865
enhancements. We used to have, um, a really strong senior patrol.

1431
01:45:43,345 --> 01:45:45,965
we used to have more of a

1432
01:45:48,305 --> 01:45:52,105
cadets that were kind of enhancing that. Maybe it's existing staff. So how can we be

1433
01:45:52,645 --> 01:45:56,265
creative about that? Like, again, that's where I'm really looking for in that second

1434
01:45:56,925 --> 01:46:00,845
workshop to kind of, that's why I would like to see those, those details. And there's a cost of those things

1435
01:46:01,115 --> 01:46:05,025
also. And, but still, but it's still at the same time, um, you

1436
01:46:05,245 --> 01:46:09,065
know, we don't wanna say, okay, shall we say public works? Public works. You come spend so many hours and

1437
01:46:09,285 --> 01:46:13,165
july 4th, so during the week, don't do your work here. And so you, so we're

1438
01:46:13,365 --> 01:46:17,085
gonna do work for an outside, for another group, you know, we have to be careful, you know, what our primary

1439
01:46:17,555 --> 01:46:20,645
core mission is. And then when we step outside of that core mission,

1440
01:46:21,825 --> 01:46:25,485
and then we charge others, you know, if we're doing something for, for another group, right?

1441
01:46:25,905 --> 01:46:29,865
or it's like, maybe we don't need to cut the grass this week in this particular area. So

1442
01:46:30,085 --> 01:46:34,065
I'm, I'm I, that's so just staff. So staff knows that's the kind of level of

1443
01:46:34,285 --> 01:46:38,255
micro level that I would like you guys to go into. Like where, where

1444
01:46:38,705 --> 01:46:42,525
can, where, where can there be creative, uh, solutions there also? Yeah,

1445
01:46:42,785 --> 01:46:46,645
we do have de uh, developer impact fees. Diffs, our primary

1446
01:46:47,185 --> 01:46:50,925
one is the one that we just increased, which was per housing unit or over $3,000

1447
01:46:51,705 --> 01:46:55,705
per housing unit. If they're not affordable, affordable doesn't pay that. Uh,

1448
01:46:55,925 --> 01:46:59,905
if they're not affordable, then you get, uh, over $3,000. But that money is

1449
01:47:00,175 --> 01:47:03,525
designated for increased capacity on regional arterials.

1450
01:47:05,005 --> 01:47:08,985
it is very specific in the, in the law. And so we can't just touch

1451
01:47:09,265 --> 01:47:13,165
that for something else. So we have to look at, you know, what, uh, what strings there are on

1452
01:47:13,385 --> 01:47:17,335
these different pots of money, uh, each for every one of them as we go through this. Another

1453
01:47:17,825 --> 01:47:21,765
thing, we talk about the ups and downs over the last, uh, 10, 12 years. And

1454
01:47:21,985 --> 01:47:25,945
we've always had these budgets, which are high, and then we come

1455
01:47:26,105 --> 01:47:30,095
in where we spend a lot less. But we have to realize this

1456
01:47:30,385 --> 01:47:34,225
budget that we've looked at for this last year, 25, 26, and now going

1457
01:47:34,495 --> 01:47:38,415
into this year, is different than any of those other budgets. Why? Because

1458
01:47:39,005 --> 01:47:42,865
of that big swing that was going on. The one big variable we have in like this

1459
01:47:43,065 --> 01:47:46,685
year's budget, the one we're currently in, and this one coming up is,

1460
01:47:47,165 --> 01:47:51,135
is those, uh, oh, the, uh, vacancies that

1461
01:47:51,425 --> 01:47:55,385
we know is a swing, but the one we had in there before was cip.

1462
01:47:55,935 --> 01:47:59,545
that was the huge one. So we had cip included,

1463
01:47:59,965 --> 01:48:03,905
we might have a $3 million cip project, and this year we're only

1464
01:48:04,025 --> 01:48:07,945
doing the, uh, some engineering work. So we only might only spend

1465
01:48:08,665 --> 01:48:12,565
a half a million dollars of that $3 million. That means we saved two and a half million dollars. No,

1466
01:48:12,785 --> 01:48:16,745
we didn't save anything. It falls over to the next year. And so now we've taken

1467
01:48:16,985 --> 01:48:20,585
cip out of this, out of this current f 25, 26 budget

1468
01:48:21,765 --> 01:48:25,745
and 26 27 budget, and the ongoing budgets, cip is no longer in there.

1469
01:48:26,445 --> 01:48:30,385
so to say that we had those big swings, look at those years, and so therefore that's gonna

1470
01:48:30,505 --> 01:48:34,385
happen. Now we're, we're giving the wrong information to the public and we need to be careful

1471
01:48:34,585 --> 01:48:38,545
in how we do that. Um, the, uh, so what kind

1472
01:48:38,705 --> 01:48:42,425
of information, mr. Mayor, that giving not right to the public?

1473
01:48:43,215 --> 01:48:46,665
what kind, what I just, what kind of wrong information are we providing

1474
01:48:47,285 --> 01:48:50,625
to the public? 'cause I don't like that statement. Okay. We are not providing

1475
01:48:51,705 --> 01:48:55,315
anything that is wrong to the public. That's why we are here, right?

1476
01:48:55,725 --> 01:48:59,665
we are giving direction like most especially to our city manager.

1477
01:49:00,485 --> 01:49:04,185
so then he can direct all this to the directors, so then we can

1478
01:49:04,495 --> 01:49:08,315
provide the correct information. So please don't

1479
01:49:08,665 --> 01:49:12,625
say that we're not providing, that we are providing wrong information to the public. Okay? If you're

1480
01:49:12,825 --> 01:49:16,815
finished, I just explained it, but I guess you didn't hear me, is that when

1481
01:49:17,105 --> 01:49:21,065
we state that in those years, 10 to 12, 15, 20 years, in the last 20 years

1482
01:49:21,635 --> 01:49:25,565
we've had these big swings. The difference between what the budget ends is

1483
01:49:25,785 --> 01:49:29,465
because we had cip in there, we've taken cip out of there.

1484
01:49:30,685 --> 01:49:33,425
so to, to put the claim is that to 25, 26.

1485
01:49:35,165 --> 01:49:38,935
and the 26 27 budget is the same as those other budgets. It's

1486
01:49:39,225 --> 01:49:43,165
not, it's widely different. So, so that big variable is taken out.

1487
01:49:43,385 --> 01:49:47,125
the big variable we still have left in this budget right now as it exists,

1488
01:49:48,225 --> 01:49:52,125
is that right there, the va vacancy rate, we know that's there because we're, if we are

1489
01:49:52,245 --> 01:49:56,245
budgeting for a certain number of positions, we have to increase, we have to include those

1490
01:49:56,445 --> 01:50:00,425
into the budget. Our question is, which one do we, are we really gonna do? And

1491
01:50:00,645 --> 01:50:04,605
therefore should they be frozen or not? What the deal? But otherwise we're given out that bad information.

1492
01:50:05,075 --> 01:50:08,645
mary, I, mary, I think that, so I think what you're referring to is earlier,

1493
01:50:09,825 --> 01:50:13,805
um, I, I think jose said that, uh, he was

1494
01:50:14,005 --> 01:50:17,925
talking about the swings in budgets. What I, I don't know that he was talking about that.

1495
01:50:18,165 --> 01:50:21,985
I can't assume, but I, when I heard that, I was thinking of

1496
01:50:22,585 --> 01:50:26,475
the swing and when the actuals come in versus what

1497
01:50:26,765 --> 01:50:30,325
we're budgeted for, um, on the, um, revenue and the expenditure

1498
01:50:30,885 --> 01:50:34,705
side. Like I've seen swings in that. So for me, that was what I think, um,

1499
01:50:35,385 --> 01:50:39,365
my colleagues were, were talking about. At least that's what I was referring to, the cap not being there.

1500
01:50:39,665 --> 01:50:43,445
you're right that that does, um, that's been, that's

1501
01:50:43,805 --> 01:50:47,685
been fixed. So that's not gonna be, but that's not gonna be an issue moving forward. So, but that was the, that was the big part of

1502
01:50:47,845 --> 01:50:51,765
the increase in revenue that we, that we showed that we weren't expending. That was

1503
01:50:51,995 --> 01:50:55,885
some of it. It wasn't so that gone, it wasn't all of it. It was some of it, it, but not because most of our,

1504
01:50:56,035 --> 01:50:59,505
most of our cis there's some nuance there. I think there's some nuance. That's why our public

1505
01:51:00,365 --> 01:51:04,285
directors in city engineer had only requested for a million to provide

1506
01:51:04,745 --> 01:51:08,715
for those, uh, those, uh, minor, uh, matches. But most

1507
01:51:09,025 --> 01:51:12,665
of our projects, that's why I recommended to re to

1508
01:51:13,125 --> 01:51:16,725
separate cip from our general fund. So then our general fund is not to,

1509
01:51:17,385 --> 01:51:21,385
um, you know, infringed. So, you know, I mean, I see the,

1510
01:51:21,705 --> 01:51:25,705
the swing, if you wanted me to use that word, you know, I mean to, to,

1511
01:51:26,225 --> 01:51:30,125
uh, start with the zero base because of all these vacancies that has

1512
01:51:30,325 --> 01:51:34,225
been there. Um, you know, I mean five or more years ago. So, um,

1513
01:51:34,825 --> 01:51:38,565
you know, I mean, that, that is my comment there. Okay. Alright, mr. Mayor,

1514
01:51:38,925 --> 01:51:42,845
I, I usually wouldn't comment on this, but I mean, you really didn't have to make this political.

1515
01:51:43,325 --> 01:51:47,325
I mean, I remember 12 years ago sitting on, in the

1516
01:51:47,445 --> 01:51:51,345
public listening to you say the same thing over and

1517
01:51:51,565 --> 01:51:55,475
over and over again, and it is an excuse why to then keep

1518
01:51:56,425 --> 01:52:00,405
our employees wages stagnant over and over and over again. And

1519
01:52:00,565 --> 01:52:03,715
that's the reason why many of our employees were 15, 20% underpaid

1520
01:52:04,705 --> 01:52:08,685
for market value, which is ridiculous. I kept hearing about un unassigned general fund balance

1521
01:52:08,995 --> 01:52:12,045
depletion in a few years, 12 years ago, same conversation

1522
01:52:13,105 --> 01:52:16,985
and big businesses still operate in our city without paying their fair share and

1523
01:52:17,265 --> 01:52:21,125
no action on that. This kind of feeling of just stagnation in

1524
01:52:21,325 --> 01:52:24,805
our city that it, it makes it very difficult to sit through these conversations.

1525
01:52:25,425 --> 01:52:29,385
I'm trying to mind my business, but there's really no need to, to, to do that, mayor. So

1526
01:52:29,965 --> 01:52:33,885
I do, I do have to say that. And, and we really need to get away from the scarcity mindset and need

1527
01:52:34,165 --> 01:52:38,085
to get to work to make sure that we bring in resources so we can take care of our employees and our community alike.

1528
01:52:38,375 --> 01:52:42,205
thank you. Okay. You, you were hearing 12 years ago, me saying that

1529
01:52:42,405 --> 01:52:45,765
cip needs to be separate because it was giving us an un real expectation,

1530
01:52:46,985 --> 01:52:50,765
and you heard that then you're hearing it now. And so we can't use those

1531
01:52:51,075 --> 01:52:53,625
excuses now. Then the, uh,

1532
01:52:55,825 --> 01:52:59,645
as we look toward our next, our, our next one, I would hope a number of things

1533
01:53:00,485 --> 01:53:04,265
I would hope that we would take a look at kind of, uh,

1534
01:53:04,905 --> 01:53:08,745
as, as I would see it, and we'll see the rest, council agrees, three different concepts. One,

1535
01:53:08,965 --> 01:53:12,765
what we can do in the fairly immediate future. I'm talking about right

1536
01:53:13,005 --> 01:53:16,965
now in this budget, what we can do in the midterm and then what we need to look at long

1537
01:53:17,245 --> 01:53:21,205
range and 'cause I think those are three different things. And a lot of times we start looking at the long

1538
01:53:21,365 --> 01:53:25,205
range actually, if that's gonna have an effect right now when it's not. So if we can

1539
01:53:25,475 --> 01:53:28,805
look to see what kind of, what kind of effect we can have in those different areas

1540
01:53:29,785 --> 01:53:33,545
and, uh, because there's, I think there's a lot of different both, um,

1541
01:53:34,845 --> 01:53:38,645
challenges, but also some opportunities in each one of those if's, especially

1542
01:53:39,005 --> 01:53:42,425
if we don't confuse the three different categories. And, uh,

1543
01:53:43,665 --> 01:53:47,565
so, uh, so I know that we're looking

1544
01:53:47,685 --> 01:53:51,665
at scheduling right now for a second workshop. We don't have an actual date yet.

1545
01:53:52,225 --> 01:53:56,165
as I'm looking, I know that shelly was putting out stuff, trying to

1546
01:53:56,285 --> 01:53:59,965
get, uh, dates from everybody. Uh, 'cause I know we're working around a lot of things.

1547
01:54:00,705 --> 01:54:04,565
we had, we had a special meeting last friday. We had all day special meeting

1548
01:54:05,205 --> 01:54:09,045
saturday. Here we are today having a special meeting. We got council meeting tomorrow. So yeah, there's

1549
01:54:09,325 --> 01:54:13,325
a lot of meetings. So we're trying to work around these schedules to get, and we got a very short time period to

1550
01:54:13,485 --> 01:54:17,305
get, make all this, make all this happen. Uh, so unless

1551
01:54:18,035 --> 01:54:20,165
look to the city manager, unless there's any, uh, closing comment.

1552
01:54:22,995 --> 01:54:26,965
okay, counsel. Uh, so I, so I appreciate

1553
01:54:27,365 --> 01:54:31,325
staff and, and my colleagues for the, uh, the debate. We need to debate and we

1554
01:54:31,445 --> 01:54:35,405
have different ideas and approaches to things. And I think, uh, this is a level

1555
01:54:35,795 --> 01:54:39,605
that, um, in the past that we haven't gotten into, and I think we do

1556
01:54:39,805 --> 01:54:43,625
because we need to understand, like I, I'm really proud of what we did as

1557
01:54:43,845 --> 01:54:47,825
a body, um, increasing everyone across the board, um,

1558
01:54:48,655 --> 01:54:52,545
their, uh, their wages and bringing everyone up to the median and then having, you

1559
01:54:52,765 --> 01:54:56,545
know, 5% consistent across the board, not treating one group differently than the other across

1560
01:54:56,965 --> 01:55:00,825
the board. 5%, 5%, 5%. And I'm really proud that we did that. And

1561
01:55:01,045 --> 01:55:04,985
there's a cost to it and we're seeing what this cost is, and hopefully all of the

1562
01:55:05,525 --> 01:55:09,505
employee groups, and I think they did understand what, what that is. And so now I think it's really an

1563
01:55:09,725 --> 01:55:13,615
all hands on deck for every single person in this organization. Like, let's be creative, let's

1564
01:55:13,965 --> 01:55:17,615
look at, there's gonna have to be some tough conversations about efficiencies, about

1565
01:55:18,035 --> 01:55:22,025
what people are doing. I've had that starting with myself and my staff. Like even on

1566
01:55:22,245 --> 01:55:25,875
time sheets. What were you doing on your task? What, um, where's

1567
01:55:26,365 --> 01:55:29,965
the, uh, performance indicators for this? I think that's something that our organization,

1568
01:55:30,785 --> 01:55:34,205
we all, all of us across the board really need to do better on is performance indicators.

1569
01:55:34,985 --> 01:55:38,605
um, like what's our goals for this month, for this quarter?

1570
01:55:39,545 --> 01:55:43,485
um, and, and how, how we can meet those goals where, um, I

1571
01:55:43,605 --> 01:55:46,995
mean something as, um, like, uh, doing performance

1572
01:55:47,875 --> 01:55:51,645
evaluations, uh, a lot of that has fallen by the wayside. That's a measure

1573
01:55:52,065 --> 01:55:56,035
of, um, efficiency. And I'm not saying for every department, I'm just saying like

1574
01:55:56,325 --> 01:56:00,045
I, I've, I've seen it in enough departments where I think it's enough an issue where

1575
01:56:00,465 --> 01:56:04,085
we just need to collectively address it. But, um, I

1576
01:56:04,525 --> 01:56:07,955
I, I don't think it's, we don't need to panic because

1577
01:56:08,545 --> 01:56:12,205
the money is there. So that fy 27, that looks

1578
01:56:12,575 --> 01:56:16,445
scary, you know, looking at negative 2 million at the end. But we haven't spent that. That's just theoretical.

1579
01:56:16,805 --> 01:56:20,685
we're just starting. So I, I'm just really confident in our council leadership.

1580
01:56:21,425 --> 01:56:25,025
I'm confident in the leadership of all of you, our directors, uh, our

1581
01:56:25,485 --> 01:56:29,225
employees in the community. Um, so the, the public I think has

1582
01:56:29,635 --> 01:56:33,285
some ideas and suggestions like, so I think, um, if we're transparent

1583
01:56:33,935 --> 01:56:37,225
about everything that we're, we're spending our money on, um,

1584
01:56:38,505 --> 01:56:42,155
and we, we have those kind of difficult discussions about what,

1585
01:56:42,595 --> 01:56:46,565
what are the trade offs, what's the drawbacks? Like, I, I'm really, really confident we're gonna,

1586
01:56:46,825 --> 01:56:50,795
uh, balance this budget do better than we did last time. I think last last

1587
01:56:51,085 --> 01:56:55,085
cycle was the lesson. I think there's a lot of things we could have done differently as a, as a

1588
01:56:55,205 --> 01:56:59,165
council. Um, but I, I'm just really confident. I

1589
01:56:59,285 --> 01:57:02,925
feel good about this moving forward. I believe in each and every one of you. So thank you for this.

1590
01:57:04,895 --> 01:57:08,635
thank you. You know, I, I do wanna throw in my reality point here

1591
01:57:09,105 --> 01:57:13,005
is, um, I, I do agree with, um, the, I, you know, the task

1592
01:57:13,205 --> 01:57:16,985
that we are all out here to do, and that is to provide a balanced budget. Um,

1593
01:57:17,475 --> 01:57:19,885
some of the commentary up here has been difficult to swallow because

1594
01:57:21,485 --> 01:57:25,245
I do recognize that in fact, for example, our unassigned

1595
01:57:25,805 --> 01:57:29,385
fund balance at one point very recently was 23 million. Um,

1596
01:57:29,965 --> 01:57:33,425
suddenly now it is 13 million and we are actually facing the

1597
01:57:33,995 --> 01:57:37,435
real possibility that we are going to need to drain it to zero.

1598
01:57:38,385 --> 01:57:42,245
so that is a fact. You know, the, I don't

1599
01:57:42,445 --> 01:57:46,355
know the exact numbers. I think we've gone, we've belabored this point already that

1600
01:57:47,025 --> 01:57:50,845
we are going to look at the numbers. We will do that exercise, but the reality

1601
01:57:51,345 --> 01:57:55,325
is, is we had $23 million unassigned fund balance,

1602
01:57:56,065 --> 01:57:59,955
and the reality that it will come down to zero very soon

1603
01:58:01,145 --> 01:58:04,965
is a reality. So I hear you all, you know,

1604
01:58:05,335 --> 01:58:09,225
let's not think, um, what is it? Um, god,

1605
01:58:09,445 --> 01:58:13,045
the term just escaped my head. Um, no, the, uh, scarcity

1606
01:58:13,605 --> 01:58:17,165
mindset. I, I don't know what you're talking about. 'cause I am scared.

1607
01:58:17,715 --> 01:58:21,175
okay. I am scared. So let's, let's be careful with some of that commentary,

1608
01:58:21,845 --> 01:58:25,845
because we really do have to face this very real possibility. Thank

1609
01:58:26,165 --> 01:58:30,005
you. Just to , it wasn't scared mindset of scarcity

1610
01:58:30,525 --> 01:58:34,395
mindset. I know. And I play a made a play on words. Thank you. Okay.

1611
01:58:34,945 --> 01:58:36,765
it is different things though, but, okay. Thank you.

1612
01:58:39,735 --> 01:58:43,545
thank you, mayor. Um, again, thank you for the public and

1613
01:58:43,765 --> 01:58:47,525
for staff here. Um, city manager, thank you so much for, uh, being

1614
01:58:47,845 --> 01:58:51,445
patient in, uh, you know, I mean relaying those messages to our

1615
01:58:51,965 --> 01:58:55,125
directors, um, you know, I mean, all the numbers that we have right now,

1616
01:58:56,025 --> 01:58:59,805
our estimate, so there is no facts here right now.

1617
01:59:00,465 --> 01:59:04,165
the facts will come at the, when we approve the budget,

1618
01:59:04,775 --> 01:59:08,385
those are the facts right now we're looking at estimates, we're looking at,

1619
01:59:08,785 --> 01:59:12,665
um, um, you know, and, um, revisiting each, um,

1620
01:59:12,885 --> 01:59:16,535
line item per line item in order for us to be able to understand

1621
01:59:17,585 --> 01:59:21,585
how we can streamline it and approve a budget that is not,

1622
01:59:22,825 --> 01:59:26,585
you know, I mean, that's not that, that we can, that we won't be afraid of.

1623
01:59:26,975 --> 01:59:30,325
how's that? Right? So that we, that we will move forward,

1624
01:59:31,025 --> 01:59:34,925
um, with confidence in, um, you know, I mean providing the services

1625
01:59:35,345 --> 01:59:39,245
to the people that we, we pledge to serve. So you, I mean, that's

1626
01:59:39,525 --> 01:59:43,395
my comment. Thank you. Alright, we'll

1627
01:59:43,745 --> 01:59:47,725
go ahead and wrap this up, I guess, at this stage. Um, and that is,

1628
01:59:48,595 --> 01:59:52,465
we'll look forward to the next, uh, budget workshop. We'll get that date out as

1629
01:59:52,625 --> 01:59:56,485
soon as we can get a date together, uh, that works for

1630
01:59:56,705 --> 02:00:00,505
both staff and for the, for the electeds, uh, to make this happen as soon as

1631
02:00:00,825 --> 02:00:04,765
possible. At the same time, give staff enough time. We gave you a lot of stuff today saying we

1632
02:00:04,985 --> 02:00:08,985
want all this stuff back , which I know doesn't just hit by pushing the, the button

1633
02:00:09,165 --> 02:00:12,895
on the computer. It doesn't, um, it takes, it's gonna be a lot of work, uh, to put some

1634
02:00:13,185 --> 02:00:16,865
of that stuff together. And first of all, just make the list of all the things we just asked you about.

1635
02:00:17,685 --> 02:00:21,545
so, uh, that's part is good. And as I think it's, as we look forward

1636
02:00:21,965 --> 02:00:25,785
toward dealing with the budget, hopefully we'll use good sound budget concepts.

1637
02:00:26,345 --> 02:00:30,105
and one of it is if we're gonna be including our ongoing expenses

1638
02:00:30,655 --> 02:00:34,545
that we make sure it comes from ongoing revenue and, uh, that we'd

1639
02:00:34,785 --> 02:00:38,465
be careful about using one time, one time funds, one time,

1640
02:00:39,085 --> 02:00:42,945
uh, money to do ongoing revenue because, or ongoing expenditures.

1641
02:00:44,045 --> 02:00:47,785
um, because otherwise that's gonna be eaten up as we can see already in that one fund alone

1642
02:00:48,325 --> 02:00:52,305
in a very, very short period of time. And a lot of those, a lot of the,

1643
02:00:52,485 --> 02:00:56,465
uh, one time money that we have is dedicated money. We don't have

1644
02:00:56,775 --> 02:01:00,445
some of that. We don't have any choice. It has to be there. So, um,

1645
02:01:01,625 --> 02:01:05,495
a lot of choices to be made, and we're looking forward to staff coming back to us with

1646
02:01:05,785 --> 02:01:09,665
a number of ideas and council members, you know, putting our

1647
02:01:09,865 --> 02:01:13,705
ideas together and, uh, listening to the public also and seeing what

1648
02:01:13,985 --> 02:01:16,545
we can, uh, we can make happen with that.

1649
02:01:18,205 --> 02:01:22,105
uh, your ajour. Thank you, mayor.